Bell Canada revenues almost flat in fourth quarter

8 Feb 2013

Bell Canada (including Bell Mobility) has reported operating revenues of CAD4.577 billion (USD4.593 billion) in Q4 2012, compared to CAD4.576 billion in Q4 2011, as higher year-over-year revenues driven by the steadily growing contribution of wireless, TV, internet and media services were offset by the continued decline in traditional wireline voice and data services. Bell’s EBITDA was CAD1.582 billion in Q4, up 2.2%, reflecting EBITDA growth of 13.8% at the wireless division and 32.3% at Bell Media. Wireline (including broadband) EBITDA decline of 6.6% in the quarter was recorded despite a CAD35 million year-over-year reduction in wireline operating costs, which contributed to a 0.8 percentage-point improvement in Bell’s consolidated EBITDA margin of 34.6%. For the full-year 2012, Bell Canada’s operating revenues and EBITDA were up 3.0% and 4.4%, respectively, at CAD17.642 billion and CAD6.591 billion. The statement noted that the previous year’s operating revenues and EBITDA reflected nine months of Bell Media revenues and EBITDA, as Bell completed its acquisition of CTV and created Bell Media on 1 April 2011.

Bell invested CAD779 million in new capital in October-December 2012, bringing total CAPEX to CAD2.923 billion in 2012, up 8.9% from the previous year. These investments drive ongoing deployment of broadband fibre to homes, neighbourhoods and businesses in Quebec and Ontario and expansion of the ‘Fibe TV’ service footprint, enhancement of customer service systems, the ongoing rollout of the 4G LTE mobile network in markets across Canada, and the addition of new Bell and The Source retail stores. CEO George Cope stated that Bell ‘continued to expand our Fibe footprint in Montreal and Toronto and launched the country’s largest fibre-to-the-home (FTTH) rollout in Quebec City… Growth services such as Fibe, 4G LTE, and next-generation business services like cloud computing increasingly dominate our operating mix.’