The carrier, a.k.a. WorldCom Inc., is due to emerge from Chapter 11 bankruptcy protection before the end of February 2004 (see MCI Back In Business). Until then, it is reporting monthly financial data to the U.S. Bankruptcy Court for the Southern District of New York, and the figures for September included a net loss of $35 million that the carrier put down to a combination of lower revenues and one-off expenses (see table below).
The carrier says its net loss, compared with a net profit of $132 million in August, is attributable to the fall in revenues and $106 million worth of non-operating expenses, which includes $71 million of "reorganization items." It also noted a month-on-month reduction in non-operating income: MCI had reported $138 million in asset sales in August. As a result its available cash pile remained at the same level of $5.3 billion, about $600 million more than the operator had been expecting to have at this stage, according to an MCI spokeswoman.
Table 1: MCI Monthly Financials, May-Sept. 2003
|Sept 2003*||Aug 2003||July 2003||June 2003||May 2003|
|Cash in hand||$5,300||$5,300||$4,700||$4,600||$4,200|
|* = latest figures reported ** = all figures in millions|
Source: Lashings of tomato ketchup on MCI/WorldCom press releases
As for any ongoing restructuring costs, she says that, while it is hard to predict how much they might fluctuate from month to month, they could get smaller as MCI nears completion of its Chapter 11 phase.
Capital expenditure was again low at $63 million, little more than 3 percent of revenues, though the carrier is planning to invest in its IP network once it has thrown off its Chapter 11 shackles.
The spokeswoman could not confirm any plans for 2004 spending, saying that no guidance had been issued for 2004.
The carrier's monthly figures do not include any revenues from its stake in Brazilian operator Embratel Participações S/A, which MCI is trying to sell (see MCI to Sell Embratel Stake).
— Ray Le Maistre, International Editor, Boardwatch