MCI is on-track to emerge from Chapter 11 bankruptcy protection in February 2004. The company issued the following financial guidance for full-year 2004:
- revenue is expected to be between $21 billion and $22 billion, a decline of approximately 10 to 12% versus expected 2003 results, primarily reflecting overall industry conditions and continued declining trends in the consumer market.
- operating income is expected to be between $1.1 billion and $1.3 billion, which includes depreciation and amortization of $1.7 billion and restructuring charges of approximately $100 million, resulting in an increase of $300 million to $400 million versus expected 2003 results.
- net operating cash flow is expected to exceed $1 billion, after capital expenditures of 6 to 8% of revenues, but including proceeds from the sale of certain non-core assets.
- business Markets revenue, which includes sales to U.S. domestic enterprise customers, is expected to decline 6 to 8% versus 2003, due to continued competitive pricing pressure, especially in Small and Medium-sized Business and traditional long-distance services.
- International revenue is expected to decline at similar levels to Business Markets.
- revenue, or sales to domestic U.S. consumers, is expected to decline 20 to 25% versus 2003. This reflects continued long-distance industry revenue declines primarily due to wireless substitution, intensified competitive conditions and the impact of national Do Not Call legislation.
- MCI will launch a consumer VoIP initiative in 2004.
