SAINT JOHN – With the new income trust, Bell Aliant Regional Communications (BARC), in place, the second quarter financial results of its predecessor, Aliant Inc. were announced today.
Oddly, the company’s television service – which has been operational in Halifax for more than a year and has been rolled out elsewhere down east did not rate even a mention in the press release.
Consolidated revenues were up 3.7% for the quarter ended June 30th to $534.3 million compared to last year’s Q2 and net income was up 6.9% to $53.2 million for the same period.
Revenues of the telecommunications segment were up 4% compared to the same quarter last year. Internet revenues grew 20% in the second quarter compared to the same quarter last year and were driven by high-speed Internet customer growth of 36%, attained largely through successful marketing campaigns, like the PC Purchase program, reads the release.
Wireless revenues for the quarter grew 15.4% year-over-year, as the customer base grew 13.6% and net activations were up 38.3% to 27,440 from the same quarter last year. Revenues from sales to external customers from the information technology segment of the business were relatively flat compared to the second quarter last year.
"Aliant’s second quarter results provide us with a solid foundation to transition to the new income trust structure," said Glen LeBlanc former CFO of Aliant Inc. and CFO of Bell Aliant. "Aliant’s financial performance continues to demonstrate the strength required to deliver stable and predictable cash distributions to unit holders under the new structure."
Aliant’s second quarter consolidated expenses of $366.8 million (excluding cost of operating revenues) were up 4.4% over the same period last year due to certain restructuring costs incurred outside of the trust conversion process, which were expensed in the period. Absent these restructuring costs, expense growth was 3.9%. The cost of operating revenues rose 4.3 per cent for the quarter compared to 2005, consistent with growth in product sales. The impact of the increase in operating expenses on net income was partially mitigated by lower interest expense compared to the same period last year, according to the release.
