Bell Canada revenues fall 9.1% in Q2

7 Aug 2020

Bell Canada Enterprises (BCE) reported that its operating revenue fell to CAD5.354 billion (USD4.030 billion) in April-June 2020, down 9.1% compared to Q2 2019, due to reduced consumer and commercial activity as COVID-19 negatively impacted financial results across all operating segments. Service revenue shrank by 7.5% to CAD4.800 billion alongside a 20.7% reduction in product revenue to CAD554 million. 2Q20 net earnings declined 64.0% year-on-year to CAD294 million, resulting from higher expenses including CAD452 million of impairment charges related to certain Bell Media TV and radio properties, and lower adjusted EBITDA, partly offset by lower income taxes. Adjusted EBITDA decreased 9.4% to CAD2.331 billion, driven by declines of 9.2% at Bell Wireless, 5.3% at Bell Wireline and 31.9% at Bell Media. BCE’s consolidated adjusted EBITDA margin was down 0.2 percentage points to 43.5%. Total BCE capital expenditures decreased 6.9% to CAD900 million, due to fewer new customer service installations and less network construction as Bell continued to focus on stabilising operations during COVID-19 and ensuring critical service continuity. Despite the slower spending, the group continued to invest in the expansion of its fibre access network, launched a first-phase mobile 5G service in five cities, and accelerated the rollout of high speed fixed-wireless broadband to more rural locations in Quebec and Ontario. Bell stated that it will expand its 5G network to 28 additional Canadian markets by end-2020.

Canada, Bell Canada Enterprises (BCE)