"BellSouth's DSL subscriber growth is matched by anticipated year-end DSL
revenues of $225
million. For 2002, BellSouth expects $600 million in DSL revenues, upped
from a previously
projected $500 million, by nearly doubling its subscriber base to 1.1
million DSL subscribers.
"expects to reach its goal of 600,000 subscribers by year-end."
BELLSOUTH DETAILS 2002
GROWTH STRATEGIES AT NEW
YORK ANALYST BRIEFING
Focus on Fundamentals and Execution Provide Stability and Shareholder Growth
For Immediate Release:
November 5, 2001
NEW YORK - BellSouth Corporation (NYSE: BLS) announced today at an analyst
briefing in New York its 2002 growth projections and outlined how BellSouth
continues to focus and execute its strategies in any economy.
"BellSouth will continue to be a major force because we have the right assets and
one of the industry's best and most experienced senior management teams," said
Duane Ackerman, chairman and CEO of BellSouth.
At the briefing, BellSouth detailed its strategy for its targeted growth areas of DSL,
data, worldwide wireless, and long distance entry, while retaining leadership in
customer service - all of which translate to increasing shareholder value. BellSouth
also detailed how it's taken the lead in broadband deployment, telecom services
revenue growth, and customer service satisfaction in 2001.
BELLSOUTH SURPASSES PEERS AND CABLE PROVIDERS IN DSL GROWTH
AND CUSTOMER SATISFACTION
In two years, BellSouth has amassed more than 463,000 DSL subscribers and expects
to reach its goal of 600,000 subscribers by year-end. With its rapid acceleration and
highly-targeted expansion plans, BellSouth leads other DSL-providers in subscriber
growth with 617% in 2000 and 179% growth in 2001.
In fact, BellSouth is adding subscribers in its markets an average of 10% faster than
competing cable providers and has taken a significant lead in the key Southeastern
markets of Miami, Atlanta, New Orleans and Charlotte. BellSouth also leads the
industry in DSL deployment, expecting to end the year with more than 70% of
households in its region being DSL-eligible and increasing that number to 76% by
year-end 2002.
"With our targeted DSL deployment, we waited until we had it right from a network,
technology and marketing point of view so we could reach and keep our high-value
customers," said Ackerman. "The wait has paid off and now we are best-in-class in
coverage and growth," he said, referencing BellSouth's industry leadership for its
high level of customer satisfaction which has been recognized by numerous
independent authorities.
BellSouth's DSL subscriber growth is matched by anticipated year-end DSL
revenues of $225 million. For 2002, BellSouth expects $600 million in DSL revenues,
upped from a previously projected $500 million, by nearly doubling its subscriber
base to 1.1 million DSL subscribers.
DATA TO PLAY CRITICAL ROLE IN ALL MARKET SEGMENTS
Data continues to play a critical role in BellSouth's evolving product mix. Data
services have gained an increasing share in BellSouth's revenues through
consistent top-line growth and robust product margins.
BellSouth expects to end 2001 with approximately $4.5 billion in data revenues
highlighted by three consecutive quarters of billion dollar revenues. Leveraging an
expansive and growing product portfolio built on connectivity and integration,
BellSouth projects to end 2002 with 22-25% growth in network data revenues.
BellSouth attributes its success in the data market to its "network-centric" focus.
Over the past decade, BellSouth has emerged as the leading RBOC in working fiber
channels by investing in 4 million miles of fiber, 749 broadband (ATM/Frame Relay)
switches and 20,000 SONET rings in service in its network. This investment has
resulted in a next generation network that allows BellSouth the capabilities to
provide advanced data network services.
FOCUS ON SCALE AND PROFITABILITY IN WORLDWIDE WIRELESS
In the US, through Cingular Wireless, BellSouth has transitioned from a regional
wireless operator to the second largest national player. Cingular's strategy is to lead
the industry in profitable growth by continuing to build its brand, offering
innovative services, and leveraging its distribution channels, while evolving its
technology and delivering strong financial results.
Internationally, BellSouth has focused on its Latin American properties by
continuing to build out its footprint and developing operational synergies.
BellSouth now has the largest footprint in Latin America with an expansive presence
in 11 countries, holding 8 nationwide licenses.
BellSouth's continued strategy for wireless leadership in Latin America focuses on
growing its core mobile voice business profitably, utilizing its wireless-centric
infrastructure and driving revenues from mobile data, Internet and other
complementary services. Demonstrating the success of this strategy, in less than a
year, BellSouth has expanded margins in Latin America from 21% (4Q00) to 31%
(3Q01) despite economic challenges in the region.
LONG DISTANCE TO PLAY SIGNIFICANT ROLE IN 2002
By year-end, BellSouth expects a decision from the Federal Communications
Commission (FCC) on its Georgia and Louisiana applications which were
unanimously approved by their respective state commissions. BellSouth's
application in Mississippi also received unanimous state approval and is expected to
be submitted to the FCC soon, followed by several others states in BellSouth's
region.
SUMMARY OF FINANCIAL TARGETS
In 2001, BellSouth is leading the industry in terms of telecom services revenue
growth and expects total revenue to grow 8-9%, anticipating nearly $30 billion in
total revenue by year-end.
While fueling growth initiatives such as data, long distance and broadband DSL,
BellSouth expects to continue to constrain expenses to maintain some of the
industry's strongest margins. In 2002, anticipating continued economic challenges
through at least mid-year, growth plans are expected to increase revenue by 5-7%
and earnings per share (EPS) by 7-9%.
2002 Year-End Targets
Total Revenue
5-7% growth
Network Data Revenues
22-25% growth
Earnings Per Share
7-9% growth
DSL Customers
1.1 million customers
Capital Expenditures (CAPEX)
$5.3 - $5.5 billion
ABOUT BELLSOUTH CORPORATION
BellSouth Corporation is a Fortune 100 communications services company
headquartered in Atlanta, GA, serving nearly 46 million customers in the United
States and 16 other countries.
Consistently recognized for customer satisfaction, BellSouth provides a full array of
broadband data and e-commerce solutions to business customers, including Web
hosting and other Internet services. In the residential market, BellSouth offers DSL
high-speed Internet access, advanced voice features and other services. BellSouth
also provides online and directory advertising services, including BellSouth®
RealPagesSM.com.
BellSouth owns 40 percent of Cingular Wireless, the nation's second largest wireless
company, which provides innovative wireless data and voice services.
In addition to historical information, this document contains forward-looking
statements regarding events and financial trends. Factors that could affect future
results and could cause actual results to differ materially from those expressed or
implied in the forward-looking statements include: (i) a change in economic
conditions in domestic or international markets where we operate or have material
investments which would affect demand for our services; (ii) the intensity of
competitive activity and its resulting impact on pricing strategies and new product
offerings; (iii) higher than anticipated cash requirements for investments, new
business initiatives and acquisitions and (iv) those factors contained in the
Company's periodic reports filed with the SEC. The forward-looking information in
this document is given as of this date only, and BellSouth assumes no duty to update
this information.
# # #
For more information contact:
Jeff Battcher
404-713-0274
Pattie Kushner
404-249-2365
bellsouthcorp.com |
