Global Crossing Reports Financials for Q4

Global Crossing reported Q4 total revenue of $719 million compared to $765 million for the same period in 2002. The decrease in total revenue was primarily attributed to the company's delayed emergence from Chapter 11 and continued pricing pressures resulting from a competitive market, partially offset by growth in the company's carrier business segment. Total revenue consisted of telecom services revenue of $679 million and Global Marine revenue of $40 million.
EBITDA for Q4 2003 improved to $13 million as compared to a loss of $62 million for the same period in 2002. Global Marine EBITDA was $13 million for the fourth quarter of 2003 compared to a loss of $5 million for the same period in 2002. Telecom EBITDA was break-even in the fourth quarter of 2003 compared to a loss of $57 million for the same period in 2002.



For 2004, Global Crossing said it is reformulating its marketing strategy to promote aggressive customer acquisition for an advanced suite of IP and data services, such as high performance IP data networking, VoIP, IP Video and other mission-critical business applications for both enterprise and carrier customers.



Global Crossing said its carrier business is an important part of its heritage would remain key to its business going forward. The company anticipates that the carrier market will enhance its revenues and margins as a result of increased network utilization, which leads to greater economies of scale.



In addition, Global Crossing said it is reviewing its lines of business in volatile and low margin services, particularly in the international long distance reseller market. The company is tightening the terms for pricing and payment and expects that these initiatives will improve cash flow, but will reduce revenue for these services by approximately $75 to $125 million annually. http://www.globalcrossing.com