Decent quarter for BCE

5 Aug 2004

Canada’s largest telco BCE has announced a positive set of financial and operating results for the second quarter. Revenues climbed 2.3% to CAD4.78 billion, while operating income stood at CAD1.11 billion, up from CAD1.08 billion in the same period last year. BCE says that revenue growth was driven by a 5.1% increase in sales at its consumer division, with wireless, internet and video products doing particularly well. Revenues from business services fell 0.8% year on year.

Wireless services saw the biggest growth, both in terms of sales and subscriber growth. Revenues jumped 15% to CAD698 million for the quarter, accounting for more than 16% of total revenues. BCE’s two wireless operating divisions, Bell Mobility and Aliant, saw customer numbers rise from 4.12 million at the end of June 2003 to 4.6 million twelve months later. Internet subscriptions also increased, from 2.2 million to 2.48 million, while video subscribers rose 7% to 1.43 million. The number of fixed access lines fell, however, from 13.07 million to 12.94 million.

BCE is currently in the process of a restructuring and cost-cutting programme as part of which it is reducing staff numbers and simplifying its tariff plans.

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