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BCE Q1 net profit slumps to $258M from $499M; revenue flat at $4.39B |
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Written by THE CANADIAN PRESS
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Saturday, 10 May 2008 |
A man walks past the Bell Canada offices in downtown Montreal Thursday, March 29, 2007 in Montreal. THE CANADIAN PRESS/Paul Chiasson
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MONTREAL - BCE Inc. (TSX:BCE) has reported a "steady" financial performance in the first quarter, with net earnings applicable to common shares slumping to $258 million, down from $499 million a year earlier, on flat operating revenue of $4.39 billion.
Canada's largest telecommunications company said Wednesday that excluding one-time costs and investment losses, its profit improved to $457 million from $420 million.
Net income was cut by a $236-million charge following a CRTC decision on uneconomic expansion of broadband service to 86 small communities. The January-March results also reflect last October's sale of Telesat.
A 0.1 per cent year-over-year increase in overall revenue came as growth at Bell Canada and Bell Aliant was offset by the loss of Telesat's contribution to revenue.
Net earnings per share declined by 48 per cent, to 32 cents from 62 cents, but adjusted EPS grew to 57 cents from 52 cents, topping the Thomson Financial analyst consensus expectation of 54 cents.
"During the quarter, we made good progress on the completion of the privatization transaction and delivered solid financial results, consistent with our plan for the year," stated CEO Michael Sabia.
He said BCE continues to expect the takeover by an investor group led by the Ontario Teachers' Pension Plan to be completed by the end of the current quarter.
"Bell had its best operating revenue growth in over two years along with steady EBITDA growth," Sabia added. "BCE's earning per share before special items grew by 9.6 per cent."
The Bell wireline segment had stable revenue of $2.63 billion, and continued to reduce the number of residential customers lost to cable companies and other competitors.
"In our wireline business, this is the first quarter in over two years that operating revenues have held steady," stated George Cope, president of Bell Canada.
"Wireline EBITDA also showed strength with growth of 3.3 per cent based on a strong performance from our enterprise and video units along with lower labour and pension costs. In addition, significant growth in winbacks led to fewer residential line losses."
The Bell Wireless segment had net activations of 34,000 during the quarter, up from 13,000 in the first three months of 2007. Bell Wireless operating revenues increased by 8.7 per cent to $1.04 billion.
Bell invested $456 million of capital during the quarter, $85 million less than a year ago.
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Last Updated ( Sunday, 07 September 2008 )
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