 | Asheville business & community directory |
|
This is an archived page that may contain outdated or incorrect information. Please visit www.Asheville.com for the latest news, events, and more.
BellSouth Corporation announced consolidated revenue from continuing operations totaled $5.1 billion. Income from continuing operations was $852 million compared to $894 million in the same quarter a year ago. In the third quarter, the hurricanes that hit BellSouth's markets affected more than 1.2 million residential and business customers. As a result, the Company incurred approximately $38 million of incremental labor and material costs during the third quarter.
Operating free cash flow from continuing operations totaled $1.1 billion. Capital expenditures for continuing operations in the first quarter of 2004 were $635 million compared to $588 million in 2003. Communications Group Communications Group revenue was $4.6 billion. Operating margin for the third quarter of 2004 was 26.3 percent, level with the 2003 full year operating margin and 40 basis points higher than the 25.9 percent operating margin in the second quarter of 2004. For the quarter ending Sept. 30, total access lines of 21.6 million declined 3.9 percent compared to a year earlier. UNE-P access lines resold by BellSouth competitors decreased by 54,000 in the third quarter compared to an increase of 188,000 in the same quarter a year ago. BellSouth added 532,000 mass-market long distance customers during the third quarter of 2004 and now serves approximately 5.7 million mass-market long distance customers. These customers represent a 44 percent penetration of BellSouth's mass-market base and spend an average of approximately $17 per month on long distance with BellSouth. For the third quarter, network data revenue was $1.1 billion, an increase of 3.7 percent compared to the same quarter of 2003, driven by DSL. BellSouth added 134,000 net DSL customers during the third quarter of 2004, for a total of approximately 1.9 million at quarter-end. In September, BellSouth launched additional incentives and introduced new pricing for FastAccess� DSL designed to increase long-term market penetration. With the third-quarter launch of our DIRECTV� offer, the Company provides a competitively priced triple-play package of voice, data and entertainment services. Through Sept. 30, more than 90,000 customers have added DIRECTV� to their communications services packages. The Company expects to recognize incremental costs in the $90 million range during the fourth quarter due the impact of the hurricanes. BellSouth's emergency preparations and network capabilities ensured high levels of service retention and restoration despite the storm-related damages. To date, fewer than 20,000 lines remain affected, and BellSouth continues to work around the clock restoring service to these customers in the hardest-hit areas. Domestic Wireless / Cingular For the third quarter, Cingular Wireless added 657,000 net cellular/PCS customers, bringing its nationwide customer base to 25.7 million. More than 80 percent of net additions were postpaid. Churn remained flat year-over-year at 2.8 percent. BellSouth's share of Cingular's revenue was $1.7 billion in the third quarter of 2004, a gain of 4.8 percent compared to the same quarter a year ago. Revenue growth was driven by a 4.3 percent increase in service revenue, which included a 116 percent increase in cellular/PCS data revenue. The third quarter operating margin of 12.5 percent was impacted by lower service ARPU, costs associated with record gross customer additions and higher systems costs from increased minutes of use. During the third quarter, Cingular continued to make advances in deploying next-generation network technologies that will give customers access to high-speed wireless data services. The company has enabled substantially all of its markets with EDGE (Enhanced Data for GSM Evolution) high-speed data technology. Cingular is currently testing integrated voice and data wireless services in a 3G UMTS (Universal Mobile Telecommunications System) trial. Cingular's purchase of AT&T Wireless will create the nation's largest wireless provider with more than 47 million subscribers. Cingular's plans for integration will position the company as a leader in the wireless industry providing a high-quality network, excellent customer care and innovative wireless services. Cingular's management team has experience integrating wireless companies, and as the two companies' operations are brought together, the number one focus will be giving customers great service and a seamless transition. The Cingular/AT&T Wireless transaction will be funded primarily by equity contributions from Cingular's parent owners. BellSouth's portion of the funding is approximately $14.5 billion, which will be funded with cash on hand, proceeds from asset sales and incremental debt. Net incremental financing for this transaction is expected to be approximately $6 billion. Advertising & Publishing Advertising & Publishing revenue was $498 million in the third quarter of 2004, a decrease of 1.4 percent compared to the same quarter a year ago. Operating margin for the third quarter of 2004 was 46.0 percent compared to 47.1 percent in the third quarter of 2003. Segment net income was $141 million compared to $147 million in the third quarter of 2003. (Image provided Bellsouth)
|
