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BELLSOUTH 1992 EARNINGS INCREASE ON RECORD REVENUES

 ATLANTA, Jan. 25 /PRNewswire/ -- Improved volumes in its core telephone operations and continued rapid growth in its cellular business helped boost BellSouth Corporation's (NYSE: BLS) reported earnings per share to $3.30 in 1992, up from $3.04 in 1991.
 Revenues in the latest year exceeded $15 billion for the first time.
 Net income for 1992 was $1.62 billion, an increase of 9.9 percent compared with 1991. Revenues improved 5.2 percent in 1992 and reached $15.20 billion, a record, up from $14.45 billion a year earlier. Operating expenses increased 3.5 percent.
 "Our 1992 performance reaffirms our confidence that our long-term growth strategies are the right ones," said John L. Clendenin, chairman and chief executive officer. "In the face of increasing competition and sweeping technological change, our telephone access lines grew at a faster rate than any other Bell holding company, and our cellular business capped a terrific year with an impressive holiday selling season."
 BellSouth's cellular business continued its explosive worldwide growth in 1992. Including gains in newly acquired U.S. cellular markets, the company had 1,428,879 domestic customers at year end, an annual increase of 45 percent. During the fourth quarter alone, which included the holiday shopping season, BellSouth added nearly 138,000 new customers. In December, the company also had the honor of marking a symbolic milestone in cellular industry's meteoric growth when one of its customers in Louisiana became the 10 millionth subscriber in the nation.
 Overseas, BellSouth and its partners had 62,816 cellular customers at the end of 1992, nearly double the 32,550 of just a year earlier.
 In 1992, despite the sluggish economic rebound, BellSouth grew what was already the nation's largest base of domestic telephone access lines by more than 615,000, an increase of 3.4 percent. The number of lines serving customers in BellSouth's nine-state region reached an all-time high of 18,677,400 at year end 1992. Total long distance access minutes increased 6.7 percent over 1991.
 With Hurricane Andrew continuing to impact expenses, BellSouth's reported earnings in the fourth quarter of 1992, as expected, were lower than the same period of 1991. Earnings per share for the three months ended Dec. 31, 1992, were 72 cents, compared with 80 cents in the same quarter a year earlier, 1991's most profitable.
 Revenues in the final quarter of 1992 were $3.91 billion, compared with $3.69 billion in the same three months of 1991. Fourth quarter net income was $353.4 million in 1992, compared with $386.9 million.
 BellSouth is an international telecommunications holding company. Its subsidiaries offer local telephone service in nine southeastern states and mobile communications services worldwide, provide advertising and publishing services, and market and maintain stand-alone and fully integrated communications systems.
 Preliminary (Unaudited)
 BELLSOUTH FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In Millions)
 3 mos. ended 12/31/92 12/31/91
 Operating revenues:
 Network and related services
 Local service $ 1,586.3 $ 1,440.5
 Interstate access 741.0 717.1
 Intrastate access 215.4 208.7
 Toll 301.1 332.2
 Directory advertising and publishing 467.8 418.5
 Wireless communications 334.0 232.7
 Other services 264.5 344.8
 Total operating revenues 3,910.1 3,694.5
 Operating expenses:
 Cost of services and products 1,515.6 1,450.1
 Depreciation 787.0 755.7
 Selling, general and administrative 903.6 776.1
 Total operating expenses 3,206.2 2,981.9
 Operating income 703.9 712.6
 Interest expense 175.3 199.3
 Other income, net 23.0 59.7
 Income before income taxes 551.6 573.0
 Provision for income taxes 198.2 186.1
 Net income $ 353.4 $ 386.9
 Year ended 12/31/92 12/31/91
 Operating revenues:
 Network and related services
 Local service $ 6,236.0 $ 5,846.2
 Interstate access 2,945.6 2,858.1
 Intrastate access 871.8 866.7
 Toll 1,248.8 1,373.7
 Directory advertising and publishing 1,459.8 1,426.3
 Wireless communications 1,195.6 774.5
 Other services 1,244.0 1,300.0
 Total operating revenues 15,201.6 14,445.5
 Operating expenses:
 Cost of services and products 5,681.3 5,739.2
 Depreciation 3,032.2 2,965.4
 Selling, general and administrative 3,327.4 2,931.2
 Total operating expenses 12,040.9 11,635.8
 Operating income 3,160.7 2,809.7
 Interest expense 746.4 802.1
 Other income, net 177.6 252.7
 Income before income taxes,
 extraordinary loss, and
 cumulative effect of change in
 method of accounting 2,591.9 2,260.3
 Provision for income taxes 933.5 753.4
 Income before extraord. loss
 and cumulative effect of change
 in method of accounting 1,658.4 1,506.9
 Extraord. loss, net of tax (40.7) ---
 Cumulative effect of change in
 method of accounting, net of tax --- (35.4)
 Net income $ 1,617.7 $ 1,471.5
 Preliminary
 BELLSOUTH FINANCIAL HIGHLIGHTS
 CONSOLIDATED BALANCE SHEETS
 (in millions)
 12/31/92 12/31/91
 (Unaudited)
 ASSETS:
 Current assets $ 3,671.0 $ 3,637.5
 Investments and advances 1,087.1 664.1
 Property, plant and equipment 39,800.9 38,403.3
 Less: accumulated depreciation 15,528.3 14,344.8
 Property, plant and equipment, net 24,272.6 24,058.5
 Deferred charges and other assets 630.2 898.5
 Intangible assets 1,801.8 1,683.1
 Total assets $31,462.7 $30,941.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,634.6 $ 1,735.5
 Other current liabilities 3,387.6 3,175.7
 Long-term debt 7,359.7 7,676.9
 Accumulated deferred income taxes 3,715.8 3,798.1
 Unamortized investment tax credits 604.3 692.2
 Other liabilities 962.1 758.4
 Shareholders' equity 13,798.6 13,104.9
 Total liabilities and shareholders'
 equity $31,462.7 $30,941.7
 Preliminary (Unaudited)
 BELLSOUTH FINANCIAL HIGHLIGHTS
 SELECTED DATA
 3 mos. ended 12/31/92 12/31/91
 Return to equity 10.3 pct. 11.8 pct.
 Return to average total capital 8.8 pct. 9.7 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 493.7 486.2
 Earnings per share $ .72 $ .80
 Dividend per share $ .69 $ .69
 Property additions (millions) $1,129.6 $ 870.0
 At Dec. 31 1992 1991
 Common shares outstanding (millions) 493.8 486.7
 Debt ratio 39.0 pct. 41.3 pct.
 Total employees 97,112 96,084
 Preliminary (Unaudited)
 Selected Data
 Year ended 12/31/92 12/31/91
 Return to equity 11.9 pct. 11.3 pct.
 Return to average total capital 9.8 pct. 9.4 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 490.8 484.3
 Earnings per share $ 3.30 $ 3.04
 Dividend per share $ 2.76 $ 2.76
 Property additions (millions) $3,249.5 $3,191.9
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In Millions)
 3 mos. ended 12/31/92 12/31/91
 Operating revenues $ 3,292.1 $ 3,176.8
 Operating expenses 2,683.0 2,496.9
 Operating income 609.1 679.9
 Interest expense 139.0 156.4
 Other income (expense), net 4.8 (3.5)
 Income before income taxes 474.9 520.0
 Income taxes 149.4 152.8
 Net income $ 325.5 $ 367.2
 Year ended 12/31/92 12/31/91
 Operating revenues $ 13,182.1 $ 12,767.4
 Operating expenses 10,258.5 10,045.8
 Operating income 2,923.6 2,721.6
 Interest expense 583.3 631.6
 Other income (expense), net 75.5 (17.2)
 Income before income taxes and
 extraordinary loss 2,415.8 2,072.8
 Income taxes 800.8 647.0
 Income before extraordinary loss 1,615.0 1,425.8
 Extraordinary loss (net of tax) (40.7) ---
 Net income $ 1,574.3 $ 1,425.8
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Selected Data
 3 mos. ended 12/31/92 12/31/91
 Property additions (millions) $ 1,050.1 $ 784.4
 Interest charged construction $ 4.5 $ 3.3
 Access minutes of use (millions):
 Interstate 12,842.7 12,012.4
 Intrastate 3,577.2 3,383.5
 IntraLATA toll messages (millions) 307.2 340.4
 At Dec. 31 1992 1991
 Debt ratio 38.5 pct. 38.2 pct.
 Telephone employees 82,866 82,245
 Network access lines in service (000's) 18,677 18,062
 Year ended 12/31/92 12/31/91
 Property additions (millions) $ 2,985.5 $ 2,890.3
 Interest charged construction $ 15.3 $ 18.1
 Access minutes of use (millions):
 Interstate 50,546.4 47,255.3
 Intrastate 13,994.2 13,237.7
 IntraLATA toll messages (millions) 1,280.5 1,390.0
 WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (dollars in thousands)
 3 mos. ended NOTES 12/31/92 12/31/91
 DOMESTIC OPERATIONS
 Cellular revenues (1)(7) $285,090 $216,128
 Paging and other revenues (1) 52,305 46,870
 Total revenues (1)(7) 337,395 262,998
 Operating expenses (1)(3)(7) 226,510 190,622
 Depreciation expense (1) 35,661 25,919
 Amortization of intangibles
 (including goodwill) (1) 15,569 16,749
 Total operating expenses (1)(3)(7) 277,740 233,290
 Operating income (1)(3) 59,655 29,708
 Other expenses (including
 interest and taxes) (1)(7) 34,317 16,685
 Net income (loss) (1)(3) $ 25,338 $ 13,023
 Operating margins:
 Including depreciation and
 amortization 17.68 pct. 11.30 pct.
 Excluding depreciation and
 amortization 32.87 pct. 27.52 pct.
 Year-to-date NOTES 1992 1991 (3)
 DOMESTIC OPERATIONS
 Cellular revenues (1)(7) $1,014,975 $748,736
 Paging and other revenues (1) 195,938 136,837
 Total revenues (1)(7) 1,210,913 885,573
 Operating expenses (1)(3)(7) 805,915 619,263
 Depreciation expense (1) 125,053 87,581
 Amortization of intangibles
 (including goodwill) (1) 59,021 43,645
 Total operating expenses (1)(3)(7) 989,989 750,489
 Operating income (1)(3) 220,924 135,084
 Other expenses (including
 interest and taxes) (1)(7) 125,963 77,843
 Net income (loss) (1)(3) $ 94,961 $ 57,241
 Operating margins:
 Including depreciation and
 amortization 18.24 pct. 15.25 pct.
 Excluding depreciation and
 amortization 33.45 pct. 30.07 pct.
 SELECTED DOMESTIC BALANCE
 SHEET DATA (4)
 At Dec. 31 1992
 Property, plant and
 equipment - gross (1) $1,224,171
 Property, plant and
 equipment - net (1) $ 868,771
 Total assets (1) $2,764,595
 Total equity $1,902,754
 DOMESTIC OPERATIONAL COMPARISONS (6)
 At Dec. 31 1992 1991
 Population served:
 Control basis (2A) 48,945,000 46,256,000
 Equity basis (2B) 37,549,000 36,238,000
 Cellular subscribers served:
 Control basis (2A) 1,428,879 985,808
 Equity basis (2B) 1,118,134 774,228
 Paging customers served:
 Control basis (2A) 1,144,423 920,344
 Equity basis (2B) 977,216 920,344
 SELECTED WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (Dollars in thousands)
 SELECTED INTERNATIONAL
 WIRELESS INFORMATION (4)(6) At Dec. 31 Year-to-date
 1992 1992
 Revenues (proportional) (1) $ 59,800 $ 190,588
 Population served:
 Control basis (2A) 24,900,000 ---
 Equity basis (2B) 36,826,000 ---
 Cellular subscribers served:
 Control basis (2A) 62,816 ---
 Equity basis (2B) 77,633 ---
 Total subscribers served 183,061 ---
 Pagers in service (2A) 209,043 ---
 NOTES
 (1) The presentation of selected income statement and balance sheet information is based on BellSouth's ownership percentage for all domestic and international wireless subsidiaries and affiliates, whether or not consolidated for financial statement presentation purposes.
 (2A) Includes 100 percent of population/subscribers served in markets where BellSouth has operating control and/or BellSouth ownership exceeds 50 percent, and excludes all population/subscribers in markets where BellSouth does not have operating control and BellSouth ownership does not exceed 50 percent.
 (2B) Includes population/subscribers based on BellSouth's ownership percentage in all markets served.
 (3) The 1991 information has been restated to reflect the impact of the change in accounting for commissions by BellSouth Mobility Inc.
 (4) The 1991 selected domestic balance sheet data and 1991 selected international wireless information has not been presented.
 (5) Domestic Pagers in Service does not include pagers managed directly by BellSouth Telecommunications, Inc.
 (6) Does not include a 4 percent portfolio investment in French cellular operations.
 (7) Certain 1991 and/or 1992 information has been reclassified for reporting purposes.
 -0- 1/25/93
 /CONTACT: Larry Stevens, 404-249-2832, or Scott Ticer, 404-249-2824, both of BellSouth Corporation/
 (BLS)


CO: BellSouth Corporation ST: Georgia IN: TLS SU: ERN

BR-BN -- AT018 -- 8640 01/25/93 15:08 EST
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Date:Jan 25, 1993
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