Bell Canada's operating revenue increased 2.5% year-on-year to CAD5.850 billion (USD4.576 billion) in Q1 2022, driven by 4.2% higher service revenue of CAD5.177 billion on strong mobile, residential internet and media division growth. Product (equipment) revenue was down 8.8% to CAD673 million, reflecting fewer new mobile device transactions and lower business wireline data equipment sales. Adjusted EBITDA grew 6.4% y-o-y to CAD2.584 million in January-March 2022, driven by growth at all Bell operating segments. BCE's consolidated adjusted Q1 EBITDA margin increased 1.6 percentage points y-o-y to 44.2% due to the flow-through impact of higher y-o-y service revenue and a decline in low-margin product sales. Quarterly net income increased 36.0% y-o-y to CAD934 million and net income attributable to common shareholders totalled CAD877 million, up 36.6%, due to higher adjusted EBITDA, higher other income and lower severance, acquisition and other costs, partly offset by higher income taxes from higher earnings.
BCE CAPEX reached CAD952 million in 1Q22, compared to CAD1.012 billion in the year-ago quarter, a decrease attributed to timing of projects. CAPEX spending in the most recent quarter was focused on the continued accelerated rollout of Bell's fibre-to-the-premises (FTTP) and 5G networks.
CEO Mirko Bibic noted: 'This is the first quarter since the start of the pandemic in which our consolidated financial results surpassed pre-COVID levels and I am very proud of the Bell team for their continued focus on operational excellence, and all that they've done over the past two years to deliver for our customers.'
Thanks to TeleGeography for this industry update.