BellSouth hits earnings target

(Telephony) Behind strong sales performances in its data and wireless telephone services and its international markets, BellSouth Corp. matched analysts' predictions by reporting a 7% profit increase today, with earnings per share of 59 cents, up from 55 cents in 1999.

The Atlanta-based company reported a net income of $1.12 billion for the fourth quarter, compared with $1.05 billion for the same period in 1999.

Total revenues for the quarter were $7.4 billion and were adjusted to reflect BellSouth’s 40% share of Cingular Wireless, its joint venture with SBC to deliver wireless data and voice services.

Including its Cingular share, BellSouth for the year reported total revenues of $27.6 billion, up 9.3%, and earnings per share of $2.23, up from $1.80 in 1999.

“BellSouth’s performance in the fourth quarter and throughout 2000 clearly demonstrates that our focus on data and wireless is producing the revenues and earnings growth that investors are looking for,” said Nancy Humphries, vice president of investor relations. “Going forward, our focus will remain on our growth in data and wireless in the U.S. and in Latin America.”

BellSouth ended 2000 with 215,000 DSL customers, surpassing its total subscriber goal of 200,000, and added 81,000 new DSL customers in the fourth quarter alone. The company projected a DSL customer base of 600,000 by the end of 2001.

Data revenues for the fourth quarter were $965 million, an increase of 27 percent from the same three-month period in 1999. Data services accounted for nearly one-third of BellSouth’s total revenue growth.

“We’ve invested over $35 billion in our network over the past 10 years to build one of the most technologically advanced networks,” Humphries said. “Our innovative products and services combined with our marketing savvy helped drive customer demand for broadband data as we migrate customers from traditional voice lines to broadband data and other high speed digital services.”

Internationally, BellSouth increased by 59%, adding 561,000 wireless customers in Latin America, Europe and the Middle East. The company received a big push in its international totals from a mid-2000 Colombia acquisition and new wireless services offered in Guatemala. BellSouth now has 9.3 million wireless customers abroad.

Overall international revenues increased 26% for the quarter, from $588 million in 1999 to $740 million in 2000.

Looking ahead to 2001, BellSouth projected a 7-9% earnings growth with capital expenditures between $5.5 billion and $6 billion. The company also said it expects continued success in its data revenues, forecasting approximately 30% growth.