HALIFAX – East coast and rural Quebec and Ontario telco Bell Aliant posted 1.6% increases in revenue and EBITDA to $865.4 million and $355.1 million, respectively, in the first quarter of 2008, as compared to 2007.
The company also showed a marked decrease in capital expenditures over the first three months of 2008, spending $95.1 million, 17.5% less than in Q1 2007. “With the completion of the accelerated FTTN build out plan in 2007, Bell Aliant’s planned overall capital program for 2008 is approximately $40 million lower than last year. This planned decline in capital spending, combined with winter weather-related delays in completing outdoor projects, contributed to the decline in first quarter 2008 capital expenditures compared to the first quarter of 2007,” explains the press release.
"Our productivity programs are working to maintain margins as our revenue mix changes with declines in year over year local and long distance revenues continuing to be more than offset with growth in IT and Internet revenues,” said Stephen Wetmore, president and CEO, in the press release.
“We’ve welcomed KMTS to our organization this quarter and we look forward to growing our combined businesses together,” he added about the income fund’s $27 million purchase of the Kenora (Ont.) Municipal Telephone Service.
Other Aliant highlights from Q1 included (from the company’s press release):
* Internet revenue grew by $8.3 million in the first quarter of 2008 compared to the same period in 2007, with high-speed Internet subscribers growing 14.6% from a year earlier.
* IT revenue increased by $16.6 million in the quarter compared to the same period last year, as previously deferred revenues associated with a major health care services contract were recognized in the first quarter of 2008.
* Local service and long distance revenue declined by $8.4 million (2.4%) and $2.5 million (2.2%), respectively, in the first quarter of 2008 compared to the first quarter in 2007. Network access services (NAS, or overall local telephone service lines) declined by 22,592, net of the additions from KMTS, to end the quarter 3.3% lower than a year ago.
* Higher revenues, cost containment achieved through productivity improvements and lower provincial capital taxes resulted in an EBITDA increase of $5.6 million (1.6%) in the first quarter of 2008 over the same period a year ago.
* Distributable cash increased by $14.7 million (7.7%) in the first quarter of 2008 from the same period 2007, primarily as a result of EBITDA growth and reduced capital expenditures, offset by the lack of distributable cash generated from the directory services business sold in April 2007.
* As announced earlier this year, Bell Aliant increased distributions by 2.8% to $0.2417 per unit per month ($2.90 per unit per annum) effective with the February 2008 distribution.
