BellSouth reports falling profits

BellSouth reports falling profits

BellSouth Corporation, a leader in domestic local telephone services in the United States has reported falling profits by almost 20%. The revenues were up for the second quarter but the overall profit situation has fallen down drastically. The company is however pleased with these results especially the impact their wireless division has on their bottom-line in these figures. The results were as per market expectation and were announced before the market opened today.

The company reported earnings of around $795 million. This comes to around 43 cents a share. The figures were around 20% higher last year with around $996 million, or 54 cents a share revenues. The market estimates by Thomson Financial were 43 cents a share, which the company met comfortably. The company showed an improvement of around 1.2% to touch USD 5.14 billion.

BellSouth Corporation was formed as a result of the breakup of the larger group Bell System. it is a provider of telephony in United States and have dominating positions in areas like Georgia, Tennessee, Florida, Alabama, Kentucky, Mississippi, North Carolina, South Carolina and Louisiana. They are also the owners of the Atlanta-based Cingular Wireless LLC in collaboration with SBC Communications Inc.

Duane Ackerman, chairperson and chief executive said in a statement on the results of the company: “The realignment of our assets toward wireless and broadband services is starting to pay off. Cingular delivered strong growth in customers, revenues, and operating margins. Our results this quarter clearly demonstrate how Cingular’s progress impacts BellSouth’s bottom line.”