Bell Aliant Regional Communications Income Fund (Bell Aliant or the Fund)(1) (TSX: BA.UN) today reported distributions to its unitholders of $92.1 million or $0.725 per unit for the quarter ended September 30, 2008.
Bell Aliant also announced that it has entered into a long-term agreement with Bell Canada (Bell) to provide an enhanced transport network connecting Bell Mobility's cell sites in Atlantic Canada and regions of Ontario and Quebec. This investment will add "HSPA" technology to the existing network, and support Bell's nation-wide migration to Long Term Evolution (LTE) technology, the fourth generation (4G) global wireless standard.
"I am pleased with our third quarter performance," said Stephen Wetmore, President and Chief Executive Officer. "Our results are in line with our expectations, strongly positioning us to deliver on our stated objectives, and continue to demonstrate the stability of our operations."
Highlights of the third quarter of 2008 include the following:
- Operating revenue increased $6.8 million (0.8 per cent) in the third quarter of 2008 compared to the same period a year ago with growth in Information Technology (IT) and Internet revenues offsetting declines in local, long distance and other revenues.
- Internet revenue grew by $11.7 million (13.6 per cent) in the third quarter of 2008 compared to the same period in 2007, with high-speed Internet subscriber growth of 12.4 per cent and residential high-speed average revenue per subscriber (ARPC) growth of 6.9 per cent.
- IT revenue increased by $15.0 million (29.5 per cent) in the quarter compared to the same period last year, with increases in services revenue and equipment sales of $7.2 million and $7.8 million respectively.
- Local service and long distance revenue declined by $4.9 million (1.4 per cent) and $7.7 million (6.2 per cent), respectively, in the third quarter of 2008 compared to the third quarter in 2007, with network access services (NAS) 3.4 per cent lower than a year ago. Local service revenue in the quarter included a $2.4 million one-time favourable adjustment arising from retroactive contribution revenues.
- EBITDA increased $1.2 million (0.3 per cent) in the third quarter of 2008 compared to the third quarter of 2007, with cost containment and productivity programs continuing to offset the effects of a changing revenue mix. EBITDA margin was 45.5 per cent in the third quarter, down slightly from 45.7 per cent for the same period in 2007.
- Capital expenditures in the third quarter were $138.8 million, down $0.9 million (0.6 per cent) from the same quarter a year ago.
- Distributable cash increased $1.7 million (1.0 per cent) in the third quarter of 2008 from the same period 2007, resulting from EBITDA growth and reduced capital expenditures.
The HSPA network is expected to be fully operational by 2010. With approximately $25 million of new capital expenditures now planned for 2008, Bell Aliant's previously issued 2008 guidance ranges for capital intensity and distributable cash have been revised. -- www.cnxmarketlink.com
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