Sales at WorldCom International, WorldCom's European operation, have plunged 50 per cent since its US parent filed for Chapter 11 bankruptcy protection, increasing the likelihood that the unit could be put up for sale. The extent of the decline was revealed by Ms Lucy Woods, chief executive of WorldCom International, in a conference call with senior employees.
She said: "We would always see a dip in July or August, but not a dip of this size. Customers are less willing to sign up with us." But she said the firm was still winning new business and wholesale sales to rival telecoms operators had risen.
"My impression is that customers are still quite calm and don't seem to be leaving us yet."
Ms Woods expected WorldCom International to report "another positive ebitda month" for July. The unit was still aiming to become free cashflow positive by January next year, she said. WorldCom's international arm is believed to be consuming cash at around $500 million a year. This has lead to widespread speculation that the operations will be sold.
Before the crisis at Worldcom broke, the firm had around 6,000 customers in the Republic where it supplies voice, internet and data services to many top multinationals. The firm, which employs 180 staff in Dublin, Cork and Limerick, also supplies services to hundreds of mid-size firms and public bodies.
- (Financial Times Service)
