WorldCom, whose proposed merger with Sprint (FON) recently fizzled, said Wednesday that it boosted profits almost 54 percent during the second quarter. The company is also considering a tracking stock for its voice telephone operations.
Revenue during the quarter was US$10.2 billion, up from US$8.9 billion in the year ago quarter. It reported a profit of US$1.33 billion, or 46 cents per share, compared to US$865 million, or 31 cents per share a year ago.
First Call consensus for the quarter was 46 cents per share. Profits exclude a US$55 million charge related to the termination of the Sprint merger.
"We are disappointed that our proposed merger with Sprint was blocked. But WorldCom is moving forward, exploring opportunities to restructure our business to increase growth and profitability," CEO Bernard J. Ebbers, said in a release.
Revenue from voice operations was US$2.7 billion, up from US$2.6 billion in the year-ago quarter. WorldCom is the second largest long distance carrier in the United States.
Ebbers said the creation of a tracking stock "would allow more efficient management of the voice business while enhancing WorldCom''s effectiveness in targeting commercial customers."
Data, Internet and international revenue grew 30 percent to US$4.9 billion and now account for 48 percent of the company's total revenues.
Domestic data revenue grew US$447 million, or 25 percent, to US$2.2 billion. Domestic commercial data revenue, excluding wholesale, grew US$442 million, or 30 percent to US$1.9 billion compared to the year-ago quarter.
