ATLANTA, /PRNewswire/ Randstad North America, a provider of
professional employment services, has signed an estimated $25 million,
three-
year contract with AT&T for an integrated networking solution supporting
approximately 500 locations across the United States and Canada.
The contract renews and expands a long-standing business relationship
between AT&T and Randstad. It also includes local, long-distance,
teleconference services and Voice over Internet Protocol (VoIP) communications
supported by AT&T’s fully managed, dedicated high-speed Internet access
solution.
«We put more than 50,000 people to work everyday. Fulfilling our
commitment to our customers and talent in a time-sensitive environment is a
huge task that requires expertise and solid business relationships,» said Larry Clark, chief information officer of Randstad North America. «AT&T
provides us with reliable and flexible tools that are an important element of
our technology and associated operations workflow system, enabling us to focus
on the quality of the transaction for our customers.»
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* 5.7 million
long distance customers* 1.9 million DSL customers
* 25.7 million
Cingular Wireless customersATLANTA, /PRNewswire-FirstCall/ BellSouth Corporation
(NYSE: BLS) announced third quarter 2004 earnings per share (EPS) from
continuing operations of 46 cents compared to 48 cents in the third quarter of
2003. Normalized EPS was 49 cents in the third quarter of 2004 compared to
50 cents in the same quarter a year ago. Normalizing items included
hurricane-related expenses in the wireline business, wireless merger
integration planning costs and a fair value adjustment for the pending sale of
Cingular Interactive assets. See below for further details.
For the quarter, consolidated revenue from continuing operations totaled
$5.1 billion. Income from continuing operations was $852 million compared to
$894 million in the same quarter a year ago.
In accordance with Generally Accepted Accounting Principles (GAAP),
BellSouth’s reported consolidated revenues and consolidated operating expenses
from continuing operations do not include the Company’s 40 percent share of
Cingular Wireless. Normalized results from continuing operations are adjusted
for BellSouth’s 40 percent proportionate share of Cingular’s revenues and
expenses and other normalizing items described below. Normalized revenue was
$6.7 billion, reflecting some improvement compared to the third quarter of
2003. Normalized net income was $893 million compared to $926 million in the
same quarter a year ago.
Operating free cash flow from continuing operations (defined as net cash
provided by operating activities less capital expenditures) totaled $923
million for the third quarter of 2004. Capital expenditures for continuing
operations in the third quarter of 2004 were $768 million compared to $713
million in the same period in 2003.
Communications Group
Communications Group revenue was $4.6 billion. Operating margin for the
third quarter of 2004 was 26.3 percent, level with the 2003 full year
operating margin and 40 basis points higher than the 25.9 percent operating
margin in the second quarter of 2004.
For the quarter ending Sept. 30, total access lines of 21.6 million
declined 3.9 percent compared to a year earlier. UNE-P access lines resold by
BellSouth competitors decreased by 54,000 in the third quarter compared to an
increase of 188,000 in the same quarter a year ago.
BellSouth added 532,000 mass-market long distance customers during the third quarter of 2004 and now serves approximately 5.7 million mass-market long distance customers. These customers represent a 44 percent penetration of BellSouth’s mass-market base and spend an average of approximately $17 per month on long distance with BellSouth.
For the third quarter, network data revenue was $1.1 billion, an increase
of 3.7 percent compared to the same quarter of 2003, driven by DSL.
BellSouth added 134,000 net DSL customers during the third quarter of 2004,
for a total of approximately 1.9 million at quarter-end. In September,
BellSouth launched additional incentives and introduced new pricing for
FastAccess(R) DSL designed to increase long-term market penetration.
With the third-quarter launch of our DIRECTV(R) offer, the Company
provides a competitively priced triple-play package of voice, data and
entertainment services. Through Sept. 30, more than 90,000 customers have
added DIRECTV(R) to their communications services packages.
In the third quarter, the hurricanes that hit BellSouth’s markets affected
more than 1.2 million residential and business customers. As a result, the
Company incurred approximately $38 million of incremental labor and material
costs during the third quarter. The Company expects to recognize incremental
costs in the $90 million range during the fourth quarter. Impacts to capital
are not expected to affect our guidance. BellSouth’s emergency preparations
and network capabilities ensured high levels of service retention and
restoration despite the storm-related damages. To date, fewer than 20,000
lines remain affected, and BellSouth continues to work around the clock
restoring service to these customers in the hardest-hit areas.
Domestic Wireless/Cingular
For the third quarter, Cingular Wireless added 657,000 net cellular/PCS
customers, bringing its nationwide customer base to 25.7 million. More than
80 percent of net additions were postpaid. Churn remained flat year-over-year
at 2.8 percent. BellSouth’s share of Cingular’s revenue was $1.7 billion in
the third quarter of 2004, a gain of 4.8 percent compared to the same quarter
a year ago. Revenue growth was driven by a 4.3 percent increase in service
revenue, which included a 116 percent increase in cellular/PCS data revenue.
The third quarter operating margin of 12.5 percent was impacted by lower
service ARPU, costs associated with record gross customer additions and higher
systems costs from increased minutes of use.
During the third quarter, Cingular continued to make advances in deploying
next-generation network technologies that will give customers access to high-
speed wireless data services. The company has enabled substantially all of
its markets with EDGE (Enhanced Data for GSM Evolution) high-speed data
technology. Cingular is currently testing integrated voice and data wireless
services in a 3G UMTS (Universal Mobile Telecommunications System) trial.
Cingular’s purchase of AT&T Wireless will create the nation’s largest
wireless provider with more than 47 million subscribers. Cingular’s plans for
integration will position the company as a leader in the wireless industry
providing a high-quality network, excellent customer care and innovative
wireless services. Cingular’s management team has experience integrating
wireless companies, and as the two companies’ operations are brought together,
the number one focus will be giving customers great service and a seamless
transition.
The Cingular/AT&T Wireless transaction will be funded primarily by equity
contributions from Cingular’s parent owners. BellSouth’s portion of the
funding is approximately $14.5 billion, which will be funded with cash on
hand, proceeds from asset sales and incremental debt. Net incremental
financing for this transaction is expected to be approximately $6 billion.
Advertising & Publishing
Advertising & Publishing revenue was $498 million in the third quarter of
2004, a decrease of 1.4 percent compared to the same quarter a year ago.
Operating margin for the third quarter of 2004 was 46.0 percent compared to
47.1 percent in the third quarter of 2003. Segment net income was $141
million compared to $147 million in the third quarter of 2003.
Discontinued Operations: Latin America Group
In March 2004, BellSouth signed a definitive agreement with Telefonica
Moviles, the wireless affiliate of Telefonica, S.A., to sell BellSouth’s
interests in its 10 Latin American operations. On Oct. 14, 2004, the company
closed the sale of wireless operations in Ecuador, Guatemala and Panama.
Pending required governmental approvals, the remaining seven properties are
expected to close by the end of 2004.
Following GAAP, the Company’s financial statements, as of Sept. 30, 2004,
reflect results for the Latin American segment in the line item titled
Discontinued Operations. For the third quarter, BellSouth reported a loss
from discontinued operations of 3 cents per share compared to income of 2
cents per share in the third quarter of 2003. Results for the third quarter
of 2004 include an after-tax charge of approximately $190 million, or 10 cents
per share, related to an agreement in principle with the other major
shareholder of Telcel, our Venezuelan operation, where we would purchase its
21.8 percent interest in Telcel and settle all outstanding claims for an
aggregate payment of $617 million. In accordance with our agreement with
Telefonica Moviles, we will sell this interest for approximately $300 million.
The BellSouth consolidated Latin American operations added 583,000
customers in the third quarter of 2004, for a total of 12.1 million customers
served at quarter-end. Consolidated Latin American operations produced $724
million in revenue for the third quarter of 2004.
Normalizing Items
In the third quarter of 2004, the difference between reported (GAAP) EPS
from continuing operations and normalized EPS is shown in the following table:
3Q04 3Q03
GAAP Diluted EPS — Income from continuing
operations $0.46 $0.48
Hurricane-related expenses $0.01
Wireless merger integration planning costs and
fair value adjustment $0.01
Asset impairment $0.02
Normalized Diluted EPS (1) $0.49 $0.50
(1) Normalized Diluted EPS for 3Q04 does not sum due to roundingHurricane-related
expenses -- Represents the incremental labor and
material costs incurred during the third quarter related to service
restoration and network repairs in the wireline business due to Hurricanes
Charley, Frances, Ivan and Jeanne.
Wireless merger integration planning costs and fair value adjustment --
Represents BellSouth’s 40 percent share of tax-effected wireless merger
integration planning costs of $43 million incurred during the third quarter in
preparation for the Cingular/AWE merger. Also includes a $31 million fair
value adjustment for the announced sale of Cingular Interactive.
Asset impairment -- The third quarter 2003 charge for asset impairment
represents the write-off of capitalized software related to an abandoned
systems project.
About BellSouth Corporation
BellSouth Corporation is a Fortune 100 communications company
headquartered in Atlanta, GA, and a parent company of Cingular Wireless, the
nation’s second largest wireless voice and data provider.
Backed by award-winning customer service, BellSouth offers the most
comprehensive and innovative package of voice and data services available in
the market. Through BellSouth Answers(R), residential and small business
customers can bundle their local and long distance service with dial up and
high speed DSL Internet access, satellite television and Cingular(R) Wireless
service. For businesses, BellSouth provides secure, reliable local and long
distance voice and data networking solutions. BellSouth also offers online and
directory advertising through BellSouth(R) RealPages.com(R) and The Real
Yellow Pages(R).
More information about BellSouth can be found at [ >>>
] .
Further information about BellSouth and Cingular’s third quarter earnings
can be accessed at [ >>>
] The press release, financial
statements and BLS Investor News summarizing highlights of the quarter are
available on the BellSouth Investor Relations website starting today at 8 a.m.
Eastern Time (ET).
BellSouth will host a conference call with investors today at 10 a.m.
(ET). Participating will be BellSouth CFO Ron Dykes and Investor Relations
Vice President Nancy Davis. Dial-in information for the conference call is as
follows:
Domestic: 888–370–1863
International: 706–634–1735
The conference call will also be webcast live beginning at 10 a.m. (ET) on
our website at [ >>>
] The webcast will be archived on
our website beginning at approximately 1 p.m. (ET) today.
A replay of the call will be available beginning at approximately 1 p.m.
(ET) today, through Nov. 1, 2004, and can be accessed by dialing:
Domestic: 800–642–1687 — Reservation number: 9280326
International: 706–645–9291 — Reservation number: 9280326
In addition to historical information, this document may contain forward-
looking statements regarding events and financial trends. Factors that could
affect future results and could cause actual results to differ materially from
those expressed or implied in the forward-looking statements include: (i) a
change in economic conditions in domestic or international markets where we
operate or have material investments which would affect demand for our
services; (ii) the intensity of competitive activity and its resulting impact
on pricing strategies and new product offerings; (iii) higher than anticipated
cash requirements for investments, new business initiatives and acquisitions;
(iv) unfavorable regulatory actions; (v) currency devaluations and continued
economic weakness in certain international markets in which we operate or have
material investments; and (vi) those factors contained in the Company’s
periodic reports filed with the SEC. The forward-looking information in this
document is given as of this date only, and BellSouth assumes no duty to
update this information.
This document may also contain certain non-GAAP financial measures. The
most directly comparable GAAP financial measures, and a full reconciliation of
non-GAAP to GAAP financial information, are attached hereto and provided on
the Company’s investor relations website, [ >>>
]
By Kevin Chiao The China Post
With the advancement of telecommunication technologies, people don’t have to rush through their long-distance telephone calls and worry about expensive phone bills anymore. A revolutionary innovation, VoIP, has changed modern people’s ideas about old-fashioned telephones.
VoIP, Voice over Internet Protocol, is a newly developed telecommunication product, which uses advanced computer technology to shape the way traditional telephones convey voices and the result is cheaper telephone bills and more convenient communication environments. With broadband Internet access becoming progressively more popular, VoIP, or the Internet telephone can expand its ever-growing market.
«The future of VoIP is geared toward a multi-purpose, more convenient, but less expensive solution, and is looking to take the leading position in the telecommunication market dominated by traditional telephones,» said Terry Cheng, the president of Texas Instruments Incorporated Asia Limited, at a forum held by Taipei County’s computer association.
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