MONTREAL – Bell Canada Enterprises today posted robust second quarter results across its divisions for the period ended June 30th.
“We significantly increased net new subscribers to our wireless, retail Internet and IPTV services, achieved our fourth consecutive quarter of growth in business markets, and again led the Canadian media industry in audience expansion and programming innovation,” said president and CEO George Cope in the company’s press release.
"Adjusted EBITDA increased an exceptional 6.8% in Q2 – our 55th consecutive quarter of year-over-year growth – and together with ongoing operational and capital efficiency drove a strong 10% increase in free cash flow this quarter. Mirko Bibic is clearly moving the ball forward as our Chief Operating Officer, and I look forward to working with him throughout 2019 as he transitions to the role of Chief Executive Officer in 2020,” he added.
BCE operating revenue was up 2.5% in Q2 to $5.93 billion, driven by a 2% increase in service revenue to $5.23 billion. Product revenue increased 6.4% to $699 million, the result of a higher sales mix of premium mobile devices and stronger data equipment sales to large business customers.
Net earnings increased 8.2% to $817 million and adjusted EBITDA grew 6.8% to $2.6 billion on year-over-year increases of 9.9% at Bell Wireless, 2.1% at Bell Wireline and 23.9% at Bell Media.
BCE capital expenditures totaled $972 million, down from $1.06 billion in Q2 2018. The year-over-year decline, however, reflects a timing-related reduction in capital spending, which is expected to increase in the second half of the year, focused on further expansion of Bell's fibre, fixed wireless to the home, the increased connection of fibre Internet and TV services, the deployment of small cells to increase network speeds, coverage and signal quality, as well as data fibre backhaul in preparation for 5G service.
In the quarter, Bell added 149,478 net new wireless subscribers (102,980 postpaid and 46,498 prepaid customers), up 30% over Q2 2018; 19,414 net new retail Internet customers; 16,775 net new IPTV customers; and recorded a net loss of 14,425 retail satellite TV customers; and a net loss of 72,780 retail residential phone lines. The total 185,667 net new wireless, retail Internet and IPTV net customer additions, is a 25.5% increase over the same quarter a year ago.
BCE wireless and retail Internet, TV and residential NAS connections totaled 18,680,588 at the end of Q2, up 1.1% over last year.
“Exceptional wireless growth of more than 149,000 net additions, our best Q2 performance since 2001, was supported by significant churn improvement in postpaid and by Bell's resurgence in the prepaid marketplace with the ongoing success of Lucky Mobile,” said Bibic in the press release.
