BCE’s outlook is bright

Article Excerpt

BCE aggressively cut its costs last year, including reducing its staff by 7%. The cuts were in response to a takeover bid by a consortium led by the Ontario Teachers’ Pension Plan. The bid failed, but BCE’s cost cuts have left it in a strong position to compete during the recession, and to profit when the economy rebounds. BCE INC. $26.01 (Toronto symbol BCE; Shares outstanding: 791.6 million; Market cap: $20.6 billion; SI Rating: Above Average) has over 7.5 million telephone and Internet customers in Ontario and Quebec. It also has 6.5 million wireless subscribers across Canada. In the three months ended December 31, 2008, BCE’s revenue fell 0.7%, to $4.49 billion from $4.52 billion. However, earnings per share before one-time items rose 19.6%, to $0.55 from $0.46. BCE’s cellphone revenue rose 7.6% in 2008, and subscribers grew by 4.5%. Wireless accounts for 25% of BCE’s revenue and 43% of its profit. How Successful Investors Get RICH Learn everything you need to know in 'The Canadian Guide on How to Invest in Stocks Successfully' for FREE from The Successful Investor. How to Invest In Stocks Guide: Find 10 factors that make your investments safer and stronger. Since mid-2008, BCE has laid off over 7% of its staff…

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