Get 40% Off
💰 Buffett reveals a $6.7B stake in Chubb. Copy the full portfolio for FREE with InvestingPro’s Stock Ideas toolCopy Portfolio

UPDATE 2-Canada's BCE profit beats on wireless, shares gain

Published 2016-08-04, 10:16 a/m
© Reuters.  UPDATE 2-Canada's BCE profit beats on wireless, shares gain
RCI
-
BCE
-
MBT
-
T
-

(Adds details from conference call, analyst comment, share move)

By Alastair Sharp

TORONTO, Aug 4 (Reuters) - BCE Inc BCE.TO , Canada's largest telecommunications company, reported a higher-than-expected quarterly profit on Thursday as it added more wireless subscribers who also paid more for service, while its internet and television growth slowed.

Shares rose 0.7 percent to C$62.25 in early trading.

"Wireless was strong, wireline was somewhat weak," said Maher Yaghi, an analyst at Desjardins, pointing to pressure from business accounts that cut into fixed-line revenue. "The ship is definitely moving in the right direction."

Bell, as the company is known to customers, competes for wireless market share with national rivals Rogers Communications Inc RCIb.TO and Telus Corp T.TO and smaller regional players.

The company added a net 69,848 postpaid wireless customers in the second quarter, up from 61,033 a year earlier.

Rogers said two weeks ago that it added 65,000 such customers in the same period. Telus reports results on Friday.

Bell's fixed-line business weighed as it signed up fewer new television customers than expected, partly due to competitive pressure and economic headwinds.

The Montreal-based company, which is rolling out a major upgrade to its fixed-line network, said it decided not to match aggressive fixed-line promotions in Toronto, Canada's largest city.

Bell in May agreed to buy Manitoba Telecom Services Inc MBT.TO for about C$3.1 billion to expand its services in the western Canadian province.

The deal has won approval from both sets of shareholders and a provincial court, but still needs a nod from the country's competition watchdog, its telecom regulator, and the federal government.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Bell expects to close the deal in late 2016 or early 2017.

BCE's blended average revenue per user increased 2.9 percent to C$64.32, helped by a larger proportion of two-year contracts, a higher postpaid smartphone subscriber mix, and increased wireless data usage.

The company said it was on track to meet its 2016 forecast.

BCE's net income attributable to shareholders rose 2.5 percent to C$778 million ($597 million) in the second quarter, from C$759 million a year earlier. an adjusted basis, the company earned 94 Canadian cents per share. Analysts on average had expected a profit of 91 Canadian cents per share, according to Thomson Reuters I/B/E/S.

Operating revenue rose marginally to C$5.34 billion.

($1 = 1.3034 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.