Level 3 back to earth with net loss, revenue drop

One quarter after recording its first quarterly profit in six years, Level 3 Communications was back in the red for the first quarter of 2009, posting a net loss of $132 million on $980 million in revenue. The net loss did compare favorably to the same quarter in 2008, when Level 3 posted a $190 million net loss, but the revenue figure was down just more than $20 million from the first quarter of 2008.

"In the first quarter, we did see the effect of the near-term revenue pressures we cited last quarter, specifically: the general economic environment driving churn in our enterprise business as well as usage declines, known disconnects from key wholesale customers, typical seasonality in our Vyvx broadcast business, and the currency rate effect on our reported European business," said Sunit Patel, CFO of Level 3, in a press release. "We also experienced revenue pressure from churn in our wholesale and content businesses."

Still, Patel said European market revenue improved overall, and the company is seeing trends toward stabilization in some market segments. While revenue pressure is continuing into the second quarter, it is expected to moderate, Patel said.

For more:
- Here's the Level 3 press release

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