The increasing demand for high bandwidth lines used by corporate intranet and internet applications, together with other internet business boosted revenues at WorldCom Inc by $160m in its first quarter. WorldCom Inc, the fourth largest phone company in the US, has reported first quarter net profits down 49.8% at $43.1m but revenues leapt up 62.2% to $1.68bn. The figures are distorted by the inclusion of MFS Communications Company Inc which was purchased by WorldCom on December 31. But adjust for MFS’ figures and you still get an internal revenue growth rate of 35%. WorldCom saw huge growth rates of 89% on calls originating outside the US, mainly due to activity in the United Kingdom. The fall in net profits were partly due accounting adjustments for the amortization of goodwill on the MFS acquisition. President Bernard J. Ebbers says the merger went ahead smoothly and the inclusion of more diversified revenue streams has broadened the portfolio of products which the group now provides. But Wall street was unmoved by the results and the shares barely moved.
