MONTREAL – Wireless revenues combined with an advertising blitz during the Olympic Winter Games helped drive up profits at BCE by more than 60% year-over-year, the company reported Thursday.
Earnings were $608 million, up from $377 million last year, while cash flow from operating activities grew 18.7% to $1.09 billion, and free cash flow more than doubled from the same period last year to $545 million. Revenue increased 2.3% to $4.43 billion, while EBITDA grew by 1.4% to $1.78 billion.
BCE president and CEO Geroge Cope credited Bell with “clear progress in the execution of all our strategic imperatives in Q1."
"Our strong wireless revenue growth, wireless market share gains, and solid TV and Internet subscriber growth reflect Bell’s enhanced service execution and significant investments in broadband network expansion – including our world-leading HSPA+ wireless network and multiple new high-speed fibre initiatives," Cope said in a statement.
Bell’s operating revenues increased by 3.8% this quarter to $3.75 billion, as higher revenues from growth in TV and wireless revenues plus the acquisitions of The Source and the remaining 50% of the equity of Virgin that it did not already own more than offset declines in local and access and long distance revenues.
Operating income at Bell increased by 21.3% to $787 million this quarter due to higher EBITDA, lower restructuring and other costs, and lower depreciation and amortization.
Bell Wireless posted “record” sales growth for the quarter with total net activations topping 55,625, almost 84% higher than the first quarter last year. Post-paid subscribers more than doubled to 81,212 this quarter, while its prepaid client base declined by 25,587. Bell’s wireless client base reached 6.89 million at the end of the quarter, an increase of 5.5% compared to last year.
High-speed Internet subscribers increased by 10,467 this quarter, or by 66.5% more than in the same period last year. At the end of the quarter, Bell had 2.06 million high-speed Internet subscribers.
Total TV subscribers increased by 19,889 this quarter compared to an increase of 11,743 in the same period last year as a result of higher wholesale activations and increased sales through direct channels. Bell had 1.96 million TV subscribers at the end of the quarter.
Bell Wireline saw total network access services (NAS) decline by 99,829 this quarter compared to a drop of 104,239 last year. Business NAS decreased by 24,211, while residential NAS dropped by 75,618 for the three month period. On a year-over-year basis, total NAS declined by 6.1%.
Long distance revenues decreased by 14.4% to $238 million this quarter due mainly to ongoing residential and business NAS erosion, pricing pressures in the business market, and the increased adoption of unlimited or large block of time plans by residential customers. Data revenues were unchanged at $912 million this quarter.
