Bell and Telus Q1 Earnings See Profits Drop, But Revenue Up

Bell and Telus today announced their unaudited financial results for the first quarter ended March 31, 2022.

For Q1 2023, Bell reported $6.054 billion in consolidated operating revenue, up 3.5% year-over-year from Q1 2022. The telecom giant’s adjusted EBITDA declined 1.8% year-over-year to $2.538 billion, while net income dipped 15.6% to $788 million.

“Bell has delivered a solid start to the year with results that were on plan and that reflect our consistently strong execution,” said Bell President and CEO Mirko Bibic.

“Our strategy to build the best networks and our compelling products and services are clearly resonating with customers, as is our customer-first approach. I’m particularly proud of the gains we’ve made to champion customer experience as evidenced in the 2022-23 CCTS mid-year report. Bell was the only national service provider to experience a decrease in complaints during a period when complaints were up 12% year-over-year across the industry.”

Telus, meanwhile, reported consolidated operating revenues of $4.964 billion for Q1 2023, up 15.9% compared to the same period last year. Adjusted EBITDA went up 10.7% to $1.779 billion, while the company’s net income plunged a whopping 44.6% to $224 million.

“In the first quarter, our TELUS team once again demonstrated our hallmark execution excellence,
characterized by the potent combination of leading customer growth and strong financial results,” said Telus President and CEO Darren Entwistle.

In comparison, rival national telecom Rogers last week reported $3.83 billion in revenue and $511 million in net income for Q1 2023.

Bell Highlights

  • Net postpaid mobile phone subscriber additions of 43,289, up 26.5% from Q1 2022.
  • Net prepaid mobile phone subscriber losses of 16,654.
  • Free cash flow of $85 million, down 88.1% from $716 million in Q1 2022 due to capital expenditures.
  • Quarterly dividends of $0.9675 per common share, payable on July 17, 2023, to shareholders of record at the close of business on June 15, 2023.

Telus Highlights

  • Net customer additions of 163,000, up 15,000 year-over-year and making Q1 2023 Telus’ strongest first quarter on record.
  • 47,000 net mobile phone customer additions, representing Telus’ best quarter for mobile phone additions since 2010.
  • Free cash flow growth of 29%.
  • Dividends of $0.3636 per share, up 7.4% year-over-year.
  • Postpaid mobile phone churn of 0.70% and <1% customer churn for mobile phone, PureFibre Optik TV, security, and voice services.