Monday, April 25, 2005

Level 3 Increases Communications Revenue

Level 3 Communications reported revenue of $1.01 billion for the first quarter 2005 compared to $1.05 billion for the fourth quarter 2004. Communications revenue was $510 million in the first quarter versus $482 million for the previous quarter, and information services revenue was $483 million compared to $547 million for the seasonally high previous quarter. The net loss for the first quarter 2005 was $77 million, or $0.11 per share, consistent with the previous quarter.

"We experienced another quarter of strong IP traffic growth on our network, with average traffic per day increasing approximately 25 percent over the prior quarter," said James Q. Crowe, CEO of Level 3.

Level 3 is now carrying an average of 2.7 petabytes of traffic per day on its IP network.

During the quarter, Level 3 announced new customer contracts to provide VoIP services to AOL and Adelphia and saw strong contract activity from a number of its target customers, particularly from cable operators, wireless companies and PTTs.

"The competitive environment continues to remain challenging; however, we continue to see positive signs for the industry including consolidation that should prove beneficial to us in the long term," said Crowe.

See also