Pacific Telesis Group reported a 12.1% increase in 1985 earnings, but it said the California Public Utilities Commission's refusal last month to boost Pacific Bell's rates will have "an adverse impact" on the parent's 1986 earnings.
Net income totaled $929.1 million last year, compared to $828.5 million in 1984, Pacific Telesis' first year of operation as a regional holding company created to take over the assets of Pacific Telephone from American Telephone & Telegraph. Revenue rose 8.6% to $8.5 billion.
Earnings in last year's fourth quarter rose just 3.6% to $208.2 million, however, as a result of about $35 million in two one-time charges--notably the settlement of a predivestiture antitrust lawsuit with MCI Communications. Revenue was up 8.7% to $2.17 billion.
"Increasing customer use of our service coupled with major productivity improvements continue to drive our strong financial performance," said Donald E. Guinn, chairman and chief executive.