HALIFAX – Despite declining revenues, Bell Aliant nearly doubled its second quarter profits.
On Wednesday, the company reported a net profit of $82.7 million for the second quarter ended June 30th, versus net earnings of $46.5 million for the same period in 2010. Operating revenues dipped 1.1% ($7 million) year-over-year, which it attributed to lower local and long distance revenues from lower network access services (NAS), which were partially offset by increases in Internet and TV revenues. EBITDA declined 2.8% ($9 million) as a result of the lower revenues plus a $2 million increase in pension current service costs.
President and CEO Karen Sheriff said that she was “optimistic” about the company’s prospects for Internet and TV revenue growth going forward, noting that its FTTH network FibreOp passed 294,000 homes and businesses at quarter end.
“Focused execution of our strategic priorities has resulted in our revenue trajectory continuing on an improved track”, she said in a statement. “The growth rates of our Internet and TV revenues have increased while the rates of decline in our traditional voice and data services have slowed. Our significant investment in a world-class fibre-to-the-home network is contributing to this improvement and gives us confidence that we are on the right path to returning to overall revenue growth.”
High-speed Internet customers reached 855,000, up 3.3% from a year earlier. Overall net high-speed Internet customer additions of 4,000 in the second quarter of 2011 were down from 8,000 in the second quarter of 2010, reflecting lower growth in high-speed Internet footprint (DSL) and continued competitive activity.
As Bell Aliant’s marketing focus continued to shift to fibre markets, FibreOp Internet customers grew by 8,000 in the quarter to reach 22,000 at the end of June 2011.
Overall net IPTV customer additions were 5,000 this quarter, while FibreOp TV customers grew by 6,500 in to reach 20,000.
The Halifax-based company also revised its 2011 revenue guidance upward, noting that it now expects revenues for the year to range between $2.7 billion and $2.78 billion, up from its February predictions of between $2.65 billion and $2.75 billion.
