Internal cash flows at the WorldCom group improved over $600 million during the quarter and were achieved through increased cash from operations as well as less cash used in investing activities.
WorldCom group reported revenues of $5.4 billion, a 12 percent increase from the same period in 2000. This strong result was driven by 22 percent year-over-year revenue growth in data and Internet services.
Data and Internet services accounted for approximately $3.0 billion or 55 percent of WorldCom group’s revenues, up from 51 percent of revenues in the second quarter of 2000. Revenue growth in these fast-growing services continues to lead the industry and accounts for 92 percent of WorldCom group’s incremental revenue growth since the year-ago quarter.
International services increased 26 percent and represented 14 percent of WorldCom group’s revenues during the quarter, up from 12 percent of revenues in the year ago period.
Business voice revenues declined 6 percent from the year-ago period, representing 31 percent of WorldCom group’s revenues compared to 37 percent in the second quarter of 2000.
WorldCom group EBITDA (earnings before interest, taxes, depreciation and amortization) was $2.0 billion, an $82 million sequential increase and up $32 million from the same period last year. WorldCom group EBITDA margin was 38 percent and includes the continued impact of previously announced spending on growth initiatives, such as managed web hosting and Internet-based virtual private networks.
The group reported cash earnings (earnings before goodwill amortization) of $805 million or 28 cents per share. WorldCom group net income, after goodwill amortization, was $574 million or 20 cents per share in the quarter.
Second quarter 2001 consolidated revenues were $8.9 billion. Consolidated EBITDA was $2.7 billion, representing an EBITDA margin of 30 percent.
Second quarter 2001 cash earnings were $917 million. Consolidated net income, after goodwill amortization, was $623 million.
The growth in our data and Internet revenues this quarter again demonstrates the value of enterprise customers as we continue to see our customers’ requirements for more bandwidth, said Bernard J. Ebbers, president and CEO of WorldCom, Inc.
I’m also extremely pleased with the results of our heightened focus on cash flow. The $600 million sequential improvement in internally generated cash flow this quarter is a result of good business fundamentals: solid growth, more stable pricing, efficient cost control and effective balance sheet management.
