BellSouth Corp, the US telco that is being bought by AT&T Inc, reported an increase in profit by nearly a third for the third-quarter in what might be the company’s final quarter as a stand-alone venture.
Atlanta, Georgia-based BellSouth said it offset losing more than 300,000 traditional landlines during the quarter with higher sales in its wireless and broadband business.
The company’s wireless joint venture with AT&T, Cingular, last week reported it had added more than 1.4 million subscribers during the quarter, while BellSouth added 176,000 broadband customers.
The upshot was BellSouth reported a 26% jump in profit to $1.18bn, or 65 cents a share, compared to a year ago. This was beyond the 59 cents analysts had expected on average, according to Thomson Financial.
Revenue rose 2.9% to $5.2m during the quarter.
AT&T and BellSouth first announced their merger agreement in March. The US Federal Communications Commission is schedule to discuss any further concessions by the companies on November 3. It is plausible, that the FCC may approve the merger then.
The $79.3bn deal would create a company that had the largest wireless and landline networks in the country.
Shares in BellSouth rose a few cents to close at $45.62 on the New York Stock Exchange following the news.