Bell Canada, wholly owned by Montréal, Québec-based BCE Inc. (NYSE: BCE), announced its second quarter earnings yesterday. Considered one of the “Big Three” Canadian carriers, the company said it successfully delivered on its growth strategy in Q2 with strong execution across all of its operating segments.
Mirko Bibic, President and CEO of BCE Inc. and Bell Canada said, “Canadians are continuing to embrace the power of our next-generation networks like 5G and Bell pure fiber, reflected in a 12 percent increase in residential internet revenue; a 75 percent increase in total retail Internet, IPTV, and mobile phone and connected device net subscriber additions; and the ongoing introduction of exclusive digital media platform and service innovations.”
Wireless operating revenue grew 10.7 percent to $1,703 million, which the carrier cited as reflecting both higher service and product revenues. Bell stated the company led all national players in wireless service revenue growth, which increased 5.8 percent to $1,264 million, representing the first quarter of year-over-year growth since the start of the COVID-19 crisis. “It’s a result that reflects healthy subscriber base growth over the past year,” Bibc said, “driven by our focus on higher-value smartphone loadings, continued strong demand for Bell’s IoT solutions and higher average revenue per mobile phone user year over year.”
Wireless adjusted EBITDA increased 10.2 percent to $775 million on the flow-through of strong service revenue growth, while margin contracted 0.2 percentage points to 45.5 percent due to increased operating costs reflecting increased commercial activity. Bell added 46,247 total net new postpaid and prepaid mobile phone customers, up from 12,110 in Q2 2020.
“Continued healthy free cash flow and Bell’s overall strong financial position are enabling our historic network acceleration in every region,” Bibic said, “supported by public policy encouraging next-generation infrastructure investment and our recent acquisition of significant 5G spectrum; ongoing dividend growth for our shareholders; and continued leadership in building a diverse, sustainable and connected Canada, embodied in the new Bell for Better initiative that encompasses all of our ESG initiatives.”
Bell’s mobile phone customer base totalled 9,212,995 at the end of Q2 2021, a 2.6 percent increase over last year, comprising 8,405,697 postpaid subscribers, up 2.8 percent, and 807,298 prepaid customers, essentially unchanged compared to Q2 2020.
Blended mobile phone Average Billing Per Unit (ABPU) increased an industry-leading 3.3 percent to $57.79, reflecting Bell’s focus on higher-value activations, including a growing base of customers on equipment installment plans; and improved roaming and data overage revenue.
Mobile connected device net activations increased 22.2 percent to 47,449, driven by continued strong demand for Bell’s IoT solutions. Mobile connected device subscribers totalled 2,177,761 at the end of Q2 2021, an increase of 13.7 percent over last year.
*all amounts in U.S. dollars
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