High cash flow spurs gains for BCE

Article Excerpt

BCE continues to use its strong cash flow of almost $6 billion a year to make acquisitions and improve its services. That’s already fuelling its profit growth. It will also help it keep expanding and improving its wireless and high-speed Internet networks, buying back shares and paying (and possibly further raising) its dividend. BCE INC. $35.86 (Toronto symbol BCE; Shares outstanding: 774.2 million; Market cap: $27.8 billion; TSINetwork Rating: Above Average; Dividend yield: 5.5%; www.bce.ca) provides telephone and Internet services in Ontario and Quebec. It also sells wireless and satellite-TV services across Canada. In the three months ended December 31, 2010, BCE’s revenue rose slightly, to $4.02 billion from $3.98 billion in the prior year. Before one-time items, earnings rose 32.8%, to $0.60 from $0.51. Strong demand for its highly profitable wireless and television services offset falling revenue from the company’s traditional telephone operations. BCE has completed the $3.2-billion purchase of the 85% of CTVglobemedia that it didn’t own. CTV owns the 27-station…

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