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Bell Has A Great Third Quarter, Exceeding Expectations

November 5, 2015 - Written By Cory McNutt

The Big Three Canadian carriers seem to be doing a great job this year when it comes to posting great increases in figures in almost all phases of their multimedia holdings.  However, it is certainly true that most of the increases are the result of their wireless business.  Last week, Rogers’ CEO Guy Laurence said, “It was a busy and productive quarter.  We delivered solid financial and operating metrics again this quarter whilst delivering a number of new and exciting services to our customers.”  Today, George Cope, President and Chief Executive Officer of BCE and Bell said, “Bell’s strong momentum in the growth services of communications delivered positive Adjusted EBITDA across our Wireless, Wireline and Media segments and significant increases in earnings per share and cash flow.  Our strategy of leading investment in Canada’s broadband networks and service innovation, combined with strong execution by the national Bell team, continues to deliver exceptional financial and operating results.”

Since wireless income is never enough to sustain these large companies, they are reaching out to communications services as a whole – for the first time, more Canadians watch TV and videos on mobile devices than they do on actual TVs in the home.  As this market is sure to grow, the telecom companies are expanding their once entertainment packages for wired usage to wireless – driving up both items like CraveTV and TV Everywhere GO digital services, which in turn increases their wireless customers, which go on to increased Data usage.  It is a win-win situation for the carriers as this allows them to make more money and increase subscribers.

Bell’s revenues rose 2.9-percent to $5.35 billion – up from $5.2 billion during the same quarter in 2014.  Compared to last year, Bell posted a 12-percent increase of adjusted earnings and a 2.9-percent increase in operating revenues.  Bell has added 68,000 IPTV customers and claims they are the largest TV provider in Canada with over 2.7 million customers.  Bell also added 58,000 new high-speed internet subscribers and now claims to have 8,183,367 wireless customers and 78-percent of their customers are now using a smartphone.  The Blended ARPU (Average Return Per User) increased 6.1-percent to $65.34 – “driven by a higher percentage of customers on 2-year contracts, increased data usage on the LTE network, and a greater mix of postpaid customers.”