HALIFAX – Growth in its television and Internet services helped boost first quarter profits at Bell Aliant.
The regional telco said Thursday that net earnings for the period ended March 31, 2012 were $87 million, up from $84 million in the same quarter last year (note that first quarter 2011 earnings included a $3 million loss from discontinued operations that did not recur in 2012).
Operating revenues were flat at $682 million, as declines in local and long distance revenues as a result of lower network access services (NAS) were offset by growth in all other major revenue categories, led by Internet and TV. EBITDA dipped 1.2% to $325 million from $329 million last year due to growth in TV content costs from higher FibreOP TV sales.
High-speed Internet customers reached 902,000 at quarter end, up 2.8% from a year earlier, while FibreOP Internet customers grew by 13,000 to reach 59,000. Net IPTV customer additions were 8,000, and the company ended the quarter with a total of 85,000 IPTV customers.
Bell Aliant passed an additional 58,000 homes and businesses with FibreOP, bringing its total fibre-to-the-home coverage to 516,000 premises at the end of March 2012.
"We expected the quarter to show improved financial trends and the business has delivered”, said president and CEO Karen Sheriff, in a statement. “FibreOP is playing a key role in the turnaround, with our first quarter results particularly strong in FibreOP territories. Demand is escalating as we add new features and expand into more markets and later this year we will launch FibreOP in Sudbury, Ontario. FibreOP is making the difference that we expected and I am confident that we have chosen the right strategy for the long-term profitability of our business."
Bell Aliant's board of directors declared a quarterly dividend of $0.4750 per common share, payable on June 29, 2012 to shareholders of record.
