TORONTO – At its business review/investors’ day in Toronto today, Bell Canada will make several announcements. They include:
* Placing 1.6 million regional/rural phone lines into an income trust
* Recapitalizing Telesat and launching an IPO
* Buying back 5% of BCE shares
* Paying down corporate debt
"BCE’s strategy is to create value for shareholders over the medium and longer terms by re-building our core communications business on growth platforms that produce increasingly profitable revenue streams," said Michael Sabia, president and CEO of BCE, in a release. "As we transform Bell, the company will act to create value for shareholders through our ongoing review of assets."
The company also announced its fourth quarter 205 results, with revenue and operating income up. Click here for the release. A further story on this will come on www.cartt.ca this afternoon after we attend the investors’ day in Toronto.
"In the past two years we have returned Bell Canada to its core communications business and invested in growth services," added Sabia. "Having laid the operational foundations, we are now seeing a shift in our revenues and in 2006 growth revenues (video, Internet, new services) will overtake our legacy revenues. By resetting our cost base and lowering our CAPEX we are developing a new financial foundation that will improve margins, increase profitability and generate increased levels of free cash flow, creating ongoing value for shareholders."
