Newspaper article The Canadian Press

Bell Aliant Says Strategy for More Revenue Is on Track with Broadband Services

Newspaper article The Canadian Press

Bell Aliant Says Strategy for More Revenue Is on Track with Broadband Services

Article excerpt

Bell Aliant expects growth from TV, Internet

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Regional telecom company Bell Aliant expects growth from its Internet and TV offerings will largely offset declines in its traditional telephone services in 2013.

Chief executive Karen Sheriff said Tuesday that Aliant, which operates throughout the four Atlantic provinces and parts of Ontario and Quebec, is following a strategy it laid out for growth in 2009.

"We expect revenue increases in Internet and TV to largely, if not totally, offset declines in our traditional voice services," she said, after Bell Aliant reported $70 million of net income in the fourth quarter, a $10-million decline from last year.

Bell Aliant has said that its fibre optic network is key to long-term profitability.

The network allows faster downloads of data such as music or movies and the ability to share video and photos faster. It is also used for high-definition television.

Sheriff said that Bell Aliant (TSX:BA) has been making progress in growing its revenue and EBITDA (earnings before interest, taxes, interest, depreciation and amortization).

"Over the last three years we have progressively improved our year-over-year performance," Sheriff said.

Bell Aliant Inc. had $328.7 million of net earnings in 2012, up from $322.6 million in 2011, despite a drop in fourth-quarter profit.

Sheriff said the 2013 fourth quarter was less favourable than a year earlier, as expected, noting that the same quarter in 2011 benefited from some strong business solutions sales and custom work.

For the final three months of 2012, Bell Aliant's net income equalled 31 cents per share before adjustments, or 37 cents per share on an adjusted basis.

The results missed analyst estimates by four cents per share.

A year earlier, Bell Aliant had $80 million of net income, equalling 35 cents per share before adjustments, or 42 cents per share on an adjusted basis.

Bell Aliant's operating revenue was also down, slipping 0.8 per cent to $695 million from $701 million in the fourth quarter of 2011. …

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