Bell Aliant is about 75% owned by BCE. It's quarterly results, as reported below, are indicative of positive effect of BCE streamlining and new focus. *****
Atlantic Canada’s major phone company dialled up a net profit of $89.3 million in the second quarter, up from $84.4 million in the same period last year.
Bell Aliant Regional Communications Income Fund reported Thursday the rise came despite operating revenues that fell 2.9 per cent to $790 million, primarily as a result of the timing of information technology equipment sales and declines in local and long distance revenues.
Despite the revenue declines, earnings before interest, taxes, depreciation and amortization, or EBITDA, rose by $7 million to $368 million from $361 million.
Labour cost reductions and cost containment initiatives accounted for most of the improvement, Bell Aliant said.
Meanwhile, distributable cash — the amount of cash available to meet the distribution obligations of the fund — increased to $187 million from $183 million.
"Our continued focus on cost management and operational improvements resulted in strong EBITDA performance this quarter and we are on track to meet our 2009 guidance across all measures," Karen Sheriff, president and CEO, said in a release.
"The stability of our financial performance and our cost containment allow us to focus on our key strategies to improve service and drive broadband growth."