— Company adds 35,200 local service lines in the quarter — Continued reduction in churn — 18% growth in consumer revenue, year over year — 4% growth in business revenue, year over year — 5% increase in gross margin, year over year — Generates $2.6 million in free cash flow, in quarter
TORONTO, July 28 /PRNewswire-FirstCall/ — Call-Net Enterprises Inc., a national facilities-based provider of competitive telecommunications, data and Internet Protocol (IP) solutions to households and businesses across Canada, today reported financial results for the second quarter ending June 30, 2004.
«Our focus on selling bundles using our home phone service as a foundation continues to be the right growth strategy,» said Bill Linton, president and chief executive officer, Call-Net Enterprises. «Sixty per cent of consumer services revenue now comes from customers who purchase more than one product from us compared to 45 per cent in the same quarter last year.»
Consolidated revenue for the second quarter of 2004 was $200.8 million, a 4 percent increase from the same period last year. Gross margin for the quarter was $100.3 million, a $4.6 million increase from the second quarter of 2003. Second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) were $22.4 million, a $1.3 million decrease from the second quarter of 2003 primarily due to an increase in operating costs.
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July 28 (Bloomberg) -- From his
39th-floor office, Verizon Communications Inc. Chief Executive Officer Ivan Seidenberg looks through cables draping his building and holding up scaffolding, marring his view of the Manhattan skyline.
``It’s 30 years old,’’ Seidenberg explains with a shrug as he sits at the table in his corner office with views of Central Park and the East River. ``It needed refurbishing.’’
The marble-and-glass facade of the company’s headquarters, at the corner of Sixth Avenue and 42nd Street, isn’t the only Verizon structure needing an upgrade. Verizon, formed in 2000 by the $71 billion acquisition of GTE Corp. by Bell Atlantic Corp., runs a century-old network of copper-wire phone lines that transmit calls for 27 million homes from Maine to California.
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Cable & Wireless, faced with a new threat to its overseas calling market by a growing number of
voice-over-the-internet (VOI) companies, is now contemplating getting into that market itself.
C&W told the Business Observer that it was now testing a VOI for possible offer to commercial clients.
Cellular service provider Digicel said that although it was contemplating offering a calling card service, it would not be VOI calling cards.
The VOI represents the latest frontier in the fight over the telecommunications market, estimated to be worth $1.5 billion per year — given the 150 million minutes of calls made each year by Jamaicans to the USA.
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DENVER — Qwest began a
14-state ad campaign Sunday seeking to lure customers of AT&T’s
long-distance service.
Last week AT&T announced it would stop seeking new residential customers, though it would continue to serve existing ones.
The ad campaign features a letter from Qwest CEO Richard Notebaert promising long-distance users that they can count of his company to keep its long-distance service «and continue to invest in our world-class network…»
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By Faultline
Analysis Verizon, the largest local telecommunications provider in the US, has torn up the US telephone rule-book and is offering a US-wide Voice over IP (VoIP) service for $39.95 a month, with discounts available if customers use other Verizon services.
The service is called VoiceWing and the move is seen as the beginning of a colossal US-wide land grab for customers between the big four local telcos, Verizon, SBC, Bellsouth and Qwest and is also targeted at fighting off the triple play threat from the big US cable firms.
It will also find itself going up against AT&T’s CallVantage VoIP scheme which is almost identical.
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