Telecom operators post losses

Kevin Rademacher

Monday, Nov. 10, 2003 | 11:16 a.m.

A pair of telecommunications companies providing service in Las Vegas posted third-quarter losses last week.

Mpower Holding Corp., parent company of Mpower Communications, reported a loss of $1.2 million, or 2 cents per share, for the quarter. That's an improvement from the $17 million, or 26 cents per share, lost in the same 2002 quarter.

Revenue for the third quarter was $36.8 million, up from $24.9 million for the year-ago quarter.

Mpower has 350 employees and about 30,000 customers locally. About 20 percent of the company's revenue comes from its Las Vegas operations, said Michele Sadwick, a company spokeswoman.

The company was founded in Las Vegas in 1995 and moved its headquarters to Rochester, N.Y., in 1999.

XO Communications, based in Reston, Va., announced a third-quarter loss of $40.8 million, or 42 cents per share, compared to a $695.2 million, or $1.57 per share, loss posted in the same 2002 quarter.

Revenue for XO fell 7.3 percent to $279.4 million in the third quarter, down from $301.5 million a year ago.

"The market for new telecom services remains weak, and we face competitive pricing pressure," Carl Grivner, XO's chief executive, said.

XO predicted an additional 5 percent decline in revenue during the fourth quarter.

The company has 60 Las Vegas employees and would not disclose the number of local customers or lines.

The Las Vegas operations, however, are currently exceeding the company's year-to-date revenue objectives by 105 percent, said Joe Brondon, general manager for XO's Southern Nevada operations.