Sunday, July 25, 2010

Global Crossing Posts Q2 Revenue of $630M, Down 3% Sequentially

Global Crossing reported consolidated revenue was $630 million in the second quarter of 2010, a decrease of 3 percent sequentially and essentially flat year over year. Compared with both prior periods, wholesale voice revenue declined $20 million due to pricing actions taken to improve margin performance. In addition, the sequential decrease included a $9 million unfavorable foreign exchange impact and the year-over-year decrease included a $7 million favorable foreign exchange impact. In constant currency terms, consolidated revenue decreased 1 percent sequentially and 2 percent year over year.

The company's "invest and grow" services generated revenue of $555 million in the second quarter, flat on a sequential basis and an increase of 3 percent year over year, including substantially all of the foreign exchange impacts referenced above. In constant currency terms, "invest and grow" revenue increased 2 percent both sequentially and year over year.

Global Crossing reported $93 million of OIBDA in the second quarter, compared with $77 million in the first quarter of 2010 and $93 million in the second quarter of 2009. On a segment basis, ROW, GC Impsat and GCUK contributed $32 million, $41 million and $20 million, respectively.

Global Crossing's consolidated net loss applicable to common shareholders was $48 million for the second quarter of 2010. On a sequential basis, net loss decreased $72 million, principally due to a decrease in unfavorable foreign exchange impacts and an increase in OIBDA.