Teleglobe’s first quarter disappoints

Canadian wholesale carrier Teleglobe has blamed a ‘very difficult market’ for its disappointing performance during the first quarter. The company, which recently merged with fellow wholesaler ITXC Corp, said revenues reached USD214.5 million in the first three months of 2004, down from just under USD230 million in the corresponding period of 2003. Investors reacted to the news by selling Teleglobe shares in their droves, sending the operator’s stock spiraling down 28% to USD6.90 – their lowest level for a year. Teleglobe is struggling to compete against the likes of AT&T and MCI in the wholesale market as well as a plethora of new carriers that are taking advantage of the liberalised internet telephony sector.