HALIFAX – While operating revenues were down $10 million in its first quarter, Bell Aliant said its results are “solid” and “well in-line” with expectations.
Operating revenues dipped 1.2% for the quarter, compared to the first quarter of 2008, as local, long distance, and other revenue declines more than offset increases in Internet and information technology revenues, the company press release read.
EBITDA in the quarter increased by $2 million from the same quarter a year earlier, as operating revenue declines were offset by labour-related cost reductions and other cost containment initiatives. EBITDA margin improved to 43.0%, up from 42.2% from the same quarter in 2008.
Reiterating plans to continue investing in broadband expansion and increasing its high-speed customer base, president and CEO Karen Sheriff said the company is making “good progress” on its 2009 strategy, despite the economic downturn.
“Service to our customers continues to improve and we have taken steps to simplify and strengthen our brand presence. We are introducing Bell Aliant as our market-facing brand in Atlantic Canada. In Ontario and Quebec, we will continue to leverage our existing brands while building a closer linkage to the Bell Aliant brand," Sheriff said in the release.
Bell Aliant Holdings purchased Kenora Municipal Telephone System in Ontario on February 1, 2008.
Internet revenue grew by $10 million or 10.8% year-over-year, with the number of high-speed Internet customers 8.6% per cent higher than a year ago, while average revenue per customer grew 5.3% from the first quarter of 2008.
IT revenue saw 8.6% growth to $9 million from the same period last year, with IT equipment sales growth of $21 million offsetting declines in IT services revenues.
Local service and long distance revenue declined by $9 million (or 2.5%) and $7 million (5.9%), respectively, in the first quarter of 2009 compared to the same quarter in 2008, with network access services 3.9% lower than a year ago.
In other news, the company has sold its defence, security and aerospace business unit, operated by its xwave division, for $16 million to CAE. An additional $8.5 million of proceeds is contingent upon the satisfaction of various conditions.
And earlier this week, the company announced plans to sell an aggregate $350 million principal amount of medium term notes maturing on February 17, 2015. The notes will be issued at a discount and carry a coupon of 6.29%.
Proceeds will be used to repay debt under an unsecured credit facility Bell Aliant has in place with a syndicate of financial institutions.
