Bell’s Q4 wireless service revenues up 9.1%, wireline sales down 2.5%

11 Feb 2011

Bell Canada’s mobile division (Bell Mobility) has posted an 8.3% year-on-year rise in operating revenues for the fourth quarter of 2010 to CAD1.297 billion (USD1.302 billion). Wireless service revenues increased by 9.1% to CAD1.151 billion in the three months to 31 December due to subscriber growth and wireless data revenue growth of 38%, whilst operating income decreased by 18.8% to CAD237 million as a result of lower EBITDA and higher depreciation and amortisation. Bell’s wireless EBITDA decreased by 11.5% to CAD385 million in the three-month period due to higher subscriber acquisition costs associated with increased gross activations and customer upgrades, and higher take-up of smartphones. Bell’s mobile client base reached 7,242,048 at the end of the year, an increase of 6.0% compared to the end of 2009.

Bell’s Wireline (including fixed broadband) division operating revenues decreased by 2.5% year-on-year in 4Q10 to CAD2.769 billion as pay-TV revenue growth was more than offset by decreases in local and access, long-distance, data and equipment, and ‘other’ revenues. However, for the full year, Bell Wireline operating revenues increased by 0.3% to CAD10.695 billion. Bell Wireline operating income in October-December 2010 increased by 62.1% y-o-y to CAD454 million due to higher EBITDA, lower restructuring and other costs, and lower depreciation and amortisation; EBITDA itself increased by 6.9% in 4Q10 to CAD1.026 billion, due to cost reductions and lower pension expenses more than offsetting lower operating revenues. As at 31 December 2010 Bell had 2,097,326 high speed internet subscribers, a 2.0% y-o-y increase.

Canada, Bell Canada Enterprises (BCE)