MONTREAL – Bell’s wireless and media divisions helped to drive up first quarter profits at BCE by over 14%, the communications giant reported Thursday.
BCE reported net earnings attributable to common shareholders of $574 million, up 14.1% from $503 million in the same period last year. Operating revenue grew 9.9% to $4.91 billion, while EBITDA increased 5.1% to $1.93 billion, mainly as a result of higher revenue at Bell, driven by the acquisition of CTV and improved year-over-year performance at Bell Wireless.
At its main Bell Canada subsidiary, operating revenues increased 11.6% year-over-year to $4.33 billion, as revenues from Bell Media, Bell Wireless and Wireline data offset declines in local and access, long distance and equipment. Bell's EBITDA grew 6.6% this quarter to $1.61 billion.
Bell Media's operating revenue was $512 million this quarter, as advertising revenues were supported by solid audience levels in conventional and specialty TV channels, strong subscriber revenue growth due to higher rates for broadcast distributors carrying specialty channels such as TSN and RDS, and increasing usage of online video and mobile TV services.
The Bell Wireless client base reached 7,406,155 subscribers at the end of the quarter, an increase of 2.6% over last year. Postpaid net activations totaled 62,576 as smartphone adoption continued to accelerate, and smart phone users represented 52% of total postpaid subscribers at quarter end, up from 34% a year earlier. This drove significantly higher wireless data usage year-over-year with services like Bell Mobile TV, which contributed to strong mobile data revenue growth of 31% and blended ARPU growth of 4.2%.
The Bell TV subscriber base reached 2,111,675 at the end of this quarter, representing a 3.3% increase since the end of the first quarter of 2011. Bell added 33,443 net new Fibe TV customers, driving a 119% increase in total TV net activations year over year. This was moderated by lower satellite TV net activations this quarter, due to roll-outs of IPTV service by other competing service providers, aggressive customer conversion offers from cable competitors, and Bell customer migrations to Fibe TV.
Bell added 12,393 new net high-speed Internet customers this quarter, compared to additions of 13,161 in Q1 2011, which the company said reflects the pull-through effect of Fibe TV customer activations, continued broadband fibre service expansion, as well as fewer business and wholesale customer deactivations.
Total NAS at the end of Q1 was 6,005,126, representing a 6.4% decline year over year. This is attributable to competition and a reduction in access lines and digital circuits, as customers continue to adopt wireless and IP-based technologies. Long distance revenues declined 9.4% to $212 million this quarter.
"Bell's strategic investments in world-leading network technology and Canada's best content continue to drive steady growth in our Fibe TV and broadband mobile services”, said president and CEO George Cope, in a statement. "We look forward to welcoming Montreal-based Astral Media to the Bell team later this year as Bell works to expand our media leadership, delivering the best content across the best networks to any broadband screens our customers choose."
BCE also announced that Bell and Bell Aliant now serve more than 3 million residential and business Internet customers in Quebec, Ontario and Atlantic Canada as of Q1 2012. The company said that this number will grow as it invests $3 billion this year in broadband network expansion and enhancement.
