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BELLSOUTH THIRD QUARTER EARNINGS INCREASE 26 PERCENT

 ATLANTA, Oct. 21 /PRNewswire/ -- BellSouth Corporation (NYSE: BLS) reported that 1993 third quarter net income of $434.6 million, or 88 cents per share, increased 26 percent compared with $344.9 million, or 70 cents per share, in the third quarter of 1992.
 Excluding the effects of one-time items in each period, earnings per share in the third quarter were 97 cents compared with 78 cents in the same quarter of 1992.
 Third quarter results in 1993 included one-time charges totaling 9 cents per share, most of which related to the year-to-date impact of the new higher corporate income tax rate. Earnings in the same period of the prior year included a one-time charge of 8 cents per share related to debt refinancing.
 "During the third quarter, BellSouth became the first U.S. telecommunications company to surpass 19 million domestic customer access lines," said John L. Clendenin, chairman and chief executive officer. "The growth and strength of our core network, along with our extensive domestic and international wireless operations, gives us the dynamic delivery platforms for marketing leading edge services to our millions of customers.
 "So does the new cable partnership we will have with Prime Management Company," continued Clendenin, referring to BellSouth's announcement last week. "We're working with a proven winner in customer service to develop what people want in interactive TV, pay-per-view, traditional cable and alternative telecommunications."
 BellSouth's revenues reached $4.01 billion in the three months ended Sept. 30, up 7.5 percent compared with the same quarter a year ago. Operating expenses increased 4 percent.
 Customer access lines reached 19,182,800 in the third quarter, continuing one of the highest annual growth rates in the industry today, at 3.4 percent. Also positively affecting revenues was continued growth in the number of BellSouth Telecommunications customers who are purchasing MemoryCall(R) voice mail service, adding TouchStar(R) services such as Caller ID and Call Return, and installing more than one line in their home.
 Continued growth in long distance access minutes and in cellular customers worldwide also contributed to revenue gains. Total long distance access minutes increased 5.7 percent compared to the third quarter of 1992. U.S. cellular customers increased to 1,383,700, up 38 percent from Sept. 30, 1992. In BellSouth's eight overseas cellular markets, customers increased by more than 90,000, or 167 percent, to 144,800 at the end of the third quarter of 1993.
 The effect of BellSouth's growth investments continued in line with expectations in the third quarter. The company's Latin American cellular businesses, which provide service to more than 100,000 customers in five countries, are contributing positively to BellSouth's earnings in 1993. In Germany, a consortium 21-percent owned by BellSouth is constructing a new cellular network. In Australia, Optus Communications has been successfully competing for domestic and international long distance business for nearly a year. BellSouth owns 24.5 percent of Optus.
 BellSouth is an international telecommunications holding company. Its subsidiaries offer local telephone service in nine Southeastern states and mobile communications services worldwide, including cellular, nationwide paging, and mobile data, provide advertising and publishing services, and market and maintain stand-alone and fully integrated communications systems.
 BELLSOUTH CORPORATION
 Consolidated Statements of Income
 (Unaudited)
 (In Millions, except per share amounts)
 3 mos. ended 9/30/93 9/30/92
 Operating revenues:
 Network and related services
 Local service $ 1,669.9 $ 1,587.8
 Interstate access 759.8 749.8
 Intrastate access 222.6 217.1
 Toll 305.7 310.1
 Directory advertising and publishing 364.6 292.7
 Wireless communications 397.5 311.0
 Other services 294.8 267.5
 Total operating revenues 4,014.9 3,736.0
 Operating expenses:
 Cost of services and products 1,445.2 1,299.0
 Depreciation 774.3 753.6
 Selling, general and administrative 886.3 932.6
 Total operating expenses 3,105.8 2,985.2
 Operating income 909.1 750.8
 Interest expense 159.8 178.7
 Other income, net 7.9 24.9
 Income before income taxes
 and extraordinary loss 757.2 597.0
 Provision for income taxes 314.8 211.4
 Income before extraord. loss 442.4 385.6
 Extraord. loss on early
 extinguishment of debt, net of tax (7.8) (40.7)
 Net income $ 434.6 $ 344.9
 Weighted avg. common shares
 outstanding 496.3 491.5
 Dividends declared per common share $ .69 $ .69
 Earnings per share:
 Income before extraord. loss $ .89 $ .78
 Extraord. loss on early
 extinguishment of debt, net of tax (.01) (.08)
 Net income $ .88 $ .70
 9 mos. ended 9/30/93 9/30/92
 Operating revenues:
 Network and related services
 Local service $ 4,912.9 $ 4,649.7
 Interstate access 2,227.7 2,204.6
 Intrastate access 655.8 656.4
 Toll 910.8 947.7
 Directory advertising and publishing 1,088.9 992.0
 Wireless communications 1,129.1 861.6
 Other services 830.3 979.5
 Total operating revenues 11,755.5 11,291.5
 Operating expenses:
 Cost of services and products 4,403.5 4,165.7
 Depreciation 2,281.8 2,245.2
 Selling, general and administrative 2,500.6 2,423.8
 Total operating expenses 9,185.9 8,834.7
 Operating income 2,569.6 2,456.8
 Interest expense 520.6 571.1
 Other income, net 33.6 154.6
 Income before income taxes
 and extraordinary loss 2,082.6 2,040.3
 Provision for income taxes 795.9 735.3
 Income before extraord. loss 1,286.7 1,305.0
 Extraord. loss on early
 extinguishment of debt, net of tax (63.2) (40.7)
 Net income $ 1,223.5 $ 1,264.3
 Weighted avg. common shares
 outstanding 495.9 489.9
 Dividends declared per common share $ 2.07 $ 2.07
 Earnings per share:
 Income before extraord. loss $ 2.59 $ 2.66
 Extraord. loss on early
 extinguishment of debt, net of tax (.12) (.08)
 Net income $ 2.47 $ 2.58
 BELLSOUTH CORPORATION
 CONSOLIDATED BALANCE SHEETS
 (in millions)
 9/30/93 12/31/92
 (Unaudited)
 ASSETS:
 Current assets:
 Cash and cash equivalents $ 488.9 $ 265.5
 Temporary cash investments 52.2 80.6
 Accounts receivable, net of
 allowance for uncollectibles
 of $142.5 and $123.0 2,991.2 2,692.5
 Material and supplies 395.3 430.6
 Other current assets 230.8 201.8
 Total 4,158.4 3,671.0
 Investments and advances 2,076.8 1,087.1
 Property, plant and equipment:
 Telephone plant and other equipment 41,548.7 39,800.9
 Less: accumulated depreciation 16,986.4 15,528.3
 Total 24,562.3 24,272.6
 Deferred charges and other assets 603.6 630.2
 Intangible assets 1,404.2 1,801.8
 Total assets $32,805.3 $31,462.7
 LIABILITIES AND SHAREHOLDERS' EQUITY:
 Current liabilities:
 Debt maturing within one year $ 1,918.1 $ 1,634.6
 Accounts payable 960.4 1,077.2
 Other current liabilities 2,560.8 2,310.4
 Total 5,439.3 5,022.2
 Long-term debt:
 Debentures 4,505.2 6,263.0
 Other long-term debt 2,835.8 1,096.7
 Total 7,341.0 7,359.7
 Deferred credits and other liabilities:
 Accumulated deferred income taxes 3,561.2 3,715.8
 Unamortized investment tax credits 539.3 604.3
 Other liabilities and deferred credits 1,758.4 962.1
 Total 5,858.9 5,282.2
 Shareholders' equity:
 Common stock, $1 par value 500.8 493.8
 Paid-in capital 7,966.5 7,609.6
 Retained earnings 6,601.4 6,395.4
 Shares held in trust (253.1) ---
 Guarantee of ESOP debt (649.5) (700.2)
 Total 14,166.1 13,798.6
 Total liabilities and shareholders'
 equity $32,805.3 $31,462.7
 SELECTED DATA
 3 mos. ended 9/30/93 9/30/92
 Return to equity 12.2 pct. 10.0 pct.
 Return to average total capital 9.6 pct. 8.7 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 496.3 491.5
 Earnings per share $ .88 $ .70
 Dividend per share $ .69 $ .69
 Property additions (millions) $ 909.1 $ 800.7
 At Sept. 30 1993 1992
 Common shares outstanding (millions) 496.0 492.2
 Debt ratio 39.1 pct. 38.9 pct.
 Total employees 96,830 96,975
 SELECTED DATA
 9 mos. ended 9/30/93 9/30/92
 Return to equity 11.6 pct. 12.4 pct.
 Return to average total capital 9.3 pct. 10.1 pct.
 Weighted average common shares
 and equivalent shares
 outstanding (millions) 495.9 489.9
 Earnings per share $ 2.47 $ 2.58
 Dividend per share $ 2.07 $ 2.07
 Property additions (millions) $2,611.3 $2,119.9
 BELLSOUTH TELECOMMUNICATIONS, INC.
 Consolidated Statements of Income and Retained Earnings
 (Unaudited)
 (In Millions)
 3 mos. ended 9/30/93 9/30/92
 Operating Revenues:
 Local service $ 1,669.9 $ 1,587.8
 Interstate access 759.8 749.8
 Intrastate access 222.6 217.1
 Toll 305.7 310.1
 Other 489.5 446.3
 Total operating revenues 3,447.5 3,311.1
 Operating expenses:
 Cost of services and products 1,286.4 1,300.7
 Depreciation 721.4 713.1
 Selling, general and administrative 608.6 599.4
 Total operating expenses 2,616.4 2,613.2
 Operating income 831.1 697.9
 Interest expense 128.1 140.3
 Other income (expense), net 9.7 3.9
 Income before income taxes and
 extraordinary loss 712.7 561.5
 Provision for income taxes 271.7 181.4
 Income before extraordinary loss 441.0 380.1
 Extraordinary loss on early
 extinguishment of debt,
 net of tax (7.8) (40.7)
 Net income $ 433.2 $ 339.4
 Retained earnings:
 At beginning of period $ 3,918.5 $ 4,008.3
 Add: Net income 433.2 339.4
 Deduct: Dividends declared 366.9 359.5
 Add/(Deduct): Other adjustments (9.7) .7
 At end of period $ 3,975.1 $ 3,988.9
 9 mos. ended 9/30/93 9/30/92
 Operating Revenues:
 Local service $ 4,912.9 $ 4,649.7
 Interstate access 2,227.7 2,204.6
 Intrastate access 655.8 656.4
 Toll 910.8 947.7
 Other 1,398.3 1,431.6
 Total operating revenues 10,105.5 9,890.0
 Operating expenses:
 Cost of services and products 3,909.4 3,739.9
 Depreciation 2,136.1 2,116.3
 Selling, general and administrative 1,719.4 1,719.3
 Total operating expenses 7,764.9 7,575.5
 Operating income 2,340.6 2,314.5
 Interest expense 425.0 444.3
 Other income (expense), net 13.3 70.7
 Income before income taxes and
 extraordinary loss 1,928.9 1,940.9
 Provision for income taxes 689.7 651.4
 Income before extraordinary loss 1,239.2 1,289.5
 Extraordinary loss on early
 extinguishment of debt,
 net of tax (63.2) (40.7)
 Net income $ 1,176.0 $ 1,248.8
 Retained earnings:
 At beginning of period $ 3,967.0 $ 3,983.5
 Add: Net income 1,176.0 1,248.8
 Deduct: Dividends declared 1,158.2 1,240.4
 Add/(Deduct): Other adjustments (9.7) (3.0)
 At end of period $ 3,975.1 $ 3,988.9
 BELLSOUTH TELECOMMUNICATIONS FINANCIAL HIGHLIGHTS
 Selected Data
 3 mos. ended 9/30/93 9/30/92
 Property additions (millions) $ 758.4 $ 710.7
 Interest charged construction $ 6.5 $ 3.6
 Access minutes of use (millions):
 Interstate 13,331.8 12,728.5
 Intrastate 3,887.0 3,556.1
 IntraLATA toll messages (millions) 312.9 317.0
 At Sept. 30 1993 1992
 Debt ratio 39.5 pct. 37.7 pct.
 Telephone employees 82,717 82,963
 Network access lines in service (000's) 19,183 18,547
 9 mos. ended 9/30/93 9/30/92
 Property additions (millions) $ 2,247.9 $ 1,935.4
 Interest charged construction $ 18.7 $ 10.8
 Access minutes of use (millions):
 Interstate 39,753.2 37,703.7
 Intrastate 11,281.8 10,417.0
 IntraLATA toll messages (millions) 948.5 977.1
 WIRELESS COMMUNICATIONS INFORMATION
 (Unaudited)
 (dollars in thousands)
 Third Quarter NOTES 1993 1992(8)
 DOMESTIC OPERATIONS
 Cellular revenues, net (1)(3) $294,750 $236,388
 Paging and other revenues, net (1)(3) 50,401 43,022
 Total revenues, net (1)(3) 345,151 279,410
 Operating expenses (1) 212,234 171,560
 Depreciation expense (1) 41,342 31,371
 Amortization of intangibles
 (including goodwill) (1) 20,323 13,054
 Total operating expenses (1) 273,899 215,985
 Operating income (1) 71,252 63,425
 Other expenses (including
 interest and taxes) (1)(4)(7) 46,280 34,593
 Net income (1)(7) $ 24,972 $ 28,832
 Operating margins:
 Including depreciation and
 amortization 20.64 pct. 22.70 pct.
 Excluding depreciation and
 amortization 38.51 pct. 38.60 pct.
 Year-to-date NOTES 1993 1992 (8)
 DOMESTIC OPERATIONS
 Cellular revenues, net (1)(3) $838,186 $663,803
 Paging and other revenues, net (1)(3) 143,872 129,951
 Total revenues, net (1)(3) 982,058 793,754
 Operating expenses (1) 602,050 499,641
 Depreciation expense (1) 114,963 89,392
 Amortization of intangibles
 (including goodwill) (1) 58,411 43,452
 Total operating expenses (1) 775,424 632,485
 Operating income (1) 206,634 161,269
 Other expenses (including
 interest and taxes) (1)(4)(7) 108,783 91,646
 Net income (1)(7) $ 97,851 $ 69,623
 Operating margins:
 Including depreciation and
 amortization 21.04 pct. 20.32 pct.
 Excluding depreciation and
 amortization 38.70 pct. 37.05 pct.
 SELECTED DOMESTIC BALANCE
 SHEET DATA
 At Sept. 30, At Sept. 30,
 1993 1992
 Property, plant and
 equipment - gross (1) $1,417,008 $1,121,135
 Property, plant and
 equipment - net (1) $1,073,304 $ 796,122
 Total assets (1) $3,414,616 $2,639,805
 Total equity $1,814,807 $1,854,195
 DOMESTIC OPERATIONAL COMPARISONS
 Population served:
 Control basis (2A) 50,385,000 48,726,000
 Equity basis (2B) 38,723,000 37,471,000
 Cellular customers served:
 Control basis (2A) 1,769,487 1,290,911
 Equity basis (2B) 1,383,721 1,005,626
 Paging customers served:
 Control basis (2A)(5) 1,376,708 1,123,482
 Equity basis (2B)(5) 1,193,644 956,756
 Average monthly cellular
 local bill per customer (6) $ 73 $ 75
 Penetration rate 3.57 pct. 2.68 pct.
 Year-to-Date
 DOMESTIC OPERATIONAL COMPARISONS
 Average monthly cellular
 local bill per customer (6) $ 73 $ 77
 SELECTED INTERNATIONAL
 WIRELESS DATA
 Third Qtr. Third Qtr.
 1993 1992
 Revenues:
 Cellular revenues:
 Latin America (1) $ 52,366 $ 30,416
 Other (1) 9,407 94
 Total cellular revenues (1) 61,773 30,510
 Paging revenues $ 16,945 $ 19,452
 Population served:
 Control basis (2A) 24,900,000 24,900,000
 Equity basis (2B) 53,374,000 36,826,000
 Cellular customers served - Equity basis:
 Latin America (2B) 101,297 54,201
 Other (2B) 43,511 103
 Total served 144,808 54,304
 Pagers in service (2B) 207,309 212,026
 Year-to-Date Year-to-Date
 1993 1992
 Revenues:
 Cellular revenues:
 Latin America (1) $ 137,345 $ 74,583
 Other (1) 20,566 94
 Total cellular revenues (1) 157,911 74,677
 Paging revenues $ 51,282 $ 56,111
 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) Included in Other Expenses for first quarter 1993 is 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 revenues, equipment sales, installation and repair revenues.
 (7) The 3rd quarter 1993 results include a $16.5 million adjustment for the impact of the increase in the federal statutory tax rate. The $16.5 million adjustment is included in Other Expenses.
 (8) Certain 1992 information has been reclassified for reporting purposes.
 -0- 10/21/93
 /CONTACT: Larry Stevens of BellSouth Corporation, 404-249-2832/
 (BLS)


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

CF-BN -- AT013 -- 5311 10/21/93 14:08 EDT
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