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BellSouth: it's a Baby Bell, but it's in big trouble
That'll cheer the markets up

By Graham Hayday

Published: Tuesday 23 July 2002

US local carrier BellSouth has added to the woes of the telecoms sector by filing worse than expected results.

Its shares plunged 18 per cent yesterday as it reported a 66 per cent drop in second quarter net profits and cut its earnings guidance.

Its profits stood at $293m, down from $880m a year ago. Revenues also fell, from $5.99bn to $5.78bn.

But analysts are not too disheartened. One told this morning's FT: "There is a ripple effect hitting BellSouth. But when I look at [the company], I am not sure that its back is broken."