BCE Q4 Profit Falls On Prior-year Gain, Wireless Data Revenue Up 15%

(RTTNews) - BCE Inc. (BCE.TO, BCE), Canada's largest communications company, Thursday said fourth-quarter profit declined from the prior year that included a gain. Adjusted results were solid amid strong growth in Wireless data revenue.

Net earnings attributable to common shareholders declined to C$495 million or C$0.64 per share from C$666 million or C$0.86 per share last year. The prior year results included a non-cash gain on the transfer of spectrum from Inukshuk to its partners.

On an adjusted basis, net earnings amounted to C$0.70 per share, while it totaled C$0.60 per share last year. On average, 17 analysts polled by Thomson Reuters expected earnings per share of C$0.69 for the quarter. Analysts' estimates typically exclude one-time items.

BCE's operating revenues rose 4.3 percent to C$5.38 billion from C$5.16 billion. Analysts estimated revenues of C$5.41 billion for the period.

BCE, the parent of Bell Canada, said Earnings Before Interest, Tax, Depreciation and Amortization or EBITDA margin was 37.1 percent, compared to 36.7 percent last year.

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, rose 5.2 percent to C$4.813 billion, amid steady Wireless revenue growth and positive Wireline residential services revenue growth. EBITDA margin advanced to 35.2 percent from 34.6 percent.

Wireless data revenue increased 15.2 percent on higher customer usage driven by greater adoption of smartphones and increased data consumption on 4G LTE network.

Wireless postpaid net additions were119,520, compared to 143,834 last year. Postpaid customer churn improved to 1.29 percent from 1.35 percent, reflecting increasing investment in customer service and retention.

Blended average revenue per user or ARPU increased 2.1 percent to C$57.92, driven by greater proportion of postpaid subscribers in wireless customer base and escalating data consumption consistent with higher smartphone penetration as well as increasing usage of mobile data services on 4G wireless broadband networks.

Bell Fibe TV net additions climbed 25 percent to 60,301, as service footprint expanded to more than 4.3 million households. Bell Aliant (BA.TO) revenues slid 0.9 percent to C$688 million, as growth in its Internet and TV services were offset by ongoing revenue erosion in its traditional local and access and long distance services.

Additionally, BCE's board declared a quarterly dividend of C$0.6175 per common share, payable on April 15, 2014 to shareholders of record at the close of business on March 14, 2014.

The BCE annualized common share dividend would increase 6 percent to C$2.47 effective with the first-quarter 2014 dividend.

Looking ahead, BCE's adjusted earnings per share for 2014 are expected to range between C$3.10 and C$3.20. Analysts look for earnings of C$3.16 per share.

BCE settled down 0.3 percent on Wednesday at $40.94. BCE.TO also fell 0.3 percent to close at C$45.37.