Printer Friendly

Prodigy Revises 2001, 2002 Guidance; Upward Adjustment Due to Operating Efficiencies, Subscriber Growth, Lower Costs.

Business Editors & High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 3, 2001

Prodigy Communications Corporation (Nasdaq:PRGY), a leading national Internet service provider (ISP) serving the largest number of DSL Internet subscribers, today increased its year-end 2001 EBITDA, revenue and subscriber projections, as well as its 2002 guidance, in anticipation of its third-quarter earnings.

For 2001, Prodigy is increasing its EBITDA estimate from $40 million to $42 million reported in the second quarter to $52 million to $55 million.

Prodigy also increased its net revenue guidance from $355 million to $365 million reported in the second quarter to $360 million to $370 million.

Also for year-end 2001, Prodigy anticipates it will have between 3.5 million and 3.7 million owned and managed subscribers, up from 3.4 million to 3.7 million previously estimated in the second quarter.

"This is the second time this year Prodigy has upwardly revised its year-end guidance, due to continued progress in our efforts to control expenses and better-than-expected growth in our subscriber base," said Charles Foster, chairman of Prodigy. "Our business model continues to achieve our goals, and the introduction later this year of our completely redesigned portal and software will further enhance Prodigy's leadership position among Internet service providers."

2002 Guidance

Given its strong performance in 2001, Prodigy expects EBITDA in 2002 to be in the range of $90 million to $95 million, representing a more than 50 percent increase over 2001. It also expects net revenue to be in the range of $455 million to $480 million, representing a 20 percent increase over 2001. In the second quarter, Prodigy anticipated that in 2002, EBITDA would be 50 percent higher than 2001, and net revenues would grow 20 percent over 2001 revenues.

EBITDA is defined as net income/loss plus minority interest, depreciation and amortization, amortization of subscriber acquisition costs, and amortization of subscriber incentives.

Prodigy will announce its third-quarter results on October 19. Prodigy will host a 10 a.m. EDT conference call that day; the call-in number will be provided at a later date. The call will be simultaneously broadcast over the Internet.

About Prodigy Communications Corporation (www.prodigy.com):

Prodigy Communications Corporation (Nasdaq:PRGY) is one of the nation's largest Internet service providers serving both owned and managed dial and DSL subscribers. With its alliance with SBC Communications, Prodigy is the industry leader in serving DSL subscribers. Prodigy delivers fast and reliable Internet access and user-friendly Internet-based products, services and information via a nationwide network covering more than 850 locations in all 50 states, allowing more than 90 percent of the U.S. population to access Prodigy's dial service with a local telephone call. Prodigy features superior content, e-mail and e-mail attachment capabilities, Prodigy Instant Messaging(tm), Prodigy Chat(tm), and Prodigy Online Communities, combined with the accessibility and freedom of direct access to the World Wide Web for all users. ProdigyBiz offers a powerful suite of specially designed Internet products and services for small business owners. Prodigy(R) en Espanol(tm), is the nation's first-ever, fully bilingual Spanish/English-language Internet service created especially for the U.S. Spanish-speaking population.

This release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the intense competition in Prodigy's industry, subscriber turnover, disruption in Prodigy's network services or in other services provided by third parties, the challenges of integrating the Internet businesses of Prodigy and SBC Communications Inc., the possible failure to achieve the anticipated benefits of the agreements between Prodigy and SBC, the possible unavailability of sufficient financing to Prodigy as needed, as well as the risk factors detailed from time to time in Prodigy's periodic reports and registration statements filed with the Securities and Exchange Commission. Prodigy's business and operations are operated by a limited partnership, called Prodigy Communications Limited Partnership, of which Prodigy is the general partner and owns an approximate 57 percent interest and SBC Communications owns an approximate 43 percent interest.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Oct 3, 2001
Words:675
Previous Article:Smart Robot Wins Intelligent Community Technology Award for Installing Fiber Optics in Sewers.
Next Article:ViewCast and MediaWave Announce Joint Marketing Agreement.
Topics:


Related Articles
Prodigy Improves Cash Position, Financial Stability Under New Strategic & Marketing Agreements With SBC.
SBC Telecom Executive Paul Roth Named CEO, President of Prodigy; Charles Foster Remains Chairman.
Prodigy Reports Positive EBITDA in First Quarter; Prodigy Exceeds Expectations, Tops 3.1 Million Subscribers.
Prodigy Reiterates Second Quarter, 2001 Financial Guidance.
Prodigy Grows EBITDA by 29% in Second Quarter; Increases Year-End EBITDA, Margin Guidance; Credits Broadband Subscriber Growth, Expense Control for...
McLeodUSA and Prodigy Announce Multi-year Telecommunications Agreement; Long-term Agreement Brings Lower Overall Costs, Improved Service to Prodigy...
Fitch Affirms Qwest Communications International Ratings.
Prodigy Increases Monthly Rate for Dial Internet Service; New Rate to be Closely Followed by New Portal, User Software.
Prodigy Announces Strong Third-Quarter Results; Reiterates Upward EBITDA, Revenue, Subscriber Guidance for 2001, 2002.
Genuity Announces First Full Quarter of Positive Gross Margin, Records Special Charge; Restructures Dial Access Business for Improved Operating...

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters