MCI WorldCom Profits Jump

MCI WorldCom, the second largest U.S. phone carrier, said Thursday that first-quarter profit from operations quadrupled amid sturdy growth in data, Internet and global communications.

MCI WorldCom's profits from operations rose to $688 million, or 36 cents a share, up from pro forma $169 million, or 10 cents, a year earlier. The pro forma numbers take into account WorldCom's acquisition of MCI and other purchases.

The gain in the latest quarter surpassed the consensus estimate of analysts as surveyed by First Call Corp. by 2 cents. Revenue climbed 15 percent to $8.32 billion from $7.25 billion on a pro forma basis.

Like other phone companies, MCI WorldCom benefited from strong growth in data and Internet services. Data sales jumped 31 percent and Internet sales surged 60 percent. Its international business also performed well, with revenue rising 55 percent.

The company has also trimmed costs, primarily in operations acquired in the MCI deal. Before its sale, MCI had a reputation for lavish spending, which WorldCom chief executive Bernard Ebbers vowed to stop.

Shares of MCI WorldCom (WCOM) rose 1/16 to 87 11/16 Wednesday ahead of the report.

Written By Jeffry Bartash, CBS MarketWatch