Bell Media announced a tentative $410-million deal Monday to buy the Canadian operations of outdoor advertising company Outfront Media Inc. in a move that experts say could solidify its hold on the out-of-home advertising market.
The acquisition, which is expected to close in 2024 subject to regulatory approval and other conditions, would see the BCE Inc. subsidiary take over Outfront Media’s 9,325 advertising displays in Canada.
Bell Media, which owns television and radio stations as well as digital and out-of-home media assets, bought Astral Media in 2013 for $3.2 billion, gaining one of Canada’s largest out-of-home advertising brands.
For Bell, the Outfront deal would add to its 45,000 advertising displays that are part of the Astral brand.
Dwayne Winseck, a professor at Carleton University’s School of Journalism and Communication, said the move would increase Bell’s share of the $622-million out-of-home advertising market in Canada from around 20 to 35 per cent.
“It would be the dominant player in this small part of the advertising market,” he said. “It would further buttress its cross-media advertising opportunities with more addressable ad targeting capabilities.”
But Winseck said there may be a larger motive by Bell “lurking in this deal” as the telecommunications company seeks to expand its footprint of 5G infrastructure.
He said 5G networks require thousands of small antennae to be placed in relatively close proximity to one another throughout service areas, which means companies need to be able to access key site locations such as street furniture and buildings.
“Companies deploying 5G have to get permissions to access and locate their antennae on those things,” said Winseck.
“Is BCE really buying just an out-of-home ad business … or is it buying that and site locations that are essential to 5G in cities across Canada where Astral Media and Outfront Media have 50,000-plus sites? I think it’s the latter.”
He said if that’s the case, then regulatory approval of the transaction should be conditional upon a transparent and open wholesale access regime “so that control over street furniture does not become one more arrow in BCE’s quiver used to hobble mobile wireless competition.”
Stewart Johnston, senior vice-president of sales and sports at Bell Media, said out-of-home advertising continues to grow in importance as a mass reach vehicle, as digital formats allow for greater targeting capabilities.
“Outfront’s diverse array of Canadian assets reinforces Astral’s dedication to delivering impactful, multi-channel marketing solutions, while accelerating Bell Media’s digital strategy,” he said in a statement.
“The synergy between Outfront’s established expertise and our commitment to driving innovation will provide clients with tremendous opportunities on a true coast-to-coast footprint.”
Outfront Media chair and chief executive Jeremy Male said the sale would provide the company with additional financial flexibility as it focuses on its U.S. assets.
National Bank of Canada Financial Markets analyst Adam Shine said outdoor signage is a growing segment in media “that is relatively less exposed to secular pressures.”
“The Outfront platform involves a higher mix of traditional outdoor signage compared to Astral, which consists of a lot of metro and airport signage as well as so-called street furniture (columns, bus stops),” Shine said in a note to investors on Monday.
Shine noted Outfront’s portfolio is more geographically diverse than that of Astral, which could satisfy any competition concerns surrounding the deal.
“While the Astral business skews 75 per cent to Quebec and 25 per cent to Ontario, the Outfront business in Canada is about 50 per cent out west, 40 per cent or more in Ontario, and the rest in Quebec,” he said.
“As such, this appears to be a geographic complement for Bell Media which need not necessarily trigger serious regulatory concerns, but we’ll see what the Competition Bureau says.”
This report by The Canadian Press was first published Oct. 23, 2023.
TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.
The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.
The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.
The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.
Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.
Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.
This report by The Canadian Press was first published Nov. 6, 2024.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
