BCE stays ahead of the competition

Article Excerpt

BCE operates in a competitive, fast-changing market, but this top telecom continues to adapt and grow. For example, its Fibe Internet TV service is attracting more users, and the company recently expanded its media segment with its purchase of Astral Media. These moves bode well for BCE’s profits, dividends—and share price. BCE INC. $48.28 (Toronto symbol BCE; Shares outstanding: 777.3 million; Market cap: $37.5 billion; TSINetwork Rating: Above Average; Dividend yield: 5.1%; www.bce.ca) is Canada’s largest provider of telephone, Internet and wireless services. It also offers satellite and Internet TV across the country. In the three months ended March 31, 2014, BCE’s earnings per share rose 5.2%, to $0.81 from $0.77 a year earlier. Revenue increased 4.4%, to $4.54 billion from $4.35 billion. Revenue from wireless services (32% of total revenue) rose 4.6%. The company’s network upgrades continue to attract new wireless subscribers, and it’s benefiting from rising use of smartphones, which generate higher monthly fees than regular cellphones. The wireline (land line) division,…