Bell continues wireless trend, expects MTS to close end of Q1

BCE Inc. continued the industry-wide trend of strong wireless numbers, as its fourth quarter earnings report showed a surge in data usage over the year and a better view of when it expects to close its acquisition of Manitoba Telecom Services Inc. (MTS). For the three months ended Dec. 31, Bell reported a 23.1 per cent increase in new postpaid wireless subscribers over the year, adding 112,000 compared to 91,308 in the fourth quarter of 2015, for a total postpaid count of 7,690,727 and 8,468,872 wireless subscribers overall. Rogers Communications Inc. reported 93,000 new postpaid subscribers in its fourth quarter earnings last week, suggesting a sustained upward wireless trend across the industry. Bell noted a 41 per cent increase in data usage over the year that helped push year-over-year wireless revenues up 6.4 per cent to $1.88 billion.. Average revenue per user (ARPU) was also up to $66.69 for the quarter from $63.67 in the same period last year. Overall company revenues were up 1.8 per cent in the quarter to $5.7 billion, while adjusted net earnings were up 8.5 per cent year-over-year to $667 million. The company also said it expects to close its MTS acquisition by the end of the first quarter, a target that some analysts already predicted. The deal still requires regulatory approval. The company reported slightly lower year-over-year wireline revenues, down 0.8 per cent to $3.13 billion versus $3.16 billion in the equivalent quarter last year, which Bell partly blamed on the CRTC’s decision to lower interim wholesale access rates. It added 18,402 new Internet subscribers in the quarter, lower than the 38,908 it brought in for the fourth quarter in 2015, due partly to aggressive bundle promotions from cable competitors and expired Bell promotions, it said. Total Internet subscribers at the end of the quarter sat at 3,476,562. While it added 35,905 IPTV subscribers in the quarter, that was lower than the 74,092 added in the same quarter last year — due to “limited new footprint expansion” and “less rich” promotional bundles versus last year, it said. Total IPTV (Fibe TV) subscribers by quarter end were 1,337,944, up by 13.1 per cent from Q4 2015. Meanwhile, the company lost about 36,869 satellite TV subscribers in the quarter for a total TV subscriber number of 2,744,909. Bell Media revenues were up 3.6 per cent $845 million, with the company pointing to strong Crave TV subscriber growth. On Tuesday, the company announced that it was cutting jobs in its media division.

Bell continues wireless trend, expects MTS to close end of Q1

Brief | February 2, 2017

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Bell continues wireless trend, expects MTS to close end of Q1

Brief | February 2, 2017

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