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BELLSOUTH FIRST QUARTER EARNINGS INCREASE EXCLUDING WEATHER-RELATED CHARGES, '92 TAX SETTLEMENT

 ATLANTA, April 21 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS) reported 1993 first quarter net income of $411.2 million, or 83 cents per share.
 Results included the previously announced impact of about $25 million, or 5 cents per share, related to severe winter weather.
 Excluding the effect of the weather-related charges, earnings per share in the first quarter of 1993 were 88 cents, compared with 86 cents in the same quarter of 1992, before a one-time gain of 8 cents per share related to a tax settlement.
 "We had a record quarterly increase of 233,000 access lines, and the number of our U.S. cellular customers increased to 1,193,535, up 43 percent from a year ago," said John L. Clendenin, chairman and chief executive officer. "Overseas, including gains in new markets such as Denmark and Australia, our cellular customers nearly tripled, to 95,842 at the end of the quarter, compared with 33,916 a year earlier."
 Telephone access lines serving BellSouth customers increased to 18,910,400 in the first quarter of 1993, an annual gain of 3.4 percent. Total long distance access minutes increased 5.8 percent over the first quarter of 1992.
 "Our long-term strategies to grow the business remained on track in the first quarter," added Clendenin. "Our E-Plus consortium was awarded the second private digital cellular license in Germany, and we announced a three-year, $9 billion capital program in BellSouth Telecommunications."
 Revenues for the three months ended March 31, were $3.83 billion, up 2.5 percent from the same quarter a year ago. Continuing growth in access lines, long distance access minutes and cellular customers worldwide contributed to revenue growth. Operating expenses, including those caused by the extreme weather, increased 4.2 percent.
 BellSouth's continuing development of new businesses, including its partnerships in RAM Mobile Data and Optus Communications, also affected results. RAM makes possible a host of productivity enhancing applications driven by wireless access to computers and networks. Optus is Australia's competitive telecommunications carrier.
 Without the effect of the weather, net income in the first quarter this year was approximately $436 million, compared with $421.4 million in the same quarter of 1992. In the first quarter a year ago, reported net income of $460.9 million, or 94 cents per share, included the one-time gain related to the tax settlement of $39.5 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 3/31/93 3/31/92
 Operating revenues:
 Network and related services
 Local service $ 1,618.4 $ 1,502.8
 Interstate access 749.4 732.8
 Intrastate access 215.5 227.2
 Toll 305.1 336.5
 Directory advertising and publishing 329.9 331.4
 Wireless communications 352.6 262.4
 Other services 262.8 345.6
 Total operating revenues 3,833.7 3,738.7
 Operating expenses:
 Cost of services and products 1,490.8 1,414.9
 Depreciation 751.7 737.5
 Selling, general and administrative 787.1 754.7
 Total operating expenses 3,029.6 2,907.1
 Operating income 804.1 831.6
 Interest expense 180.0 198.4
 Other income, net 8.9 87.5
 Income before income taxes 633.0 720.7
 Income taxes 221.8 259.8
 Net income $ 411.2 $ 460.9
 Preliminary
 BELLSOUTH FINANCIAL HIGHLIGHTS
 CONSOLIDATED BALANCE SHEETS
 (in millions)
 3/31/93 12/31/92
 (Unaudited)
 ASSETS:
 Current assets $ 3,551.6 $ 3,671.0
 Investments and advances 2,057.5 1,087.1
 Property, plant and equipment 40,429.1 39,800.9
 Less: accumulated depreciation 16,106.3 15,528.3
 Property, plant and equipment, net 24,322.8 24,272.6
 Deferred charges and other assets 687.6 630.2
 Intangible assets 1,383.2 1,801.8
 Total assets $32,002.7 $31,462.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,754.8 $ 1,634.6
 Other current liabilities 3,133.2 3,387.6
 Long-term debt 7,306.3 7,359.7
 Accumulated deferred income taxes 3,711.3 3,715.8
 Unamortized investment tax credits 585.0 604.3
 Other liabilities 1,520.6 962.1
 Shareholders' equity 13,991.5 13,798.6
 Total liabilities and shareholders'
 equity $32,002.7 $31,462.7
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 3/31/93 3/31/92
 Return to equity 11.8 pct. 13.8 pct.
 Return to average total capital 9.6 pct. 10.8 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 495.4 487.9
 Earnings per share $ .83 $ .94
 Dividend per share $ .69 $ .69
 Property additions (millions) $ 795.2 $ 621.7
 At March 31 1993 1992
 Common shares outstanding (millions) 495.7 488.7
 Debt ratio 38.8 pct. 40.5 pct.
 Total employees 98,011 96,552
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In millions)
 3 mos. ended 3/31/93 3/31/92
 Operating revenues $ 3,337.0 $ 3,268.6
 Operating expenses 2,596.5 2,467.8
 Operating income 740.5 800.8
 Interest expense 147.5 151.4
 Other income (expense), net (2.8) 58.1
 Income before income taxes 590.2 707.5
 Income taxes 202.3 240.0
 Net income $ 387.9 $ 467.5
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 3/31/93 3/31/92
 Property additions (millions) $ 682.4 $ 579.9
 Allowance for funds used during
 construction (millions) $ 5.4 $ 3.3
 Access minutes of use (millions):
 Interstate 13,016.9 12,332.9
 Intrastate 3,596.0 3,368.9
 IntraLATA toll messages (millions) 310.4 339.6
 At March 31 1993 1992
 Debt ratio 39.0 pct. 37.2 pct.
 Telephone employees 83,442 82,591
 Network access lines in service (000's) 18,910 18,285
 SELECTED WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (dollars in thousands)
 First quarter NOTES 1993 1992(8)
 DOMESTIC OPERATIONS
 Cellular revenues, net (1),(3) $261,572 $200,513
 Paging and other revenues, net (1),(3) 46,306 42,907
 Total revenues, net (1),(3) 307,878 243,420
 Operating expenses (1) 189,806 159,991
 Depreciation expense (1) 36,182 28,152
 Amortization of intangibles
 (including goodwill) (1) 18,422 15,128
 Total operating expenses (1) 244,410 203,271
 Operating income (1) 63,468 40,149
 Other expenses (including
 interest and taxes) (1),(4) 27,787 25,591
 Net income (1) $ 35,681 $ 14,558
 Operating margins:
 Including depreciation and
 amortization 20.61 pct. 16.49 pct.
 Excluding depreciation and
 amortization 38.35 pct. 34.27 pct.
 SELECTED DOMESTIC BALANCE
 SHEET DATA
 At March 31, At March 31
 1993 1992
 Property, plant and
 equipment - gross (1) $1,269,673 $ 965,810
 Property, plant and
 equipment - net (1) $ 890,842 704,770
 Total assets (1) $3,395,004 $ 2,455,458
 Total equity $1,837,794 $ 1,762,056
 DOMESTIC OPERATIONAL COMPARISONS
 Population served:
 Control basis (2A) 48,946,000 46,311,000
 Equity basis (2B) 37,549,000 36,528,000
 Cellular customers served:
 Control basis (2A) 1,523,603 1,064,037
 Equity basis (2B) 1,193,535 835,493
 Paging customers served: (5)
 Control basis (2A),(5) 1,196,413 927,718
 Equity basis (2B),(5) 1,029,578 927,718
 Average monthly cellular
 local bill per customer (6) $72 $78
 Penetration rate 3.18 pct. 2.29 pct.
 SELECTED INTERNATIONAL
 WIRELESS DATA
 (dollars in thousands) First Qtr. First Qtr.
 1993 1992
 Revenues (proportional) (1) $ 59,384 $ 39,145
 Population served:
 Control basis (2A) 24,900,000 23,200,000
 Equity basis (2B) 53,374,000 35,967,000
 Cellular customers served:
 Control basis (2A) 71,215 38,068
 Equity basis (2B),(7) 95,842 33,916
 Total served (7) 237,408 73,415
 Paging customers served (2B) 204,596 209,232
 NOTES
 (1) The presentation of selected income statement and balance sheet information is based on BellSouth's ownership percentage for all domestic and international cellular and paging subsidiaries and affiliates, whether or not consolidated for financial statement presentation purposes.
 (2A) Includes 100 percent of population/customers served in markets where BellSouth has operating control and/or BellSouth ownership exceeds 50 percent; excludes population/customers served for markets where BellSouth does not have operating control and ownership is less than 50 percent.
 (2B) Includes population/customers served based on BellSouth's ownership percentage in all markets served.
 (3) Included in revenues is equipment revenue net of cost.
 (4) Includes for first quarter 1993 a one-time positive adjustment in the amount of $5.4 million resulting from the implementation of a new accounting principle (FAS 109, Accounting for Income Taxes).
 (5) Paging Customers Served do not include pagers managed directly by BellSouth Telecommunications, Inc.
 (6) Includes local service revenue which consists of charges for cellular air-time service and features billed by a carrier to its customers for services in its market. Excluded are roaming charges, toll charges, taxes on service revenue, equipment sales, installation and repair revenues.
 (7) Includes all international cellular operations, except a 4 percent portfolio investment in French cellular operations.
 (8) Certain first quarter 1992 information has been reclassified for reporting purposes.
 -0- 4/21/93
 /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-RA -- AT014 -- 8819 04/21/93 14:07 EDT
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