TORONTO – BCE Inc. posted modest growth in the second quarter of 2007, posting revenues of $4.438 million, up 1.5% compared with the same period last year.
BCE’s operating income was up just 0.4% to $898 million, as higher EBITDA offset higher amortization and restructuring expenses.
The parent company experienced higher revenues at Bell Canada, Bell Aliant, and Telesat. However, Bell’s operating income declined 1.0% from Q2 of 2006, to $681 million.
There’s better news on the earnings per share front, as BCE’s net EPS was $0.83 for the second quarter, compared with $0.53 for the same period last year.
At Bell Canada, things picked up on the cellular side. “Our wireless business regained momentum after two difficult quarters with strong gross activations,” said CEO Michael Sabia in a release. “With forbearance pending in a number of our key markets, an improving wireline business, and the introduction of the Bell Bundle, the company is now moving forward into the second half of the year on a solid foundation.”
Bell’s wireless segment had net activations of 63,000 this quarter, compared with only 13,000 in Q1 of this year. But higher churn meant a big drop from the 97,000 net activations that happened in the second quarter of 2006, the company says. Still, wireless network revenues grew by 8.9% in Q2 of 2007.
To help keep and grab customers, Bell says it’s going to continue to improve its offering of handsets and promote its SOLO brand.
The elimination of local winback restrictions helped Bell’s residential wireline business as it posted what it calls strong results in Q2 of winbacks. The company notes that if it receives CRTC approval to forbear local phone regulations in competitive markets (as it recently happened for Bell Aliant and TELUS), expected as early as this month, it could stabilize local line losses by giving it the flexibility to bundle, package, and price local telephone services with non-regulated competitors.
Sabia notes that BCE achieved its second key objective in the second quarter, besides improving its wireless business: signing its intent to offer shareholders a $51.7 billion deal to take the company private by an investor group led by Teachers’ Private Capital, Providence Equity Partners Inc., and Madison Dearborn Partners, LLC.
