BCE first quarter profit slumps

Source: Exec

Date :07/05/2008 06:32:26

BCE Inc., the Canadian telecommunications company, has reported that profits for the first quarter fell due to restructuring costs and charges to fund broadband expansion in smaller communities.

The Montreal-based company made $258 million, or 32 cents a share, down from $499 million, or 62 cents a share, a year earlier. Excluding one-time costs and investment losses, its profits improved to $457 million from $420 million.

Takeover

The results for the first three months of 2008 do not include Telesat, which BCE sold in October 2007. A 0.1 percent year-over-year increase in overall revenue came as growth at Bell Canada and Bell Aliant was offset by the loss of Telesat’s contribution to revenue.

Michael Sabis, CEO of Bell Canada, said in a statement, “During the quarter, we made good progress on the completion of the privatization transaction and delivered solid financial results, consistent with our plan for the year.”

The company is relying on revenue from high-speed Internet, wireless service and satellite television to counter declines in traditional copper lines.

BCE continues to expect the takeover by an investor group led by the Ontario Teachers’ Pension Plan to be completed by the end of June. Canadian regulators approved the deal in March, which involves US investors Providence Equity Partners Inc. and Madison Dearborn Partners LLC, provided the carrier remains under Canadian control.

May 07, 2008