BCE’s revenue down as pandemic continues to weigh
COVID-19 hit firm in advertising, roaming and reduced spending
BCE Inc.’s third-quarter profit was down 20 per cent compared with a year ago as its revenue also edged lower due to the COVID-19 pandemic’s impact on its business and its customers.
However, the Montreal-based parent of Bell Canada showed improvement from the second quarter when economic activity across most of the country was slowed by the pandemic.
“Our focus in Q3 was all about building momentum back into the business. And although the effects of COVID are still obviously present, I’m very pleased with our progress to date,” chief executive Mirko Bibic told analysts Thursday.
He said Bell experienced a notable improvement in operating performance due to the success of its expanded broadband communications network, the reopening of retail stores and the return of live sports programming.
Bibic said it’s difficult to predict how the current fourth quarter will be affected by the pandemic. He thinks it will have positive momentum, but less than in Q3.
Operating revenue totalled $5.79 billion, down 2.6 per cent from $5.94 billion a year ago. Compared with the second quarter ended June 30, Q3 operating revenue rose from $5.35 billion, which was down 9.1 per cent from 2019’s Q2.
BCE attributed much of the revenue drop to the impact of COVID-19 on media advertising, wireless roaming volumes and reduced or delayed spending by business customers.
One of the biggest COVID impacts was a widespread drop in advertising, including at Bell Media — owner of the CTV national television network, the TSN sports channel, radio stations and newer forms of media.
“TV advertising demand picked up in several key categories, especially with the return of live sports and increased spending by advertisers,” Bibic said.
Radio advertising and radio listenership has been slower to rebound while some locations for its out-of-home advertising space, such as airports, continue to suffer from the pandemic while outdoor billboards and street furniture ads improved.
However, Bell Media represents a relatively small component of BCE’s overall revenue which is generated mostly by Bell Canada’s large and diverse telecommunications business.
Bell increased its total subscriber base by 210,000 net new wireless, internet and IPTV customer activations in the three months ended Sept. 30 as it continued to expand its networks
“In Q3, we equipped 140,000 new locations with direct fibre (into the home), bringing the coverage level to 56 per cent of our total high-speed broadband footprint,” Bibic said.