MONTREAL – BCE reported a 41% increase in profits for its third quarter, which it attributed to its recent purchase of CTV and improved performance at Bell.
Earnings for the quarter were $642 million, up from $454 million in the same quarter of 2010. Operating revenues increased by 8.7% to $4.91 billion from $4.52 billion, and EBITDA grew 5.4% to $1.94 billion.
The Montreal-based telecommunications company said Thursday that its main subsidiary Bell, which includes the Bell Wireless, Bell Wireline and Bell Media segments, recorded revenues of $4.31 billion, a 10.1% increase compared to $3.92 billion in the same period last year. Revenues from CTV, now part of the new Bell Media unit, as well as higher wireless and TV revenues, offset declines in local and access, long distance and data product revenues.
The Bell Wireless client base reached 7,369,596 at the end of the quarter, an increase of 3.4% over last year.
The division added 126,854 postpaid wireless customers, of which 43% are lucrative smart phone users, compared to 26% last year. Total gross activations were 525,780 this quarter, 2.1% lower than last year. Postpaid net additions remained strong this quarter at 126,854, but decreased compared to net additions of 159,465 last year due to higher churn reflecting more aggressive acquisition offers from competitors.
Bell Wireline saw its total TV subscribers increase by 26,037, up 40.5% compared to year-over-year net activations of 18,538, due to higher activations of Bell Fibe TV service. Bell Fibe TV rolled out to almost 1.5 million households across Montréal and Toronto by quarter end. Bell TV subscribers totalled 2,059,870 at the end of the quarter, 3.1% more than last year.
High-speed Internet subscribers decreased by 101 this quarter compared to an increase of 21,668 in the same period last year. By quarter end, Bell had 2,111,661 high-speed Internet subscribers, or 1.3% more than last year.
NAS (network access service) line losses totaled 110,629 this quarter, compared to 92,169 last year, reflecting a tougher residential competitive environment, but business NAS losses improved 35.1% year over year. On a year-over-year basis, total NAS declined by 5.1% to 6,205,336.
Bell Media's operating revenues were $435 million this quarter, reflecting strong subscriber fee revenue from specialty channels such as TSN and digital services, as well as advertising revenue growth across all media properties.
"Bell's strategy of heavy investment in world-leading broadband networks to deliver the best media and data services across all four screens is underpinned by a strict focus on customer service and cost efficiency, and it's driving strong performance in our broadband wireless, TV and Internet growth services," said George Cope, president and CEO of BCE and Bell Canada, in a statement. "Including the results of Bell Media, we generated double-digit revenue growth and robust EBITDA performance in an increasingly competitive communications marketplace.”
BCE also increased its adjusted earnings per share growth to be in the range of 11% to 13% for 2011, up from 6% to 9% that was predicted in May.
BCE's Board of Directors declared a quarterly dividend of $0.5175 per common share, payable on January 15, 2012 to shareholders of record at the close of business on December 15, 2011.
