Bell Aliant posts 1Q results; announces company structure change, FTTH acceleration

5 May 2010

Canadian full-service telco Bell Aliant Regional Communications has announced that it will convert itself from an income trust to a corporate structure, in light of tax changes to income trusts that become applicable on 1 January 2011; the conversion will be effective from that date, and the trust that was formed in July 2006 will be folded. Bell Aliant made the announcement alongside its first-quarter 2010 financial results, which showed that the Atlantic Canada-based firm’s consolidated revenue dropped by 4.9% year-on-year to CAD779 million (USD765 million) in the three months to the end of March, although internet service revenue grew by 8.4% over the same period. Group EBITDA dropped by 1.4% y-o-y to CAD354 million, whilst CAPEX was 11.7% lower than 1Q09, at CAD95 million, although the previous year’s figure included expenditures for a backhaul project in cooperation with sister company Bell Mobility which was completed by mid-2009. Bell Aliant also announced plans to accelerate its rollout of fibre-to-the-home (FTTH) technology, saying that it expects to invest a total of CAD350 million in the technology alone in 2011 and 2012. The spending is aimed at giving over 600,000 homes and businesses access to FTTH services by end-2012, representing approximately one third of Bell Aliant’s competitive footprint, according to its press release.

Canada, Bell Aliant (old)