Global Crossing reports GCUK's third quarter 2007 results

December 6, 2007

2 Min Read

LONDON -- Global Crossing (Nasdaq: GLBC - News), a leading global IP solutions provider, today announced third quarter financial results for its subsidiary, Global Crossing (UK) Telecommunications Limited (GCUK).


GCUK generated 73 million pounds in revenue, with adjusted gross margin at 72 percent of revenue and adjusted IFRS EBITDA of 21 million pounds for the third quarter. (Adjusted gross margin and adjusted IFRS EBITDA are non-GAAP metrics that are defined and reconciled below.) During the quarter, net cash provided by operating activities was 7 million pounds after interest.

"I'm pleased to report that GCUK's business has remained stable throughout the year as we've managed our costs closely, and it's now generating strong order volumes," said John Legere, Global Crossing's chief executive officer. "We reached a record high for order levels in October and have secured an estimated 165 million pounds in multi-year contracts during the first ten months of the year."

Revenue and Margin

GCUK generated revenue of 73 million pounds, which was essentially flat on a sequential basis but an increase of 20 percent year over year from 60 million pounds in the third quarter of 2006. The year-over-year increase resulted primarily from the inclusion of Fibernet's UK operations in GCUK's results.

The company continued to renew major contracts, with Network Rail being the most recent in the third quarter. During the course of the year, GCUK renewed several other major long-term contracts, creating a platform for continued revenue stability.

In the third quarter of 2007, adjusted gross margin was 52 million pounds or 72 percent of revenue. This compared with 51 million pounds or 70 percent of revenue in the second quarter of 2007 and 41 million pounds or 68 percent of revenue in the third quarter of 2006. Third quarter 2007 adjusted gross margin was 70 percent of revenue, excluding a reclassification of costs from cost of access to depreciation and amortization due to the alignment of Fibernet's accounting policies with those of GCUK.

Global Crossing (Nasdaq: GLBC)

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