The US-based telecoms and Internet company, Worldcom, reported a 26 per cent increase in third-quarter profits in line with expectations yesterday, but its share price slumped more than 7 per cent on weaker than expected revenues.

The results showed a rise in corporate profits, excluding one-off items, to $1.4 billion, or 47 US cents a share, compared with $1.1 billion, or 37 US cents a share, a year earlier. But investors reacted negatively to the prospect of increased competition in the consumer and wholesale voice markets, while Worldcom's Internet and data sales also disappointed.

The company said it would unveil a restructuring plan next week to help boost the share price, which has slumped by more than 50 per cent in the past 12 months.

Worldcom employs almost 200 people in the Republic and is building an Internet data centre which is due to open shortly.