Equant losses swell on merger costs

Profit hidden among huge fees incurred by merger...

Losses have leapt for Dutch network service provider, Equant following its merger with France Telecom's Global One. For its second financial quarter the company turned in net losses of $119m, up from just $5.3m in the comparable quarter last year. This huge figure includes charges of almost $117m relating to the France Telecom transaction last year and masks the fact that the company has upped its profits and revenue. Equant achieved an operating profit of $21.7m, which beat analysts' expectations. Last year the company was languishing in losses of $4.7m. Didier Delepine, CEO of Equant, said the integration of the company's sales force, which took place last year, contributed to its improved figures.