Bell parent company BCE Inc. BCE-T posted a net loss of $1.2-billion in its third quarter, largely attributable to a $2.1-billion writedown of its television and radio properties.
BCE also revised its 2024 revenue guidance downwards to reflect sustained competitive wireless pricing pressures, from a previously anticipated growth of 0 to 4 per cent to a decline of 1.5 per cent.
The $1.2-billon loss is compared to a profit of $707-million last year. The company said the writedown of its media assets reflects a further decline in advertising demand and spending, and higher interest and severance costs.
The third-quarter loss compared to a profit of $640-million last year. The loss translated to $1.36 a share, compared to a profit of 70 cents last year.
The company’s stock has tumbled more than 10 per cent since Monday, when the company announced it was acquiring internet provider Ziply Fiber for $5-billion, while also putting dividend hikes on hold to help fix its balance sheet.
BCE’s share price has been sliding for two years on concerns of slower growth, high debt and a competitive telecom market.
On an adjusted basis, the company saw a decline in profitability and revenue. The company reported earnings of $688-million, down 7.2 per cent from last year. The company’s revenue dropped slightly, down 1.8 per cent.
This quarter, the company also announced the sale of its 37.5-per-cent stake in Maple Leaf Sports & Entertainment to Rogers Communications Inc. for $4.7-billion.
More to come