Canadian media giant BCE Inc. (TSX:BCE) has reported a massive quarterly loss.
The owner of Bell Canada reported that its profit sank 64% in the second quarter as COVID-19 stung the giant telecommunications company, whose media division was particularly hard hit. Net earnings in the three months ending June 30 totaled $294 million, compared to $817 million a year earlier. On an adjusted basis, BCE earned $0.63 per share -- missing the average analyst estimate by six cents.
Revenue for fell 31% year-over-year at Bell Media in the quarter amid what the company described as a "material drop" in advertising proceeds as major league sports were suspended and other live events cancelled.
The company's key wireless division also suffered because of the global pandemic as revenue fell 11% in the quarter. Postpaid net new wireless subscriber additions totaled 21,632, down sharply from a year earlier when almost 103,000 customers were added. In a news release, BCE blamed the downturn on store closures and reduced promotional activity.
BCE's wireline business stood out for its stability, as revenue inched down just 1.0 per cent to $3.04 billion.
BCE opted not to present forward guidance after previously suspending its outlook in May. The company said there remains too much uncertainty surrounding COVID-19. However, it did state that it will be able to sustain its dividend thanks to its liquidity position.
