Revenue at Bell Aliant Holdings LP increased to $823 million in the second quarter, up 2.4 per cent from $804 million a year earlier, Bell Aliant Regional Communications Income Fund (TSX: BA-UN.TO) reported Tuesday.
Bell Aliant, which operates phone and Internet services throughout parts of Ontario, Quebec and Atlantic Canada, said operating revenue increased by $19 million in the quarter, with strong growth in its information technology and Internet revenues.
Internet services revenue grew by $9.4 million, while information technology services revenue increased by $23.1 million.
Those gains were offset by a decline in local service and long distance revenue, which fell by 2.4 per cent and 4.8 per cent respectively.
Capital expenditures in the quarter were $127.5 million, down from $143.4 million from the same quarter in 2007.
Distributions to unitholders were $92.1 million, or 7.25 cents per unit for the quarter ended June 30.
The earnings come as the Atlantic regional unit of Bell Canada (TSX: BCE.TO) announced deals to sell non-core businesses as the telecom operator prepares to become a private company.
In separate announcements Tuesday, GFI Solutions Group Inc. bought Bell Business Solutions Inc., a business IT services subsidiary of Bell Canada, for an undisclosed price.
And, Pilot trainer CAE Inc. (TSX: CAE.TO) announced a deal to buy the defence, security and aerospace unit of Bell Aliant for C$26.1 million.
Bell Aliant carried out a strategic review of its defence, security and aerospace business and decided it can grow only under the ownership of a company with access to large-scale, multiyear and international projects.
Bell parent BCE is being privatized under a $52 billion cash and debt deal led by the Ontario Teachers Pension Plan board, a transaction slated to close by mid-December.
In trading on the TSX, Bell Aliant units rose 35 cents to close at $26.90 while BCE shares rose 19 cents to close at $39.16.
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