COMPANY PRESS RELEASE: Equant, a recognized industry leader in global IP and data services for multinational businesses, has announced revenues for the fourth quarter and full year 2001.
Revenues for the quarter were $747.5 million, an increase of 16.3 percent compared with the pro forma fourth quarter 2000. Full year 2001 pro forma revenues increased by some 12 percent over 2000 on a pro forma basis.
Commenting on Equant’s results, Didier Delepine, chief executive officer of Equant said: Equant made significant progress in its growth and development in 2001. The overall transaction with France Telecom, including the acquisition of Global One, has enabled us to fulfill many of our strategic objectives: scale, network control, funding and the benefits of a strategic shareholder.
The confidence displayed by multinational corporations in our enhanced business proposition has ensured that demand for our high-end, managed services remains good.
Although we have not finalized and audited all of the results, I am particularly pleased to report that within 6 months of our transaction we anticipate EBITDA, on an adjusted basis, to be positive in the fourth quarter, in line with expectations.
We have made rapid progress in integrating Global One, putting in place a single product portfolio and sales force within the first six months. We have moved speedily to integrate our two networks seamlessly. We are delivering on the most critical parts of our merger plan.
In 2001 we worked very hard to position Equant as the leading provider of Global IP and Data Services to multinationals. We believe that as we deliver enhanced operating efficiencies, we will be able to exceed our synergy targets, meet financial expectations and deliver superior returns to shareholders.
Revenues The Company’s revenues this quarter grew 16.3 percent compared with the fourth quarter 2000.
Network Services’ revenues increased by 11.9 percent to $401.5 million in the fourth quarter of 2001 driven by the continued demand for advanced, high speed data network services such as frame relay, asynchronous transfer mode (ATM) and Internet protocol (IP). For the full year 2001, Network Services’ pro forma revenues reached $1551.2 million, an increase of 16.3 percent over 2000. Revenues from high-speed services now account for approximately 95 percent of Network Services’ revenues.
Order intake for Network Services in the fourth quarter was nearly $0.5 billion resulting in a year-end order book of approximately $3.0 billion. The Company is currently integrating its order recording systems and consequently this information remains approximate.
In the fourth quarter the Company received orders of $25 million from one customer and over $50 million of orders from another as well as 59 other orders of over $1 million. Among our new customers in the quarter were such multinational businesses as ABN AMRO, Alfa Laval, and American President Lines.
Integration Services’ revenues declined by 30.5 percent to $108.5 million this quarter reflecting the economic slow down and customers’ cut backs in capital expenditure. As a result, revenues for fulfillment were below last year’s levels by over 50 percent, which in turn, resulted in lower installation and maintenance income.
Revenues from SITA were $170.1 million in the fourth quarter reflecting the new contractual arrangements with SITA.
Other services revenues in the fourth quarter were $67.4 million, which includes circuit switched voice of $45.6 million as well as revenue from other services provided to France Telecom affiliates.