BCE Q2 Profit Rises, Adj. Earnings Miss View; Backs 2014 Outlook

(RTTNews) - BCE Inc. (BCE.TO, BCE), Canada's largest communications company, Thursday reported a rise in second-quarter profit, reflecting stronger year-over-year financial performance at Bell. Adjusted earnings missed analysts' expectations, while revenues came above view.

The company said it is on track with its 2014 financial plan, and reconfirmed Bell and BCE guidance targets for full year 2014.

"Bell's commitment to deliver the best communications networks, service and content to Canadians everywhere is driving positive momentum across our wireless, wireline and media operations," said George Cope, president and CEO of BCE and Bell Canada.

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

Net earnings attributable to common shareholders for the quarter increased to C$606 million or C$0.78 per share from C$571 million or C$0.74 per share in the prior year. On an adjusted basis, earnings per share amounted to C$0.82, while the firm posted $0.77 per share last year.

On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of C$0.84 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues grew 4.4 percent to C$5.22 billion from C$5.0 billion last year, and came above analysts' estimate of C$5.19 billion.

BCE, the parent of Bell Canada, said Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA improved 3.8 percent to C$2.14 billion.

Bell operating revenues, which includes Bell Wireless, Bell Wireline and Bell Media segments, grew 5.1 percent to C$4.65 billion.

Bell Adjusted EBITDA grew 4.9 percent to C$1.83 billion, reflecting increases of 9.5 percent at Bell Wireless and 34.6 percent at Bell Media, moderated by a 2.7 percent decrease at Bell Wireline, the firm said.

In the recent quarter, BCE (Bell Canada and Bell Aliant) added 93,811 net new customers from its growth services, up 3.7 percent from last year.

BCE board also declared a quarterly dividend of C$0.6175 per common share, to shareholders of record on September 15, 2014, payable on October 15.

On July 23, BCE announced that it is privatizing its Halifax-based affiliate Bell Aliant (BA.TO) by acquiring the interest of public minority shareholders for about C$3.95 billion.

BCE already controls Bell Aliant and is acquiring the remaining 127.5 million common shares that are owned by the public minority shareholders. On August 5, BCE obtained Competition Act clearance for the Bell Aliant transaction.

"We look forward to accelerating our momentum further as we integrate Bell Aliant fully into BCE alongside Bell Canada," said Cope.

BCE closed Wednesday's regular trading at $44.77 on the NYSE, while BCE.TO ended at C$48.88.