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BCE Inc. produces $574 million in profit on $4.3 billion revenue


BCE Inc., owner of Bell Mobility and Bell Media increased its Q1 profits by 14% over the previous year to $574 million. Much of the growth was due to Bell Mobility’s growth and the further proliferation of smartphones into the Canadian market.

Bell’s total number of wireless clients hit 7,406,155, a 2.2% uptick from last quarter. Total company revenue for BCE was $4.33 billion, $1.32 billion of which was attributed to the wireless segment. Not only did wireless service margin increase to 42.9% but smartphones finally overtook feature phones as the majority of wireless subscribers at 52%. This is an increase of 2.6% and 18% respectively.

Total data usage skyrocketed, attributed to vertically-integrated content services like Mobile TV and the aforementioned increase in smartphone subscribers. Blended ARPU, that all-important metric for how much each customer earns the company, increased 4.2% to $53.84 per month, a $2.16 increase over Q1 2011. Though voice ARPU was down, it was offset and superseded by improved data ARPU.

Net postpaid customers increased by 62,576 on 293,572 gross activations. Both figures are down slightly over the year before, and combined with a sharp downtick in prepaid customers the net activation figures were slightly lower. However Bell was pleased with the results based on a desire for “focus on profitable postpaid subscriber growth and increasing our mix of higher-value customers.” They also acknowledged that prepaid subscribers were down due to “our emphasis on postpaid acquisitions as well as competitive acquisition offers from the newer wireless entrants for lower-ARPU subscribers.*

Bell’s important metrics — blended ARPU, wireless EBITDA — are all increasing to match Rogers in some ways. Bell’s blended ARPU rose in Q1 to $53.84; Rogers’ fell to $57.26.

Source: CNW

*my emphasis

  • Go AWS FTW!

    …and this is why WINDmobile needs and wants a set aside onthe upcoming spectrum auction. There is absolutely no way it will be fair if the new entrants aren’t involved in it.
    Mobilicity apparently wants to bid anyway because they have what?..billions to spend? Don’t think so. Mobilicity said they were competing because they wanted to appease potential suitors from the big three.
    Mobilicity, get off the sidelines and compete by expanding your network, not just five cities in selected markets.

    • Steve

      Lets just give the spectrum to Wind Mobile. Then we can have the Big 4 and not worry about compitition again. Wind will charge more when they have the same phones as the big three and a stable network – don’t kid yourself. Why would they not?

    • tendenzi

      oh yeah, THIS is why WIND mobile deserves… GMAFB. VIimpleCom can choose to afford it if it would like to, as the new ownership laws have changed, don’t look at WIND as anything more than a flanker brand on a global scale. It’s VimpleCom’s Solo Mobile.

    • SpectrumSchmectrum

      I know it was Bell that had the connection with Mobilicity’s John Bitove. Through his trust company and his dad with the conservatives.
      Good call, I can see it coming a mile away now.

  • MB

    I’m surprised they’re still making profits with all the lawsuits against them. I don’t know if they have changed, I don’t think so, but they must have the worst customer service in Canada and have lied so often about their prices or charged more than they should have.

    I really hate they way they treat their customers…too bad they also want to own everything now, it will take a long time to be on the winning side as a customer with Bell around but at least they don’t have the monopoly anymore, it’s up to all of us to change this.

  • MB

    I’m surprised they are still making profits with all the lies and lawsuits against them…Personnaly, they don’t deserve one penny from me.

  • Mark

    At least they are less evil than Rogers.

  • Shaaqawacka

    Telus is the best of the Big 3

  • otter

    “Mobilicity said they were competing because they wanted to appease potential suitors from the big three.”

    Care to back that up with ya know…. a source?

  • Max

    Surprising numbers considering Bell has, by far, the worst customer service.

  • Rory

    Profits are low… better raise pricing of Internet, Phone, TV, Mobile. Oh, better double max overcharge on Internet usage too.

  • Go AWS FTW!

    That’s the problem. Mobilicity isn’t really competiting…there’re hardly a company.
    When will they declare bankruptcy??
    If the spectrum auction is next year, Mobilicity will be in very big financial trouble.
    if the spectrum auction is later this year, Mobilicity will only buy in five cities. They have so much spectrum they haven’t initiated yet.
    What a mess!

  • Mobilicity go away

    True that Mobilicity won’t make it to next year if the spectrum auction is at all in 2013.

  • Are you serious?

    A 42.9% margin on wireless services!? **** that every way possible.

  • wind or mobilicity

    Wow. Thanks for the advice against Mobilicity guys. Kind of scary to think such a new company is already going bankrupt. I like.competition, but i also like stability in the companies i choose.

  • SpectrumSchmectrum

    Just be careful porting into Mobilicity. When they declare bankruptcy it will be hard (not impossible, but could take months) until you get your number back.

  • 4u2nv

    WOW they made that much ripping people off… I dislike Bell for mobile service and have been screwed over by them more times than I can count. From over charging to paying for an unlock that they will no longer do even tho I payed (My Vibrant had to be replaced and they wont unlock the replacement even tho i paid 75$+tax)! They even cut my phone off because I was rude to a rep that was calling to pitch me something after all the BS they put me trough I despise them!

  • Megahertz

    I didn’t see Mobilicy being mentioned in this article at all.

    • Salsa Madre

      It’s because Mobilicity is known to want to get into bed with their master’s former cronies at Bell.
      SpectrumRectum up above has it right with the link.

  • Trolls

    Wow there are a lot of trolls here today. You guys couldn’t even be subtle about it.

  • MG

    And yet, BCE keeps letting go employees in massive waves, claiming that results are very poor and costs need to be slashed. At the same time, the CEO’s total compensation in 2011 more than doubled that of 2010, nearing $10 million. SHAME ON YOU Bell! SHAME ON YOU George Cope! This is a perfect example of corporate greed and lack of social conscience.

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