Saturday, January 30, 1999
Cincinnati Bell's earnings up 19%
BY MIKE BOYER
The Cincinnati Enquirer
Cincinnati Bell Inc., which completed a spinoff of its Convergys Corp. subsidiary at year-end, said fourth-quarter operating earnings increased 19 percent.
Bell said operating earnings in the three months ended Dec. 31, excluding the effects of Cincinnati Bell Wireless, were $52.2 million vs. $43.9 million in the year-ago quarter.
Costs of the wireless joint venture with AT&T, which provides digital wireless telephone service in Cincinnati and Dayton, reduced earnings by $11.1 million, or 5 cents a share, in the fourth quarter.
Cincinnati Bell Wireless more than doubled its rate of new subscribers in the quarter and now has about 3 percent of the covered population, Bell said.
On an as-reported basis, Bell said net income was $36.2 million, or 26 cents a share, vs. a loss of $179.6 million, or $1.30 a share, last year, including a non-cash charge of $210 million, or $1.52 a share, to reflect the deregulation of its telephone business and pension settlement gains.
Quarterly revenues increased 5 percent to $226.5 million from $216.5 million a year earlier.
Bell, which is touting its tighter focus on communications following the Convergys spinoff, said its data and higher-bandwith services led revenue growth, increasing 31 percent in the fourth quarter and 35 percent for the year.
“I'm particularly pleased with the rapid growth of our data services, our progress in marketing value-added services, and our ability to aggressively manage costs,” said Rick Ellenberger, chief operat ing officer.
For the full year, Bell said operating earnings declined 6 percent to $180 million from $191.4 million.
On an as-reported basis, Bell said net income was $149.9 million, or $1.08 a share, vs. a loss of $16.4 million, or 12 cents a share, a year ago.
Bell revenues for the full year were $885.1 million, up 6 percent from $834.5 million a year ago.
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