HALIFAX – Bell Aliant recorded net earnings of $75.8 million in its third quarter due in large part to growth in its Internet and TV revenues.
The company noted Tuesday that net income for the quarter ended September 30 included a $27 million restructuring charge associated with a voluntary retirement offer to unionized employees. Operating revenues for the quarter were $700 million, down 0.5% versus the same quarter of 2010.
President and CEO Karen Sheriff said that the company’s investment in its fibre-to-the-home network FibreOP continues to exceed expectations. Bell Aliant continued to expand its FTTH footprint this quarter, adding on average over 1,000 homes per day to its coverage area to pass an additional 104,000 homes and businesses, bringing its total FTTH coverage to 398,000 at the end of September 2011.
The Halifax-based telco said that it now expects to pass approximately 450,000 homes and businesses with FTTH by the end of 2011, up from its previous estimate of 430,000, and increased its 2011 capital expenditure guidance to $560 – $575 million, up from $520 – $560 million.
"Our revenue performance in the quarter was solid, with growth in Internet and TV revenues largely offsetting declines in our legacy voice business”, Sheriff said in a statement. “We are seeing overall revenue growth and customer retention benefits in our FibreOP territories as we build scale in our TV business and provide a better Internet service."
High-speed Internet customers reached 860,000 at quarter end, up 2.7% year-over-year, while FibreOP Internet customers grew by 12,000 this quarter to reach 34,000. Internet revenue grew by 6.7% ($8 million) compared to the same period in 2010.
Overall net IPTV customer additions this quarter were 9,000, while FibreOP TV customers grew by 11,000 to reach 30,000 at quarter end, including migration from Bell Aliant's FTTN TV service. IPTV revenue reached $12 million with total IPTV customers of 68,000 at the end of September 2011.
Local service and long distance revenues dropped 3.9% ($13 million) and 4.6% ($5 million) respectively, in the quarter compared to the same period last year, primarily as a result of 5.2% lower NAS than a year earlier.
Wireless revenues increased 6.6% ($2 million) over the same quarter in 2010, driven by subscriber growth of 11.0% from the end of September 2010.
