The article discusses BCE Inc.’s third-quarter financial results, which showed a loss due to an asset impairment charge. Here are some key points from the article:
- Loss and Asset Impairment: BCE reported a net income of $443 million for the quarter, down 27% from the same period last year, largely due to an asset impairment charge of $2.3 billion.
- Revenue Reduction: The company’s operating revenues fell by 2% year-over-year to $5.97 billion, driven by lower-than-expected wireless product revenue and sustained pressure on wireless prices.
- Wireless Performance: BCE added 33,111 net postpaid mobile phone subscribers in the quarter but at a slower pace than expected due to higher customer churn amid increased competition and promotional offers.
- Deal with Ziply Fiber: BCE announced it would buy U.S.-based fiber internet provider Ziply for $5 billion in cash, using proceeds from the sale of its stake in Maple Leaf Sports & Entertainment.
- Revenue Guidance Downgraded: The company revised down its 2024 revenue guidance by about 1.5%, citing lower wireless product revenue and sustained pressure on wireless prices.
Some quotes from BCE’s CEO, Adam C. Belic, include:
- "You’ve got to align your cost structure in those segments that are declining, to align the cost of revenues."
- "If some assets are going to perpetually decline, we might shed those lines of business, like some of the radio stations."
Overall, while BCE reported a loss due to an asset impairment charge, its acquisition plans and focus on growth areas suggest the company remains committed to investing in new opportunities.