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October 22, 1997updated 03 Sep 2016 6:53pm

BELL ATLANTIC REPORTS MERGER-SCARRED Q3 THAT BEATS ESTIMATES

By CBR Staff Writer

Bell Atlantic Corp reported a third-quarter net loss of $80.1m – or $0.10 per share – on revenue that was essentially flat at $7.37bn, compared to net income of $871.8m, or $1.13 per share, a year ago. The quarter’s results include a whopping $1.5bn in charges stemming from the company’s merger with Nynex Corp (CI No 3,208). Bell Atlantic figures it will take an additional $400m to $500m in Nynex-related charges over the next three years. Net of the merger costs, adjusted net income for the period was $969.4 million, or $1.25 a share, besting Wall Street expectations by a penny. The post-merger company says it is now on target to see double digit earnings growth – projected at 10% to 12% – for this year and next, and should also realize greater cost savings than originally anticipated. It reckons that it can now realize $1.1bn in cost savings by 2000, rather than the $600m annually it first projected. A total savings of $300m a year in capital savings is also expected as a result of consolidation and restructuring, including the elimination of about 3,100 management jobs. Bell Atlantic figures its current product portfolio will allow it to add about $400m a year in revenue, with the right advertising and marketing initiatives. During the third quarter, access lines in service grew 3.7% year-over-year to 39.4 million and access minutes rose 7.4% over the same period. The company finished the quarter with $52.89bn in total assets and 141,800 employees on the payroll. Nine-month net income dropped 43% to $1.51bn, or $1.95 per share, on revenue up 3.4% at $22.5bn.

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