BCE Announces Earnings Increase in First Quarter.MONTREAL--(BUSINESS WIRE)--April 23, 1997--BCE (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ;VSE See DOS/VSE. VSE - Virtual Storage Extended ;NYSE NYSE See: New York Stock Exchange BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. ) BCE Inc. today reported unaudited earnings per common share of $0.65, before one-time gains, for the quarter ended March 31, 1997, up 16 percent from $0.56 for the first quarter of 1996. Total earnings were $0.76 per share ($261 million), compared with $0.74 per share ($254 million), for the same period in 1996, including a one-time gain of $0.11 per share in 1997, and net gains of $0.18 per share in 1996. Total revenues for the first quarter increased 20 percent to $7.3 billion, compared with $6.1 billion for the same period last year. L.R. Wilson, chairman and chief executive officer said, "We are pleased to report strong earnings growth in our key operating units operating unit A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , in line with our expectations, while continuing to carry the investment expense of new products and services and new businesses. Nortel is benefiting from strong markets and has reported excellent results for the quarter. Better results at Bell Canada Bell Canada Enterprises (TSX: BCE, NYSE: BCE), legally BCE Inc., is a major Canadian telecommunications company. Through its subsidiaries including Bell Canada, Bell Aliant, Northwestel, Télébec, and NorthernTel, it is the incumbent local exchange carrier for reflect improved revenues and cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. in an increasingly competitive marketplace. BCE Mobile has had a stronger quarter with increasing earnings, growth in subscribers and low customer churn." He added, "Bell Canada International recorded a gain on the sale of part of its interest in Mercury, and is now participating in the creation of Cable & Wireless Communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , which will be the largest provider of integrated telecommunication and television entertainment services in the U.K." RESULTS BY GROUP The BCE Canadian Telecommunications group includes Bell Canada (excluding its directories business), BCE Mobile and other telecommunications interests. In the first quarter of 1997, this group contributed $206 million to consolidated net earnings, compared with $202 million in 1996. BELL CANADA Bell Canada's contribution to the Canadian Telecommunications group for the first quarter was $175 million, compared with $155 million for the same period in 1996. On a consolidated basis, Bell Canada's operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter, which include results from its directories business, were $2.2 billion, up 6 percent from $2.1 billion for the same period in 1996. Local and access service revenues increased 11 percent due primarily to the impact of the local service rate increase, moderate growth in network access services and continued growth in optional services. Long distance revenues increased by one per cent due to the impact of the new Stentor Stentor Greek herald with voice of 50 men. [Gk. Myth.: Espy, 39] See : Loudness settlement plan, partially offset by lower average prices and lower conversation minutes. At the end of the first quarter, Bell's long distance market share was estimated at 67 percent compared with 72 percent at the end of the same period last year. For the first quarter of 1997, Bell Canada's net income applicable to common shares (including its directories business) was $188 million, compared with $167 million for the same period in 1996. This 12.6 percent increase in earnings reflects revenue growth and the impact of the transition plan. Although operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increased by $99 million due to higher depreciation and amortization, costs associated with volume increases were offset by process improvements and reduced pension expense. The rate of return for the first quarter of 1997 was 10.4 percent, up from 9.1 percent for the first quarter last year. BCE MOBILE BCE Mobile contributed $11 million to the Canadian Telecommunications group for the first quarter, compared with $28 million for the same quarter last year. The first quarter of 1996 included a one-time gain, net of provisions, of $20 million. The increase in earnings, excluding net gains, reflects a higher contribution from cellular operations. Total subscribers now reach nearly 1.5 million, 34 percent more than at the end of the first quarter last year. NORTEL (NORTHERN TELECOM) Nortel contributed $76 million to BCE's consolidated earnings for the first quarter of 1997, a 31 percent increase over the $58 million reported in 1996. First quarter earnings reflect strong increases in sales across all business lines particularly in wireless and broadband. Order input for the quarter increased by 35 percent compared to the first quarter of 1996. Total sales increased 29 percent with gains in all geographic markets, especially the U.S. and Cala (the Caribbean and Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. ). Nortel recently announced an agreement with Williams Communications Group, Inc. to combine its TTS (1) See text-to-speech. (2) (Transaction Tracking System) Software that monitors a transaction until completion. In the event of a hardware or software failure, it ensures that the database is brought back to its former state before the attempt to Meridian Systems Inc. and Nortel Communications Systems In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole. Inc. distribution channels with WCG's WilTel sales and systems integration subsidiary, creating WilTel Communications WilTel Communications (formerly known as Williams Communications, which was formerly part of The Williams Companies, Inc) is a telco and Tier 2 Internet Service Provider with its own MPLS-enabled OC-192 optical wave division multiplexing backbone network. . Upon completion of the transaction, which is expected to close in the second quarter of this year, Nortel will receive cash and a 30 percent minority interest in WilTel Communications. BELL CANADA INTERNATIONAL Bell Canada International (BCI BCI Bat Conservation International BCI Brain-Computer Interface BCI Business Continuity Institute BCI Business Cycle Indicators BCI Banco de Credito e Inversiones (Chilean bank) BCI Bell Canada International ) contributed $3 million for the first quarter compared with $32 million for the same period in 1996. Results for 1997 include a one-time gain of $34 million from the sale of a five per cent interest in Mercury Communications Mercury Communications was a national telephone company in the United Kingdom. The company was formed in 1981 as a subsidiary of Cable & Wireless to challenge the monopoly of British Telecom (BT) which was privatised in 1984. Limited (UK) to Cable & Wireless plc, while results for the first quarter of 1996 included a one-time gain of $50 million on the sale of Clear Communications Clear Communications was a telecommunications company based in New Zealand. Until merging into Telstra's operations in 2001, it was the biggest rival to Telecom New Zealand. (New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ). DIRECTORIES The Directories group contributed $13 million for the quarter compared with $4 million for the same period last year. The improvement in earnings for 1997 is mainly as a result of the company's termination of its business operation in India which had incurred a loss of $9 million in the first quarter of 1996. SHAREHOLDERS' MEETING shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. & STOCK SPLIT The company's annual and special shareholders' meeting will be held in Montreal, on Wednesday, April 30, 1997. At this time, shareholders will vote on a two-for-one stock split of the company's common shares. BCE is Canada's largest telecommunications company See telecom company. . The BCE group includes: Bell Canada, the principal supplier of communications services in Ontario and Quebec; Nortel, a global leader in the design and building of telecommunications networks; Bell Canada International, with investments in the US, the UK, Asia and Latin America; BCE Mobile, a provider of wireless services in Ontario and Quebec under the Bell Mobility banner; and Tele-Direct, a Yellow Pages(TM) directory publisher operating in Canada and internationally. BCE's shares are traded in Canada, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in Europe. -0-
Results by Operating Group (unaudited)
($ millions, except per share amounts)
For the three months
ended March 31 1997 1996
__________ __________
Revenues
Canadian Telecommunications
- Bell Canada (excluding
directory operations) 2,095 1,981
- BCE Mobile 248 196
- Other Canadian Telecom 173 176
_____ _____
2,516 2,353
Nortel 4,574 3,554
Bell Canada International 77 47
Directories 133 129
Corporate 7 7
_____ _____
Total revenues 7,307 6,090
_____ _____
_____ _____
Net earnings
Canadian Telecommunications
- Bell Canada (excluding
directory operations) 175 155
- BCE Mobile 11 28
- Other Canadian Telecom 20 19
_____ _____
206 202
Nortel 76 58
Bell Canada International 3 32
Directories 13 4
Corporate (37) (42)
_____ _____
Net earnings 261 254
Dividends on preferred
shares (19) (20)
_____ _____
Net earnings applicable to
common shares 242 234
_____ _____
Earnings per common share 0.76 0.74
_____ _____
_____ _____
Operating cash flow per
common share(1) 3.56 3.13
_____ _____
_____ _____
(1) After payment of preferred dividends.
CONTACT: BCE Inc. Francine Osborne, 514/397-7090 bcecomms@bce.ca http://www.bce.ca |
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