Company reports “best annual retail residential net subscriber performance in 10 years,” CEO says
MONTREAL – BCE Inc. today reported net earnings declined by 29.4% to $658 million in its fourth quarter for 2021 compared to the same quarter the previous year and adjusted EBITDA increased 1.1% to $2.4 billion.
The decline in net earnings was attributed “to a one-time gain realized on the sale of Bell data centres to Equnix in Q4 2020 totalling $211 million, higher depreciation and amortization expense and higher income taxes, partly offset by adjusted EBITDA growth and higher other income,” a press release explains.
BCE Inc. also reported its full year 2021 results today, which show net earnings increased 7.2% to $2.9 billion in 2021 compared to the previous year and adjusted EBITDA increased 3% to $9.9 billion.
For wireless, total operating revenue increased 2.8% to $2.5 billion in Q4 2021 compared to the same quarter the previous year “due to strong service revenue growth, partly offset by lower year-over-year product revenue,” the press release says. For the full year, wireless operating revenue increased 3.6% to $9 billion “on both higher service and product revenues.”
Q4 adjusted EBITDA for wireless increased 5.3% to $951 million, while full year adjusted EBITDA increased by 5.1% to $3.9 billion.
Bell reported postpaid mobile phone net subscriber activations increased 49.2% to 109,527 in Q4 2021 compared to Q4 2020. “The increase reflects a 13.9% increase in gross subscriber activations, reflecting pent-up customer demand as consumer traffic in 2020 was impacted by Covid-19 restrictions; successful promotions, including the bundling of Bell residential services with mobility; as well as higher direct and digital sales volumes enabled by enhanced capabilities,” the press release says.
“For full-year 2021, postpaid mobile phone net additions were 301,706, nearly double the 152,693 reported in 2020, while customer churn was essentially stable at 0.93% compared to 0.92% in 2020.”
For wireline, total operating revenue for Q4 2021 decreased 0.5% to $3.1 billion compared to the previous year and declined by 0.2% to $12.2 billion for the full year 2021 compared to the previous year.
Adjusted EBITDA for wireline increased 1.1% to $1.3 billion for Q4 2021 and by 1.3% to $5.3 billion for the full year 2021.
Bell reported 47,618 net new retail Internet subscribers for Q4 2021, a 7% increase over the previous year, “driven by the accelerated buildout of Bell’s all-fibre and Wireless Home Internet service footprints, and fewer deactivations,” the press release says. Full year 2021 total retail Internet net additions were up 2.2% to 152,285.
In its media segment, Bell reported operating revenue increased 7.3% in Q4 to $849 million and for the full year, it increased 10.4% to $3 billion, “driven primarily by increased TV advertiser spending and higher subscriber revenue,” according to the press release.
Advertising revenue for Q4 2021 increased 11.8% “driven by stronger conventional and specialty TV performance, due to the return to a more regular sports schedule and fuller fall TV programming line-up compared to Q4 2020, higher year-over-year out of home advertiser demand as leisure and travel activity resumed with the easing of Covid-19 restrictions, and continued digital media growth,” the press release explains. For the full year, advertising revenue increased 16.3% in 2021 compared to 2020.
Subscriber revenue increased 1.9% for Q4 2021 and for the full year, increased 4.8%. Digital revenue was up 36% in Q4 2021 and up 35% for the full year.
Adjusted EBITDA for Bell’s media segment decreased by 19% in Q4 2021 to $153 million and for the full year, increased 4.3% to $725 million.
“At Bell, we have been singularly focused on our purpose to advance how Canadians connect with each other and the world, and our strong execution and operational discipline to deliver on this purpose is paying off,” said Mirko Bibic, president and CEO of BCE Inc. and Bell Canada, in the press release.
“Bell’s solid performance in Q4 and throughout 2021 reflect the steady demand for fast, reliable and innovative services to keep residents and businesses connected, informed and productive with net new mobile phone and mobile connected device, retail Internet and IPTV subscriber additions of 225,533 in Q4, and our best annual retail residential net subscriber performance in 10 years,” he said.
“As we look ahead to 2022, we plan to reach up to 900,000 more homes and businesses with direct fibre connections and expand the reach of our 5G network to meet our growing customer needs. And in every interaction, we will continue to build on the gains we made in making it easier for our customers to do business with us, and keep them at the centre of everything we do.”
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