Level 3 Communications (NYSE: LVLT) reported revenues increased to $1.58 billion in the fourth quarter, helping narrow losses for the quarter to $163 million, or 80 cents a share, which beat analyst estimates and bettered year-ago results that showed losses of $207 million or $1.75 a share a year ago.
The quarter continues a string of losses stretching three years.
On a bright note, the company said the Global Crossing business it acquired last year was helping drive revenue up and said Core Network Services showed strong gains in the quarter.
"The company finished 2011 on a strong note, with Level 3 growing both Core Network Services revenue and Adjusted EBITDA and stable performance from the Global Crossing standalone business," said James Crowe, CEO of Level 3. "In particular, GC Impsat's results showed strong quarterly and year-over-year growth. We are pleased with the progress we made over the course of the year, significantly expanding the scope of our business through the acquisition of Global Crossing, reducing leverage and positioning the company for the future."
Level 3 also said it expects to continue the growth in 2012 of its Core Network Services revenue; the high-margin business is expected to help Level 3 adjusted EBITDA grow 20-25 percent in 2012, up from its $1.216 billion in adjusted EBITDA in 2011, topping analysts' expected EBITDA of $1.379 billion.
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