HALIFAX – A decline in local and long distance revenues combined with slowing product sales caused operating revenues at Bell Aliant to fall by 2.6% for its third quarter.
The three month revenues for the quarter ended September 30, 2009 dipped to $786 million from $807 million.
Despite the revenue declines, labour-related cost reductions from restructuring programs and on-going “cost containment initiatives” resulted in an increase in EBITDA of $4 million (or 1.1%) over the same quarter a year earlier, a continued trend from earlier quarters of 2009, the company detailed.
"I am very satisfied with our overall progress this quarter, where despite continued economic and competitive pressures, we have again produced solid EBITDA and distributable cash results through continued cost management and operational improvements," said president and CEO Karen Sheriff, in a statement.
Network access services (NAS) declines of 4.9% from a year earlier, driven by slowdowns in the economy and increased competitive activity, helped push down local service and long distance revenue by $15 million (4.2%) and $6 million (5%), respectively.
Internet revenue grew by $11 million (11.3%) in the quarter, compared to the same period in 2008, with the number of high-speed Internet customers 7.1% higher than a year ago, and “strong growth” in Bell Aliant TV subscribers. Residential high-speed Internet average revenue per customer was 5.6% higher than the same quarter last year with customers subscribing to higher value services.
The company said that other revenues declined by $10 million (or 19.9%) from the same quarter in 2008, as a result of softness in product sales and rentals, and lower outsourcing revenues.
