Bell Aliant reports third quarter 2013 results


    --  Net wireline customer activations show strong year-over-year
        growth
    --  High-speed Internet adds 11,600 net new customers, up 55 per
        cent from Q3 2012
    --  IPTV adds 14,500 net new customers, up 19 per cent from Q3 2012


--  Strong FibreOP(TM )growth continues
  o FibreOP Internet adds 19,300 net new customers, up 17 per cent from 
Q3 2012
  o FibreOP TV adds 16,300 net new customers, up 14 per cent from Q3 
2012
  o Fibre-to-the-home (FTTH) footprint expands to 770,000 premises 
This news release contains forward-looking statements. For a description of 
the related risk factors and assumptions please see the section entitled 
"Forward-looking Information" later in this release. 
HALIFAX, Oct. 31, 2013 /CNW/ - Bell Aliant Inc. (TSX: BA) today reported 
financial results for the third quarter of 2013 for Bell Aliant Inc. (Bell 
Aliant) and Bell Aliant Regional Communications Inc. (Bell Aliant GP). 
"I am very pleased with our third quarter results," said Karen Sheriff, 
president and chief executive officer, Bell Aliant. "We achieved very strong 
net wireline customer activations, which is especially rewarding considering 
the competitive environment in which we are operating. 
"We added 11,600 net new high-speed Internet customers, up 55 per cent from 
the same quarter in 2012. At the end of the third quarter of 2013, we have 
already added more high-speed Internet customers than we did for the full year 
2012. We also added 14,500 net new IPTV customers, increasing our IPTV 
customer base by 52 per cent from the same time a year ago. Our third quarter 
net NAS results declined only slightly from the third quarter of 2012, 
significantly improving upon the year-over-year trend experienced in the 
second quarter. 
"The progress we are continuing to make with our fibre-to-the-home strategy is 
a significant contributor to our improved customer activation results. We 
continue to gain confidence that our FTTH strategy is the right one to return 
us to growth. 
"As we expected, our year-over-year financial performance in the third quarter 
was somewhat softer than prior quarters of this year. Pricing activity that 
occurred later in 2012 and expense recognition timing differences benefitted 
the year-over-year comparisons of earlier quarters this year, without similar 
benefits in the third quarter. Also, our response to aggressive competitive 
activity in the third quarter, while helping to improve our customer 
activation performance, caused our costs in the quarter to increase, and 
thereby contributed to softer year-over-year financial performance in the 
quarter. 
"While the competitive environment is fierce, I remain confident that FibreOP 
offers the best value to customers in our FTTH markets. With our FTTH 
penetration rates now at 22 per cent, and further FTTH footprint expansion to 
800,000 premises expected by the end of this year, we believe we have great 
opportunity for future growth. By continuing to build our customer base, our 
goal is to expand our opportunities for returning to revenue growth, and our 
performance this quarter solidly supported that objective." 
"Our third quarter results and our solid performance in the first two quarters 
of 2013 position us well to achieve our previously announced financial 
guidance for fiscal 2013." 
Third quarter 2013 highlights((1)( 2)(3)) 
Bell Aliant Inc. reported net earnings of $81 million for the third quarter of 
2013, down $7 million from the third quarter of 2012, primarily as a result of 
lower EBITDA in Bell Aliant GP. Earnings per share and adjusted earnings per 
share were $0.35 and $0.42 respectively, each down $0.03 from the same quarter 
in 2012. 
Third quarter financial highlights of Bell Aliant GP are summarized as follows: 
 ___________________________________________________________________
|(In millions of dollars) |       |       |      | YTD | YTD |      |
|(unaudited)              |Q3 2013|Q3 2012|Change|     |     |Change|
|                         |       |       |      |2013 |2012 |      |
|_________________________|_______|_______|______|_____|_____|______|
|Operating Revenue        |  $695 |  $697 |(0.4%)|2,070|2,067| 0.2% |
|_________________________|_______|_______|______|_____|_____|______|
|EBITDA                   |   327 |   335 |(2.2%)| 978 | 990 |(1.3%)|
|_________________________|_______|_______|______|_____|_____|______|
|Capital Expenditures     |   138 |   144 |(4.4%)| 423 | 458 |(7.6%)|
|_________________________|_______|_______|______|_____|_____|______|
|Free Cash Flow           |   145 |   113 |27.8% | 393 | 358 | 9.6% |
|_________________________|_______|_______|______|_____|_____|______| 
Operating revenues of $695 million in the third quarter of 2013 were down 0.4 
per cent from the same quarter in 2012. Growth in TV, Internet, other data, 
wireless and other revenues were offset by declines in local and long distance 
revenues. 
Operating expenses of $368 million in the third quarter of 2013 grew 1.4 per 
cent compared to the same quarter in 2012. The increase was largely due to 
growth in TV content, marketing and customer support costs from a growing 
FibreOP customer base, and the timing of management incentive accruals, which 
were somewhat offset by expense reductions throughout the business. 
As a result, EBITDA of $327 million in the third quarter of 2013 declined by 
2.2 per cent compared to the same quarter in 2012. 
Capital expenditures in the third quarter of 2013 were $138 million, down 4.4 
per cent from the same quarter a year earlier, primarily due to lower central 
Canada FibreOP startup costs and the completion of large FTTH transport 
projects in 2012. 
FTTH footprint expansion in the third quarter of 2013 was similar to the same 
quarter of 2012. Bell Aliant passed an additional 45,000 premises with FTTH in 
the third quarter of 2013 compared to 47,000 in the third quarter of 2012, 
bringing total FTTH coverage to 770,000 premises at the end of September 2013. 
Capital expenditure pressures arising from higher FibreOP customer connections 
in the third quarter of 2013 compared to the same quarter in 2012, were offset 
by improved installation efficiencies. 
Free cash flow was $145 million in the third quarter of 2013, up $32 million 
(27.8 per cent) from the same quarter a year earlier. The increase was 
primarily due to changes in working capital and lower capital expenditures 
compared to the third quarter of 2012, which were somewhat offset by lower 
EBITDA. 
Revenue details 
IPTV revenue grew $12 million (56.1 per cent) in the third quarter of 2013 
compared to the third quarter of 2012, due to strong growth in IPTV customers 
of 52.0 per cent from September 30, 2012. FibreOP TV added 16,300 net new 
customers in the quarter to reach 142,100, a portion of which were migrations 
from Bell Aliant's fibre-to-the-node (FTTN) TV service. Overall net IPTV 
customer additions were 14,500 in the third quarter of 2013, compared to 
12,300 a year earlier. Total IPTV customers reached 163,300 at the end of 
September 2013. 
Internet revenue increased $6 million (4.8 per cent) with residential 
high-speed Internet average revenue per customer (ARPC) in the third quarter 
of 2013 up 3.4 per cent from the same quarter a year earlier. The high-speed 
Internet ARPC increase was a result of selected pricing action and customer 
demand for higher bandwidth bundles and other services, offset by increased 
promotional pricing. Growth in high-speed Internet customers of 3.4 per cent 
from a year earlier also contributed to Internet revenue growth. FibreOP 
Internet customer net additions in the quarter were 19,300, bringing total 
FibreOP Internet customers to 166,000 at the end of September 2013. FibreOP 
Internet additions include existing Bell Aliant customers migrating from DSL 
and FTTN networks to the upgraded service. These migrations do not contribute 
to overall high-speed customer growth but increasingly contribute to improved 
customer retention and growth in overall customer ARPC. Overall net high-speed 
Internet customer additions were 11,600 in the third quarter of 2013, up from 
7,500 in the same quarter of 2012, bringing total high-speed Internet 
customers to 944,900 at the end of September 2013. 
Local service and long distance revenues declined $17 million (5.6 per cent) 
and $10 million (11.5 per cent), respectively, in the third quarter of 2013 
compared to the same quarter in 2012, driven by NAS declines of 5.7 per cent. 
Net NAS declines of 33,700 in the third quarter of 2013 were up 1,300 from the 
same quarter in 2012, a result of competitive activity and technology 
substitution. 
Wireless revenues were up $1 million (3.2 per cent) in the third quarter of 
2013 compared to the same quarter in 2012, driven by 2.6 per cent customer 
growth. 
Other revenues were up $3 million (8.4 per cent) in the third quarter of 2013 
compared to the same quarter in 2012, mainly as a result of increased custom 
work for large customers. 
Declared Dividends 
Bell Aliant declared a quarterly dividend of $0.475 per common share, payable 
on December 31, 2013, to shareholders of record at the close of business on 
December 13, 2013. 
Bell Aliant Preferred Equity Inc. declared a dividend on its Series A 
Preferred Shares of $0.303125 per share, a dividend on its Series C Preferred 
Shares of $0.284375 per share, and a dividend on its Series E Preferred Shares 
of $0.265625 per share, each to be paid on December 31, 2013, to shareholders 
of record at the close of business on December 13, 2013. 
Unless otherwise stated, dividends paid by Bell Aliant and Bell Aliant 
Preferred Equity Inc. to Canadian residents are "eligible dividends" as 
defined by the Canadian Income Tax Act and corresponding provincial 
legislation. 
Additional Information 
More information on Bell Aliant's and Bell Aliant GP's third quarter 2013 can 
be found in Bell Aliant's third quarter 2013 supplementary financial 
information package and Bell Aliant's and Bell Aliant GP's third quarter 2013 
MD&As, available at www.bellaliant.ca/investors and on SEDAR at www.sedar.com . 
Analyst Conference Call 
A conference call with the financial community is scheduled for October 31, 
2013, at noon (Eastern). The dial-in numbers are 866-226-1792 and 416-340-2216 
for Toronto area participants. Media are invited to attend in listen-only 
mode. A replay of the session can be heard until December 1, 2013. To access 
the replay, dial 800-408-3053 or 905-694-9451 and enter the passcode 3670003#. 
A live audio webcast of the conference call can be accessed on 
www.bellaliant.ca under the Investor Relations section. A replay of the 
conference call will be available on the website for one year. 
Notes 
The information contained in this news release is unaudited. 
(1)   Bell Aliant derives virtually all of its income from its ownership in Bell Aliant GP. 


      Bell Aliant GP's results consolidate the results of Bell Aliant Regional
      Communications, Limited Partnership; Télébec, Limited Partnership; NorthernTel, Limited
      Partnership; and Bell Aliant Preferred Equity Inc.



(2)   Percentage changes quoted in this release related to dollar values are based on amounts 


      rounded to the nearest hundred-thousand, consistent with disclosure in Bell Aliant's
      supplementary information package and Bell Aliant GP's MD&A for the third quarter of
      2013. Dollar values quoted in this release are rounded to the nearest million unless
      otherwise stated. Customer metrics are rounded to the nearest hundred unless otherwise
      stated.



(3)   Definitions of non-IFRS measures: 


       

  a.  EBITDA: Bell Aliant defines EBITDA as operating revenue less operating expenses, which
      means it represents operating income before  depreciation and amortization expense, and
      severance and other charges. Operating income is calculated before net finance costs,
      other expense and income taxes are deducted.
       

  b.  Free cash flow: Bell Aliant defines free cash flow as cash from operating activities
      less capital expenditures. Free cash flow includes the cash performance of Bell Aliant
      and Bell Aliant GP on a combined basis.
       

  c.  Adjusted earnings per share (EPS): Bell Aliant defines adjusted EPS as diluted EPS of
      Bell Aliant Inc. adjusted for the per share after-tax effect of purchase price
      allocation amortization, severance and other charges, and debt redemption loss,
      recorded by Bell Aliant GP. In Q2 2013, Bell Aliant revised its definition of adjusted
      EPS to exclude the after-tax effect of severance and other charges, and debt redemption
      loss in order to align with the reporting practices of peers. Adjusted EPS for 2012 has
      been restated to be presented on a consistent basis to 2013.
       

  For a reconciliation of these non-IFRS financial measures to the most closely comparable
  IFRS financial measures, please refer to Bell Aliant GP's MD&A for the third quarter of
  2013 available at
  www.bellaliant.ca/investors
  and www.sedar.com .


Forward-looking Information
This news release contains forward-looking statements concerning anticipated 
future events, results, circumstances or expectations, in particular 
statements concerning revenue growth, FibreOP customer growth and FTTH 
expansion plans. Unless otherwise indicated, such forward-looking statements 
describe management's expectations at October 31, 2013. These statements are 
based on management's beliefs regarding future events, many of which, by their 
nature are inherently uncertain and beyond management's control. These 
statements are not guarantees of future performance and are subject to 
assumptions which may prove to be inaccurate and numerous risks and 
uncertainties which are difficult to predict. 
Forward-looking statements made in this press release are based on a number of 
assumptions Bell Aliant believed were reasonable on the date the 
forward-looking statements were made. In Bell Aliant and Bell Aliant GP's 
2012 annual MD&As, and as updated in their 2013 quarterly MD&As issued to 
date, the principal assumptions that were made in the preparation of the 
forward-looking statements related to Bell Aliant's expected financial and 
operational performance in 2013 were outlined. These assumptions included 
market, operational and financial assumptions and have not changed 
significantly during Q3 2013. 
Bell Aliant encourages investors to review the risk factors section below, and 
related disclosures, for a discussion of the various factors that could cause 
actual results to differ from what is currently expected. 
Risk Factors
There are many factors that could cause results or events to differ materially 
from current expectations. The most significant factors that Bell Aliant has 
identified that may affect Bell Aliant's results or events in 2013 include but 
are not limited to: increasing competition; cost management; financing and 
free cash flow; network evolution; pension valuation and investment risk; 
legislative and regulatory factors; outsourcing and vendor relationships; 
information technology (IT); human capital; as well as the structural 
subordination of our common shares; limitations on non-resident ownership; 
dilution, unpredictability and volatility of our share price; and tax related 
risks. Some of these risk factors are largely beyond Bell Aliant's control. 
For additional information on material factors and assumptions used to develop 
forward-looking information and risk factors that could cause actual results 
to differ materially from forward-looking information, see also the "Risks 
that could affect our business results" section of Bell Aliant Inc.'s MD&A for 
the year ended December 31, 2012, and the "Assumptions made in the preparation 
of forward-looking information" and "Risks that could affect our business and 
results" sections of Bell Aliant Regional Communications Inc.'s MD&A for the 
year ended December 31, 2012, as updated by their first, second and third 
quarter 2013 MD&As, as well as the "Risk Factors" sections of Bell Aliant and 
Bell Aliant GP's 2012 Annual Information Forms. These documents are available 
at www.bellaliant.ca/investors and www.sedar.com . 
Should any risk factor affect Bell Aliant in an unexpected manner, or should 
assumptions underlying the forward-looking statements prove incorrect, the 
actual results or events may differ materially from the results or events 
predicted. Unless otherwise indicated, forward-looking information does not 
take into account the effect that transactions, or non-recurring or other 
special items, announced or occurring after this information is provided may 
have on the business. All of the forward-looking information reflected in this 
press release and the documents referred to within it are qualified by these 
cautionary statements. There can be no assurance that the results or 
developments anticipated by Bell Aliant will be realized or, even if 
substantially realized, that they will have the expected consequences for Bell 
Aliant. 
Except as may be required by Canadian securities laws, Bell Aliant disclaims 
any intention and assumes no obligation to update or revise any 
forward-looking information, even if new information becomes available, as a 
result of future events or for any other reason. Readers should not place 
undue reliance on any forward-looking information. Forward-looking information 
is provided for the purpose of providing information about management's 
current expectations and plans relating to fiscal 2013 or other future 
periods. Readers are cautioned that such information may not be appropriate 
for other purposes. 
About Bell Aliant
Bell Aliant (TSX: BA) is one of North America's largest regional 
communications providers and the first company in Canada to cover an entire 
city with FTTH technology with its FibreOP services. Through its operating 
entities it serves customers in six Canadian provinces with innovative 
information, communication and technology services including voice, data, 
Internet, video and value-added business solutions. Bell Aliant's employees 
deliver the highest quality customer service, choice and convenience. 

SOURCE  Bell Aliant Inc. 
Media Relations: Katie Burgess Toll-free: (855) 487-6198 
katie.burgess@bellaliant.ca mediarelations@bellaliant.ca 
Investor Relations: Zeda Redden Toll-free: (877) 487-5726 
zeda.redden@bellaliant.ca 
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CO: Bell Aliant Inc.
ST: Nova Scotia
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-0- Oct/31/2013 12:15 GMT