Results Mixed for Baby Bells

Pacific Telesis Group, citing costly regulatory adjustments, Thursday reported third-quarter earnings of $278 million. That was off 9.3% from the same period a year earlier, when it posted a record profit for the three-month period ending Sept. 30.

Overall, results were mixed for the six so-called Baby Bell firms that reported quarterly results. Pacific Telesis, parent of Pacific Bell and Nevada Bell, was one of four Baby Bells that posted earnings declines, while two others registered gains.

Pacific Telesis said revenue edged down to $2.37 billion from $2.38 billion last year, during the quarter. The decline was partly due to $33 million in regulatory charges, the company said.

Among other Baby Bells, Nynex reported that its earnings dropped to $288.7 million in the third quarter from $338.9 million a year earlier.

Nynex, currently operating without 60,000 striking employees, said revenue rose to $3.31 billion from $3.18 billion. However, Nynex said the revenue increase was offset by costs associated with acquisitions and the firm’s unregulated businesses.

BellSouth also reported earnings declines on rising revenue. BellSouth said it had earnings of $404 million, up from $419.6 million. Revenue rose to $3.55 billion from $3.46 billion.

Both revenue and earnings declined at U.S. West. The company said profit was $258.1 million in the third quarter, down from $283.2 million, on revenue that fell to $2.32 billion from $2.43 billion.

Meanwhile, Bell Atlantic and Ameritech reported earnings increases. Ameritech’s third-quarter profit rose 2.8% to $289.1 million on revenue of $22.55 billion. Bell Atlantic said its profit rose to $363.2 million from $341 million. Revenue rose to $2.91 billion from $2.76 billion.