Bell Q3 EDITDA grows 5.6%; internet, mobile subscribers up 4.2%, 3.7%

1 Nov 2019

Bell Canada Enterprises (BCE) reported that its total revenues increased by 1.8% year-on-year in Q3 2019 to CAD5.984 billion (USD4.546 billion), reflecting growth in Wireless, Wireline and Media operating segments. Total service revenue grew 1.3% to CAD5.185 billion on strong wireless, internet and IPTV subscriber growth while product revenue was up 5.1% to CAD799 million, driven by larger volumes of higher-value smartphones. Wireless segment operating revenue rose 3.5% to CAD2.348 billion, compared to Wireline turnover improving 0.2% to CAD3.066 billion (as higher internet/IPTV/B2B broadband solutions revenue growth was moderated by an accelerated decline in legacy voice telephony revenue).

Group adjusted EBITDA grew 5.6% y-o-y to CAD2.594 billion in the three months to the end of September 2019, reflecting segment EBITDA growth in Wireless (7.9%), Wireline (1.4%) and Media (24.2%). Quarterly net income attributable to common shareholders increased by 6.5% to CAD867 million. CAPEX totalled CAD1.013 billion in 3Q19, up marginally from CAD1.010 billion a year earlier, with investment focused on fibre-to-the-premises (FTTP) and ‘fixed-wireless-to-the-home’ (‘WTTH’) expansion, connecting more homes and businesses to fibre internet/TV services, plus ongoing cellular network investment including deployment of small cells and fibre backhaul in preparation for the launch of 5G services.

Mobile subscribers reached 9.834 million at 30 September, up 3.7% y-o-y, with retail fixed broadband customers growing by 4.2% to 3.520 million. The retail TV customer base hit 2.772 million at end-Q3 (up 0.7%) including 1.745 million IPTV subscribers (up 6.5%). Retail residential fixed voice lines dropped by 8.8% to 2.756 million (while Bell does not report its number of business fixed telephony lines).

Canada, Bell Canada Enterprises (BCE)