HALIFAX – Operating revenues at Bell Aliant dipped by 2.9% in its second quarter, but the company saw its saw EBITDA increase 1.9% from a year earlier.
The regional communication provider reported operating revenues of $23 million for the quarter ended June 30, 2009, explaining the shortfall as a result of the timing of information technology equipment sales and declines in its local and long distance revenues associated with lower network access services.
Despite the revenue declines, Bell Aliant said that labour-related cost reductions and cost containment initiatives accounted for the majority of the EBITDA increase, which was $7 million higher than the same quarter a year earlier.
EBITDA was also boosted slightly by a $3 million one-time adjustment that reduced senior management long-term incentive plan expenses. Normalizing for this adjustment, EBITDA growth in the quarter was 1.1%.
"Our continued focus on cost management and operational improvements resulted in strong EBITDA performance this quarter and we are on track to meet our 2009 guidance across all measures," said president and CEO Karen Sheriff, in the press release. "The stability of our financial performance and our cost containment allow us to focus on our key strategies to improve service and drive broadband growth."
Internet revenue for the quarter grew by $10 million or 10.4% year-over-year, with the number of high-speed Internet customers 7.9% higher than a year ago, and residential high-speed Internet average revenue per customer (ARPC) 6.0 % higher than the same quarter in 2008.
Local service and long distance revenue declined by $11 million (3.2 %) and $7 million (5.8%), respectively, in the second quarter of 2009 compared to the same quarter in 2008, with network access services 4.3% lower than a year ago.
Other revenues declined $4 million or 8.1% from 2008 totals, primarily as a result of lower outsourcing revenues.
