Shares of Global TeleSystems Group, Inc. (Nasdaq: GTSG) were boosted 8 percent, or 2 15/32 to 35 1/32 Tuesday on high volumes after the provider of Internet and telecommunications services to businesses and carriers across Europe posted second-quarter loss of $109.8 million, or 66 cents a share, better than Fist Call's expected loss of 69 cents a share.
Revenue for the quarter was $200.3 million, up from $66.0 million in the second quarter of 1998 and $170.9 million in the first quarter of 1999. The company's net loss of 66 cents a share compared with a loss of 34 cents a share in the second quarter of 1998.
GTS's strong growth rates have been augmented by its recent acquisition of Omnicom, the number three player in France, the company said in a release. Operations in Western Europe, which generated $68.5 million in revenue during the second quarter, a six-fold increase compared with the second quarter of 1998, are just beginning to deliver on their potential, it added.
GTS's trans-European fiber optic network includes access nodes in 23 cities, and the company plans to develop competitive local exchange carrier (CLEC) networks in at least 12 Western European cities, including Geneva, Paris and Berlin by year-end 2001. GTS also obtained interconnect agreement in Spain, and licenses in Italy and Luxembourg.
The company, based in McLean, Virginia, added that weakening of the Euro and other European currencies brought U.S. dollar revenue figure down 10-to-12 percent. Shares rose after GTS announced a stock split in June. Eight out of 10 analysts covering the company rate it a "strong buy" according to Zacks Investment Research.