third-quarter loss as it added customers and revenue increased.

The company, which is building a worldwide fibre-optic network, said the loss per share was four cents, if its acquisitions of Global Marine Systems and Frontier Corp. acquisitions were included for the full quarter. The company recorded a profit of two cents a share in the same period last year. Global Crossing had been expected to lose as much as 10 cents a share, based on a survey of five analysts by First Call Corp.

Global Crossing, which sells capacity on its network to other phone companies and large businesses for Internet and data services, is benefiting from strong demand in Europe to connect to US Internet sites. The company is making acquisitions to better meet that demand and investing to build its network.

"With the conclusion of the merger with Frontier last month, we can now begin to realise the benefits of the global telecommunications powerhouse we have created by combining these two companies,'' said chief executive officer Bob Annunziata.

Earnings before interest, taxes, depreciation and amortisation -- a widely-used measure of cash flow for companies with heavy debt -- rose 16 percent to $290 million. The company said it will take a $15 million charge for retirement of debt in the third quarter. It saw a $210 million gain in the third quarter from US West fees.

Revenue rose to $929 million in the third quarter when the acquisitions of Global Marine Systems and Frontier Corp. were included from the beginning of the quarter, up eight percent from a year earlier. Since hitting a three-month low of 20 5/16 on September 7, Global Crossing's shares are up about 70 percent, partly on speculation that BellSouth Corp. or Deutsche Telekom AG may try to buy the company.