PacTel Income Is Up 8.8% in Third Quarter
- Share via
SAN FRANCISCO — Pacific Telesis Group on Thursday reported an 8.8% gain in third-quarter net income to $310.3 million, citing tight expense controls.
The diversified telecommunications concern, the parent of Pacific Bell Telephone, said its revenue inched up 0.9% to $2.33 billion. During the quarter, however, PacTel’s maintenance and repair costs fell 11% and its interest expense was down 6.5%.
Donald E. Guinn, chairman and chief executive, noted that 176,000 customer lines were added during the three-month period as a result of healthy economies in California and Nevada.
He called the third-quarter results “our best ever quarterly earnings picture.”
Net income for the first nine months of 1987 rose 0.8% to $848.5 million on a 0.3% increase in revenue to $6.81 billion.
Still, the company warned that fourth-quarter results could be hurt by the cost of an early retirement program and by the impending decision of the California Public Utilities Commission on Pacific Telephone’s 1986 rate case.
Separately, Pacific Telesis asked the U.S. District Court that is overseeing the breakup of American Telephone & Telegraph for permission to offer database and certain other information services to customers.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
