BCE Q1 Profit Rises, Beats Estimates; Confirms Full-year Outlook - Update

(RTTNews) - BCE Inc. (BCE.TO, BCE), Canada's largest communications company, Tuesday reported a higher first-quarter profit on growth in revenues. Earnings per share beat analysts' expectations, while revenues missed their view. The company also confirmed its financial guidance for full year 2014.

For the first quarter, net earnings attributable to shareholders increased to C$615 million or C$0.79 per share from C$566 million or C$0.73 per share in the previous year.

Adjusted net earnings per share were C$0.81, while the company posted C$0.77 per share a year ago.

On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of C$0.76 per share for the quarter. Analysts' estimates typically exclude special items.

BCE's operating revenues for the quarter grew 3.7 percent to C$5.10 billion from C$4.92 billion in the year-ago quarter, while Street analysts estimated revenues of C$5.12 billion.

BCE, the parent of Bell Canada, said Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA improved to C$2.02 billion from C$1.96 billion a year ago.

The company provides broadband communication services to residential and business customers under the Bell and Bell Aliant brands.

Bell operating revenues, which includes Bell Wireless, Bell Wireline and Bell Media segments, increased 4.4 percent to C$4.54 billion. Bell Wireless service revenue grew 4.7 percent, helped by 3.5 growth in blended average revenue per user or ARPU.

Bell Aliant (BA.TO) revenues decreased 1.2 percent to C$676 million from C$684 million last year.

George Cope, president and chief executive officer of the company said, "Bell's strategic investments in advanced broadband networks and services, improved customer service and Canadian content development are driving the growth services - Wireless, TV, Internet and Media - that are rapidly transforming our business."

For full year 2014, BCE's adjusted earnings per share are still expected to be in the range of C$3.10 to C$3.20. Analysts project annual earnings per share of C$3.14.

Bell revenue growth is still anticipated to be 2 to 4 percent.

Further, BCE's board has declared a quarterly dividend of C$0.6175 per share, to shareholders on record June 16, 2014, payable July 15. BCE closed Monday's regular trading at $44.65 on the NYSE, while BCE.TO ended at C$48.96.