BCE Q3 Profit Up 75%, Results Beat View

(RTTNews) - BCE Inc. (BCE.TO, BCE), Canada's largest communications company, on Thursday reported a 75 percent surge in profit for the third quarter from last year, reflecting stronger year-over-year financial performance at Bell, particularly at the wireless segment.

Both revenue and adjusted earnings per share for the quarter beat analysts' expectations. Looking ahead, the company said it is on track with its 2014 financial plan, and reconfirmed Bell and BCE guidance targets for full year 2014.

George Cope, president and CEO of BCE and Bell Canada, said, "Bell is focused on results, executing a strategy of TV, Internet, wireless and media innovation that's clearly winning with customers in the marketplace. This industry-leading Q3 performance proves Bell next-generation services like Fibe TV, Fibe Internet and mobile LTE have changed the game in Canadian communications."

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 third quarter increased to C$600 million or C$0.77 per share from C$343 million or C$0.44 per share in the prior-year quarter.

The prior-year quarter's results include a charge for the CRTC tangible benefits obligation that Bell was ordered to pay as part of the acquisition of Astral Media.

On an adjusted basis, earnings per share for the latest quarter were C$0.83, compared to C$0.75 per share last year. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of C$0.77 per share for the quarter. Analysts' estimates typically exclude special items.

The adjusted earnings results for the latest quarter reflect the flow-through of higher adjusted EBITDA from strong growth at Bell Wireless, and a positive and growing contribution from Bell Wireline.

Operating revenues for the quarter grew 2 percent to C$5.20 billion from C$5.10 billion in the same period last year, and came above analysts' consensus estimate of C$5.15 billion. The increase in revenues was due to revenue growth at Bell and Bell Aliant.

BCE, the parent of Bell Canada, said adjusted earnings before interest, tax, depreciation and amortization or adjusted EBITDA improved 2.5 percent to C$2.12 billion.

Bell operating revenues, which includes Bell Wireless, Bell Wireline and Bell Media segments, grew 1.8 percent to C$4.61 billion. This reflects a 2.2 percent increase in service revenues that was partly offset by a 2.7 percent decline in low-margin wireline product revenues.

This performance was led by a strong increase at Bell Wireless and positive Bell Wireline residential services revenue growth. Bell Media revenues were essentially unchanged compared to last year.

Bell Wireless operating revenues increased 7 percent to $1.57 billion, due to greater mix of postpaid subscribers in its customer base, strong data revenue growth, and pricing discipline. Postpaid net additions in the quarter totaled 90,976, compared to 102,714 last year.

Bell adjusted EBITDA grew 3.4 percent to C$1.80 billion, reflecting increases of 10.9 percent at Bell Wireless and 1.0 percent at Bell Media. This was moderated by an 8.5 percent decrease at Bell Media, due to the impact of accelerating TV content and multi-platform rights costs.

BCE's board declared a quarterly dividend of C$0.6175 per common share payable on January 15, 2015 to shareholders of record at the close of business on December 15, 2014.

BCE closed Wednesday's trading on the NYSE at $44.87, up $0.13 or 0.29 percent on a volume of 1.51 million shares.

On the Toronto Stock Exchange, BCE.TO closed Wednesday's trading at C$51.08, up C$0.02 or 0.04 percent on a volume of 1.94 million shares.