Global Crossing to pay $US96.1m for UK fibre network

Stuart Corner
Saturday, 26 August 2006 03:53

IT Industry - Deals

It reported its second quarter results earlier this month saying it had "reached crucial inflection points for revenue and EBITDA" and that management had "reaffirmed that the company will begin to generate cash at some point in the second half of the year, marking significant financial milestones."

"We have performed for the past seven quarters leading to the achievement of our major goals, including generating positive adjusted EBITDA in June," said John Legere, Global Crossing's CEO (who has held the job throughout the upheavals of chapter 11). "After transforming the business and intentionally reducing revenues to focus on more profitable services such as IP-based carrier data and enterprise services, we're pleased to report that consolidated revenue grew sequentially for the first time in three years. This growth validates our strategy and shows that the future looks extremely promising for Global Crossing."

Global Crossing's consolidated revenue grew from $US456 million in the first quarter of 2006 to $461 million in the second quarter of 2006. Revenue for the company's UK subsidiary (GCUK) grew  seven percent sequentially to $US106 million. Revenue from Global Crossing's 'invest and grow' segment- that part of the business focused on serving global enterprises, carrier data and indirect channel customers - grew to $US299 million, a five percent increase over the prior quarter and a nine percent increase year over year.

Adjusted EBITDA loss for the second quarter was $US17 million, a 62 percent or $US28 million sequential improvement, and a 37 percent or $US10 million improvement year over year.