Rogers-Shaw merger benefiting wireless industry as a whole in 2022: Bell CEO

When it comes to Canada's wireless market this year, there are a number of trends that are benefiting the wireless industry as a whole, including the potential merger between Rogers Communications Inc. and Shaw Communications Inc., according to BCE Inc. CEO Mirko Bibic. "If you look back over the last couple quarters, including this one that we're reporting on, the operating momentum has been good and is clearly continuing and it looks like good growth across the industry," Bibic told analysts on a Thursday morning first quarter earnings call. "We continue to have things like immigration upside and easing of store constraints and early 5G momentum and the roaming bounce back, and – I hazard to say – the competitive intensity between two potentially merging parties isn't quite there as it used to be, and that's probably benefiting the entire industry." Bell's overall operating revenue climbed 2.5 per cent, from $5.71 billion to $5.85 billion in the quarter compared to the same quarter last year, while the company's net earnings climbed 36 per cent from $687 million to $934 million. The company attributed the jump in profits to "higher adjusted EBITDA, higher other income and lower severance, acquisition and other costs," according to the report given to shareholders. In its wireless division, Bell announced that it had added 32,176 net new subscribers, a significant increase from the 2,405 they company added a year ago. The growth was centred in the company's postpaid plans, with 34,230 new subscribers, a four per cent jump from the 32,925 the company added a year ago. The company now has a total of 9.49 million wireless subscribers, up from the 9.17 million they reported last year. Bell's operating revenues in its wireless division climbed 5.2 per cent, up to $2.21 billion from $2.1 billion this time last year. The company also reported a 5.1 per cent climb in average revenue per user, up to $57.98 from $55.17 in the first quarter of 2021, which it attributed to the continued return of roaming revenues, which it maintained are still not back at pre-pandemic levels. Bell's wireline operating revenues dipped 2.2 per cent, down to $3.01 billion from $3.08 billion last year, driven by lower product sales. The company added 26,024 retail internet subscribers, a 22.7 per cent increase on the 21,208 the company added last year, for a total of 3.95 million subscribers. In Television, the company added 12,260 IPTV subscribers, and lost 20,621 satellite subscribers, up from the 10,696 they added and 19,808 they lost a year ago, respectively. The company now has 1.9 million IPTV subscribers and 832 thousand satellite subscribers in total. — Reporting by Michael Lee-Murphy at mleemurphy@thewirereport.ca and editing by Paul Park at ppark@thewirereport.ca

Rogers-Shaw merger benefiting wireless industry as a whole in 2022: Bell CEO

Broadcast | May 5, 2022

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Rogers-Shaw merger benefiting wireless industry as a whole in 2022: Bell CEO

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