Fourth-quarter revenues, including proportionate Cingular results, increased 9.1 percent to $14.1 billion. Diluted earnings per share for the quarter grew 5.6 percent before one-time items to $0.57, compared with $0.54 in the fourth quarter of 1999. Earnings before one-time items increased 5.6 percent to $2.0 billion, up from $1.9 billion in the fourth quarter of 1999.
In the fourth quarter we saw strong results from data services and Cingular Wireless, which began operations in October, and continued strong sales from our Texas long-distance operations, said Edward E. Whitacre Jr., chairman and CEO. We’re heading into 2001 with a solid core business, all the right assets, and executing against the best growth strategy in the business.
Highlights of SBC’s fourth-quarter growth include:
44.3 percent growth in data revenues to $2.2 billion in the quarter. For the full year 2000, SBC’s data revenues were $7.5 billion, a 41.7 percent increase from 1999, nearly doubling SBC’s 1998 total data revenues.
767,000 Digital Subscriber Line (DSL) customers at year’s end, reflecting a fourth-quarter gain of 251,000, more than double the net gain in the third quarter of 2000 and SBC’s best DSL growth in any quarter to date.
An 814,000 net gain in wireless customers at Cingular, bringing the company’s total to 19.7 million. On a pro-forma basis, wireless service revenue increased 17 percent compared with the fourth quarter of 1999. SBC has a 60 percent stake in Cingular.
1.7 million long-distance lines in Texas at year’s end representing more than 1.4 million customers, all added in less than six months since SBC’s market launch in mid-July 2000.
Full-year 2000 revenues grew 8.8 percent to $53.3 billion, before one-time items. Earnings before one-time items for 2000 were $7.7 billion, compared with $7.4 billion in 1999, and diluted earnings per share for 2000 before one-time items increased 5.1 percent to $2.26, compared with $2.15 in 1999.
In 2000, we made the investments and strategic decisions necessary to put SBC in the best position to pursue data and wireless growth opportunities, said Whitacre. We’ve done well offering long-distance service in Texas, and we’re very pleased with recently winning approval to offer long distance in Kansas and Oklahoma, making SBC the only former Bell company to have long-distance approval in multiple states. Now we need to gain the same freedom in our other states, particularly California.
Looking ahead, we’re focused on what we do best – executing our growth strategy while maintaining financial strength and flexibility, Whitacre said.
