Wednesday, August 4, 2010

Bell Canada Reports Financial Momentum with TV, Wireless

BCE reported improved financial performance with net earnings applicable to common shares growing by 70.5% to $590 million. In addition, Bell had revenue growth of 4.5%, reflecting strong TV and wireless revenue growth of 11.6% and 9.6%, respectively, and the inclusion of revenues from The Source and Virgin Mobile Canada (Virgin); operating income growth of 30.6%; EBITDA growth of 3.3%; wireless gross subscriber activations of 480,639 and postpaid net activations of 102,754; and TV net activations of 9,775.

BCE today announced that the annual common share dividend will increase by 5% to $1.83 per share.

"Bell's strong operating momentum and financial performance are the direct result of the Bell team's strong execution of our strategic imperatives. We continue to accelerate our growth businesses in an increasingly competitive marketplace, while continuing to invest in the service programs and broadband networks that support our growth into the future," said George Cope, President and CEO of BCE and Bell Canada.

Some additional highlights:

  • Bell Wireless ARPU increased by $1.66 to $52.12 year over year as data revenue growth of 45% more than offset voice ARPU declines due to customer adoption of richer rate plans. Wireless data revenues represented approximately 22% of service revenues this quarter compared to approximately 17% of service revenues for the same period last year. Gross activations of 480,639 and postpaid net activations of 102,754 were 19.0% and 60.1% higher than last year respectively.

  • The Bell Wireline segment had NAS losses of 129,147 this quarter, an improvement of 2.6% compared to last year. TV subscribers increased by 9,775 this quarter compared to an increase of 20,018 in the same period last year. High-speed Internet net subscribers decreased by 3,899 this quarter compared to an increase of 1,991 last year.

  • Bell Wireline operating revenues increased by 2.2% as TV and equipment and other revenue growth more than offset declines in local and access, long distance and data revenues.

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