Bell Canada Profits Up - Raises Outlook for Full Year

Bell Canada (BCE) has reported a slight rise in its second-quarter revenues by 1.5% to C$3.63 billion (US$3.4 billion), with net profits up by 4.2% to C$346 million (US4322 million). The company also raised its outlook for the full year. The operating income decreased to C$825 million this quarter, or by 6.9%, due to lower operating income at Bell and Bell Aliant. BCE's EBITDA increased 2.8% to C$1,792 million this quarter due to EBITDA growth at Bell and Bell Aliant.

The Bell Wireless client base reached 6,572,000 at the end of the quarter.

"Bell continued to make clear progress in executing our strategic imperatives this quarter, with particular success in affirming the culture of cost management and operational efficiency that allowed the Bell team to deliver improved EBITDA performance," said George Cope, President and CEO of BCE and Bell Canada.

Bell today has also announced the signing of a reciprocal wireless roaming agreement with AT&T that will enable AT&T wireless customers to roam on Bell Mobility's new HSPA network when it launches, while providing Bell customers access to AT&T's GSM and 3G wireless networks in the United States.

"Based on the strength of our year-to-date operating performance, our latest expectations for the balance of the year, and the completed acquisitions of The Source and Virgin Mobile Canada, we are increasing our revenue, EBITDA and Adjusted EPS guidance for 2009," said Siim Vanaselja, Chief Financial Officer of BCE and Bell Canada.

The Bell Wireless segment had 404,000 gross activations this quarter, or 3.3% more than last year. Postpaid net activations were 64,000 this quarter compared to 111,000 last year. The prepaid client base decreased by 19,000 this quarter compared to a decrease of 28,000 last year.

Postpaid ARPU decreased by C$3.61 to C$62.58 due to lower usage, lower roaming revenues, and the migration to lower rate plans as customers reacted to a weaker economy, partly offset by growth in wireless data revenues. Prepaid ARPU decreased by C$1.07 to C$16.41 due to the elimination of the system access fee for prepaid customers and lower usage, partly offset by growth in wireless data revenues. Blended ARPU decreased by C$2.22 to C$52.05.

Posted to the site on 6th August 2009