BCE posts higher profits, blames wireless code for drop in sub growth

BCE Inc. reported higher profits and strong revenue growth at its wireless division in its second quarter report, released Thursday, but blamed the CRTC’s wireless code for a slowdown in wireless subscriber additions. The company reported $606 million in net earnings attributable to shareholders in the second quarter of 2014, up 6.1 per cent from the same period last year. Wireless operating revenues increased 5.5 per cent to $1.52 billion in the second quarter, up from $1.44 billion in the same period last year. The company said customers were paying for and using more data, and paying higher average annual rates thanks to the elimination of 3-year contracts under the CRTC’s wireless code. Yet BCE blamed the code for a fall in wireless subscriber growth, adding only 66,186 subscribers in the second quarter of 2014 when the same quarter in 2013 saw the addition of 96,390 wireless subscribers. Postpaid subscriber churn improved 11 basis points to 1.16 per cent from the same period last year, which the company credited to “Bell's network quality and reach and focused investments in customer service and retention.” Total wireless customers increased 1.1 per cent from last year to 7.8 million, while postpaid customers increased by three per cent to almost 6.78 million. BCE said average revenue per user for its pre- and post-paid wireless subscribers increased to $59.49 in the second quarter, up 4.6 per cent from the same period last year. The company said it added more than 875,000 subscribers for Bell Mobile TV in the last year, ending the quarter with more than 1.4 million. BCE added 46,533 customers to its Fibe TV service in the second quarter, down from 50,555 in the same period last year, which the company blamed on aggressive competition from cable companies. The company ended the quarter with 580,643 Fibe TV customers. BCE said it added 3,638 high-speed Internet subscribers, up from 2,446 in the same period last year, to end the quarter with 2,203,808 customers on its broadband plans. The company’s media division posted operating revenue of $761 million, up 36.1 per cent from the same period last year thanks to channels added through BCE’s 2013 acquisition of Astral Media Inc. On July 23, BCE said it woud buy the outstanding shares in Bell Aliant that it does not own for $3.95 billion, effectively privatizing the Halifax-based company. In its quarterly filing, BCE said the purchase, expected to close by Nov. 30, will create “approximately $100 million in pre-tax annual synergies.”

BCE posts higher profits, blames wireless code for drop in sub growth

Brief | August 7, 2014

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BCE posts higher profits, blames wireless code for drop in sub growth

Brief | August 7, 2014

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