Bell Posts Impressive Q2 Numbers, Raise Dividend

By: Kuljit Grewal  |   August 9th, 2012   |   Business, News, O Canada

BCE Inc. (TSE:BCE) made their Q2 results public yesterday, posting impressive growth and profit numbers. The company’s strong quarter was driven by Bell Media and the division’s TV and wireless business.

 

The country’s second largest wireless carrier managed to add 47,208 customers over the past four months giving them a total of 7,453, 363. Wireless revenues also saw an increase, moving up 6.7 per cent to $1.36 billion. A key industry metric known as ARPU (Average Revenue Per User) rose by 4.5 per cent year over year to $55.37/month. Net income increased a whopping 31 per cent to $773 million, representing a profit margin of 17.8 per cent as compared to overall revenues of $4.34 billion.

 

BCE Inc.’s CEO George Cope began his company’s earnings call with a reference to the Olympic Games, recognizing the two medals that team Canada had picked up earlier that day. The games have no doubt been good to Bell Media, as the company’s CTV Network and subsidiary TSN have been Canada’s main broadcaster of the highly watched and touted events in London. The addition of TSN and RDS; its French equivalent have created a 22 per cent rise in subscriber fees, no doubt aiding the company’s solid quarter.

 

The strong quarter led to dividends being increased by 5% along with earnings per share estimates being increased for the rest of the fiscal year.

 

Considering that the company also boasts the largest 4G LTE network in Canada as well as the impact of a pending deal to acquire significant radio and television assets in a bid to acquire Astral Media Inc. (TQ was on it), and the arrow is pointing upwards for BCE Inc.