BCE, the parent company of Bell, announced a huge third-quarter loss of $1.2 billion, heavily impacted by $2.11 billion in writedowns, mostly related to Bell Media’s TV and radio divisions.
This result marks a major shift from the over $700 million profit recorded in the same quarter a year earlier. Adjusted earnings per share (EPS) dropped to $0.75, down from $0.81 in the previous year. Despite some growth in adjusted EBITDA, overall operating revenues for BCE declined, totaling $5.97 billion, down from $6.08 billion in Q3 of 2023. The company now expects its 2024 revenue to fall about 1.5 percent, a change from its earlier guidance projecting up to four percent growth.
Bell’s wireless sector also faced challenges, adding only 33,111 net postpaid mobile subscribers—a steep decrease from the previous year’s high by nearly 77%. The company blamed this decline on increased customer churn due to increased competition and aggressive promos. Churn rates rose to 1.28%, up from 1.1% in the same period last year, as customers switched carriers in search of better deals.
Despite these pressures, Bell says it is strategically targeting customers for its premium Bell brand, rather than aggressively competing with discount brands like Virgin Mobile. Average revenue per user was at $58.26, down from $60.28 in same year-ago period, a drop of about 3.4 percent.
Earlier in the week, Bell made headlines by announcing a $5 billion deal to acquire U.S.-based Ziply FiberCRTC to Rogers, Telus, Bell: Follow the Rules or Brace for Crackdown.
BCE’s wireless revenue per user also dropped to $58.26, a 3.4% decline from $60.28 last year, reflecting the impact of promotional pricing and fierce market competition. The company continues to focus on its fibre network expansion, with a goal of reaching 8.3 million locations by the end of next year, despite a planned reduction in capital expenses of over $1 billion through 2025.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
Then why did Bell buy a US ISP if they are at a $1B loss? Odd.
The loss is on paper only.
bell you should shut down your business and give it to freedom or iristel. f*** B*s***t
IRISTEL, as in Samer Bishay, the guy being investiagted by the CRA for a $63m tax scam?
Love to see it
I have never seen Bell be competitive with an EPP offer. One time I almost switched (Even though the plan was more), but they told me they couldn't give me an apple watch plan unless I bought an apple watch directly from them. When I told the agent I had gotten a watch as a xmas gift they suggested I get the person to return the watch and get the money to buy a watch from them so I could get the watch plan).
Bell's losses in media might be attributed to the slashing of their workforce. To entertain, you must have and nurture entertainers. To inform, you must retain and empower quality journalism. You can't just have a skeleton crew struggling to operate your media empire.
Profits over people will fail every time. When your content suffers, your audience declines. It's a downward spiral.
There is really not much they can do when TV is dying. Customers will continue to be less accepting of the idea that they need to watch things with ads or watch things when the TV station tells them to. Most TV is moving to streaming and the largest TV fans are starting to die of old age. The average TV watching statistics show this.
Same goes for radio. Why bother when I can get traffic reports on my phone and have a playlist that plays only music and not the constant pointless chatter between songs?
You may be right, but they gave up long ago and welcomed a self-fulfilling prophecy. I’ll never believe Bell ever gave a flying fig about media from the very beginning. (I worked for them.)
It’s not too late for radio if they realize that the listener relationship with the on-air talent is something streaming can’t offer. Will they care enough to try though? Probably not.
A few years back, I tried to cancel a Bell business internet and phone line after the contract was up. They said it automatically renewed because I did not give them notice within 30 days of expiration so there would be a penalty. I paid the penalty, switched to Rogers, and have shunned Bell since then. Their insistence on using Huawei equipment for their network while Rogers used Ericcson was another reason I never looked back
Bell has gotten too large too succeed instead of being too big to fail. But hey, if they had $5 billion to spend down south, they mustn't be that badly off yet. But they may find it challenging to succeed in a market where treating existing customers like garbage in order to woo new ones with unsustainable deals just won't fly as well as it does in Canada.
Over priced plans sneaky fees and BS customer services can't even understand them half the time. What did you think would happen.
You could not PAY me to use Anything with bell !!! Really crazy what Oligarchy Canada allows.
What can they do with products heading for obsolescence like radio still be used by people like my selves but on a computer app and TV cable.
The last to see it is government that won't stop pounding for electrification when the buying public refuse to be dictated .
The idea that our landscapes turns into one with wind turbines,solar panels & nuclear reactors that they claim is green and NetZero is ridiculous.