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SBC's quarterly profits top expectations
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NEW YORK, July 20 (Reuters) - Local telephone company SBC Communications Inc. <SBC.N> on Tuesday posted a stronger-than-expected 15 percent rise in second quarter profit due to strength in its data and wireless operations and higher sales of services such as Caller ID and call waiting.
San Antonio, Texas-based SBC said its profit rose to $1.2 billion, or 59 cents per share, compared with $1.0 billion, or 51 cents per share, a year ago. The results beat Wall Street's expectations of 58 cents per share, according to research firm First Call Corp.
SBC, a Baby Bell operator providing phone and data services in eight states mostly in the southwestern and western United States, said revenues increased 5.2 percent to $7.4 billion from $7.0 billion a year ago.
"We experienced tremendous demand for our high-speed data services during this quarter, achieved outstanding growth in our wireless business, saw increased contribution from our international investments and, most important, advanced both our entry into long distance and our acquisition of Ameritech," said SBC Chairman Edward Whitacre.
SBC said its wireless subscriber base grew by 305,000 during the quarter. Including the recent acquisition of Comcast Cellular Corp., SBC now has more than 8.3 million wireless customers.
Data services revenues increased 32 percent to $710 million. SBC had 32,000 digital subscriber line (DSL) or high-speed data subscribers at the end of the quarter. SBC can reach a potential 8 million DSL-capable homes and businesses, and has a goal of reaching nearly 10 million customers by year-end.
Sales of services such as Caller ID and call waiting increased 14 percent to $533 million as residential feature penetration reached 2.05 features per line, an 18 percent increase over a year ago.
SBC said it plans to complete its proposed $61 billion of sister Baby Bell Ameritech Corp. in the third quarter and it aims to enter the long distance telephone business this year.
In early action on the New York Stock Exchange on Tuesday, SBC shares gained 6.25 cents to $57.125. |
