XO loss up slightly

XO Communications today reported a slightly higher loss on lower revenues, compared with the second quarter of this year, but posted much lower losses compared with the year-previous quarter.

The competitive carrier posted third-quarter revenue of $358.7 million, compared with $362.2 million in the second quarter of 2005 and $391.9 million reported in the third quarter of 2004. XO’s consolidated net loss for the quarter was $30.6 million, up from the $29.5 million loss of this year’s second quarter but significantly lower than the consolidated net loss of $41.8 million in the third quarter of 2004.

The company posted its fifth consecutive quarter of positive EBITDA and its second consecutive quarter of positive cash flow, said CEO Carl Grivner.

Consolidated adjusted EBITDA was $34 million, down slightly from the sequential quarter ($36.4 million) but a marked improvement from the third quarter of 2004 when EBITDA was a negative $20.5 million.

XO has announced plans to sell its wireline business to a subsidiary of major investor Carl Icahn and use the proceeds to fund development of a wireless carrier.