JACKSON, Miss. (March 6, 1996) --
WorldCom, Inc. (Nasdaq/NM:WCOM) today reported record revenues of
$3.64 billion for 1995, up 64% from 1994 revenues of $2.22 billion.
Traffic rose 77% over the previous year. Net income for the year,
before a non-recurring special dividend payment of $15.0 million to
Metromedia in the third quarter, increased to a new high of $249.5
million, or $1.36 per common share, compared with a net loss of
$149.9 million, or $.95 loss per common share, for 1994. The 1994
loss included nonrecurring charges related to the December 1994
merger with IDB Communications Group, Inc.
For the fourth quarter ended December 31, 1995, revenues totaled
$946.6 million, which represents an increase of 65% over revenues of
$573.0 million for the fourth quarter of 1994. Traffic for the most
recent quarter increased 75%. Net income rose to $78.8 million, or
$.40 per common share compared with a net loss of $77.2 million, or
$.49 loss per common share, including the IDB-related nonrecurring
charges, for the fourth quarter of 1994.
Results for the fourth quarter and full year include the
operations of WilTel Network Services, which was acquired by
WorldCom, Inc. on January 5, 1995. On a pro forma basis, as though
the acquisition of WilTel occurred at the beginning of 1994, revenues
for 1995 rose 19% from pro forma revenues of $3.1 billion for 1994,
and traffic increased 30%. Switched retail revenues and traffic rose
18% and 22%, respectively; wholesale revenues and traffic rose 26%
and 47%, respectively; and private line revenues rose 21%.
Bernard J. Ebbers, president and chief executive officer of
WorldCom, Inc., stated, "Our company's first year as
WorldCom, Inc. was tremendously successful. The combination of LDDS,
WilTel and IDB continues to generate the synergies we expected. The
performance of the combined company in 1995 set the stage for an
exciting future for WorldCom, Inc."
For the fourth quarter of 1995, the company's pro forma
switched retail revenues increased 18%, while retail traffic grew 23%
compared with the same period of 1994. On the wholesale side of our
business, revenues increased 22% and traffic rose 31%. The wholesale
comparison reflects consideration of fourth quarter 1994 revenues of
$10.2 million from the IDB carrier business which was terminated at
the date of merger.
Revenues from private line and frame relay services increased 20%
in the fourth quarter of 1995 compared with the same period of 1994.
"We continue to see tremendous growth in commercial Internet
business and other frame relay applications," said Ebbers.
He continued, "During the fourth quarter, we introduced
additional new products and services in both the retail and wholesale
sides of our business. In the retail market, we introduced WorldOne
for Associations, an updated version of our highly successful product
line targeted for sale to members of qualified professional
associations, alumni organizations and chambers of commerce. Due to
its overwhelming success, we also extended the offering of the
WorldForce International Plan, which allows businesses to customize
their international service.
"WorldCom, Inc.'s prepaid calling cards continue to
experience rapid growth and market acceptance. Our company recently
teamed with Avis Rent A Car to launch an imaginative new long
distance debit card program. Avis is distributing three million
WorldCom, Inc. debit cards with 10 minutes of prepaid long distance
calling time to its rental car customers. We also signed an exclusive
agreement with Delta Airlines for a passenger calling card
program.
"WorldCom, Inc. announced it will provide a complete suite of
switched services, private line services, prepaid calling cards and
frame relay services to Ceridian, a leading provider of transaction
processing services to the trucking and gaming industries. The
seven-year, multimillion dollar deal is one of the largest commercial
contracts in the history of WorldCom, Inc.."
Ebbers continued, "Our commitment to the carrier market was
reflected in the introduction of an innovative product called
Transcend. In an industry first, the product effectively separates
local and long distance billing components. This new product provides
carrier customers important new tools to target their products in
marketing regions with optimum revenue and profit potential.
"In the increasingly competitive carrier market, it is
especially significant that WorldCom, Inc. customers also gain the
use of Transcend software tools to examine calling patterns and audit
local charges. Together with access to a continuously updated
database with comprehensive local service rating information, these
tools position customers to capture increased market share. With
telecommunications reform underscoring the need for competitive
agility, Transcend allows WorldCom, Inc. customers to react quickly
to changing marketplace conditions and to effectively deploy market
approaches on a regional basis.
"In our continuing expansion of services internationally,
WorldCom, Inc. obtained the contract to provide telecommunications
services for the German Parliament. This contract underscores our
continuing strong growth in Europe. In the United Kingdom, WorldCom,
Inc. is currently the third largest long distance carrier.
"During the first three quarters of 1995, we changed our name
to WorldCom, Inc. to better reflect our expanded capabilities;
substantially enhanced our domestic and international frame relay
products; established GridNet International, which offers
user-oriented solutions in the switched-access market; signed a
number of significant service contracts with customers; and processed
our 10 millionth Electronic Data Exchange transaction.
"The enactment of the Telecommunications Act of 1996 in early
February made it possible for WorldCom, Inc. to form business
associations that will be very profitable for our company in the
years ahead. In the first quarter of 1996, we have signed agreements
to provide long distance telecommunications services to GTE Corp.,
Ameritech Communications, Inc., and Southwestern Bell Mobile Systems.
We also entered into an agreement to become a major provider of data
telecommunications services for EDS, the global information services
company. These agreements demonstrate that WorldCom, Inc. is well
positioned to take advantage of business opportunities in the rapidly
changing telecommunications marketplace."
Ebbers concluded, "To further emphasize our expanding role in
a variety of markets, in December we signed a multi-year agreement
with Michael Jordan to help promote the company's services as
WorldCom, Inc.'s spokesman. Jordan, the best known sports figure
in the world, is expected to be instrumental in increasing the
company's already strong position in the consumer debit card
market, while heightening visibility both in the United States and
internationally. Company advertising featuring Jordan is anticipated
to premiere later this year."
One of the largest long distance telecommunications companies in
the United States, WorldCom, Inc. offers domestic and international
voice, data and video products and services to business customers,
other carriers and the residential market. The company operates a
nationwide digital fiber optic network in the United States and has
worldwide network capacity. The common shares of WorldCom, Inc. trade
on The Nasdaq Stock Market under the symbol WCOM.
