BCE Inc. faced a notable downturn in its first-quarter performance, grappling with increased costs and diminished revenues compared to the previous year. The company's profit attributable to common shareholders amounted to $402 million or 44 cents per share for the quarter ending March 31, a decline from $725 million or 79 cents per share during the same period in the prior year. Operating revenue also saw a dip, totaling $6.01 billion compared to $6.05 billion in the first quarter of 2023.
Factors contributing to this decline include higher severance, acquisition, and other costs, alongside increased net mark-to-market losses on derivatives, higher interest costs, and elevated depreciation and amortization expenses. On an adjusted basis, BCE reported earnings of 72 cents per share, down from 85 cents per share in the same quarter last year.
Despite these challenges, BCE's president and CEO, Mirko Bibic, remains optimistic, citing a solid start to the year amidst operational efficiencies and efforts to address economic pressures while balancing growth and profitability. Bibic highlighted the Bell team's ability to navigate a competitive landscape successfully.
On the subscriber front, BCE added 45,247 net postpaid mobile phone subscribers, marking a 4.5 percent increase from the previous year. This growth was attributed to factors like population expansion, sustained demand for 5G and bundled services, effective promotions, and improved performance by Virgin Plus, its discount carrier. However, the monthly churn rate for the category rose to 1.21 percent from 0.9 percent in the previous first quarter, reflecting heightened competition and reduced business customer demand.
Additionally, Bell's wireless mobile phone average revenue per user saw a slight decrease to $58.14 from the prior year's first quarter.
This report by The Canadian Press underscores BCE's ongoing efforts to navigate market challenges and maintain its competitive edge. CTV News, a division of Bell Media, is part of BCE Inc.
In conclusion, BCE Inc.'s first-quarter performance reflects a challenging operating environment characterized by increased costs and declining revenues compared to the previous year. Despite these headwinds, BCE remains focused on driving operational efficiencies and addressing economic pressures while maintaining a balance between growth and profitability. The company's president and CEO, Mirko Bibic, expressed confidence in the Bell team's ability to navigate these challenges successfully. Looking ahead, BCE will likely continue to prioritize strategies aimed at sustaining subscriber growth, enhancing service offerings, and adapting to an increasingly competitive market landscape.