MONTREAL – The launch of Bell’s HSPA network helped to drive its best-ever fourth quarter gross activations for its wireless division, the company declared in its fourth quarter financial results released Thursday.
Bell Wireless recorded Q4 gross activations of 523,000 new subscribers, 11.3% more than the same period last year, and said that total net activations increased by 39.3% to 163,000. Postpaid net activations increased by 37.5% to 110,000, while prepaid net activations increased by 43.2% to 53,000. At year end, the Bell Wireless client base reached 6.83 million, an increase of 5.2% over 2008.
In the Bell Wireline segment, retail residential network access services (NAS) losses improved for a ninth consecutive quarter, but total residential NAS declined by 79,000 this quarter, 11.3% more than last year, due to reduced demand for wholesale local service. Business NAS declined by 29,000 this quarter, or 3.3% fewer than last year.
Bell TV subscribers increased by 41,000 to 1.95 million by year end, an increase of 5.2% over last year. After adding 8,000 new high-speed Internet subscribers this quarter, Bell ended the year with 2.06 million high-speed Internet subscribers.
Bell’s operating revenues increased by 4.8% to $3.98 million this quarter, as higher revenues from the acquisitions of The Source, the remaining 50% of the equity of Virgin Mobile Canada, and growth in TV and wireless data revenues more than offset declines in local and access, long distance, and wireline data revenues. For the full year, Bell’s operating revenues were $15.02 million, an increase of 1.0% compared to 2008.
Operating income increased by 10.0% to $572 million for the quarter, and by 13.5% to $2.43 million for the year due to higher EBITDA and lower restructuring and other costs. EBITDA grew by 1.0% to $1.39 million this quarter and by 1.4% to $5.72 million for the full year as higher revenues and cost reductions more than offset the impact of higher pension expense and increases in new wireless subscriber activation expense. Bell’s EBITDA margin decreased by 1.4 percentage points to 35.0% this quarter, but increased 0.2 percentage points to 38.1% on a full-year basis. Before pension costs, Bell’s EBITDA growth was 3.5% this quarter and 3.0% for the full year.
Looking ahead, Bell said that it is targeting revenue growth of 1% to 2% in 2010, and increased EBITDA growth of 2% to 4%. It also detailed plans to roll out its IPTV service in Toronto and Montreal, and fibre-to-the-home in parts of Ontario and Quebec as Cartt.ca reported earlier.
