Global Crossing Reports Q4/09, Holds Steady

International fiber and data operator glbc reported earnings this afternoon after the bell, posting solid numbers to end the year.  While slightly below my own optimistic guesses, revenue of $651M and OIBDA of $83M easily delivered on guidance, and the company generated positive free cash flow for both the quarter and the full year 2009.  Here is a quick tabular summary:

$ in millions	Q3/09	Q4/09	2010 Guidance
GCUK	117	123
GC Impsat	125	128
ROW	311	306
Total Invest & Grow	553	557	2300-2375 (7-10%)
Wholesale Voice	89	93
Total Revenue	643	651
Cost of Revenue	443	461
SG&A	109	107
OIBDA	91	83	390-440
Free Cash Flow	+52	+72	10-60
Capital Expenditures	33	49

Projections for 2010 were quite encouraging, with 7-10% growth in the company’s “invest & grow” revenues leading the way and midpoint OIBDA finally breaking the $400M mark.  Alongside the rising OIBDA number, free cash flow guidance implies that they do intend to invest most of their organically produced cash flow back into the business in 2010 in the interests of further growth.

I had the opportunity to speak briefly with company management this evening, from which I gleaned:

• On Q4/09 ROW revenues – this segment remains on track, in Q4 there was a hit to usage based revenues due to fewer business days.
• Cost of access at GC Impsat included a true-up of some $9M, and was otherwise in line.
• Projections of 7-10% growth are spread out geographically – GCUK, Impsat, and ROW should all see some of it.
• They feel pricing trends remain roughly the same as they have throughout 2009, with the greatest pressure as always in IP transit.
• Cash flow plans for 2010 include reduced IRU sales, but overall demand remains steady – just anticipating some shift amongst products and maintaining a conservative bias.

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Categories: Financials · Internet Backbones