BCE Mobile Reports Strong Cellular Grouth in the Fourth Quarter (Part 1 of 2, Financial Tables Will Follow).MONTREAL--(BUSINESS WIRE)--Jan. 27, 1997--BCE Mobile (ME;TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). BCX BCX Beloreck (Russia) ) BCE BCE abbr. 1. Bachelor of Chemical Engineering 2. Bachelor of Civil Engineering BCE Abbreviation for before the Common Era. Mobile Communications Inc. (BCE Mobile) today announced its unaudited financial results for the fourth quarter 1996. -0-
Fourth Quarter Twelve Months
($ millions) 1996 1995 1996 1995
____ ____ ____ ____
Net income (loss) $(16.1) $12.9 $63.9 $51.0
Revenues 262.2 219.5 926.3 781.0
Operating income -
before depreciation,
amortization and
special charges
(EBITDA) 73.4 66.2 302.5 265.7
(000)
Cellular subscribers
(Dec. 31) 1,044 798
Pagers in service
(Dec. 31) 396 275
NET INCOME Excluding a special charge, net income from operations for the quarter was $11.5 million ($0.17 per share) or some 11 percent less than the fourth quarter of 1995. The lower net income from operations for the quarter can be attributed to a lower contribution from paging operations, partly offset by a higher contribution from cellular service operations. Included in results for the fourth quarter was a special charge of $48.1 million ($27.6 million after tax) for the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the unamortized balance of hardware costs associated with certain customer contracts at December 31, 1996. The corporation has decided that on a going-forward basis it will fully expense these costs as they are incurred rather than amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. them over 12 to 18 months as it has done in the past. The reported net loss for the quarter, which includes the special charge, was $(16.1) million ($(0.23) per share), compared to net income of $12.9 million ($0.19 per share) one year ago. For the full year, reported total net income was $63.9 million ($0.92 per share) compared to $51.0 million ($0.74 per share) in 1995. Included in the figure for 1996 are gains on the sale of investments in Clearnet Communications Inc. and Teletech Financial Corporation totaling $54.9 million (after tax), and provisions taken in the first and third quarters totaling $23.6 million (after tax) relating mainly to the corporation's plan to adopt the CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. digital technology platform, as well as the special charge in the fourth quarter discussed above. Net income for 1996, excluding the special gains and charges, was $60.2 million ($0.87 per share) or 18 percent higher than in 1995. A higher contribution from cellular service operations, partly offset by a lower contribution from paging, was responsible for the year-over-year increase. Said Robert Ferchat, BCE Mobile chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , "A record number of new cellular subscribers were activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. during the fourth quarter. Our cellular subscriber base grew 31 percent in 1996, driven by a 21 percent increase in activations over those in 1995 and by lower churn churn: see butter. at 1.2 percent. On the financial side, revenues were up 19 percent and net income from operations was up 18 percent." SUBSCRIBERS Cellular subscribers numbered some 1,044,000 at December 31, 1996, an increase of 111,000 from September 30, 1996 and 246,000 or 31 percent since December 31, 1995. Churn (the rate of subscriber deactivation de·ac·ti·vate tr.v. de·ac·ti·vat·ed, de·ac·ti·vat·ing, de·ac·ti·vates 1. To render inactive or ineffective. 2. To inhibit, block, or disrupt the action of (an enzyme or other biological agent). 3. ) during the fourth quarter of 1996 averaged 1.1 percent per month compared to 1.3 percent in the fourth quarter of 1995. BCE Mobile and the other cellular affiliates of the Canadian telephone companies This is a list of telephone companies in Canada. ILECs, Incumbent Local Exchange Carriers, are indicated with a *.
Pagers in service numbered 396,000, some 26,000 higher than at September 30 and 121,000 or 44 percent higher than at the end of 1995. Included in the annual pager growth data are 48,000 pagers acquired in 1996 from TeleZone Corporation and Reseau ré·seau or re·seau n. pl. réseaus or réseaux 1. A net or mesh foundation for lace. 2. Astronomy Uni-Page Inc. REVENUES Consolidated revenues for the quarter were $262.2 million, an increase of 19 percent over the fourth quarter of 1995. For the year to date, revenues were $926.3 million or 19 percent higher than 1995. The quarterly revenue contribution of cellular service operations increased 16 percent from $163.1 million to $189.9 million reflecting growth in the subscriber base, partly offset by lower revenue per subscriber. For the twelve months, cellular service revenues were $708.7 million or 19 percent higher than in 1995. Paging services contributed $17.6 million to quarterly consolidated revenues compared to $15.6 million in 1995, an increase of 13 percent. For the twelve months, revenues increased some 16 percent to $68.3 million. The increases were due mainly to growth in the number of pagers in service, partly offset by lower revenue per pager. Revenues from equipment sales and other operations totalled $56.5 million for the quarter, up from $42.4 million in 1995. On a year-to-date basis, revenues were $156.5 million, up from $129.2 million a year ago due to a higher volume of equipment sales. OPERATING CASH FLOW Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. AND MARGIN Consolidated operating cash flow (operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation, amortization and special charges) for the three months ended December 31, 1996 was $73.4 million, compared to $66.2 million reported in the fourth quarter of 1995. For the twelve months, operating cash flow was up 14 percent at $302.5 million compared to $265.7 million in 1995. Cellular service was responsible for the increase in both the quarter and year. BCE Mobile's consolidated operating cash flow margin for the quarter was 28 percent compared to 30 percent for the fourth quarter of 1995. The margin for cellular service was 37 percent for the quarter compared to 40 percent last year. On a year-to-date basis, the cellular margin stood at 41 percent compared to 43 percent in 1995. BCE Mobile is the Canadian leader in 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. . Its subsidiaries, operating under the Bell Mobility banner, provide cellular, paging, data, airline passenger and satellite communications services and are involved in the sale of cellular hardware and private radio systems. BCE Mobile is a publicly traded subsidiary of BCE Inc. CONTACT: BCE Mobile Communications Inc. John Gutpell, 514/956-4827, jgutpell@sympatico.ca |
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