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Wednesday October 25, 12:40 pm Eastern Time
BCE beats Street with 13 percent profit rise
By Robert Melnbardis
MONTREAL, Oct 25 (Reuters) - Third-quarter profit at BCE Inc. (Toronto:BCE.TO - news) rose 13 percent on revenue
growth in its data, wireless and electronic business operations, the company said on Wednesday, beating analysts' consensus
estimate.
BCE, Canada's largest telecoms group, said its cash baseline earnings rose to C$329 million ($218 million), or 51 Canadian cents a share, from C$291 million, or
45 cents a share, in the year earlier period. Revenues were C$4.5 billion versus C$4.1 billion.
The consensus estimate of five brokers polled by First Call/Thomson Financial was for a baseline profit of 48 Canadian cents a share.
In a statement, Jean Monty, BCE chairman and chief executive, said revenues at Bell Canada, the company's 80-percent-owned main telephone operating arm, rose
32 percent over the previous third quarter. SBC Communications Inc.(NYSE:SBC - news) owns the other 20 percent of Bell Canada.
Bell Canada's Bell Mobility domestic wireless unit added 118,000 new subscribers in the quarter, up 46 percent from a year earlier.
In addition, Bell's share of the high-speed Internet market reached about 25 percent from 10 percent at the beginning of the year, he said.
``The third-quarter results continue to demonstrate BCE's successful transition into a data/Internet communications company,'' Monty said.
``During the quarter, BCE further developed its content strategy with the announced creation of Canada's premier multimedia company, which will combine CTV,
the Globe and Mail, Globe Interactive and Sympatico-Lycos, the leading media brands in television, print and the Internet,'' added Monty. ``We are also on track to
complete the acquisition of Teleglobe (Toronto:TGO.TO - news) by early November.''
BCE shares slipped 5 Canadian cents to C$36.20 in morning trading on Wednesday on the Toronto Stock Exchange in an overall market that was off more than 8
percent on a general decline in technology stocks.
BCE said Bell Canada's operating revenue rose 8 percent to C$4 billion on strong growth in in data, including Internet protocol and broadband revenue at Bell
Nexxia. Bell's revenue also rose on a higher number of lines in service, wireless services and SmartTouch features used by subscribers.
Revenue from local and access services increased by 8 percent to C$1.7 billion, while revenue from long distance and network services were essentially flat at
C$1.1 billion.
Bell Canada's cash baseline contribution to BCE's earnings was C$342 million in the quarter compared with C$287 million in the year-earlier period.
Revenue for BCE Media rose 32 percent to C$160 million, mainly because of increased revenue at its Bell ExpressVu satellite television unit.
BCE Media had a cash baseline loss of C$34 million, largely because of increased expenditures related to subscriber growth at Bell ExpressVu. In addition, BCE
Media's share of the loss at the CTV television network was C$4 million. |
