Global Crossing Narrows Loss While Level 3 Goes Farther Into Red

Global Crossing, the communications provider that announced an agreement in April to be acquired by Level 3 Communications, reported a smaller loss in the second quarter over the same period a year ago.

But Level 3s loss grew, thanks partly to its pending merger with Global Crossing.

In the quarter ending June 30, 2011, Global Crossings consolidated net loss applicable to common shareholders was $35 million. That loss was down from $48 million in the second quarter of 2010, according to unaudited results.

On a year-over-year basis, the $13 million improvement in net loss was due to improved operating income, lower interest expense and the net benefit from income taxes in the quarter,” Global Crossing said.

Consolidated revenues at Global Crossing rose to $692 million, reflecting a 5 percent improvement sequentially and 10 percent growth year over year.

Global Crossing announced its second-quarter results three months after revealing plans to merge with Level 3 in a deal valued at $3 billion. U.S. regulators are reviewing the transaction, which the companies expect to close before the years end.

Level 3 also grew its revenues in the second quarter, but its loss widened.

Level 3 on Wednesday reported consolidated revenue of $932 million and a net loss of $181 million, or $0.11 per share.

Those results compare to revenues of $908 million and a net loss of $169 million, or $0.10 per share, in the second quarter of 2010.

Level 3 said its most recent loss included a $0.02 per share charge related to the extinguishment of debt and $14 million in costs associated with Global Crossing.

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