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Bell Canada Enterprises Posts 15% Decline in Quarterly Profits

6:30 am on August 3, 2006 | Category: Business, Telecom Services

Canadaâ€™s largest telecommunications provider, BCE Inc., has posted a 15% decline in second-quarter profits as it works to cut costs, while increasing the revenues from its broadband, wireless, and television services.

BCE, which owns Bell Canada and Aliant, earned a total of C$494 million, or $0.53/share, in the quarter that ended on June 30. That compares with $581 million ($0.61/share) in the same period a year ago.

This decline in profit can be explained by $50 in restructuring expenses, as well as a $40 million charge for the early redemption of Aliantâ€™s long-term debt. Pension and amortization expenses also increased.

BCEâ€™s overall sales increased by 1% to $4.3 billion. The company made modest gains in its wireless and high-speed internet division, but saw long distance revenue slip by 12%, while local line revenue declined 4.1%.

The financial results caused BCE shares to drop $0.21 on the Toronto Stock Exchange yesterday, closing at $25.64.

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