Bell Aliant announces plan for conversion to a corporation and
accelerated fibre to the home rollout with first quarter 2010 results
- Q1 2010 performance continues pattern of solid results
- Conversion expected to be effective January 1, 2011, subject to
unitholder vote in June
- Distributions continue at $0.2417 per unit paid monthly ($2.90 per unit
annually) for 2010
- Post 2010 dividend policy targets sustainable high payout of annual
free cash flow
- Initial dividend expected to be $0.475 per share paid quarterly ($1.90
per share annually) beginning in 2011; represents 7.5 per cent yield on
today's unit price
- $350 million investment in fibre to the home will accelerate expansion
to pass over 600,000 homes and businesses by end of 2012
HALIFAX, May 4 /CNW/ - Bell Aliant Regional Communications Income Fund
(Bell Aliant or the Fund) (TSX: BA.UN) today announced details of its
plans for conversion from an income trust to a corporate structure (the
Conversion), along with first quarter 2010 financial results for the
Fund and Bell Aliant Regional Communications Holdings, LP (Bell Aliant
Holdings LP). Bell Aliant Holdings LP also announced plans to accelerate
its rollout of fibre to the home (FTTH) technology.
First quarter 2010 results
"Over the past 18 months we have made significant progress with
resetting our cost structure and expanding broadband with our launch of
FTTH, and that continued this quarter," said Karen Sheriff, president
and chief executive officer. "I am pleased that despite increased
competitive coverage in our territories we were able to stabilize our
NAS declines to the same level as the first quarter of last year. Our
Internet revenue growth was strong, and our operating and capital costs
continued to decline, all of which helped us to deliver continued strong
distributable cash performance."
"Our first quarter results were in line with our expectations and we
expect to finish 2010 within the guidance ranges we announced in
February," continued Ms. Sheriff.