Bell Media Parent BCE Inc. Revenues Rise For First Quarter, But Media, Radio Lag

Q1 Results

BCE INC., parent of CANADA's BELL MEDIA, saw first quarter operating revenues rise 2.6% year-to-year to C$5.734 billion and net earnings attributable to common shareholders climb 12% to C$740 million (82 cents/share).  Adjusted EBITDA grew 6.9% to $2.409 billion. However, BELL MEDIA revenues fell 0.5% to C$745 million, blamed on a dip in advertising revenue; radio advertising revenue continued its downward trend, attributed to "market softness," but the division's adjusted EBITDA increased 26.9% to $C165 million.
   
BCE/BELL CANADA Pres./CEO GEORGE COPE said, "The strength of BELL's industry-leading broadband networks delivered leading customer additions in broadband Internet, TV and postpaid wireless, and higher customer satisfaction reflected in improved churn performance across our operating segments in Q1. A strong start to the year, and the BELL team will continue to lead the way in network, service and content innovation in 2019, including the ongoing expansion of our broadband services into rural Canada and preparation for the introduction of 5G wireless.

"Consistent strategic execution across our wireless, wireline and media growth segments delivered growth in revenue, adjusted EBITDA -- representing our 54th consecutive quarter of year-over-year adjusted EBITDA growth -- and free cash flow. CANADA's best national mobile network attracted 50,000 net new postpaid wireless customers and supported higher data usage and revenue per customer, delivering revenue growth of 4.5%, 11.6% higher adjusted EBITDA and our best churn performance since 2004. In wireline, positive topline growth in business, wholesale and residential – including combined retail Internet and IPTV net additions of 44,000 in Q1, up 37.4% over last year – increased revenue by 1.8% and adjusted EBITDA by 2.0%. In a challenging media marketplace, BELL MEDIA continued to grow TV advertising revenue, attract new subscribers to next-generation platforms like CRAVE and achieve substantial cost savings, resulting in a 26.9% increase in adjusted EBITDA for Q1."

"The first quarter represents a very positive beginning to 2019 as diligent operational execution delivered strong financials well within our guidance targets, even adjusting for the application of IFRS 16," said CFO GLEN LEBLANC. "Excluding IFRS 16, adjusted EBITDA increased in line with our historical rate of 2% to 4%. This positive year-over-year growth across all BELL operating segments, together with a declining capital intensity ratio, propelled a 19.6% increase in free cash flow in Q1. With a favourable profile for all our operating segments as we move forward in 2019, we expect continued free cash flow generation to enable our capital investment plans while fully supporting the increased BCE common share dividend for 2019."

BCE's Board of Directors also declared a quarterly dividend of $0.7925 per common share, payable JULY 15th to shareholders of record on JUNE 14th.

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