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July 23, 1997updated 05 Sep 2016 12:17pm

BELL ATLANTIC AND NYNEX REPORT SOLID Q2 RESULTS

By CBR Staff Writer

Bell Atlantic Corp and Nynex Corp, fresh from securing what seems to be final FCC approval for their merger in exchange further concessions to open competition in their home markets (CI No 3,208), have reported second-quarter results slightly better than expectations. Any bad news ahead of the merger closing was avoided as Bell Atlantic reported net income up 7.6% at $498.9m, or $1.14 per share, on revenue up 6.7% at $3.44bn. Excluding a $0.03 charge stemming from its investment in CAI Wireless Systems Inc, earnings came in a penny better than the First Call consensus of $1.16. Nynex saw net income rise 6.3% to $380.5m, or $0.86 per share, on revenue up 2% at $3.51bn – including after- tax charges of $0.05 for the restructuring of its CAI investment and $0.07 from costs associated with its enhanced employee pension offer. Net of the charges, Nynex also topped First Call’s $0.97 estimate by a penny. Nynex says telecommunications revenues increased 2.3% and the number of access lines in the northeastern US grew by 3.5% to 18.1 million. Wireless subscribers through its various partnerships, including Bell Atlantic-Nynex Mobile, grew 33%. BANM revenues rose 16% in the quarter and added 241,000 new customers to top 4.9 million. Bell Atlantic benefited from the partnership, as well as sales of secondary residential lines, up 7.6%, while convenience services rose 20%. Bell Atlantic’s local phone revenues rose 5.6%, with local access lines up 4% at 21 million. Six-month net income was off 5.2% to $1.01bn, or $2.31 per share, on revenue up 6.4% at $6.71bn. For Nynex, six-month net income dropped 23% to $540.1m. or $1.23 per share, on revenue up 1.7% at $6.82bn. The year-ago period included a $131m gain stemming from a change in accounting principles. Shares in both companies celebrated the news, with Nynex jumping $2.313 to $56.625 and Bell Atlantic up $2.688 at $74.188.

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