The earnings parade gets into full swing
The ongoing economic downturn produced a mixed financial bag for several players in the broadband and communications arena. The latest reports: Sprint, Level 3 Communications, Rogers Communications and Nokia.
An investment write down and a lagging wireless division propelled Sprint Corp. to a second-quarter loss of $68 million. In the second quarter 2001, the company posted net income of $43 million. On a brighter note, revenue increased nearly 6 percent from $6.45 billion to $6.83 billion.
Sprint expects to be free cash flow breakeven for full-year 2002, a $400 million improvement over a previous guidance. Last week, Sprint said it planned to cut 1,200 jobs from its global markets group to curb expenses.
Level 3 Communications
Excluding one-time items, Level 3 Communications narrowed its second-quarter loss $156 million, or 58 cents a share. Revenue reached $750 million. Level 3 offers service in 69 markets worldwide and has local fiber networks in 36 markets.
Looking ahead to the third quarter, Level expects to lose 85 cents a share. The average analyst estimate is a loss of 84 cents, according to Thomson Financial/First Call.
Canadian cabler Rogers Communications Inc. posted second-quarter revenue of $701.8 million, up from $635.4 million in the second quarter 2001. Its cable division posted a net loss of $122.5 million, on revenue of $250.6 million. The unit posted operating profit of $88.3 million. In the same quarter in 2001, the cable division reported operating profit of $83.5 million.
The company's increased the number of digital set-top terminals in service by 113,100, or 47.5 percent, compared to the year-earlier period. The company ended the quarter with 351,100 terminals in service.
For the just-ended second quarter, Nokia posted a profit of $862 million, up from $593 million in the year-earlier period. Despite the profit bump, Nokia curbed its second-half sales forecast. The world's largest wireless phone maker now expects sales to be up between 3 percent and 10 percent. Last month, the company was predicting growth of 10 percent.