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Bell Media Parent BCE Inc. Revenues, Earnings Down For Second Quarter
August 6, 2020 at 5:07 AM (PT)
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BCE INC., parent of CANADA's BELL MEDIA, saw its overall consolidated operating revenues fall 9.1% year-to-year to C$5.354 billion, attributed to the effect on consumer and commercial activity due to the COVID-19 pandemic across all segments. Net earnings dropped 64.0% to C$294 million and net earnings attributable to common shareholders fell 68.9% to C$237 million (26 cents/share), including C$452 million of impairment charges related to certain BELL MEDIA TV and radio properties. Adjusted net earnings slipped 31.8% to C$573 million (63 cents per share). Adjusted EBITDA decreased 9.4% to C$2.331 billion; Free cash flow grew 49.7% to C$1.611 million.
The BELL MEDIA subsidiary, which includes the company's radio operations, saw revenue decrease 31.2% to C$579 million; Adjusted EBITDA for the media segment decreased 31.9% to C$173 million. Radio figures were not broken out in the company's financial release.
"Even as the impacts of COVID-19 on all sectors of the economy accelerated in the second quarter, BELL continued to expand our next-generation networks in urban and rural Canada, grew broadband wireless and wireline market share with a focus on customer experience, and delivered the ongoing free cash flow growth that fuels both our investment leadership and BCE's returns to shareholders," said Pres./CEO MIRKO BIBIC. "BELL's performance in Q2 underscored the scale and resiliency of our networks, the strength of our financial foundation, and the BELL team's success in keeping Canadians fully connected and informed throughout the COVID-19 crisis.
"As economic activity continues to build, BELL will continue generating operating momentum while maintaining the financial flexibility to drive both our national investment strategy and the BCE common share dividend. Backed by a strong balance sheet and the best networks, BELL's dedicated and seasoned team is proud to be playing a critical role in Canada's recovery. I'm also proud to highlight how the BELL team has come together to address the wide-ranging impacts of systemic racism and inequality with meaningful action at our company – including new corporate targets for Black, Indigenous and People of Colour representation in senior management and young leaders starting their careers -- and in our communities, with dedicated BELL Let's Talk support for racialized Canadians and new partnerships with expert advisors to guide and strengthen our response.""
"While reduced economic activity and customer demand across BELL business segments significantly impacted revenue and earnings in Q2, BELL delivered positive postpaid wireless and retail Internet growth as well as significantly improved customer churn including in legacy services such as residential home phone. Despite the COVID-19 driven decline in adjusted EBITDA, free cash flow increased 50% in the quarter to $1.6 billion, with overall free cash flow growth of more than 30% for the first half of the year," said CFO GLEN LEBLANC. "We remain confident in the underlying, long-term fundamentals and performance of BCE, including a healthy balance sheet and substantial, ongoing free cash flow generation that provides us with considerable financial flexibility to navigate the COVID-19 recovery while more than meeting all our cash requirements for the balance of 2020."
BCE's Board of Directors has also declared a quarterly dividend of C$0.8325 per common share, payable on OCTOBER 15th to shareholders of record on SEPTEMBER 15th.