Tuesday, September 30th13.8°C
22738
22934

Bell Aliant Q1 profit falls as operating arm reaps less revenue from services

HALIFAX - The company that operates the Bell Aliant telecom system in Eastern Canada says net income dropped to $76.7 million in the first quarter, down 14 per cent from a year ago, as it felt the combined effects of higher taxes, lower revenue from older services and the cost of adding subscribers to its TV service amid stiff competition.

Halifax-based Bell Aliant said Wednesday that it added about 11,000 high-speed Internet customers and 11,700 Internet protocol TV subscribers in the quarter. As a result, it had had 963,048 high-speed Internet customers at the end of March, up from 927,111 a year earlier, and 189,781 IPTV customers, up from 137,270 in the first quarter of 2013.

Bell Aliant, which operates throughout the four Atlantic provinces and in parts of Quebec and Ontario, is aiming to woo customers away from cable companies, such as Halifax-based Eastlink and Toronto-based Rogers (TSX:RCI.B), as its fibre optic network becomes available to a growing number of residential customers.

However, it has been faced with intense price competition — particularly in New Brunswick and in Newfoundland, where Bell Aliant and Rogers have been discounting bundled services that include TV, phone and Internet services.

Bell Aliant GP, the operating arm of Bell Aliant Inc. (TSX:BA), said its revenue slipped 1.2 per cent to $675.7 million from the first quarter of 2013, as declines in revenue from local, long-distance and wireless phone and other services more than offset higher data revenue.

In the first quarter of 2013, Bell Aliant GP had $89.3 million of net income with $683.6 million in revenue.

RBC Capital Markets said after the quarterly report that Bell Aliant's revenues were slightly lower than estimates of $679 million but that adjusted earnings, at 40 cents per share, were penny above estimates of 39 cents per share.

"Despite an intense competitive environment (particularly in New Brunswick and Newfoundland), the company continues to successfully load its fibre network," RBC Capital analyst Drew McReynolds wrote.

"Management continues to manage operating costs very effectively despite the growth in lower-margin television revenue and subscriber loading (onto the network)."

Bell Aliant Inc. (TSX:BA), which owns the operating company in partnership with Montreal-based BCE Inc. (TSX:BCE), said its its first-quarter net income fell 16 per cent compared with the same time last year as it received $13.8 million less income from the operating arm.

The company's shares closed Wednesday at $27, up four cents, on the Toronto Stock Exchange.

— Follow @DavidPaddon on Twitter

The Canadian Press


Read more Business News

23015


Recent Trending




Today's Market
S&P TSX14924.99-51.93
S&P CDNX907.89-4.87
DJIA17027.07-44.15
Nasdaq4489.464-16.389
S&P 5001969.51-8.29
CDN Dollar0.8923-0.0036
Gold1211.40-7.40
Oil89.80-2.98
Lumber333.20+4.30
Natural Gas4.139-0.015

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.23+0.01
Cantex0.07-0.02
Anavex Life Sciences0.184-0.001
Metalex Ventures0.0550.00
Russel Metals34.46-0.03
Copper Mountain Mining2.49-0.03
Colorado Resources0.150.00
ReliaBrand Inc0.024+0.004
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.33-0.01

 



22831

FEATURED Property
2086497590 HOLLYDELL Road
4 bedrooms 2 baths
$379,900
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


22755