BAN Banco Lat.8%Pfd

RNS No 7371n
BELL ATLANTIC CORPORATION
23rd July 1998 
 

BELL ATLANTIC SECOND QUARTER NET INCOME RISES 11%: DATA REVENUES INCREASE
29% to US DOLLARS 580 Million: GLOBAL WIRELESS ADDS 486,000 SUBSCRIBERS
 
 New York, July 23 (TTNN) - Bell Atlantic today announced second quarter
net income of US dollars 1.1 billion, an 11 percent increase over second
quarter 1997 net income of dlrs 964.7 million. Diluted earnings per share of
68 cents rose 9.7 percent from second quarter 1997 EPS of 62 cents (see note
at end of text).
 
 Results are adjusted for special items in this quarter related to merger
integration and an enhanced pension offer which resulted in charges totaling 3
cents per share, and 5 cents per share in the prior-year period for special
items. Reported net income for the quarter was dlrs 1.0 billion compared to
dlrs 896.8 million, and reported EPS was 65 cents compared to 57 cents in
second quarter 1997.
 
 Proportionate revenues, which include Bell Atlantic's Telecom and Global
Wireless businesses, increased 4.6 percent. Operating income for these units
grew 8.9 percent, to dlrs 2.0 billion.
 
 For the first six months of 1998, net income available to common
shareowners rose 10.9 percent to dlrs 2.1 billion, and EPS was dlrs 1.34, 9.8
percent higher than dlrs 1.22 in the first six months of 1997.
 
 Six-month EPS figures have been adjusted for special items totaling 13
cents per share in 1998 and 20 cents per share in 1997. Reported net income
available to common shareowners of dlrs 1.9 billion rose 19.9 percent over
dlrs 1.6 billion in the prior-year period. Reported EPS grew 18.6 percent, to
dlrs 1.21 compared to dlrs 1.02.
 
 "Our second-quarter results are on target, with our Telecom and Global
Wireless businesses both delivering solid operating results," said Bell
Atlantic Vice Chairman, President and CEO Ivan Seidenberg.
 
 "Telecom volumes remain very strong, as evidenced by continued growth in
access lines and minutes of use.  Especially encouraging is the acceleration
in demand for data services, and our success in participating in this
high-growth market.  In fact, data has become one of Telecom's largest sources
of growth.
 
 "Our strong volumes will serve as the foundation for improved top-line
growth in the second half of the year, as we move past the effects of last
July's access charge reductions, build on the momentum of our vertical service
sales campaigns and increase our focus on the data market.
 
 "Global Wireless continues its stellar performance, delivering nearly
500,000 new customers and generating 62 percent growth in operating income.
With 85 million potential customers in the United States and 92 million in
international markets, Global Wireless has the market presence and
demonstrated capabilities to sustain this kind of growth and profitability for
years to come."
 
 Bell Atlantic Chairman Ray Smith said: "Our challenge has been to meet
our financial targets while positioning ourselves for a competitive future and
new opportunities.  We are meeting that challenge.
 
 "We are making substantial progress toward developing full capabilities
in the data and long distance markets.  We've begun construction of a
region-wide, SONET- and ATM-based data network and are preparing to roll out
high-capacity ADSL lines for the mass market this quarter.  As for long
distance, we're beginning to see the light at the end of the tunnel.  With
third-party review underway in New York, I'm confident we will file an
application with the FCC in the fall that will cut the Gordian knot of Section
271.
 
 "At this time last year we were anticipating final approval of our merger
with NYNEX; now we're eager to fully realise the opportunities created by the
merger.  I'm confident we will deliver on our 1998 financial targets and
continue to position ourselves to leverage all of the potential in the world's
richest communications market."
 
 Domestic Telecommunications Highlights
 
 Strong demand for communications services was reflected in 4.4 percent
growth in the number of access lines in service, to 40.8 million, and an
8.4 percent increase in access minutes of use. Strong volumes helped offset
the effects of approximately dlrs 130 million in mandated rate reductions and
grow revenues 2.1 percent compared to second quarter 1997.
 
 The market for digital data services continued to be the most dynamic in
telecommunications, as shown by Bell Atlantic's results in data services and
other business services:
 
 :: Revenues from high-bandwidth switched and special access services, and
from Bell Atlantic's network integration business, known as BANI, rose 29
percent over second quarter 1997 levels to dlrs 580 million.
 
 :: The number of "DS0" circuits in service (digital, high-bandwidth and
packet-switched services as measured in 64-kilobit voice-grade equivalents)
increased more than 42 percent over second quarter 1997.
 
 :: Bell Atlantic ended the quarter with more than 470,000 basic rate
Integrated Services Digital Network (ISDN) lines in service, up 23 percent
from second quarter 1997, and more than 650,000 primary rate ISDN channels in
service, nearly double the second-quarter 1997 total.
 
 ::The number of Centrex lines increased 8.7 percent over second quarter
1997 to 4.6 million.
 
 In residential markets:
 
 :: Caller ID subscribers increased to more than 5.8 million, with
revenues up 37.6 percent.
 
 ::Revenues from Home Voice Mail service rose 19.1 percent.
 
 In wholesale markets:
 
 :: At the end of the quarter, Bell Atlantic was providing other carriers
with approximately 415,000 resold access lines and nearly 50,000 unbundled
loops.
 
 Network operating expenses for the quarter totaled dlrs 5.2 billion,
1.1 percent higher than in second quarter 1997.  Merger-related synergies
helped offset upward pressures from interconnections payments to competitive
local exchange carriers (CLECs) and helped cover costs for compliance with the
Telecommunications Act "checklist", including local number portability, and
investments in growth opportunities.
 
 Global Wireless Highlights
 
 The Global Wireless group posted record results for the second
quarter, driven by strong performance at Bell Atlantic Mobile (BAM) and
sustained healthy growth in its international portfolio.
 
 Global Wireless ended the quarter with 7.3 million proportionate
customers, nearly 34 percent more than in second quarter 1997.  Proportionate
net customer additions in the quarter totaled 486,000, an increase of
22.7 percent over second quarter 1997.
 
 Total proportionate revenues for the quarter reached a record
dlrs 1.1 billion, increasing 23.3 percent over second quarter 1997.
Contributions from international ventures and PrimeCo Personal Communications
increased, accounting for more than 50 percent of the growth.  Proportionate
operating income for the portfolio totaled dlrs 203 million, up 62.2 percent
from second quarter 1997.
 
 Domestic highlights:
 
 :: BAM subscribers grew more than 17 percent over second quarter 1997.
With 224,000 net customer additions, BAM ended the quarter with 5.7 million
customers. Revenues increased nearly dlrs 100 million, or 13 percent, to dlrs
869.4 million.
 
 :: BAM's DigitalChoice(SM) price plans, introduced in March, drove up the
number of digital subscribers to nearly 400,000 at the end of the quarter.
Twenty percent of new customers are taking a DigitalChoice plan, and digital
subscribers now generate nearly 25 percent of BAM's busy-hour traffic on its
high-efficiency CDMA network.
 
 :: BAM reduced acquisition costs per subscriber 17.1 percent, to dlrs 194
compared to dlrs 234 in the prior-year period, through control of commission
expenses, lower handset costs, and by selling through direct distribution
channels. BAM also reduced cash expense per subscriber by dlrs 4 to a record
low of dlrs 24.
 
 :: BAM operating cash flow improved to its highest level ever at dlrs 348
million, and operating cash flow margins expanded to 46 percent, five
percentage points higher than second quarter 1997. Operating income grew 21.7
percent to nearly dlrs 220 million.
 
 :: PrimeCo Personal Communications ended the quarter with 90,000 net
subscriber additions. PrimeCo's total customer base at the end of the quarter
was 598,000, triple the number in second quarter 1997.
 
 :: Total PrimeCo revenues for the quarter grew to dlrs 120 million,
nearly two and one-half times the level in second quarter 1997, with average
monthly revenue per subscriber of nearly dlrs 61.  Bell Atlantic owns 47.6
percent of PrimeCo.
 
 The International Wireless portfolio contributed 220,000 proportionate
net additions in the quarter, 91.3 percent higher than in the prior-year
period and nearly half of the Global Wireless total.  The international
proportionate customer base now exceeds 1.3 million, and Bell Atlantic's
wireless ventures outside the U.S. serve more than eight million subscribers.
International proportionate revenues totaled dlrs 186.8 million, up 73.1
percent over second quarter 1997.  Operating income climbed eightfold and
operating cash flow increased three and one-half times over second quarter
1997.
 
 International highlights:
 
 :: Grupo Iusacell in Mexico closed the first half of the year with more
than 550,000 customers, double the number in the same period last year.
Iusacell's net customer additions in the second quarter were the highest in
its history.
 
 :: During the second quarter Grupo Iusacell won two new PCS licenses for
the fast-growing industrial regions on the Mexico-U.S. border. Iusacell now
will become a nationwide provider, increasing its coverage from 70 percent to
more than 80 percent of Mexico's 94 million people.
 
 :: Omnitel Pronto Italia ended the quarter with almost four million
customers, as the company increased its share of the Italian wireless market
to 25 percent. During the second quarter, the company took first place in the
Grand Prix of Customer Service conducted by Teleperformance.
 
 :: STET Hellas closed the quarter with more than 500,000 subscribers in
Greece, an increase of 77 percent over second quarter 1997. STET Hellas
completed a global public offering on June 4 and ended the quarter with a
market capitalisation of more than dlrs 3.5 billion. Bell Atlantic owns 20
percent of STET Hellas.
 
 Bell Atlantic - formed through the merger of Bell Atlantic and NYNEX - is
at the forefront of the new communications and information industry. With more
than 41 million telephone access lines and more than seven million wireless
customers worldwide, Bell Atlantic companies are premier providers of advanced
wireline voice and data services, market leaders in wireless services and the
world's largest publishers of directory information. Bell Atlantic companies
are also among the world's largest investors in high-growth global
communications markets, with operations and investments in 23 countries.
 
 Bell Atlantic news releases, executive speeches, news media contacts and
other useful information are available at Bell Atlantic's News Centre on the
World Wide Web http://www.ba.com  To receive news releases by e-mail, visit
the News Centre and register for personalised automatic delivery of Bell
Atlantic news releases.
 
 Note to Editors:
 
 This press release contains statements about expected future events and
financial results that are forward-looking and subject to risks and
uncertainties. For those statements, we claim the protection of the safe
harbour for forward-looking statements contained in the Private Securities
Litigation Reform Act of 1995. Discussion of factors that may affect future
results is contained in our recent filings with the Securities and Exchange
Commission.
 
 EPS comparisons for the quarter and the first six months of 1998 were
affected by rounding resulting from a 2-for-1 stock split on June 1. On a
pre-split basis, second quarter 1998 EPS would have grown from dlrs 1.23 to
dlrs 1.36 in second quarter 1997, or 10.6 percent. Six-month 1998 EPS on a
pre-split basis would have grown from dlrs 2.43 to dlrs 2.68, or 10.3 percent.
The number of shares outstanding increased in the quarter by .6 percent. All
EPS amounts are on a diluted basis.
 
 Contact:  David Frail of Bell Atlantic, tel New York 001 212 395 7726 or
david.frail@BellAtlantic.com. Web site: http://www.ba.com
 

END
 
 


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