BCE 1Q Profit Falls as Expenses Mount
By Adriano Marchese
BCE reported a 42% decline in profit in the first quarter due to higher costs, largely related to recent layoffs.
The Canadian telecom major on Thursday posted a net income of 457 million Canadian dollars ($332.6 million), or C$0.44 a share, down from C$788 million, or C$0.79 a share, in the comparable quarter a year ago.
BCE said that the lower profit in the quarter was attributed to higher severance, acquisition and other costs related mainly to its recent headcount reduction initiatives, among other expenses.
On an adjusted basis, which strips out exceptional costs and one-off items, earnings were C$0.72 a share. According to FactSet, analysts were expecting C$0.70 a share.
Operating revenues fell to C$6.01 billion from C$6.05 billion. Analysts were expecting only a slight decline to C$6.04 billion.
The decline was largely due to a 0.6% decline in service revenue to C$5.19 billion associated with a lower performance at Bell Media.
BCE added 45,247 new wireless subscribers in the quarter, 4.5% more than it did a year earlier, while retail net subscriber activations rose nearly 14% to 31,078. BCE has benefited from Canada's breakneck population growth, as well as bundling momentum and promotions.
Meanwhile, a competitive market, which has intensified promotional activity, has led to higher churn, which was 1.21% in the quarter, up from 0.9% in the first quarter of 2023.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
May 02, 2024 07:44 ET (11:44 GMT)
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