Citing weak demand for communications services, both in the United States and Latin America, BellSouth reported Q4 consolidated revenues (excluding Cingular Wireless) of $5.69 billion, compared to $6.21 billion in Q4 2001. The company’s reported earnings per share were $0.32. Operating free cash flow (defined as cash flow from operations less capital expenditures) was $791 million in Q4. BellSouth said bankruptcies continued to affect retail and wholesale demand, as well as bad debt expense. Other negative factors included retail access line market share loss in the US, as well as currency devaluations in Argentina and Venezuela. Some other highlights of the report:
- Free cash flow generated through operations, a reduction in capital expenditures and asset sales enabled BellSouth to reduce its debt by 23.6% in 2002 to $14.9 billion, compared to $19.5 billion a year earlier.
- Capital expenditures for 2002 were $3.8 billion, a reduction of 36.9% compared to $6.0 billion in 2001.
- BellSouth added 97,000 DSL accounts in Q4, giving it a total of 1,021,000 broadband customers.
- As of 31-December-2002, BellSouth had 24.6 million access lines in service, a decline of 3.2% compared to a year earlier.
- UNE-P access lines served by competitors increased by 190,000 in Q4.
- In long distance, BellSouth continued to make gains. As of year-end, it was serving more than 1 million consumer and business long distance customers.
- BellSouth also announced it will expense stock options granted to employees after January 1, 2003
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- In December 2002, Verizon Communications announced that it would expense of employee stock options granted on or after January 1, 2003.
