To: savolainen who wrote (1119 ) 4/16/1998 12:27:00 AM From: srvhap Respond to of 1998
I don't know, maybe it's that fish I had tonight but I read this twice and I am still not sure what they are saying :) any thoughts. Tho the last line even after a third read I don't understand. Wednesday April 15 3:22 PM EDT GTE Sees Strong Data, Access Line Growth By Jessica Hall NEW YORK (Reuters) - GTE should see strong future growth in its data business as it rolls out new services such as high- speed Internet access, the company's Chief Financial Officer Michael Kelly said. "This is our growth business. This is the engine that's going to drive us," he said in a phone interview following the company's earnings report. GTE's first quarter revenues from data initiatives increased 22 percent over the fourth quarter of 1997, and Kelly said maintaining that growth rate may be difficult as the overall size of the business keeps growing. "The quarter-over-quarter growth of 22 percent was really strong. As the numbers get bigger, the growth rate will come down some....The percentages may (decrease) but we expect to see future strong growth," Kelly said. GTE expects its domestic access line growth to be consistent with the eight percent growth seen in the first quarter. "With technology and the data explosion the demand for Internet access, it (line growth) just seems to be unrelenting. We remain confident we're going to see these levels for at least for the balance of this year," Kelly said. Earlier on Tuesday, GTE said its first quarter revenues increased 11 percent and earnings per share from core operations jumped 10 percent due to strong demand for data services and additional telephone lines. GTE's first quarter earnings from core operations increased to $0.76 per share on net income of $733 million, topping the consensus Wall Street estimate of $0.65 a share. The first quarter results compared with $0.69 per share or $665 million reported for the same period last year. Consolidated revenues and sales increased to $5.88 billion, compared to $5.28 billion a year ago. Including the effects of the previously announced after-tax, non-recurring charges of $802 million or 83 cents per share and investments in data initiatives, the company posted a first quarter net loss $178 million or 18 cents per share. Kelly said GTE's data investments will peak in the first part of 1998. Later this year, GTE will begin to reap the benefit from that spending. "We need to get back at a run rate level of delivering consolidated earnings per share growth of 13-15 percent rate next year. What you're going to see is a slow start to this year but a very strong finish for the year," he said. GTE said it is still considering bids for the various non- core assets it plans to sell. Earlier this month, GTE said it plans to generate $2 billion to $3 billion by selling certain some wired telephone properties and other assets. "The call list from people that are interested is huge... but I think it's going to be a bit before you see any definitive announcements from us," Kelly said.