SNET News Release
227 Church Street
New Haven, Connecticut 06510
July 23, 1996
For more information contact: Kevin Moore
(203) 771-2136
SNET ANNOUNCES CONTINUED STRONG EARNINGS GROWTH
FOR THE SECOND QUARTER
Southern New England Telecommunications Corporation
(SNET) -- (NYSE: SNG) -- announced today that second
quarter net income for 1996 was $51 million or $0.77
per share compared with $40 million or $0.62 per share
for the same period last year. On a normalized basis,
adjusting for the impacts of acquisitions and 1995
special items, earnings for the second quarter would be
up 14 percent to $0.84 versus $0.74 for 1996 and 1995.
"This is our tenth consecutive quarter of improved
earnings," said Daniel J. Miglio, SNET chairman and
chief executive officer.
"Our strong revenues and earnings for the second
quarter speak for themselves. Our strategy is working.
We continue to demonstrate our competitive spirit and
our growing capability to market a broad range of
information, communications and entertainment services.
Our interstate/international long-distance business
produced dramatic customer and revenue growth again
this quarter, and after a little more than two years it
is already profitable," he added.
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Consolidated revenues and sales for the second
quarter were up 9 percent to $488 million. Wireline
revenues rose 6 percent to $392 million with revenues
and customers from interstate and international long-
distance tripling. Local-service revenues grew 5
percent, reflecting a more than 3 percent increase in
access lines with strong growth in second residential
lines and continued growth in vertical services. In
addition, access revenues were up 4 percent on strong
demand. Wireless revenues climbed 46 percent to $56
million. The customer base grew 37 percent after
adjusting for acquired territories. Information and
Entertainment revenues were flat at $46 million.
Consolidated operating expenses rose 8 percent.
Excluding a 1995 special item, they were up 13 percent.
Wireline expenses without that special item increased
10 percent or $22 million, reflecting higher expenses
to serve SNET's expanding long-distance customer base
and an increase in contract services. These higher
expenses were offset partially by a smaller work force.
Wireless expenses rose 20 percent to support rapid
growth and the enlarged cellular area. Information and
Entertainment expenses were flat.
Depreciation and amortization as well as interest
expense were up primarily because of the cellular
acquisitions.
SNET is a Connecticut-based telecommunications company
reaching beyond its traditional borders to offer wireline, wireless
and information and entertainment services, including
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local, national and international calling; mobile
communications; and publishing, information and
advertising. The company is building I-SNET,
Connecticut's broadband, information superhighway to
serve all its customers.
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SNET
Preliminary Summary of Consolidated Results
For the Three Months Ended June 30, 1996
(Dollars in Millions Except Per Share Amounts)
(Unaudited)
For the 3 Months Ended Percent
June 30, Change
1996 1995
INCOME STATEMENT
Revenues and Sales $487.8 $447.5 9%
Costs and Expenses:
Operating and maintenance 285.9 263.6 8%
Depreciation
and amortization 88.2 83.6 6%
Taxes other than income 13.5 14.3 (6%)
Total Costs and Expenses 387.6 361.5
Operating Income 100.2 86.0 17%
Interest 22.7 19.0 19%
Other Income, Net 2.1 3.3
Income Before Income Taxes 79.6 70.3 13%
Income taxes 29.1 30.2 (4%)
Net Income $50.5 $40.1 26%
Weighted Average Common Shares
Outstanding (thousands) 65,626 64,800 1%
Earnings Per Share $0.77 $0.62 24%
STATISTICS
Access Lines in Service
(thousands) 2,109 2,041 3%
Interstate Minutes of Use
(millions) 1,933 1,799 7%
SNET
Preliminary Summary of Consolidated Results
For the Six Months Ended June 30, 1996
(Dollars in Millions Except Per Share Amounts)
(Unaudited)
For the 6 Months Ended Percent
June 30, Change
1996 1995
INCOME STATEMENT
Revenues and Sales $961.8 $887.9 8%
Costs and Expenses:
Operating and maintenance 554.6 513.4 8%
Depreciation
and amortization 177.4 167.0 6%
Taxes other than income 27.5 27.8 (1%)
Total Costs and Expenses 759.5 708.2
Operating Income 202.3 179.7 13%
Interest 45.3 37.0 22%
Other Income, Net 5.8 4.2
Income Before Income Taxes 162.8 146.9 11%
Income taxes 60.1 60.1
Net Income $102.7 $86.8 18%
Weighted Average Common Shares
Outstanding (thousands) 65,505 64,721 1%
Earnings Per Share $1.57 $1.34 17%
STATISTICS
Access Lines in Service
(thousands) 2,109 2,041 3%
Interstate Minutes of Use
(millions) 3,905 3,603 8%