Bell Canada Sees 4Q Net, Revenue Improvements; Confirms '05 View"

MONTREAL -(Dow Jones)- BCE Inc. (BCE) saw fourth-quarter earnings and revenue improvements, helped by higher revenue at Bell Canada as a result of increases in wireless, Internet and video services revenues stemming from the acquisition in November of 360networks.

In a news release, BCE said revenue improvements at Bell Canada were partly offset by a strike at Aliant Inc. (AIT.T), in which BCE is a major shareholder.

For the quarter ended Dec. 31, BCE earned C$434 million or 45 Canadian cents a share, up from C$400 million or 41 Canadian cents a year earlier. Results in the latest quarter included a C$69 million extraordinary gain on the purchase of the Canadian operations of 360networks, which was offset by costs of C$69 million mainly for the employee departure program at Aliant and other restructuring and other items.

BCE said revenues for the quarter rose to C$4.99 billion from C$4.82 billion, while EBITDA fell slightly to C$1.83 billion from C$1.85 billion.

The Thomson First Call mean estimate was for fourth-quarter net of 45 Canadian cents a share and revenues of C$4.97 billion.

BCE said operating income for the quarter was C$835 million, down C$178 million from a year earlier. Before restructuring and other items for the quarter, operating income was C$961 million, down C$65 million from a year earlier.

It noted that operating income was hurt by Aliant Inc.'s (AIT.T) employee departure plan, costs associated with a new wireless billing platform, the labor disruption at Aliant, higher costs of acquisition in its consumer segment and cost pressures in the business and wholesale segments. "

Posted to the site on 2nd February 2005