FOR MORE INFORMATION FOR IMMEDIATE RELEASE
Jeff Battcher (404) 713-0274 November 16, 2000
Pattie Kushner (404) 249-2365
BellSouth Announces Targeted Growth Strategies for 2001
BellSouth Expects to Triple DSL Customers, While Focusing on
Data Services and Continuing Customer Growth in Latin America
ATLANTA - BellSouth Corporation (NYSE: BLS) today announced its growth and
financial projections for 2001. Performance for 2000 continues to meet
expectations, highlighted by data revenue growth, including a dramatic ramp-up
in DSL customers, solid overall performance in domestic wireless, and strong
customer growth in international wireless.
BellSouth reiterated its guidance of 10 to 12% earnings per share (EPS) growth
and $6.0 - $6.5 billion in capital expenditures for 2000. BellSouth enters 2001
with continuing prospects for growth in the same general areas supported by the
strength of Cingular Wireless, expansion of Latin America markets and strong
demand for digital services.
Data Services
BellSouth expects to triple its DSL customers from approximately 200,000 in year
2000 to 600,000 in year 2001, a growth rate of 200%. The rapid growth in
customers is expected to generate revenue of approximately $225 million in 2001
and $500 million in 2002. Data revenue for 2001 is expected to continue growing
at approximately 30%, driven by strong growth in other data services, including
web-hosting centers in Atlanta and Miami.
"Our customers have told us that they want access to high speed data services,"
said Duane Ackerman, Chairman and CEO of BellSouth. "Through expanded deployment
strategies and highly successful self-installs, we believe that our 2001
projection is very achievable."
The capital investment to support the higher level of DSL growth is within
BellSouth's previously stated CAPEX guidance of $5.5 - $6.0 billion for 2001.
The incremental cost of expanding DSL deployment is anticipated to be seven
cents per share in 2001.
To better align its financial and operational resources with its strategic
priorities in broadband services, wireless and international operations,
BellSouth will restructure its consumer video entertainment business. Detailed
plans, which may result in a charge to earnings, are being developed and will be
announced in the near future.
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International Wireless
Latin American wireless customers are expected to grow by 2.0 million, or 30%,
in 2001. The key drivers for expanding customer growth in Latin America include
increased penetration of existing markets, the recently developed interior
regions in Chile, Peru and Argentina, and recent acquisitions in Colombia.
The addition of the nationwide Colombia market added more than 40 million POPs
and is a significant contributor to BellSouth's overall market presence in Latin
America. The incremental cost of the acquisitions made in Colombia will be six
cents per share in 2001.
Revenue, Earnings and Capital Expenditures Summary
BellSouth's performance for 2000 continues to meet expectations, highlighted by
data revenue growth, including a dramatic ramp-up of DSL customers, solid
overall performance in domestic wireless and 3.5 million customer growth in
international wireless. DSL customers grew 81% in the third quarter of this
year, while international wireless grew 69% in the past year. With the creation
of Cingular Wireless, BellSouth and SBC now serve 19 million customers
nationwide.
For 2001, BellSouth expects revenue growth in the 7% to 9% range excluding
revenue from its domestic wireless operations, which will be recorded using
equity-method accounting. Including its proportionate share of Cingular Wireless
revenue, BellSouth revenue growth is expected to be in the 9 to 11% range.
BellSouth expects 2001 EPS growth to be in the 13 to 15% range, before the
incremental impact of entering the national Colombian market and before the
incremental impact of additional DSL customer growth. The impact of these two
initiatives will result in reported EPS growth in the 7% to 9% range, excluding
transition costs, if any, associated with the restructuring of the consumer
video entertainment business.
As previously stated, 2001 CAPEX is expected to be in the $5.5 - $6.0 billion
range.
Conference Call Thursday, November 16, at 4:30 PM EST
Ron Dykes, CFO of BellSouth Corporation, is hosting a conference call to discuss
BellSouth's growth initiatives and 2001 targets. The call begins today,
Thursday, November 16, at 4:30 PM EST. Please call 888-849-9214 within the U.S.
after 4:15 PM EST to access the live call.
The live audio of the call can also be accessed on the BellSouth Internet site
at www.bellsouth.com/investor beginning at 4:30 PM EST; slides for the call can
be accessed beginning at 4:15 PM EST. Visit the Web site prior to 4:30 PM EST to
be certain your computer is properly equipped to access the webcast. The audio
will be archived on the site through Tuesday, November 21, at 4:00 PM EST.
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The call replay can be accessed at 800-633-8625, reservation number 16932345,
for U.S. callers - or at 858-812-6450, reservation number 16932345, for
international callers. The replay begins at 6:30 PM EST, Thursday, November 16,
and is available until Tuesday, November 21, at 6:30 PM.
About BellSouth Corporation
BellSouth Corporation is an integrated communications services company
headquartered in Atlanta, GA serving more than 41 million customers in the
United States and 16 other countries. BellSouth, consistently recognized for
customer satisfaction, provides residential, business and wholesale customers
with integrated voice, video and data services to meet their communications
needs. BellSouth is a Fortune 100 company with total revenues exceeding $26
billion.
About Cingular Wireless (a joint venture with SBC Communications)
Through Cingular Wireless, the nation's second largest wireless company,
BellSouth provides innovative wireless voice and data services. Cingular
Wireless serves 19 million subscribers and reaches 190 million potential
customers with the most robust set of services in the wireless industry,
including interactive messaging in addition to attractive national rate plans
and bundles of other communications services.
In addition to historical information, this document contains forward-looking
statements regarding events and financial trends. Factors that could affect
future results and could cause actual results to differ materially from those
expressed or implied in the forward-looking statements include: (i) a change in
economic conditions in domestic or international markets where we operate or
have material investments which would affect demand for our services; (ii) the
intensity of competitive activity and its resulting impact on pricing strategies
and new product offerings; and (iii) higher than anticipated cash requirements
for investments, new business initiatives and acquisitions. The forward-looking
information in this document is given as of this date only, and BellSouth
assumes no duty to update this information.
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