BCE reports 2010 second quarter results

Thu, 05 Aug 2010 00:00:00 GMT

BCE Inc. (TSX, NYSE: BCE), Canada's largest communications company, today reported BCE and Bell results for the second quarter of 2010, and announced a 5% increase in its annual common share dividend and improved financial guidance for 2010. BCE reported improved financial performance with net earnings applicable to common shares growing by 70.5% to $590 million. In addition, Bell had revenue growth of 4.5%, reflecting strong TV and wireless revenue growth of 11.6% and 9.6%, respectively, and the inclusion of revenues from The Source and Virgin Mobile Canada (Virgin); operating income growth of 30.6%; EBITDA growth of 3.3%; wireless gross subscriber activations of 480,639 and postpaid net activations of 102,754; and TV net activations of 9,775. These results demonstrate continued progress in the execution of Bell's 5 Strategic Imperatives - Improve Customer Service, Accelerate Wireless, Leverage Wireline Momentum, Invest in Broadband Networks and Services, and Achieve a Competitive Cost Structure. "Bell's strong operating momentum and financial performance are the direct result of the Bell team's strong execution of our strategic imperatives. We continue to accelerate our growth businesses in an increasingly competitive marketplace, while continuing to invest in the service programs and broadband networks that support our growth into the future," said George Cope, President and CEO of BCE and Bell Canada. "At Bell Wireless, our world-leading HSPA+ network and roster of leading smartphones and turbo sticks produced wireless data revenue growth of 45% and net activations that more than doubled year over year. The substantial 6% increase in Bell Wireline EBITDA results from double-digit Bell TV revenue growth, outstanding operating cost reductions and ongoing decreases in NAS landline losses." "Bell's strong financial results to date this year and positive outlook for the remainder of 2010 allow us to continue to return value to shareholders with another common share dividend increase, even as we continue to accelerate investment in broadband network expansion to ensure Bell's and Canada's competitiveness going forward," said Mr. Cope. BCE today announced that the annual common share dividend will increase by 5% to $1.83 per share. Accordingly, BCE's Board of Directors has declared a quarterly dividend of $0.4575 per common share payable on October 15, 2010 to shareholders of record at the close of business on September 15, 2010. With this increase, BCE's annual common share dividend has increased by 25% since the fourth quarter of 2008. "We continue to maintain a positive outlook for the business which is supported by our strong execution and solid competitive position across all our product lines," said Siim Vanaselja, Chief Financial Officer of BCE and Bell Canada. "Our results in the first half of the year, including Q2 Free Cash Flow performance tracking to the high end of 2010 guidance and revenue and Adjusted EPS ahead of plan, support our upward guidance revision announced today." "The 5% hike in our common share dividend also announced today - the second such increase this year - is supported by our improved earnings outlook and maintains BCE's payout ratio conservatively toward the low end of our policy range of 65% to 75% of increased Adjusted EPS guidance for 2010. The dividend increase will also be readily funded from our Free Cash Flow with no material impact on our projected cash balance for year-end 2010 of approximately $500 million," said Mr. Vanaselja. Bell's operating revenues increased by 4.5% this quarter, to $3,792 million, as higher revenues from growth in TV and wireless revenues and the acquisitions of The Source and the remaining 50% of the equity of Virgin not already owned by Bell more than offset declines in local and access, long distance and wireline data revenues. Bell's operating income increased by 30.6% to $820 million this quarter due to higher EBITDA, lower restructuring and other costs and lower depreciation and amortization of intangible assets. Bell's EBITDA grew by 3.3% to $1,498 million this quarter due to higher revenues, disciplined cost management and lower pension expense. Bell Wireless operating revenues increased by 9.6% this quarter with service revenues increasing by 10.8% and product revenues decreasing by 4.5%. Bell Wireless operating income and EBITDA decreased by 5.6% and 2.4% respectively due to the higher levels of gross activations and customer upgrades. Blended ARPU(2) increased by $1.66 to $52.12 year over year as data revenue growth of 45% more than offset voice ARPU declines due to customer adoption of richer rate plans. Wireless data revenues represented approximately 22% of service revenues this quarter compared to approximately 17% of service revenues for the same period last year. Gross activations of 480,639 and postpaid net activations of 102,754 were 19.0% and 60.1% higher than last year respectively. The Bell Wireline segment had NAS losses of 129,147 this quarter, an improvement of 2.6% compared to last year. TV subscribers increased by 9,775 this quarter compared to an increase of 20,018 in the same period last year. High-speed Internet net subscribers decreased by 3,899 this quarter compared to an increase of 1,991 last year. Bell Wireline operating revenues increased by 2.2% as TV and equipment and other revenue growth more than offset declines in local and access, long distance and data revenues. Equipment and other revenues increased by 84.0% this quarter as a result of the acquisition of The Source. Bell Wireline operating income increased by 72.8% as a result of higher EBITDA, lower restructuring and other costs and lower depreciation and amortization of intangible assets. Bell Wireline EBITDA increased by 6.0% due to higher revenues, cost reductions and lower pension expense. Bell invested $538 million of capital this quarter, or 20.8% less than the same period last year. Capital expenditures were higher in 2009 due to the build-out of our new HSPA+ network. Capital expenditures this quarter supported Bell's strategic imperatives, including broadband fibre deployment and customer service improvement initiatives. BCE's cash flows from operating activities decreased by 5.8% this quarter to $1,388 million due to higher pension contributions and a decrease in working capital partly offset by lower restructuring and other and interest payments. Free cash flow(3) was $566 million this quarter, an increase of 8.8% compared to the same period last year, due to a decrease in capital expenditures partly offset by a decrease in cash flows from operating activities. BCE's net earnings applicable to common shares this quarter were $590 million, or $0.78 per share, compared to $346 million, or $0.45 per share, for the same period last year. Earnings growth this quarter reflects lower restructuring and other costs. BCE's Adjusted EPS(4) was $0.77 this quarter, an increase of 32.8% compared to last year as a result of higher EBITDA, lower income tax expense and the impact of fewer outstanding BCE common shares as a result of share purchases made under the 2010 normal course issuer bid (NCIB) program.

Carole Taylor joins the Board of Directors of BCE Inc.

Wed, 04 Aug 2010 00:00:00 GMT

The Board of Directors of BCE Inc. today announced the appointment of Carole Taylor, O.C., as a Director of BCE Inc. and Bell Canada.

BCE announces the purchase through a private agreement of 2.66 million common shares under its normal course issuer bid

Tue, 20 Jul 2010 00:00:00 GMT

BCE Inc. (TSX, NYSE: BCE) today announced that it will purchase for cancellation 2.66 million of its common shares pursuant to a private purchase agreement with an arm's-length third-party seller.

CHUQ chooses Bell for implementation of a new model for electronic health records

Wed, 16 Jun 2010 00:00:00 GMT

Partnership between Centre hospitalier universitaire de Qu�bec and Bell to offer a multisite portal of clinical tools to hospitals across Qu�bec

BCE reports 2010 first quarter results

Thu, 06 May 2010 00:00:00 GMT

BCE Inc. (TSX, NYSE: BCE), Canada's largest communications company, today reported BCE and Bell results for the first quarter of 2010.

BCE sale of stake in SkyTerra Communications yields proceeds of approximately $111 million

Tue, 06 Apr 2010 00:00:00 GMT