MCI issued new financial guidance for 2004, saying it now expects to generate revenue at the lower end of previous guidance of $21 billion to $22 billion. In 2003, the company reported revenue of $27.3 billion, which included $3.0 billion from Embratel. MCI announced in March 2004 its plans to sell its Embratel interest and, accordingly, will classify Embratel as a discontinued operation in the second quarter of 2004. The projections for 2004 exclude the operations of Embratel. Some main points:
- revenue from the company's global, high-end enterprise and government markets businesses to decline approximately 7% versus 2003, outperforming the overall Business Markets segment, which remains exposed to a challenging wholesale pricing environment. Overall Business Markets revenue is expected to decline 12% to 14% compared to 2003 revenue of $14.1 billion.
- International revenue is expected to decline 2% in 2004, reflecting stable volumes in the Europe, Middle East and Africa region (EMEA), new entries into emerging markets and an assumed favorable effect of foreign currency exchange. In 2003, International revenue (excluding Embratel) was $3.9 billion. MCI continues to operate the largest facilities-based network, with the highest number of Company-owned points-of-presence of any international carrier.
- Mass Markets revenue is expected to decline 20% to 25%, reflecting the negative impact of Do Not Call legislation, increasing wireless substitution and ongoing pricing pressure. To offset these challenges, the company's Mass Markets group will continue to focus on U.S. local services and expects to launch a VOIP initiative this year. In 2003, MCI's Mass Markets revenue was $6.4 billion.
- capital expenditures for 2004 are expected to equal approximately 5% of revenue. MCI is expanding its MPLS footprint that supports the convergence of voice and data, as well as investing in network security products and advanced applications features.
Further details were also provided. http://www.mci.com
