BellSouth reported consolidated Q1 revenues of $5.52 billion, compared to $5.53 billion in Q1 2002. Net income was $1.2 billion, compared to a net loss of $154 million in Q1 2002. Some highlights of the quarter:
- CAPEX was $631 million, a reduction of 37.2% compared to $1.0 billion in Q1 2002. The CAPEX-to-revenue ration for the quarter was 11.5%, although the guidance for future spending remains 15%.
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Operating free cash flow (defined as cash flow from operations less capital expenditures) was $1.3 billion.
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total debt was reduced by $753 million
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BellSouth added 101,000 DSL customers, giving it a total of 1,122,000 customers. DSL customers now represent 7% of BellSouth-qualified lines.
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At the end of the quarter, BellSouth had more than 1.9 million consumer and business long distance customers, nearly double the level three months ago. BellSouth now has 13% consumer LD penetration and 24% business LD penetration.
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Data revenues were $1.09 billion, level with the first quarter a year ago.
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Total access lines of 24.5 million at March 31 declined 3.6 percent compared to a year earlier, impacted by a continued weak economy, market share loss and technology substitution. Year-to-year retail line loss was 1.6 million – consumer line loss was 7%, small business line loss was 3.7%, and large business line loss was 6.5%.
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UNE-P lines served to competitors grew by 231,000 to 1,774,000, a 110% increase over Q1 2002. The UNE-P growth was nearly all for consumer lines; business UNE-P lines were flat on a sequential basis. Wholesale resale lines provided to competitors declined by 56,000 to 380,000.
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Cingular Wireless added 189,000 net subscribers in Q1, giving it a total of 8.8 million customers.
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- Shares in BellSouth closed at $24.21, up by $2.50 or 11.5% for the day.