Profits at US telecoms giant MCI WorldCom nearly tripled in the fourth quarter of 1999, beating Wall Street forecasts.

Net income came in at $1.3bn or 44 cents a share, compared with $443m or 15 cents a share a year ago.

The long-distance telephone company attributed the improvement to strong growth in its data, internet and international operations. These areas accounted for more than 80% of revenue growth.

Excluding a one-off gain, MCI WorldCom's profits were $1.2bn or 42 cents a share.

Wall Street analysts had been expecting earnings of 41 cents a share.

Shares in MCI WorldCom added 2 7/8 to 51 in heavy trading on Nasdaq.

AOL fears quashed

MCI WorldCom said it expected revenues from its key customer AOL to increase despite its merger with Time Warner and it could announce a new contract with the company in the next few weeks.

"I am personally highly confident that our relationship with AOL will expand," said MCI WorldCom Vice Chairman John Sidgmore.

Mr Sidgmore said MCI WorldCom had a number of opportunities to work with AOL, including the US modem services it supplied.

The company also said it was comfortable with Wall Street's earnings forecast of $1.89 a share for 2000 and it expected annual revenues to increase 13.5-15.5%.

During the fourth quarter, MCI WorldCom's internet revenues jumped 55% to $1bn and international revenues rose 50% to $492m.

"Our investments in data, internet and international have been particularly timely and have positioned the company to post industry leading incremental revenue gains, in spite of expected pressures on voice revenues," MCI WorldCom Chief Executive Bernie Ebbers said in a statement.

Sprint deal

MCI WorldCom agreed to buy its smaller rival Sprint in October last year.

The deal, which is subject to regulatory approval, would allow MCI WorldCom to enter the wireless telephone market and to expand its long-distance customer base.

The European Union said on Thursday it had received unspecified concessions from the two companies as part of the merger review, but MCI WorldCom denied making any concessions.

MCI WorldCom said it may refile its merger application with European regulators to reflect Sprint's recent sale of its stake in international joint venture Global One.

Without Global One, the two companies do not meet the minimum European revenue threshold that would require European regulatory approval for the deal, MCI WorldCom said.