Skip to main content

Consensus estimates for BCE, which reports on Aug. 8, are for $4.96-billion in revenues and net income of $623-million.

MATHIEU BELANGER/REUTERS

Telecommunications firm BCE Inc. is positioned to report strong second-quarter earnings this week, even as it continues to go through huge changes.

Once a landline phone monopoly, it has grown organically and through acquisitions into a wireless and broadcasting powerhouse.

After paying $1.3-billion to take full control of CTV Inc. in 2010, Bell threw down $3-billion for Astral Media Inc. even as it battled with Rogers Communications Inc., Telus Corp. and a host of feisty upstart wireless firms for new smartphone customers.

Story continues below advertisement

The Montreal-based company's diversity of revenue appears to have helped, arguably making it less vulnerable than other Canadian telcos – most notably Rogers – to shifts in behaviour by wireless consumers, such as hordes amassing to buy a new iPhone that requires a hefty, profit-denting subsidy.

Analysts view BCE as being a somewhat less risky bet than Rogers, which surpassed estimates in the quarter but remains under pressure from wireless competitors, but not quite as safe as Vancouver-based Telus, favoured by some for its exposure to Western Canada's booming oil economy and consistent wireless results.

Consensus estimates for BCE, which reports on Aug. 8, are for $4.96-billion in revenues, earnings per share of about 77 cents, and net income of $623-million.

Greg MacDonald, the telecom analyst at Macquarie Capital Markets Canada, suggests there is low risk for investors going into the company's earnings.

He also expects to see progress on Bell's new TV service, which has not been pushed as aggressively as Telus's similar service, as well as on Bell's wireless margins. Intense wireless competition from deep-discounting upstarts such as Wind Mobile and Mobilicity has eased slightly.

Bell should also benefit on media revenues from its sports properties, he added.

Report an error Licensing Options
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

We’ve made some technical updates to our commenting software. If you are experiencing any issues posting comments, simply log out and log back in.

Discussion loading… ✨

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.