Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.
Revenues of $718M were helped by currency exchange movement -- were up 0.8%, but down 1.4% on a constant currency basis
October 28, 2004
2 Min Read
AMSTERDAM -- Highlights:
Third quarter revenues of $718 million, a growth of 0.8 percent on a reported basis but a decline of (1.4) percent on a constant currency(1) basis.
Continued decrease in Network Services revenues, a decline of (8.4) percent on a reported basis and (10.4) percent on a constant currency basis, due to significant price pressure in the data business.
Robust growth in Integration Services revenues, a growth of 29.6 percent on a reported basis and 25.9 percent on a constant currency basis, driven by fulfillment, services, and outsourcing.
Tight cost control and cash management, leading to a stabilized net cash position during the quarter.
Market conditions are increasingly challenging. However, the company’s objective remains reaching its full year 2004 targets as indicated in July 2004.
Equant (Euronext Paris: EQU) (NYSE: ENT) today announced its revenues for the third quarter of 2004.
Commenting on Equant’s revenues Daniel Caclin, Equant’s president and chief executive officer, said: “Market conditions are increasingly challenging, in particular with fierce price competition. As a result, our revenue mix continues to evolve, with a sharp decrease in our legacy business in the third quarter. In this industry environment, we are focusing our resources to expand in communication infrastructure solutions, with continued growth in our services and outsourcing activities and the development of our activity portfolio. We are also pursuing cost and cash management actions which have led to a stabilization of our net cash position during the quarter. We will continue to transform our business and provide more value added services to our customers.”
Revenues
The company’s revenues for the third quarter of 2004 were $718 million. Compared with the third quarter of 2003, foreign exchange movements had a positive effect of $16 million on the company’s revenues, driven in particular by the appreciation of the euro against the US dollar. On a constant currency basis, the company’s revenues declined by (1.4) percent. Growth in Fulfillment and Other Integration Services together with increased revenues from Other Services partly offset lower revenues from Network Services, Messaging, Hosting and Security and SITA.
The company’s revenues from its total outsourcing activities more than doubled compared with the third quarter 2003, reflecting the ramp-up of the large outsourcing contracts signed since the end of 2003. During the quarter the company entered into an eight-year outsourcing agreement, part of a contract with France Telecom, which is valued at $115 million.
Revenues from the company’s service activities grew by 20 percent, on a constant currency basis, in the third quarter 2004 compared with the third quarter of 2003, and represented 16 percent of the company’s total revenues in the third quarter 2004.
Equant
You May Also Like
Latest News
Popular whitepapers in 5G
May 21 - May 23, 2024
May 21 - May 23, 2024
Join us for an immersive experience where the future of North American telecom industry unfolds in 2024.
LEARN MORE
