Da-Chief
05-17-2008, 12:30
http://i.dslr.net/urls/67/45367.gif (http://www.dslreports.com/shownews/FairPoint-Lost-10-Million-in-1st-Quarter-94499)
FairPoint investors continue to be wary about the profit potential of the company s takeover of Verizon s New England networks earlier this year. Reports about first quarter earnings show that FairPoint lost $10 million (http://www.bizjournals.com/charlotte/stories/2008/05/12/daily56.html) in the first quarter. The company is quick to assure others that the 34% drop (http://www.unionleader.com/article.aspx?headline=FairPoint+earnings+drop+34+p ercent&articleId=f45d93e6-7dd3-415c-aeae-d081b13f6c7b) in earnings is due to the initial cost of starting up the new network and that profits are sure to come around soon. However analysts believe (http://www.reuters.com/article/marketsNews/idUSBNG29857720080516) that ramped-up marketing from the competition proved to be more of a problem than anticipated and could mean bad business for FairPoint down the line.
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FairPoint investors continue to be wary about the profit potential of the company s takeover of Verizon s New England networks earlier this year. Reports about first quarter earnings show that FairPoint lost $10 million (http://www.bizjournals.com/charlotte/stories/2008/05/12/daily56.html) in the first quarter. The company is quick to assure others that the 34% drop (http://www.unionleader.com/article.aspx?headline=FairPoint+earnings+drop+34+p ercent&articleId=f45d93e6-7dd3-415c-aeae-d081b13f6c7b) in earnings is due to the initial cost of starting up the new network and that profits are sure to come around soon. However analysts believe (http://www.reuters.com/article/marketsNews/idUSBNG29857720080516) that ramped-up marketing from the competition proved to be more of a problem than anticipated and could mean bad business for FairPoint down the line.
More...