ITC^DeltaCom Grows Revenue, Cites Wholesale Pressure
ITC^DeltaCom Inc.’s third-quarter revenue in its wholesale communications unit continued declining as the company increased overall sales.
Overall, ITC^DeltaCom says third-quarter revenue increased 7.1 percent to $108.1 million over the period a year ago.
The company says its retail operations represented 78.8 percent of total sales, with its wholesale operations marking 22.2 percent of revenue. Through the first nine months of 2003, retail revenue totaled $235.3 million, up 14.2 percent over the previous period. In contrast, wholesale revenue declined 34.1 percent over the first nine months of the fiscal year, totaling $74.4 million.
ITC^DeltaCom says it expects wholesale revenue – sales to other carriers – to continue declining.
“The company expects that this trend will continue through the remainder of 2003, due to excessive transmission capacity and competitive pricing pressure,” ITC^DeltaCom says in a statement.
Citing operating losses and low gross margins, ITC^DeltaCom says it closed a small division in October that resold computer servers, routers and related equipment.
ITC^DeltaCom recently completed a merger with BTI. Executives of ITC^DeltaCom say they expect the combined company to serve about 50,000 customers in the Southeast and generate $630 million to $660 million in annual revenue. During the quarter, ITC^DeltaCom begin integrating the two companies.
|ITC^DeltaCom Inc. www.itcdeltacom.com|