Bell Canada’s revenues climb 3% in Q3

8 Nov 2013

Full-service telco Bell Canada (including Bell Mobility) posted a 3.0% year-on-year rise in total revenues in Q3 2013 to CAD4.524 billion (USD4.339 billion), as the inclusion of new pay-TV asset Astral contributed to Bell Media revenue growth of 21.6%, alongside wireless revenue growth of 4.1%, higher internet service revenues, growth in IP connectivity and business service solutions revenue, plus greater business data product sales. Bell Canada’s EBITDA increased by 3.0% y-o-y in July-September 2013, driven by 26.8% growth at Bell Media and 11.6% growth in wireless EBITDA. This was moderated by a 5.6% decline in wireline EBITDA that reflected a non-recurring gain a year earlier on the phase-out of post-employment benefits and a reduction in amounts payable to the CRTC related to the Local Programming Improvement Fund (LPIF), which collectively totalled CAD29 million. Excluding these two items, wireline EBITDA decreased by 2.7% in 3Q13. Bell’s consolidated EBITDA margin remained unchanged at 38.4%, as the group reported higher wireless ARPU, a lower volume of wireless post-paid activations and customer upgrades compared to last year, diminishing wireline voice erosion, and stabilising business markets performance. Consolidated net profit at group parent BCE slumped by 35% year-on-year to CAD343 million in the third quarter, due to CAD230 million costs to meet regulatory obligations related to the CAD3 billion acquisition of Astral closed in July.

Canada, Bell Canada Enterprises (BCE), Bell Mobility (old)