Profit from operations rose to $1.97 billion, or 57 cents a share, from $1.68 billion, or 49 cents, a year ago. Results are stated as if SBC's $80.6 billion acquisition of Chicago-based Ameritech earlier this month had taken place before the start of each period.
SBC, which was added to the Dow Jones Industrial Average yesterday, is focusing on fast-growing areas such as data, wireless, and international. Data sales rose 43 percent to $1.5 billion, while wireless revenue increased 25 percent.
SBC is investing $6 billion in network improvements to offer fast Internet and new services to 80 percent of its customers by 2002.
"The data revenues in particular are looking terrific," said Anna-Maria Kovacs, an analyst at Janney Montgomery Scott, who rates SBC "accumulate."
Revenue rose 9.4 percent to $12.5 billion from $11.4 billion. That outpaced an 8.9 percent increase in expenses to $9.21 billion.
Excluding Ameritech's results, SBC said profit before one-time items was $1.28 billion, or 64 cents, up from $1.04 billion, or 53 cents, a year ago. That tops the 61-cent average estimate of analysts surveyed by First Call.
SBC said its international operations accounted for more than 20 percent of the company's third-quarter earnings growth. It has 7.3 million phone lines and 2.8 million wireless customers abroad.
SBC said it now has investments in 22 countries outside the United States including Mexico, Belgium, Hungary, and France.
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