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BELLSOUTH SECOND QUARTER EARNINGS UP

 BELLSOUTH SECOND QUARTER EARNINGS UP
 ATLANTA, July 21 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS)


reported earnings of 94 cents per share in the second quarter, compared with 76 cents per share for the same period last year.
 "We had a good quarter in both our telephone and our wireless businesses," said John L. Clendenin, chairman and chief executive officer. "Access lines continued to grow, and cellular customer growth was strong. We also continued to expand into overseas markets and new wireless data applications.
 "Equally important," Clendenin added, "our continued emphasis on cost control, particularly in our core telephone operations, contributed significantly to our second quarter results."
 Net income for the quarter was $458.5 million, compared with $365.3 million in the second quarter of 1991.
 Operating revenues in the three months ended June 30 were $3.82 billion, up 6.5 percent from $3.58 billion in the same quarter a year ago. Improved local service and wireless revenues contributed to the gain. Also, settlement of prior year regulatory issues added revenues of $52.7 million in the second quarter of 1992, which had a positive impact of 7 cents per share.
 Operating expenses increased 2.1 percent in the quarter, primarily due to the further development of new businesses.
 BellSouth's wireless business continued to grow worldwide in both existing and newly acquired cellular markets. The company had 1,202,870 U.S. subscribers at mid-year, an increase of 49.9 percent compared with June 30, 1991. Overseas, BellSouth had 44,499 cellular subscribers at the end of the second quarter, compared with 16,271 a year earlier.
 Telephone access lines in BellSouth's nine-state region increased to 18,357,300 in the second quarter of 1992. Total long distance access minutes increased 5.4 percent over the second quarter of 1991.
 The company noted that dilution from previously announced acquisitions and new ventures will increase in the second half of 1992. In addition, revenues for the remainder of the year are expected to be affected by lower interstate rates which went into effect July 1.
 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 6/30/92 6/30/91
 Operating revenues:
 Network and related services
 Local service $ 1,559.1 $ 1,458.7
 Interstate access 722.0 724.1
 Intrastate access 212.1 216.3
 Toll 301.1 348.7
 Directory advertising and publishing 367.9 335.7
 Wireless communications 288.2 192.5
 Other services 366.4 306.6
 Total operating revenues 3,816.8 3,582.6
 Operating expenses:
 Cost of services and products 1,451.8 1,440.3
 Depreciation 754.1 742.7
 Selling, general and administrative 747.5 710.0
 Total operating expenses 2,953.4 2,893.0
 Operating income 863.4 689.6
 Interest expense 194.0 202.8
 Other income, net 53.2 58.8
 Income before income taxes 722.6 545.6
 Income taxes 264.1 180.3
 Net income $ 458.5 $ 365.3
 6 mos. ended 6/30/92 6/30/91
 Operating revenues:
 Network and related services
 Local service $ 3,061.9 $ 2,904.3
 Interstate access 1,454.8 1,439.9
 Intrastate access 439.3 436.2
 Toll 637.6 694.6
 Directory advertising and publishing 699.3 656.1
 Wireless communications 550.6 346.6
 Other services 712.0 644.8
 Total operating revenues 7,555.5 7,122.5
 Operating expenses:
 Cost of services and products 2,866.7 2,866.2
 Depreciation 1,491.6 1,466.7
 Selling, general and administrative 1,510.4 1,372.1
 Total operating expenses 5,868.7 5,705.0
 Operating income 1,686.8 1,417.5
 Interest expense 392.4 402.9
 Other income, net 148.9 138.0
 Income before income taxes and
 cumulative effect of change in
 accounting method 1,443.3 1,152.6
 Income taxes 523.9 385.0
 Income before cumulative effect of
 change in accounting method 919.4 767.6
 Cumulative effect of change in
 accounting method --- (35.4)
 Net income $ 919.4 $ 732.2
 Preliminary
 Consolidated Balance Sheets
 (In millions)
 6/30/92 12/31/91
 (Unaudited)
 ASSETS:
 Current assets $ 3,491.3 $ 3,637.5
 Investments and advances 943.1 664.1
 Property, plant and equipment 39,285.3 38,403.3
 Less: accumulated depreciation 15,306.3 14,344.8
 Property, plant and equipment, net 23,979.0 24,058.5
 Deferred charges and other assets 770.2 898.5
 Intangible assets 1,849.6 1,683.1
 Total assets $31,033.2 $30,941.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,663.9 $ 1,667.8
 Other current liabilities 2,961.5 3,175.7
 Long-term debt 7,593.2 7,744.6
 Accumulated deferred income taxes 3,795.8 3,798.1
 Unamortized investment tax credits 648.1 692.2
 Other liabilities 808.4 758.4
 Shareholders' equity 13,562.3 13,104.9
 Total liabilities and shareholders'
 equity $31,033.2 $30,941.7
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 6/30/92 6/30/91
 Return to equity 13.5 pct. 11.3 pct.
 Return to average total capital 10.7 pct. 9.4 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 490.3 483.0
 Earnings per share $ .94 $ .76
 Dividend per share $ .69 $ .69
 Property additions (millions) $ 697.5 $ 813.4
 At June 30 1992 1991
 Common shares outstanding (millions) 490.4 483.5
 Debt ratio 40.0 pct. 41.0 pct.
 Total employees 97,013 100,111
 Preliminary (Unaudited)
 Selected Data
 6 mos. ended 6/30/92 6/30/91
 Return to equity 13.7 pct. 11.3 pct.
 Return to average total capital 10.8 pct. 9.4 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 489.1 482.7
 Earnings per share $ 1.88 $ 1.52
 Dividend per share $ 1.38 $ 1.38
 Property additions (millions) $1,319.2 $1,608.6
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (in millions)
 3 mos. ended 6/30/92 6/30/91
 Operating revenues $3,310.3 $3,195.7
 Operating expenses 2,494.5 2,519.4
 Operating income 815.8 676.3
 Interest expense 152.6 159.7
 Other income, net 8.7 (6.2)
 Income before income taxes 671.9 510.4
 Income taxes 230.0 162.0
 Net income $ 441.9 $ 348.4
 Preliminary (Unaudited)
 Consolidated Statements of Income
 (in millions)
 6 mos. ended 6/30/92 6/30/91
 Operating revenues $6,578.9 $6,356.8
 Operating expenses 4,962.3 4,972.2
 Net operating profit 1,616.6 1,384.6
 Interest expense 304.0 320.1
 Other income, net 66.8 (5.7)
 Income before income taxes 1,379.4 1,058.8
 Income taxes 470.0 337.6
 Net income $ 909.4 $ 721.2
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 6/30/92 6/30/91
 Property additions (millions) $ 644.8 $ 740.1
 Interest charged construction $ 3.9 $ 5.4
 Access minutes of use (millions):
 Interstate 12,641.6 11,963.8
 Intrastate 3,492.0 3,345.5
 IntraLATA toll messages (millions) 319.8 355.5
 At June 30 1992 1991
 Debt ratio 38.2 pct. 38.7 pct.
 Telephone employees 83,065 86,966
 Network access lines
 in service (thousands) 18,357 17,761
 Preliminary (Unaudited)
 Selected Data
 6 mos. ended 6/30/92 6/30/91
 Property additions (millions) $1,224.7 $1,472.4
 Interest charged construction $ 7.2 $ 9.5
 Access minutes of use (millions):
 Interstate 24,974.5 23,439.8
 Intrastate 6,860.9 6,514.2
 IntraLATA toll messages (millions) 656.9 700.1
 SELECTED WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (Dollars in thousands)
 Domestic Operations
 3 mos. ended NOTE 6/30/92 6/30/91
 Cellular revenues (1) $250,691 $184,266
 Paging and other revenues (1) $ 49,128 $ 30,914
 Total revenues (1) $299,819 $215,180
 Operating expenses (1)(3) $196,986 $149,828
 Depreciation expense (1) $ 29,869 $ 20,962
 Amortization of intangibles
 (including goodwill) (1) $ 15,270 $ 9,722
 Total operating expenses (1)(3) $242,125 $180,512
 Operating income (1)(3) $ 57,694 $ 34,668
 Other expenses (incl. interest
 and taxes) (1) $ 31,462 $ 21,540
 Net income (loss) (1)(3) $ 26,232 $ 13,128
 Operating margin:
 Including depreciation and
 amortization 19.24 pct. 16.11 pct.
 Excluding depreciation and
 amortization 34.30 pct. 30.37 pct.
 Year-to-date NOTE 1992(7) 1991(3)
 Cellular revenues (1) $470,967 $340,791
 Paging and other revenues (1) $ 94,749 $ 59,540
 Total revenues (1) $565,716 $400,331
 Operating expenses (1)(3) $379,454 $276,845
 Depreciation expense (1) $ 58,021 $ 38,948
 Amortization of intangibles
 (including goodwill) (1) $ 30,398 $ 17,372
 Total operating expenses (1)(3) $467,873 $333,165
 Operating income (1)(3) $ 97,843 $ 67,166
 Other expenses (incl. interest
 and taxes) (1) $ 57,053 $ 40,169
 Net income (loss) (1)(3) $ 40,790 $ 26,997
 Operating margin:
 Including depreciation and
 amortization 17.30 pct. 16.78 pct.
 Excluding depreciation and
 amortization 32.93 pct. 30.85 pct.
 Selected Domestic Balance Sheet Data (4)
 At June 30 1992
 Property, plant and
 equipment-Gross (1) $1,043,736
 Property, plant and
 equipment-Net (1) $ 733,962
 Total assets (1) $2,564,677
 Total equity $1,811,748
 Domestic Operational Comparisons
 At June 30 1992 1991
 Population served:
 Control basis (2A) 48,553,000 43,579,000
 Equity basis (2B) 37,416,000 32,061,000
 Cellular subscribers served:
 Control basis (2A) 1,202,870 802,539
 Equity basis (2B) 932,302 616,647
 Pagers in service (5) 936,226 595,129
 Selected Foreign Wireless Data (4)(6)
 At June 30, Year-to-Date
 1992 1991
 Revenues (proportional) (1) $ 41,681 $ 80,826
 Population served:
 Control basis (2A) 23,200,000 ---
 Equity basis (2B) 35,967,000 ---
 Cellular subscribers served:
 Control basis (2A) 44,499 ---
 Equity basis (2B) 39,841 ---
 Pagers in service (2A) 212,572 ---
 NOTES
 (1) The presentation of selected income statement and balance sheet information is based on BellSouth's ownership percentage for all domestic and foreign 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; excludes population/subscribers served for markets where operating control is less than 50 percent.
 (2B) Includes population/subscribers served 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 foreign wireless information has not been presented.
 (5) Domestic Pagers in Service does not include pagers managed directly by BellSouth Telecommunications, Inc.
 (6) Includes all foreign wireless operations except a 4 percent portfolio investment in French cellular operations.
 (7) Certain first quarter 1992 information has been reclassified for reporting purposes.
 -0- 7/21/92
 /CONTACT: Scott Ticer, 404-249-2824, or Terry Johnson, 404-249-2869, both of BellSouth Corp./
 (BLS) CO: BellSouth Corporation ST: Georgia IN: TLS SU: ERN


EA-BR -- AT013 -- 1418 07/21/92 14:03 EDT
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