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Call-Net’s total revenue grows year over year

Call-Net Enterprises Inc. has reported financial results for the second quarter ending June 30.


July 28, 2004  


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Call-Net Enterprises Inc. has reported financial results for the second quarter ending June 30.

Consolidated revenue for the second quarter of 2004 was $200.8 million, a 4% increase from the same period last year.

Gross margin for the quarter was $100.3 million, a $4.6 million increase from the second quarter of 2003. Second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) were $22.4 million, a $1.3 million decrease from the
second quarter of 2003 primarily due to an increase in operating costs.

During the quarter, the company launched local service in several communities in Southern Ontario and in the Greater Montreal Area.

Business revenue grew by four per cent or $3.4 million compared to the second quarter of 2003.

In May, Call-Net announced an agreement with Bell Canada to acquire certain assets of 360networks Corporation including significant portions of its business customer base and specific network facilities in Ontario, Quebec and Atlantic Canada.

The company will enter into a two-year transitional services agreement with Bell Canada to provide technical and operational services to the newly acquired customer base and in exchange be paid approximately 70% of the total retail revenue.

The transaction is conditional on Bell Canada’s acquisition of the Canadian assets of 360networks, which is expected to close by September of 2004.