Earnings Reports for July 31

The company said revenues rose to $10.19 billion, from $9.07 billion a year ago. Data, Internet and international revenues grew 30 percent to $4.9 billion and now account for 48 percent of WorldCom’s total revenues.

International revenues increased 31 percent to $1.4 billion, driven by strong sales in Europe, as well as increasing revenues in the Asia-Pacific and Latin America regions. Voice revenues grew 4 percent to $2.75 billion.

WorldCom president and CEO Bernie Ebbers said he was disappointed that a proposed $129 billion merger with Sprint was blocked by federal and European regulators, but said the company is looking to the future. He said WorldCom would continue to expand its global network by sharpening its focus on “higher-margin, value-added services in the commercial data, Internet and international markets.” The collapse of the Sprint deal left WorldCom without a wireless segment of its own. That segment of telecommunications is the fastest growing in the United States, said David Burks, an analyst with J.J.B. Hilliard W.L. Lyons in Louisville, Ky.

Burks said the spin-off possibility raised by Ebbers wasn’t surprising given the company’s interest in the Internet.

The company has been shifting away from slower-growing businesses such as the consumer long-distance and wholesale markets due to increased competition and pricing pressure.


The Associated Press and Reuters contributed to this report.

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