Global Crossing sees strong growth in Latin America in 2010, CFO says

- Wednesday, February 23, 2011

Global Crossing sees strong growth in Latin America in 2010, CFO says

IP and Ethernet solutions provider Global Crossing (NASDAQ: GLBC) saw "very strong growth" in Latin America during 2010, company CFO John Kritzmacher told BNamericas.

"The Latin American region was a strong contributor to the company's overall results... The progress of the Latin American region continues to be quite good," the executive said.

The GC Impsat unit, through which Global Crossing operates in Latin American markets, generated revenues of US$154mn in Q4, compared with US$134mn in the year-ago quarter. GC Impsat posted a net profit of US$49mn in the period, compared with a net profit of US$20mn in 4Q09.

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For full 2010, GC Impsat generated revenues of US$569mn, up from US$504mn in 2009.

Kritzmacher also highlighted the relevancy of the data center segment in Latin America. "We have made progress in building a strong and solid data center business there, which now contributes considerably to our business overall," the executive said. "This is an important area for investment in the future."

The company is seeing strong business opportunities in several markets, including Brazil, Colombia, Argentina, Peru, Ecuador and Venezuela, he added.

GLOBAL RESULTS

The company posted a global net loss of US$1mn in the fourth quarter of 2010, compared with a net loss of US$38mn in the same period the previous year, according to the company's earnings statement.

Global Crossing generated consolidated revenues of US$683mn in the quarter, up 5% compared with the year-ago quarter.

Revenue from the company's "invest and grow" category - the business focused on serving global enterprises and carrier customers, excluding wholesale voice - increased 8% year-over-year to US$602mn.

The company expects "invest and grow" revenue this year to increase by 6-9% as compared with 2010.

Offering a full range of data, voice and video products to some 700 carriers, mobile operators and ISPs, Global Crossing delivers services to more than 700 cities in over 70 countries.