Bell Media Parent BCE Inc. Revenues, Earnings Up For Second Quarter

Q2 Results

BELL MEDIA parent BCE, INC. saw overall operating revenues up 2.5% year-to-year to C$5.93 billion for second quarter 2019, pushing net earnings up 8.2% to C$817 million and earnings per share up 7.6% to 85 cents. While wireless growth was a major driver of the company's performance, the media division showed revenue growth as well, increasing 6.4% to $842 million, but other than referring to an average audience of 16.1 million listeners each week, radio's performance was not broken out of the media division's results.

"BELL's strategy to bring the fastest broadband networks and the latest service innovations to Canadians in every region continued to drive strong operating and financial performance across our business in Q2," said BCE INC. and BELL CANADA Pres./CEO GEORGE COPE. "We significantly increased net new subscribers to our wireless, retail Internet and IPTV services, achieved our 4th consecutive quarter of growth in business markets, and again led the Canadian media industry in audience expansion and programming innovation.

"Adjusted EBITDA increased an exceptional 6.8% in Q2 -- our 55th consecutive quarter of year-over-year growth -- and together with ongoing operational and capital efficiency drove a strong 10% increase in free cash flow this quarter. MIRKO BIBIC is clearly moving the ball forward as our Chief Operating Officer, and I look forward to working with him throughout 2019 as he transitions to the role of Chief Executive Officer in 2020." COPE recently announced his retirement at the end of the year, and BIBIC will take over on JANUARY 5th, 2020.

"Our financial performance in Q2 demonstrates a clear focus on disciplined and profitable subscriber acquisition as evidenced by continued strong revenue and adjusted EBITDA growth across all BELL operating segments, margin expansion, and higher earnings and free cash flow -- all of which are consistent with our 2019 guidance targets," said CFO GLEN LEBLANC. "Ongoing free cash flow generation and a positive financial profile for our wireless, wireline and media segments going forward provides us with considerable financial flexibility to enable BELL's broadband fibre and wireless investment strategy while positioning BCE to deliver our 12th straight year of dividend growth in 2020."

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