updated 7/26/2004 9:24:04 AM ET 2004-07-26T13:24:04

Telecommunications giant BellSouth Corp. reported a 5 percent gain in second-quarter profit on flat revenue as it continued to lose access lines but benefited from growth in its long-distance and high-speed Internet services.

The results, announced Monday, beat Wall Street expectations.

Atlanta-based BellSouth said it earned $996 million, or 54 cents a share, for the three months ending June 30, compared to a profit of $951 million, or 51 cents a share, in the same three-month period a year ago.

Analysts surveyed by Thomson First Call were expecting earnings of 50 cents a share.

Revenue in the April-June quarter was roughly the same as last year at $5.08 billion.

BellSouth said it added 535,000 mass-market long distance customers in the second quarter. The company said the increase was driven by its offering of unlimited long-distance plans and new flat-rate calling plans.

BellSouth said it added 120,000 net DSL customers during the second quarter. Total access lines, however, declined in the quarter by 3.7 percent from a year ago to 21.8 million.

For the first six months of the year, BellSouth said it earned $2.60 billion, or $1.41 a share, compared to a profit of $2.18 billion, or $1.18 a share, in the year-ago period. Six-month revenue was down slightly at $10.06 billion, compared to $10.09 billion a year ago.

BellSouth is the dominant local phone provider in nine southeastern states. It jointly owns Cingular Wireless LLC, the nation's No. 2 cell phone provider, with SBC Communications Inc. of San Antonio.

Copyright 2004 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com