BCE Inc.
Toronto symbol BCE, provides local and long distance telephone services in Ontario and Quebec. It also operates a nationwide wireless service.
BCE INC. $43.43 (Toronto symbol BCE; Shares outstanding: 773.9 million; Market cap: $33.6 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also sells satellite TV services across the country. The company just bought Canadian radio and TV giant Astral Media for $3.4 billion.
In the three months ended June 30, 2012, BCE’s earnings per share rose 18.6%, to $1.02 from $0.86 a year earlier. Revenue fell 0.6%, to $4.9 billion from $5.0 billion. Revenue at the traditional telephone business, which supplies 57% of BCE’s overall revenue, fell 3.9%, partly due to strong competition from cable companies.
However, some of BCE’s land-line clients are switching to mobile phones, which are more profitable for the company. That helped fuel a 6.7% revenue increase at the wireless division (31% of total revenue). Revenue at BCE’s media division (12%) rose 0.9%.
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In the three months ended June 30, 2012, BCE’s earnings per share rose 18.6%, to $1.02 from $0.86 a year earlier. Revenue fell 0.6%, to $4.9 billion from $5.0 billion. Revenue at the traditional telephone business, which supplies 57% of BCE’s overall revenue, fell 3.9%, partly due to strong competition from cable companies.
However, some of BCE’s land-line clients are switching to mobile phones, which are more profitable for the company. That helped fuel a 6.7% revenue increase at the wireless division (31% of total revenue). Revenue at BCE’s media division (12%) rose 0.9%.
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BCE INC., $42.86, Toronto symbol BCE, has failed to win regulatory approval for its $3.4-billion deal to buy Astral Media Inc. (Toronto symbols ACM.A and ACM.B). Montreal-based Astral owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as the Movie Network, Family Channel and Teletoon. It also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C. Regulators felt the purchase would give BCE an overwhelming share of the TV broadcast market, which would hurt competition....
We still think safety-conscious investors should focus on shares of well-established companies with strong businesses. The best of these stocks offer an attractive combination of low p/e ratios, steady or rising dividends and promising growth prospects. BCE has raised its dividend eight times since December 2008. The stock now yields a high 5.2%. It is also inexpensive in relation to BCE’s earnings. BCE INC. $43.43 (Toronto symbol BCE; Shares outstanding: 773.9 million; Market cap: $33.6 billion; TSINetwork Rating: Above Average; Dividend yield: 5.2%; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also sells satellite TV services across the country. The company just bought Canadian radio and TV giant Astral Media for $3.4 billion. In the three months ended June 30, 2012, BCE’s earnings per share rose 18.6%, to $1.02 from $0.86 a year earlier. Revenue fell 0.6%, to $4.9 billion from $5.0 billion. Revenue at the traditional telephone business, which supplies 57% of BCE’s overall revenue, fell 3.9%, partly due to strong competition from cable companies....
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BELL ALIANT INC. $27.24 (Toronto symbol BA; Shares outstanding: 227.8 million; Market cap: $6.2 billion; TSINetwork Rating: Average; Dividend yield: 7.0%; www.aliant.ca) sells telephone and Internet services to 2.8 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE, which owns 43.8% of Bell Aliant. The company’s revenue fell 0.7% in the three months ended June 30, 2012, to $687.7 million from $692.6 million a year earlier. Strong gains from Internet TV (up 79.6%), wireless (up 14.6%) and Internet services (up 5.8%) were offset by declines in local phone service (down 5.4%) and long distance (down 11.6%). Bell Aliant earned $79.3 million, or $0.35 a share, in the quarter. That’s down 5.0% from $83.5 million, or $0.36 a share, a year earlier. If you exclude writedowns and other unusual items, earnings per share fell 2.3%, to $0.42 from $0.43....
BELL ALIANT INC. $27 (Toronto symbol BA, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 229.0 million; Market cap: $6.2 billion; Price-to-sales ratio: 2.3; Dividend yield: 7.0%; TSINetwork Rating: Average; www.bellaliant.ca) sells telephone and Internet services to 2.6 million customers in Atlantic Canada and rural parts of Ontario and Quebec. It also sells wireless services through an alliance with BCE, which owns 44% of Bell Aliant.
The company continues to replace its copper-wire cables with fibre optic lines. That’s letting it sell more high-speed Internet and digital TV services, which are offsetting falling demand for land lines. (Traditional phones still supply 55% of Bell Aliant’s overall revenue.)
The company’s fibre optic systems now reach 574,000 homes. It aims to increase that to 650,000 by the end of 2012.
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The company continues to replace its copper-wire cables with fibre optic lines. That’s letting it sell more high-speed Internet and digital TV services, which are offsetting falling demand for land lines. (Traditional phones still supply 55% of Bell Aliant’s overall revenue.)
The company’s fibre optic systems now reach 574,000 homes. It aims to increase that to 650,000 by the end of 2012.
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BCE INC. $44 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.9 million; Market cap: $34.1 billion; Priceto- sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) has 5.9 million telephone customers in Ontario and Quebec, as well as 2.1 million high-speed Internet subscribers and 2.1 million TV clients. In addition, the company’s wireless business now has 7.5 million subscribers across Canada.
BCE continues to expand its media division, which includes the 28-station CTV Television Network, 30 specialty channels and 33 radio stations. The company recently agreed to buy Astral Media (Toronto symbols ACM.A and ACM.B), which owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. Astral also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C.
The purchase price is $3.4 billion, including $380 million of Astral’s debt. BCE will pay roughly 75% of this cost in cash and 25% in common shares.
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BCE continues to expand its media division, which includes the 28-station CTV Television Network, 30 specialty channels and 33 radio stations. The company recently agreed to buy Astral Media (Toronto symbols ACM.A and ACM.B), which owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. Astral also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C.
The purchase price is $3.4 billion, including $380 million of Astral’s debt. BCE will pay roughly 75% of this cost in cash and 25% in common shares.
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All three of these telecom firms are using their steady cash flows to upgrade their networks with the latest technology. That’s letting them launch profitable new services, such as Internet TV and video calling, that are cutting their reliance on their shrinking telephone (or land line) businesses. These popular services are also helping all three companies maintain their high dividends. BCE INC. $44 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 773.9 million; Market cap: $34.1 billion; Priceto- sales ratio: 1.6; Dividend yield: 5.2%; TSINetwork Rating: Above Average; www.bce.ca) has 5.9 million telephone customers in Ontario and Quebec, as well as 2.1 million high-speed Internet subscribers and 2.1 million TV clients. In addition, the company’s wireless business now has 7.5 million subscribers across Canada. BCE continues to expand its media division, which includes the 28-station CTV Television Network, 30 specialty channels and 33 radio stations. The company recently agreed to buy Astral Media (Toronto symbols ACM.A and ACM.B), which owns 22 TV stations, 84 radio stations and several pay TV and specialty channels, such as The Movie Network, Family Channel and Teletoon. Astral also owns billboards and sells other outdoor advertising in Quebec, Ontario and B.C....
BELL ALIANT INC. $25.09 (Toronto symbol BA; Shares outstanding: 227.8 million; Market cap: $5.7 billion; TSINetwork Rating: Average; Dividend yield: 7.6%; www.aliant.ca) sells telephone and Internet services to 2.8 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE, which owns 43.8% of Bell Aliant.
The company faces strong competition from cable providers. In addition, many of its phone customers are switching to wireless devices. However, Bell Aliant’s wireless agreement with BCE, plus upgrades to its high-speed Internet network, are helping it hold on to its current clients and attract new ones.
Bell Aliant’s high-speed fibre optic systems now reach 458,000 homes. The company plans to increase that to 650,000 by the end of 2012. Its capital expenditures were $177 million in the latest quarter, up 14.8% from a year earlier.
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The company faces strong competition from cable providers. In addition, many of its phone customers are switching to wireless devices. However, Bell Aliant’s wireless agreement with BCE, plus upgrades to its high-speed Internet network, are helping it hold on to its current clients and attract new ones.
Bell Aliant’s high-speed fibre optic systems now reach 458,000 homes. The company plans to increase that to 650,000 by the end of 2012. Its capital expenditures were $177 million in the latest quarter, up 14.8% from a year earlier.
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TELUS CORP., Toronto symbols T $64.00 and T.A $62.68, has revived its plan to merge its common shares (one vote per share) and its non-voting class A shares into a single class. Under the terms of the proposal, each non-voting share will become one common share. Investors in each share class, voting separately, must approve the plan at a special meeting on October 17, 2012. The company cancelled a vote on the proposal that was scheduled for May 2012 because it felt it had little chance of winning. That’s because U.S.-based hedge fund Mason Capital, which now owns around 19% of Telus’s common shares and a small portion of the non-voting shares, said it would vote against the plan. Mason is using a complex stock-trading strategy that would let it lock in a profit if shareholders reject the proposal....