BCE -1.6% as higher costs overshadow wireless growth

|About: BCE Inc. (BCE)|By:, SA News Editor

BCE has dipped 1.6% after its Q1 earnings missed on top and bottom lines as the company absorbed double-digit higher costs.

Operating revenues rose and net earnings grew on an as-reported and adjusted basis. EBITDA climbed 4.1% to C$2.25B. But operating expenses were up nearly 13%.

In wireless, postpaid net adds were up 91.4% to 68,487, with gross additions up 17.1% to 347,319. Postpaid customers hit 8,471,021 as of March 31. Churn improved 0.04 percentage points to 1.13%.

Prepaid gross additions were up 10.9% to 57,471; net prepaid declines were 24,110, with a changing trajectory due to new low-cost Lucky Mobile service.

Blended average billing per user was up 1.4% to C$66.56.

In wireline, high-speed Internet net adds were 19,647 (up 31.1%), with base hitting 3,845,739. Bell TV added a net new 13,573 subs to reach 1,578,489. Satellite net losses were 26,054, down 31.6%.

Revenue by segment: Bell Wireless, C$1.95B (up 10.1%); Bell Wireline, C$3.08B (up 3.6%); Bell Media, C$749M (down 0.3%).

It's upped its guidance for full-year EPS due to the adoption of IFRS 15, to C$3.45-C$3.55. It's otherwise reiterating full-year guidance for revenue growth of 2-4%, EBITDA growth of 2-4%, and free cash flow growth of 3-7%.

Earnings call slides

Earnings call transcript

Press release

Subscribe for full text news in your inbox