BCE Announces First Quarter Earnings.MONTREAL--(BUSINESS WIRE)--April 22, 1998--BCE Inc. (ME:BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :BCE) (VSE See DOS/VSE. VSE - Virtual Storage Extended :BCE) (NYSE NYSE See: New York Stock Exchange :BCE) today reported unaudited net earnings, before special items, of $325 million ($0.48 per common share) for the quarter ended March 31, 1998, compared with $227 million ($0.33 per common share) for the first quarter of 1997. BCE recorded a special charge of $151 million for the period compared with a one-time gain of $34 million recorded in the first quarter of 1997. Including these items, net earnings were $174 million ($0.24 per common share) compared with $261 million ($0.38 per common share) last year. Total revenues for the first quarter increased to $8 billion up from $7.6 billion for the same period last year. "We continue to see solid growth in all areas of our operations resulting in a 46 percent increase in baseline earnings for BCE," said L.R. Wilson, chairman and chief executive officer. "Bell Canada's strong growth in earnings for the quarter reflects the company's success in containing costs and increasing revenues. Nortel's earnings before the special charge are on target." "In addition, BCE Mobile continues with the aggressive buildout The construction and implementation of a system. For example, "network buildout" implies constructing the network and going online. of its PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. network; and 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 International doubled its revenues for the quarter and continues to accelerate its investment activity." RESULTS BY GROUP CANADIAN TELECOM The BCE Canadian Telecommunications group consists of Bell Canada, the domestic operations of Tele-Direct, BCE Mobile and other telecommunications interests. In the first quarter of 1998, this group contributed $309 million to consolidated net earnings, compared with $219 million in 1997. BELL CANADA Bell Canada's contribution to the Canadian Telecommunications group for the first quarter of 1998 was $274 million, compared with $188 million for the same period in 1997. The increase in earnings reflects revenue growth and productivity-related cost improvements. 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 were $2.6 billion up two percent from $2.5 billion for the same period in 1997. Local and access service revenues increased 11 percent due primarily to the impact of the local service rate increase, continued growth in network access and optional services, and increased payments by private line digital service users. Long distance and network service revenues decreased by five percent due to lower average prices coupled with lower volumes, partially offset by an increase in network services revenues. 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. decreased by five percent, primarily due to lower depreciation resulting from the reduction in capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) as part of the transition from rate-of-return regulation Rate-of-return regulation is a system for setting the prices charged by regulated monopolies. The central idea is that monopoly firms should be required to charge the price that would prevail in a competitive market, which is equal to efficient costs of production plus a . This was partially offset by a reduction in capital asset lives and the $45 million cost of the ice storm which occurred in parts of Ontario and Quebec in January. At the end of the first quarter, Bell's long distance market share was estimated at 62 percent compared with 63 percent at the end of the previous quarter. BCE Mobile BCE Mobile contributed $2 million to the Canadian Telecommunications group for the first quarter, compared with $11 million for the same quarter last year. The decrease in earnings mainly reflects higher expenses related to the start-up of digital PCS service. Total subscribers are now at more than 1.7 million, an increase of 16 percent over the same period last year. NORTEL (NORTHERN TELECOM) Excluding a special charge, Nortel contributed $98 million to BCE's consolidated earnings for the first quarter of 1998, a 29 percent increase over the $76 million reported in 1997. BCE's share of Nortel's charge for purchased in-process R&D expense associated with the acquisition of Broadband Networks  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. Inc. (BNI BNI Business Network International BNI Business Networking International BNI Bank Negara Indonesia BNI Bechtel National, Inc. BNI British Nursing Index BNI Barrow Neurological Institute (Phoenix, AZ) ) was $151 million and resulted in a loss of $53 million to BCE's earnings for the 1998 first quarter. First quarter earnings reflected double-digit growth in Broadband and Wireless networks. Total revenues were $5 billion with strong revenue growth in Europe, 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. ) and Asia Pacific. INTERNATIONAL TELECOMMUNICATIONS The International Telecommunications group is comprised of 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 ), the public company, and BCE's remaining international telecom interests, primarily 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. (CWC CWC Chemical Weapons Convention CWC Cricket World Cup CWC Central Wyoming College CWC Ceylon Workers' Congress (trade union; Sri Lanka) CWC Ceylon Workers Congress (Sri Lanka) ) in the U.K. and Jones Intercable Jones Intercable was a Cable TV company founded by Glenn Jones. Jones, already a cable television veteran, bought his first cable system in Georgetown, Colorado after taking a $400 loan on his Volkswagen. In 1993 30% of the company was purchased by BCI Telecom Holdings, Ltd. in the U.S. This group recorded a loss of $10 million for the quarter compared with a loss of $31 million in 1997 excluding a $34 million one-time gain from the sale of a 5 percent 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. Bell Canada International For the quarter, BCE's share of BCI's reported loss was $13 million compared with a loss of $10 million for the same period in 1997. The higher loss is mainly attributable to start-up costs at Americel. BCI's revenues more than doubled for the quarter to $161 million from $76 million the previous year, largely due to increased revenues at Comcel, its cellular subsidiary in Colombia. SHAREHOLDERS' MEETING shareholders' meeting n. a meeting, usually annual, of all shareholders of a corporation (although in large corporations only a small percentage attend) to elect the Board of Directors and hear reports on the company's business situation. The company's annual and special shareholders' meeting will take place at 10:30 a.m., Wednesday, May 6, 1998 at Roy Thomson Hall Roy Thomson Hall is a concert hall located at 60 Simcoe Street in Toronto, Canada. It is the home of the Toronto Symphony Orchestra and the Toronto Mendelssohn Choir. , Toronto, Ontario. BCE is Canada's largest telecommunications company See telecom company. . The BCE group includes: Bell Canada, the principal supplier of communications services in Ontario and Quebec; Nortel (Northern Telecom), a global leader in the design and building of telecommunications networks; Bell Canada International, a leading supplier of telecommunications services in markets outside of Canada; BCE Mobile, a provider of wireless services in Ontario and Quebec under the Bell Mobility banner; and Tele-Direct, a Yellow Pages(TM) directory publisher operating in Canada and internationally. BCE's shares are traded in Canada, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and in Europe. -0-
Results by Operating Group (unaudited)
($ millions, except per share amounts)
For the three months ended March 31 1998 1997
__________________________________________________________________
Revenues(1)
Canadian Telecommunications
- Bell Canada 2,577 2,532
- BCE Mobile 297 257
- Other Canadian Telecom 187 178
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3,061 2,967
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Nortel 5,025 4,574
__________________________________________________________________
International Telecommunications
- Bell Canada International 161 76
- Other International Telecom 8 8
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169 84
__________________________________________________________________
Corporate 8 7
__________________________________________________________________
Intercompany eliminations (253) -
__________________________________________________________________
Total revenues 8,010 7,632
__________________________________________________________________
Net earnings(1)
Canadian Telecommunications
- Bell Canada 274 188
- BCE Mobile 2 11
- Other Canadian Telecom 33 20
__________________________________________________________________
309 219
__________________________________________________________________
Nortel (53) 76
__________________________________________________________________
International Telecommunications
- Bell Canada International (13) (10)
- Other International Telecom 3 13
__________________________________________________________________
(10) 3
__________________________________________________________________
Corporate (46) (37)
__________________________________________________________________
Intercompany eliminations (26) -
__________________________________________________________________
Net earnings 174 261
Dividends on preferred shares 22 19
__________________________________________________________________
Net earnings applicable to common shares 152 242
__________________________________________________________________
Earnings per common share(2) 0.24 0.38
__________________________________________________________________
Operating cash flow per common share(i2) 1.79 1.78
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(i) After payment of preferred dividends.
(1) Effective January 1, 1998, the Directories segment is no longer
shown separately. The directory business division of
Tele-Direct (Publications) Inc. is now included in Bell Canada.
Other directory operations are included in Other Canadian
Telecom and Other International Telecom. Previously reported
amounts have been reclassified to conform with the current
presentation.
(2) Reflects the subdivision of common shares on a two-for-one
basis on May 14, 1997.
CONTACT: BCE Inc. Pierre Desmarteau, 514/397-7278 bcecomms@bce.ca http://www.bce.ca |
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