SAINT JOHN – Consolidated revenues for 2005 at Aliant were up 3.1% year over year and net income increased 52.6% to $199.4 million for the twelve-month period ended December 2005.
The return to normal business operations in 2005, after the labour disruption of 2004, was a major contributor to the 60.4% growth in earnings per share (EPS) of $1.46 versus $0.91 the previous year. “Revenue growth in the wireless and Internet businesses and diligent expense management also contributed to the growth in revenues and earnings,” says the press release.
"This has been a very solid year for the company as we achieved strong operating and financial results for 2005," said Jay Forbes, president and CEO, in the release. "It was also a year of significant challenge and transition for our employees, who are to be commended for rebuilding our momentum so quickly. Thanks to their dedication and unwavering commitment to our customers, we are moving into 2006 with a strong focus on each segment of our business and are well positioned for continued success in the year ahead."
Operating revenues for 2005 were up 3.1% to $2.1 billion over 2004, driven by growth in all areas, with the exception of traditional local and long distance services, which continues to face serious competitive pressure.
Wireless revenue grew 13.8% over 2004 driven by an 11.9% increase in Aliant’s customer base and a 4% increase in average revenue per customer. Internet revenue grew 10.7% for the year, driven by year-over-year high-speed Internet customer growth of 41.8% and high-speed Internet revenue growth of 24.5%.
While Aliant includes its Aliant TV customers in its high speed Internet numbers, the company did not break out subscriber figures for that particular product, which is only available in Halifax.
“We are new entrants to the television market with our launch of Aliant TV, our IP-TV service,” said Aliant’s MD&A. “We launched this service in one area while offering our entire market the choice of satellite TV through Bell ExpressVu service. Cable TV penetrates the majority of our market and accounts for the majority of market share. While we are starting to gain market share with Aliant TV service, and the opportunity for growth is large in specific markets, Aliant TV service requires high-speed Internet and will be dependent on high-speed Internet-penetrated urban areas. Television is integral to home entertainment and to bundled packages. Through Aliant TV service we are offering customers the opportunity to be early adopters of an innovative, yet familiar, product.”
Aliant had 342,500 Internet customers as of December 31st, 211,900 of which are high speed customers.
Fourth quarter revenues for the telecommunication business were up 5.2% to $480.1 million compared to the previous year. Wireless operating revenues for the fourth quarter rose 13.1% year over year, “driven by successful marketing programs that resulted in subscriber net activations of 30,278 for the quarter and growth in revenue generated per customer of 2.2% compared to the same quarter in 2004,” says the release.
Internet revenues for the fourth quarter grew 20% compared to the previous year “primarily due to strong high speed Internet revenue growth of 40.1% on very active migration of dial customers to high speed and the rollout of the successful PC purchase program that complemented Aliant’s Internet service offering,” adds the release.
For 2006, Aliant expects to see revenue between $2.15 billion and $2.2 billion, with an EPS range of $1.40 to $1.46, cash from operations of $520 to $560 million and capital expenditures in the $350 to $380 million range.
