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BELLSOUTH REPORTS GROWTH IN FIRST QUARTER EARNINGS

 BELLSOUTH REPORTS GROWTH IN FIRST QUARTER EARNINGS
 ATLANTA, April 21 /PRNewswire/ -- BellSouth Corporation


(NYSE: BLS) reported that growth in telephone business volumes, continued gains in cellular customers, and savings from early retirement and other cost reduction programs contributed to improved first quarter earnings in 1992.
 First quarter net income was $460.9 million, or 94 cents per share, compared to a restated $366.9 million, or 76 cents per share, in the first quarter of 1991. Adjusted for one-time items, the company's earnings per share increased 6 cents, or 7.5 percent, in the first quarter.
 "We had solid operating results in the first quarter," said John L. Clendenin, chairman and chief executive officer. "They show we are responding to increased demand for our services with more customer focus and, because of our streamlining, with more efficiency.
 "We continue to position BellSouth for the markets of the future," added Clendenin. "We are investing aggressively in new technologies in our core wireline network, as well as in wireless voice and data," Clendenin said.
 Operating revenues in the three months ended March 31 were $3.7 billion, an increase of 5.6 percent from $3.5 billion in the same quarter a year ago. Operating expenses increased 3.7 percent in the first quarter, due largely to costs associated with growth, acquisitions and new ventures in wireless operations during the past year.
 BellSouth's cellular business continued to grow worldwide in the first quarter. In the United States, the company put its 1 millionth customer on the air, and finished the period with 1,064,000 subscribers, an increase of 47 percent compared to a year earlier. Internationally, BellSouth had 38,100 cellular customers in five countries at the end of the first quarter, compared to 13,200 in two countries in March 1991.
 Telephone access lines in BellSouth's nine-state region increased to 18,285,000 in the first quarter of 1992. The annual growth rate of 3.4 percent compared to 3.1 percent in the first quarter of 1991. Total long distance access minutes increased 7.2 percent compared to the first quarter of 1991, vs. 5.9 percent in the first three months of the prior year.
 Interest income associated with a federal tax settlement resulted in a one-time gain of 8 cents per share in the first quarter of 1992. Results in the comparable quarter of 1991 reflected a net reduction of 4 cents due to a combination of one-time events.
 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 3/31/92 3/31/91
 Operating revenues:
 Network and Related Services
 Local service $ 1,502.8 $ 1,445.6
 Interstate access 732.8 715.8
 Intrastate access 227.2 219.9
 Toll 336.5 345.9
 Directory advertising and publishing 331.4 320.4
 Wireless communications 267.5 154.2
 Other services 340.5 338.1
 Total operating revenues 3,738.7 3,539.9
 Operating expenses:
 Cost of services and products 1,414.9 1,425.9
 Depreciation 737.5 724.0
 Selling, general and administrative 762.9 662.1
 Total operating expenses 2,915.3 2,812.0
 Net operating revenues 823.4 727.9
 Interest expense 198.4 200.1
 Other income, net 95.7 79.2
 Income before income taxes and cumulative
 effect of change in accounting method 720.7 607.0
 Income taxes 259.8 204.7
 Income before cumulative effect of change
 in accounting method 460.9 402.3
 Cumulative effect of change in
 accounting method --- (35.4)
 Net income $ 460.9 $ 366.9
 Preliminary
 Consolidated Balance Sheets
 (In millions)
 3/31/92 12/31/91
 (Unaudited)
 ASSETS:
 Current assets $ 3,577.1 $ 3,637.5
 Investments and advances 832.6 664.1
 Property, plant and equipment 38,918.5 38,403.3
 Less: accumulated depreciation 14,891.3 14,344.8
 Property, plant and equipment, net 24,027.2 24,058.5
 Deferred charges and other assets 811.1 898.5
 Intangible assets 1,830.7 1,683.1
 Total assets $31,078.7 $30,941.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Debt maturing within one year $ 1,608.1 $ 1,667.8
 Other current liabilities 3,186.3 3,175.7
 Long-term debt 7,677.2 7,744.6
 Accumulated deferred income taxes 3,789.5 3,798.1
 Unamortized investment tax credits 669.6 692.2
 Other liabilities 798.2 758.4
 Shareholders' equity 13,349.8 13,104.9
 Total liabilities and shareholders'
 equity $31,078.7 $30,941.7
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 3/31/92 3/31/91
 Return to equity 13.8 pct. 11.4 pct.
 Return to average total capital 10.8 pct. 9.5 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 487.9 482.4
 Earnings per share $ .94 $ .76
 Dividend per share $ .69 $ .69
 Property additions (millions) $ 621.7 $ 795.2
 At March 31 1992 1991
 Common shares outstanding (millions) 488.7 482.1
 Debt ratio 40.5 pct. 41.0 pct.
 Total employees 96,552 101,024
 Preliminary (Unaudited)
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Consolidated Statements of Income
 (In millions)
 3 mos. ended March 31 1992 1991
 Operating revenues $ 3,268.6 $ 3,161.1
 Operating expenses 2,467.8 2,452.8
 Net operating revenues 800.8 708.3
 Interest expense 148.1 160.4
 Other income, net 54.8 .5
 Income before income taxes 707.5 548.4
 Income taxes 240.0 175.6
 Net income $ 467.5 $ 372.8
 Preliminary (Unaudited)
 Selected Data
 3 mos. ended 3/31/92 3/31/91
 Property additions (millions) $ 579.9 $ 732.3
 Interest charged construction $ 3.3 $ 4.1
 Access minutes of use (millions):
 Interstate 12,332.9 11,476.0
 Intrastate 3,368.9 3,168.7
 IntraLATA toll messages (millions) 337.5 344.6
 At March 31 1992 1991
 Debt ratio 37.2 pct. 38.2 pct.
 Telephone employees 82,591 88,081
 Network access lines in service
 (thousands) 18,285 17,680
 Selected Wireless Communications Information (Unaudited)
 (Dollars in thousands)
 3 mos. ended NOTES 3/31/92 3/31/91
 Domestic Operations
 Cellular revenues (1) $239,315 $156,525
 Paging and other revenues (1) $ 45,621 $ 28,626
 Total revenues (1) $284,936 $185,151
 Operating expenses (1)(3) $201,507 $127,017
 Depreciation expense (1) $ 28,152 $ 17,986
 Amortization of intangibles
 (including goodwill) (1) $ 15,128 $ 7,650
 Total operating expenses (1)(3) $244,787 $152,653
 Operating income (1)(3) $ 40,149 $ 32,498
 Other expenses (incl. interest
 and taxes) (1) $ 25,591 $ 18,629
 Net income (loss) (1)(3) $ 14,558 $ 13,869
 Operating margins:
 Including depreciation and
 amortization 14.1 pct. 17.6 pct.
 Excluding depreciation and
 amortization 29.3 pct. 31.4 pct.
 Selected Domestic Balance Sheet Data
 At March 31 1992
 Property, plant and equipment -
 gross (1)(4) $ 965,810
 Property, plant and equipment -
 net (1)(4) $ 704,770
 Total assets (1)(4) $2,455,458
 Total equity (4) $1,762,056
 Domestic Operational Comparisons 3/31/92 3/31/91
 Population served:
 Control basis (2A) 46,311,000 43,318,000
 Equity basis (2B) 36,528,000 31,312,000
 Cellular customers served:
 Control basis (2A) 1,064,037 726,407
 Equity basis (2B) 835,493 539,432
 Pagers in service (5) 927,718 581,404
 Selected International Wireless Data 3/31/92 (6)
 Revenues (proportional) (1)(4) $ 39,145
 Population served:
 Control basis (2A)(4) 23,200,000
 Equity basis (2B)(4) 35,967,000
 Cellular customers served:
 Control basis (2A)(4) 38,068
 Equity basis (2B)(4) 33,916
 Pagers in service (2B)(4) 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 wireless subsidiaries and affiliates, whether or not consolidated for financial statement presentation purposes.
 (2A) Includes 100 percent of population/customers in markets where BellSouth's operational control is at least 50 percent, and excludes all population/customers in markets where BellSouth's operational control is less than 50 percent.
 (2B) Includes population/customers 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) Includes all international wireless operations except a 4 percent portfolio investment in French cellular operations.
 -0- 4/21/91
 /CONTACT: Scott Ticer, 404-249-2824, or Terry Johnson, 404-249-2869, both of BellSouth Corporation/
 (BLS) CO: BellSouth Corporation ST: Georgia IN: TLS SU: ERN


EA-BN -- AT006 -- 0740 04/21/92 14:05 EDT
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