One business day after securing enough shareholder votes to approve a merger with AT&T Inc., BellSouth Corp. on Monday released its second-quarter 2006 earnings, showing net income growth of 11.6 percent, from $795 million to $887 million, over the year-ago quarter.
The company reported an increase in earnings-per-share from 43 cents to 49 cents, or 14 percent. Executives attributed the results to its broadband and wireless divisions. BellSouth said it added 128,000 new broadband DSL customers during the second quarter, noting more than 25 percent subscribe to its premium services.
Cingular Wireless LLC, which is jointly owned by AT&T and BellSouth, added 1.5 million new customers, bringing its subscriber totals to 57.3 million at the end of June, according to BellSouth. Its revenue totaled $9.2 billion, up 7.1 percent over the same quarter a year ago, BellSouth reported.
Not all the news was good for BellSouth, however. The carrier continued losing residential wireline subscribers to wireless plans and cable telephony competitors. It reported a loss of 460,000 access lines, at 19.3 million. The company also said its wholesale lines resold by competitors declined by 181,000, compared to first-quarter 2006 numbers.
Meanwhile, BellSouth ended the second quarter with nearly 7.5 million long-distance customers, having added 120,000 long-distance users during the second quarter. Executives also said 63,000 customers added DIRECTV service to their BellSouth bundles, bringing to 691,000 the number of users including the satellite television service in their packages.
BellSouths stocks were up 60 cents during early afternoon trading on Monday, at $36.