Bell Canada Cites “Improving Economy” in Q3 Results

BCE Inc. (TSX, NYSE: BCE) yesterday reported results for the third quarter (Q3) of 2020. President and Chief Executive Officer, Mirko pointed to an improving economy, which included the re-opening of retail sales and service for wireless for BCE, plus the return of live sports programming resulted in a “significantly improved” financial performance compared to Q2. The company did post that their revenue was down 2.6 percent and adjusted EBITDA down 4.4 percent year over year.

“In Q3, Bell’s innovation leadership drove operational and financial momentum across our business segments, while our infrastructure, technology and community investments supported Canada’s COVID response and ongoing recovery,” Bibic said.

Highlights included: 

• Net earnings of US$567 million with net earnings attributable to common shareholders of US$530 million, or $0.77 per common share; adjusted net earnings of $712 million generated adjusted EPS of US$0.60
• Cash flows from operating activities of US$1,616 million and free cash flow of US$792 million contributed to 4.4 percent growth in YTD cash flows from operating activities and 13.7 percent higher free cash flow

“Enabled by the enduring strength of BCE’s financial position and continued free cash flow generation, Bell is keeping Canadians connected and informed while also building a solid foundation for the long term,” said Bibic. “Our industry-leading investments in network quality and capacity continue to reinforce Canada’s COVID response, and we’re expanding the country’s fastest mobile 5G network and advanced broadband internet services for rural and urban Canadians alike.” 

 Other highlights were:

• Sequential quarterly improvement at all Bell operating segments as COVID recovery continues; 
• Strong financial position maintained with $5.2 billion of available liquidity at end of Q3
• 128,168 total wireless postpaid and prepaid net customer additions
• Leading wireline broadband subscriber results with 81,696 net retail internet and IPTV customer additions; 10 percent internet revenue growth
• Fiber program 56 percent complete
• Internet buildout approaching half of planned footprint; 5G network continues to expand to new centers
• Common share dividend of US$0.6377 declared for Q4, up 5 percent over last year