Wireless, internet and media lead to strong Bell fourth quarter

BCE Inc. released its fourth quarter results Thursday, reporting 330,743 net activations across various platforms. There were 122,621 postpaid and prepaid mobile phone connections, 104,447 mobile connected devices, 63,466 retail internet and 40,209 IPTV hook-ups. This all led to an increase of 46.6 per cent. Net earnings for the quarter were $567 million, a decline of 13.8 per cent. Wireless revenues were up 7.7 per cent. A record 854,000 new direct fibre connections in 2022 led to the highest retail internet net connections in 16 years. The company said that 80 per cent of the planned broadband rollout is now completed. The fibre footprint now reaches 82 per cent of Canadians. Bell Media digital revenue grew 46 per cent in the quarter with ad revenue increasing by 3.8 per cent. CFO Glen LeBlanc said BCE anticipates there will be a recession in Canada but that it will be short and shallow. CEO Mirko Bibic was unfazed by the prospect of a price war erupting if Rogers Communications Inc. is permitted to take over Shaw Communications Inc. “We have the room to compete on price if anyone wants to take us there,” he told an investors call early Thursday morning. Operating revenues were $6.44 billion, a 3.7 per cent jump from Q4 2021’s $6.21 billion. Adjusted net earnings were $654 million compared with $692 million a year earlier, or a fall of 5.5 per cent. Cash flows from operating activities were $2.05 billion, an increase from 2021’s $1.74 billion. Bibic was hopeful about the appointment of new CRTC chair Vicky Eatrides. She has pledged to work on affordability of services in the telecom sector. “We are looking forward to sharing our thoughts with the new CRTC leadership on how competitive our industry is,” the CEO stated. The telecom boasted that it reduced its share of consumer complaints to the commission. While complaints to the regulator fell 25 per cent overall, Bell’s declined by 38 per cent. Market analysts took a calm approach to the numbers in Q4. “The overall result was generally in line with expectations,” Aravinda Galappatthige of Canaccord Genuity wrote in a briefing. He noted that wireless coverage was decent but a bit lighter than anticipated. Drew McReynolds of RBC Dominion Securities Inc. also made mention of the wireless market, terming it “a little choppier than expected.” This was attributed to a hike in promotional activity by Bell Mobile. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Michael Lee-Murphy at mleemurphy@thewirereport.ca

Wireless, internet and media lead to strong Bell fourth quarter

News | February 2, 2023

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Wireless, internet and media lead to strong Bell fourth quarter

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