Bell Canada's Q3 revenue rose 1.8% to $3.8 billion while EBITDA was up 2.4%. Bell's operating income was $451 million, or 34% lower than last year due to restructuring and other charges of $320 million this quarter. These charges include amounts for workforce reduction initiatives, the proposed privatization transaction, and the relocation of employees and the closing of real estate facilities. Adjusted for these charges, Bell's operating income grew by 3.6%.
Some highlights:
- The Bell Wireless segment had 113,000 postpaid net activations, or 49% more than last year, with postpaid churn improving to 1.1% from 1.4%. Total net activations were 117,000, reflecting a decrease in prepaid net activations to 4,000 from 61,000 the year before. Total Bell Wireless operating revenues increased by 9.3% and Bell Wireless EBITDA grew by 6.0%.
- Wireline momentum continued with improvements in residential line losses for the fourth consecutive quarter and improving performance in the high-speed Internet business. High-speed Internet net activations were 33,000 this quarter, compared with 29,000 in Q3 2007, bringing Bell's total high-speed Internet customer connections to 2,046,000.
- Residential local line losses improved by 32,000 to 72,000 this quarter from 104,000 in the same quarter last year. Total NAS declined by 10.0% over the last twelve months. However, total NAS declined by just 5.8% when normalized for the previously announced contract termination with a major wholesale customer and a beginning-of-year adjustment to Bell's residential NAS base following a review of historical records.
- Bell's operating revenues grew by 1.8% to $3,757 million this quarter as growth in wireless, video, and data revenues more than offset declines in local and access, long distance, and equipment and other revenues. Revenues from Bell's growth services portfolio of wireless, video, high-speed Internet and other services, such as ICT solutions, grew by 8% and now represent 60% of Bell's revenues.
