Attention Business/Financial Editors:
BCE ANNOUNCES FIRST QUARTER RESULTS - Revenue increases 9% - EBITDA up 5%
TORONTO (Ontario), April 26 /CNW/ - BCE today announced first quarter
results reflecting strong revenue growth from all its operations, including
Bell Canada. BCE reported first quarter unaudited cash baseline earnings of
$0.43 per common share ($278 million) compared with $0.42 per common share
($271 million) for the same period in 1999. Beginning this quarter, BCE will
be reporting on a ``cash baseline earnings'' basis which excludes goodwill
expense. Figures for 1999 have been restated for comparative purposes. Due to
the pending distribution of BCE's approximate 35% interest in Nortel Networks,
results for Nortel Networks are excluded from cash baseline earnings and
treated as a baseline adjustment.
``During the quarter, we made several announcements to ensure BCE's
leading position in the Internet economy and sustain growth in the years to
come,'' said Jean C. Monty, President and Chief Executive Officer. ``BCE
announced the distribution of Nortel Networks shares to its shareholders,
purchased CTV and took the first step toward becoming a global communications
company by announcing its plan to acquire Teleglobe. Bell Canada also
announced a $1.5 billion investment for the acceleration of its plan to expand
and enhance availability of high speed Internet.''
In the first quarter, total revenue, which now include the consolidated
results of Aliant, reached $4.1 billion, a 9% increase compared with the same
period in 1999. Earnings before interest, taxes, depreciation and amortization
(EBITDA) grew by 5.1% to $1.6 billion for the same period.
Reported net earnings were $6.44 per common share ($4.1 billion) for the
first quarter of 2000 compared with a net loss of $0.18 per common share
($115 million) for the same period in 1999. First quarter 2000 earnings
included a contribution of $4.1 billion from Nortel Networks mostly
attributable to a dilution gain, following the completion of acquisitions in
the first quarter, which reduced BCE's ownership.
Highlights of the quarter (first quarter 2000 vs. first quarter 1999):
- Bell's revenue from data services grew by 25%;
- Bell Mobility total number of subscribers was up 22% to 1.9 million;
- Sympatico total subscribers doubled to reach 545,000;
- Sympatico High Speed Edition subscribers totaled 69,000 at the end of
the quarter;
- BCE Emergis posted record revenue of $73 million up 96%;
- Bell ExpressVu's subscribers grew 123% to 469,000.
RESULTS BY GROUP
BCE's activities are organized around four business groups: Bell Canada,
BCE Emergis and CGI, BCE Media, and Bell Canada International. Bell Canada
includes Bell Mobility, Bell Nexxia, Bell ActiMedia, Aliant as well as Bell
Canada's interests in Manitoba Telecom Services (MTS), Teleglobe and other
Canadian telcos. The BCE Media group is comprised of Bell ExpressVu, Telesat
and other media interests.
Results by Operating Group (unaudited)
($ millions, except per share amounts)
First Quarter
_____________________
For the period ended March 31 2000 1999
_______________________________________________________________________
Revenue
Bell Canada(1) 3,628 3,357
BCE Emergis and CGI 242 187
BCE Media 136 85
Bell Canada International(2) 241 195
Corporate, Intercompany eliminations, and Other (147) (65)
________ ________
Total revenue 4,100 3,759
_______________________________________________________________________
Earnings
Bell Canada(3) 266 326
BCE Emergis and CGI 8 11
BCE Media (23) (17)
Corporate, Intercompany eliminations, and Other 50 (26)
________ ________
Cash baseline earnings 301 294
Dividends on preferred shares (23) (23)
________ ________
Cash baseline earnings applicable to common
shares 278 271
_______________________________________________________________________
Cash baseline earnings per common share 0.43 0.42
_______________________________________________________________________
(1) Aliant results are consolidated at 53%, beginning in the first
quarter of 2000. Results for 1999 have been restated to include the
consolidation of Aliant at 41%. Bell Canada's revenue excluding
Aliant was $3.1 billion in the first quarter of 2000 and $3 billion
for the same period in 1999. Aliant is held by BCE (12%) and by Bell
Canada (41%).
(2) Bell Canada International's earnings are excluded from BCE's cash
baseline earnings.
(3) Reflects BCE's 80% ownership in 2000 and 100% ownership in 1999.
BELL CANADA
For the first quarter, operating revenue for Bell Canada was up 8% to
$3.6 billion. Revenue from local and access services increased by 10% to
$1.6 billion, reflecting mainly the increase in the number of lines in
service. Revenue from long distance and network services increased by 4% to
$1.1 billion reflecting higher revenues from calls originating in the United
States. Bell Mobility revenue was up 7% to $278 million for the same period
due to growth in the number of subscribers partly offset by lower average
revenue per subscriber. Total number of Bell Mobility subscribers was up 22%
to 1.9 million at the end of the first quarter, compared with the same period
last year. Terminal sales, directory advertising and other revenues grew by
11% to $629 million due mainly to increased data revenue from Bell Nexxia.
Cash operating expenses were up 9% to $2.1 billion due mainly to
increased expenses associated with increased revenue. Earnings before
interest, taxes, depreciation and amortization (EBITDA) grew 7% to
$1.6 billion.
Bell Canada's cash baseline contribution to BCE's earnings was
$266 million in the first quarter.
BCE EMERGIS AND CGI
BCE recorded a cash baseline contribution of $8 million for this group in
the first quarter of 2000 compared with $11 million for the same period in
1999.
BCE's share of BCE Emergis' baseline loss in the first quarter of 2000
was $3 million. During the quarter, BCE Emergis completed the acquisition of
United Payors and United Providers (UP & UP) - delivering a claims and payment
network for insurance companies and healthcare providers.
CGI's cash baseline contribution to BCE was $11 million in the first
quarter.
BCE MEDIA
In the first quarter, the group recorded a baseline loss of $23 million
compared with a baseline loss of $17 million in the first quarter of 1999.
Revenue for BCE Media reached $136 million in the quarter, a 60% increase over
the same period last year. The strong growth was mainly attributable to
increased revenue at Bell ExpressVu and Telesat.
During the quarter, BCE Media launched Canal Evasion, Canada's first
French-language travel channel. BCE Media also announced that Telesat Canada
and other partners would develop a specialized multimedia communications
satellite to be launched in 2002.
BCI
BCE's share of BCI's loss was $131 million in the first quarter of 2000,
compared with a loss of $54 million for the same period in 1999. The increased
loss was mainly attributable to the early stages of most BCI's operations and
includes the ongoing accounting by BCI for 100% of Comcel's loss in the first
quarter of 2000 compared with 50% for the same period in 1999. BCI's revenue
for the first quarter of 2000 was up 23% compared with the first quarter of
1999 mainly due to BCI's Asian Pacific PCS operations, partially offset by
lower revenue from Comcel. Proportionate number of subscribers exceeded
1.5 million in the first quarter of 2000.
NORTEL NETWORKS
Following BCE's plan to distribute an approximate 35% interest in Nortel
Networks to BCE shareholders, Nortel's contribution to BCE is reported as a
baseline adjustment and totaled $4.1 billion in the quarter.
BCE is Canada's largest communications company. Through its operations in
communications services, BCE provides residence and business customers in
Canada with wireline and wireless communications products and applications,
satellite communications and direct-to-home television services, systems
integration expertise, electronic commerce solutions, Internet access and
high-speed data services, and directories. Abroad, through Bell Canada
International's investee companies, BCE provides communications services to
more than 6 million customers in Asia and Latin America. BCE also has an
extensive international presence through its interest in Teleglobe, an
international telecommunications carrier. BCE shares are listed in Canada, the
United States and Europe.
A replay of BCE's first quarter 2000 conference call with analysts can be
heard, on a continuous basis, between 6:00 PM eastern time on April 26 to
6:00 PM on May 10. Simply dial (416) 695-5800 and you will be instructed to
enter the access code: 448847.
Note:
Certain statements made in this press release, which describe BCE's
intentions, expectations or predictions, are forward-looking and are subject
to important risks and uncertainties. The results or events predicted in
these statements may differ materially from actual results or events. Factors
which could cause results or events to differ from current expectations
include, among other things: the impact of rapid technological and market
change; increasing competition; general industry and market conditions and
growth rates; international growth and global economic conditions,
particularly in emerging markets, including interest rate and currency
exchange rate fluctuations; the level of expenditures necessary to maintain
quality of service, the availability and cost of capital, and the extent of
demand for traditional and emerging services; the Internet economy growing at
a slower pace than is currently anticipated as well as changes in laws or
regulations governing Internet commerce; and the impact of consolidations in
the telecommunications industry. For additional information with respect to
certain of these and other factors, see the reports on Forms 6-K and 40-F
filed by BCE with the United States Securities and Exchange Commission. BCE
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
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