MONTREAL – Growth in its wireless division helped to fuel a more than 25% jump in profits at BCE, the telco giant reported Thursday.
Net earnings in the fourth quarter were $439 million, up 25.4% from $350 million in the same period last year, however, overall revenue was flat, growing by just 0.7% from $4.65 billion to $4.68 billion.
Bell’s operating revenues were up 0.9% this quarter, as higher wireless and TV revenues more than offset declines in local and access, long distance, wireline data and equipment and other revenues. For the full year, Bell’s operating revenues were $15,425 million, an increase of 2.7% compared to 2009.
George Cope, president and CEO of BCE and Bell Canada, praised the performance of the wireless division which he described as “very strong”.
"Bell Wireless has significantly increased its postpaid market share thanks to strong market execution that leverages Bell’s world-leading HSPA+ network, superior range of smartphones and other devices, enhanced data services like Bell Mobile TV and the country’s largest wireless distribution network”, he said in a statement. “At the same time, Bell Wireline achieved strong EBITDA growth, substantial decreases in NAS landline losses and solid Internet and TV net activations, thanks to the launches of next-generation Fibe TV and Fibe Internet on our quickly expanding broadband fibre network."
The Bell Wireless client base reached 7,242,048 at the end of the quarter, an increase of 6.0% compared to last year. Total net additions were 116,782 this quarter, or 28.3% lower than last year.
High-speed Internet subscribers increased by 12,099 this quarter, an increase of 55.0% compared to the same period last year. At the end of the quarter, Bell had 2,097,326 high-speed Internet subscribers, a 2.0% increase over last year.
Total TV subscribers increased by 23,019 this quarter compared to an increase of 40,889 in the same period last year. At the end of the quarter, there were 2,020,098 TV subscribers, or 3.7% more than at the end of last year.
In its financial guidance for 2011, the company said that it’s forecasting revenue growth of 1% to 2% given the trajectory of its wireless, TV and Internet businesses and an improving outlook in NAS erosion. Bell Wireless revenue growth is expected to benefit from the significant investment made in 2010 in customer acquisition and retention along with continued growth in smartphone activations and data usage.
Bell Wireline revenues are expected to benefit from growth in TV and Internet revenues from ARPU performance and the rollout of the Fibe TV footprint.
For more on the company’s financial results, click here.
