Monday July 20, 11:05 am Eastern Time
GTE Core Earnings Rise 13 Percent
STAMFORD, Conn. (AP) -- GTE Corp. (NYSE:GTE - news) said today that profits from its core operations rose 13 percent in the second quarter, boosted by growth in enhanced telecommunications services.
Earnings from core operations were $783 million, or 81 cents per share, compared with $696 million, or 73 cents per share, in the same period a year ago.
Including the effects of extraordinary charges and investments in new data initiatives, net income grew only slightly, from $673 million, or 70 cents per share, compared with $671 million, or 70 cents per share, a year ago. Costs associated with investments in new data initiatives reduced GTE's net income by $110 million, or 11 cents per share, in the quarter.
Total revenues and sales grew 10 percent to $6.28 billion, compared with $5.69 billion a year ago.
For the first six months of the year, earnings from core operations increased 11 percent to $1.52 billion, or $1.58 per share, compared with $1.36 billion, or $1.42 per share, in the same period in
1997.
Including extraordinary charges and investments in new initiatives, earnings for the first six months fell 63 percent to $495 million, or 52 cents per share, compared with $1.34 billion, or $1.39 per share,
in 1997. Costs associated with investments in new data initiatives reduced GTE's net income by $219 million, or 23 cents per share, in the six-month period.
GTE Chairman Charles R. Lee said some of the company's investments included high-speed ADSL Internet-access technology, which allows customers to simultaneously obtain telephone and Internet
access on one line at speeds up to 25 times faster than the fastest dial-up modem.
In the quarter, GTE had revenue growth of $115 million, or 30 percent, from enhanced services.
Revenue in long-distance services grew by $58 million, or 83 percent.
GTE, one of the world's largest telecommunications companies, provides local service in 28 states
and wireless service in 17 states, as well as nationwide long-distance service and internetworking
services. Outside the United States, the company serves over 8 million telecommunications
customers.
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