Bell Aliant highlights cost savings as revenues, EBITDA decrease

2 Aug 2010

Canadian full-service telco Bell Aliant’s revenues were down 4% year-on-year in the second quarter of 2010 to CAD753 million (USD732 million), driven by declines in local and long-distance turnover associated with lower volumes of fixed network access service (NAS) customers, as well as lower data/IT service revenues. EBITDA decreased by 2.8%, or CAD10 million, to CAD357 million in April-June compared to the same period in 2009. Operating expense reductions of CAD21 million (5.1%) from labour-related cost savings and other expense containment initiatives mitigated the effects on EBITDA of lower revenues. ‘Our results are in line with our expectations, including the reduction in operating expenses … as we reset our cost structure,’ said Karen Sheriff, Aliant’s CEO, who continued, ‘While competitive expansion in our territories continued to reduce our local service customer base, our NAS declines in the second quarter improved substantially from both the first quarter of this year and the same quarter a year ago … The rollout of our [FTTx] FibreOP services is proceeding well and I am very pleased with the results we are experiencing to date, particularly the take-up of our FibreOP Bundles which include TV, internet and home phone.’

Canada, Bell Aliant (old)