<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="- Total company non-GAAP revenue of $280 million , or 23% growth year-over-year; total company GAAP revenue of $267 million , or 18% growth year-over-year” data-reactid=”11″>- Total company non-GAAP revenue of $280 million , or 23% growth year-over-year; total company GAAP revenue of $267 million , or 18% growth year-over-year
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="- Total non-GAAP Software and Services revenue of $275 million , or 26% growth year-over-year; total GAAP Software and Services revenue of $262 million , or 21% growth year-over-year; both are record quarterly highs” data-reactid=”12″>- Total non-GAAP Software and Services revenue of $275 million , or 26% growth year-over-year; total GAAP Software and Services revenue of $262 million , or 21% growth year-over-year; both are record quarterly highs
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="- Total company non-GAAP earnings per basic and diluted share of $0.03 ; GAAP loss per basic share of $0.06 and GAAP loss per diluted share of $0.07 ” data-reactid=”13″>- Total company non-GAAP earnings per basic and diluted share of $0.03 ; GAAP loss per basic share of $0.06 and GAAP loss per diluted share of $0.07
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="- Total company free cash flow generated of $37 million , as reported” data-reactid=”14″>- Total company free cash flow generated of $37 million , as reported
WATERLOO, Ontario , Dec. 20, 2019 /CNW/ — BlackBerry Limited (NYSE: BB; TSX: BB) today reported financial results for the three months ended November 30, 2019 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
BlackBerry Logo Black (PRNewsfoto/Blackberry Limited)
Total company non-GAAP revenue for the third quarter of fiscal 2020 was $280 million , up 23% year-over-year. Total company GAAP revenue for the third quarter of fiscal 2020 was $267 million , up 18% year-over-year. Total non-GAAP software and services revenue was $275 million , up 26% year-over-year. Total GAAP software and services revenue was $262 million , up 21% year-over-year. Third quarter recurring non-GAAP software and services revenue (excluding IP licensing and professional services) was over 90%. Non-GAAP gross margin was 77% and GAAP gross margin was 74%.
Total company non-GAAP operating earnings was $20 million . Total company GAAP operating loss was $29 million . Non-GAAP earnings per share was $0.03 (basic and diluted). GAAP net loss was $0.06 per basic share and $0.07 per diluted share. GAAP net loss includes $35 million for acquired intangibles amortization expense, $15 million in stock compensation expense, $10 million in restructuring charges, a benefit of $20 million related to the fair value adjustment on the debentures, and other amounts as summarized in a table below.
Total cash, cash equivalents, short-term and long-term investments was $970 million as of November 30, 2019 . Free cash flow generated, before considering the impact of acquisition and integration expenses, restructuring costs and legal proceedings, was $41 million . Cash generated from operations was $40 million and capital expenditures were $3 million .
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""BlackBerry achieved sequential growth in revenue across all of our software businesses while generating healthy non-GAAP profitability and free cash flow as we continue to invest in our future," said John Chen , Executive Chairman and CEO, BlackBerry. "I am pleased with our progress. Our pipeline is growing as we deliver against our product roadmap and execute on our go-to-market expansion." ” data-reactid=”43″>“BlackBerry achieved sequential growth in revenue across all of our software businesses while generating healthy non-GAAP profitability and free cash flow as we continue to invest in our future,” said John Chen , Executive Chairman and CEO, BlackBerry. “I am pleased with our progress. Our pipeline is growing as we deliver against our product roadmap and execute on our go-to-market expansion.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Outlook BlackBerry will provide fiscal year 2020 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR.” data-reactid=”44″>Outlook BlackBerry will provide fiscal year 2020 outlook in connection with the quarterly earnings announcement on its earnings conference call. The earnings call transcript will be made available on our website and on SEDAR.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Reconciliation of GAAP revenue, gross margin, gross margin percentage, income (loss) before income taxes, net income (loss) and basic earnings (loss) per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share for the three months ended November 30, 2019 :” data-reactid=”45″>Reconciliation of GAAP revenue, gross margin, gross margin percentage, income (loss) before income taxes, net income (loss) and basic earnings (loss) per share to Non-GAAP revenue, gross margin, gross margin percentage, income before income taxes, net income and basic earnings per share for the three months ended November 30, 2019 :
Q3 Fiscal 2020 Non-GAAP Adjustments
For the Three Months Ended November 30, 2019
(in millions, except for per share amounts)
Income statement location
Revenue
Gross margin (before taxes)
Gross margin % (before taxes)
Income (loss) before income taxes
Net income (loss)
Basic earnings (loss) per share
As reported
$
267
$
198
74.2
%
$
(30)
$
(32)
$
(0.06)
Debentures fair value adjustment (2)
Debentures fair value adjustment
—
—
—
%
(20)
(20)
Restructuring charges (3)
Cost of sales
—
3
1.1
%
3
3
Restructuring charges (3)
Selling, marketing and administration
—
—
—
%
7
7
Software deferred revenue acquired (4)
Revenue
13
13
1.1
%
13
13
Software deferred commission expense acquired (5)
Selling, marketing and administration
—
—
—
%
(4)
(4)
Stock compensation expense (6)
Cost of sales
—
1
0.4
%
1
1
Stock compensation expense (6)
Research and development
—
—
—
%
4
4
Stock compensation expense (6)
Selling, marketing and administration
—
—
—
%
10
10
Acquired intangibles amortization (7)
Amortization
—
—
—
%
35
35
Adjusted
$
280
$
215
76.8
%
$
19
$
17
$
0.03
Note: Non-GAAP revenue, non-GAAP gross margin, non-GAAP gross margin percentage, non-GAAP income before income taxes, non-GAAP net income and non-GAAP basic earnings per share do not have a standardized meaning prescribed by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes that the presentation of these non-GAAP measures enables the Company and its shareholders to better assess the Company’s operating results relative to its operating results in prior periods and improves the comparability of the information presented. Investors should consider these non-GAAP measures in the context of the Company’s GAAP results.
(1)
During the third quarter of fiscal 2020, the Company reported GAAP gross margin of $198 million or 74.2% of revenue. Excluding the impact of stock compensation expense and restructuring charges included in cost of sales and software deferred revenue acquired included in revenue, non-GAAP gross margin was $215 million, or 76.8% of revenue.
(2)
During the third quarter of fiscal 2020, the Company recorded the Q3 Fiscal 2020 Debentures Fair Value Adjustment of $20 million. This adjustment was presented on a separate line in the Consolidated Statements of Operations.
(3)
During the third quarter of fiscal 2020, the Company incurred restructuring charges of approximately $10 million, of which $3 million was included in cost of sales and $7 million was included selling, marketing and administration expense.
(4)
During the third quarter of fiscal 2020, the Company recorded software deferred revenue acquired but not recognized due to business combination accounting rules of $13 million, which was included in BlackBerry Cylance revenue.
(5)
During the third quarter of fiscal 2020, the Company recorded deferred commission expense acquired but not recognized due to business combination accounting rules of approximately of $4 million.
(6)
During the third quarter of fiscal 2020, the Company recorded stock compensation expense of $15 million, of which $1 million was included in cost of sales, $4 million was included in research and development, and $10 million was included in selling, marketing and administration expense.
(7)
During the third quarter of fiscal 2020, the Company recorded amortization of intangible assets acquired through business combinations of $35 million, which was included in amortization expense.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Supplementary Revenue by Product and Service Type Breakdown” data-reactid=”54″>Supplementary Revenue by Product and Service Type Breakdown
BlackBerry Limited
(United States dollars, in millions)
Revenue by Product and Service Type
U.S. GAAP
Adjustments
Non-GAAP
For the Three Months Ended
For the Three Months Ended
For the Three Months Ended
November 30, 2019
November 30, 2018
November 30, 2019
November 30, 2018
November 30, 2019
November 30, 2018
IoT
$
145
$
148
$
—
$
2
$
145
$
150
BlackBerry Cylance
40
1
13
—
53
1
Licensing
77
68
—
—
77
68
Other
5
9
—
—
5
9
Total
$
267
$
226
$
13
$
2
$
280
$
228
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Conference Call and Webcast A conference call and live webcast will be held today beginning at 8 a.m. ET , which can be accessed by dialing 1- 877-682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 11 a.m. ET by dialing 1-800-585-8367 and entering Conference ID #9608207 and at the link above.” data-reactid=”57″>Conference Call and Webcast A conference call and live webcast will be held today beginning at 8 a.m. ET , which can be accessed by dialing 1- 877-682-6267 or by logging on at BlackBerry.com/Investors. A replay of the conference call will also be available at approximately 11 a.m. ET by dialing 1-800-585-8367 and entering Conference ID #9608207 and at the link above.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="About BlackBerry BlackBerry (NYSE: BB; TSX: BB) is a trusted security software and services company that provides enterprises and governments with the technology they need to secure the Internet of Things. Based in Waterloo, Ontario , the company is unwavering in its commitment to safety, cybersecurity and data privacy, and leads in key areas such as artificial intelligence, endpoint security and management, encryption and embedded systems. For more information, visit BlackBerry.com and follow @BlackBerry.” data-reactid=”58″>About BlackBerry BlackBerry (NYSE: BB; TSX: BB) is a trusted security software and services company that provides enterprises and governments with the technology they need to secure the Internet of Things. Based in Waterloo, Ontario , the company is unwavering in its commitment to safety, cybersecurity and data privacy, and leads in key areas such as artificial intelligence, endpoint security and management, encryption and embedded systems. For more information, visit BlackBerry.com and follow @BlackBerry.
This news release contains forward-looking statements within the meaning of certain securities laws, including under the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws, including statements regarding: BlackBerry’s plans, strategies and objectives including the anticipated benefits of its strategic initiatives and its intentions to expand and enhance its product and service offerings.
The words “expect”, “anticipate”, “estimate”, “may”, “will”, “should”, “could”, “intend”, “believe”, “target”, “plan” and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by BlackBerry in light of its experience, historical trends, current conditions and expected future developments, as well as other factors that BlackBerry believes are appropriate in the circumstances. Many factors could cause BlackBerry’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including the following risks: BlackBerry’s ability to enhance, develop, introduce or monetize products and services for the enterprise market in a timely manner with competitive pricing, features and performance; BlackBerry’s ability to maintain or expand its customer base for its software and services offerings to grow revenue or achieve sustained profitability; the intense competition faced by BlackBerry; the occurrence or perception of a breach of BlackBerry’s network or product security measures or an inappropriate disclosure of confidential or personal information could significantly harm its business; risks related to BlackBerry’s continuing ability to attract new personnel, retain existing key personnel and manage its staffing effectively; BlackBerry’s dependence on its relationships with resellers and channel partners; risks related to acquisitions, divestitures, investments and other business initiatives, which may negatively affect BlackBerry’s results of operations; risks related to BlackBerry’s products and services being dependent upon interoperability with rapidly changing systems provided by third parties; the risk that failure to protect BlackBerry’s intellectual property could harm its ability to compete effectively and BlackBerry may not earn the revenues it expects from intellectual property rights; the risk that BlackBerry could be found to have infringed on the intellectual property rights of others; the risk that litigation against BlackBerry may result in adverse outcomes; risks related to the use and management of user data and personal information, which could give rise to liabilities as a result of legal, customer and other third-party requirements; BlackBerry’s ability to obtain rights to use third-party software; the risk that network disruptions or other business interruptions could have a material adverse effect on BlackBerry’s business and harm its reputation; BlackBerry’s ability to generate revenue and profitability through the licensing of security software and services or the BlackBerry brand to device manufacturers; the substantial asset risk faced by BlackBerry, including the potential for charges related to its long-lived assets and goodwill; risks related to BlackBerry’s indebtedness, which could adversely affect its operating flexibility and financial condition; risks related to government regulations applicable to BlackBerry’s products and services, including products containing encryption capabilities, which could negatively impact BlackBerry’s business; risks related to foreign operations, including fluctuations in foreign currencies; risks associated with any errors in BlackBerry’s products and services, which can be difficult to remedy and could have a material adverse effect on BlackBerry’s business; risks related to the failure of BlackBerry’s suppliers, subcontractors, channel partners and representatives to use acceptable ethical business practices or to comply with applicable laws, which could negatively impact BlackBerry’s business; BlackBerry’s reliance on third parties to manufacture and repair its hardware products; risks related to the Company’s success in fostering an ecosystem of third-party application developers; risks related to regulations regarding health and safety, hazardous materials usage and conflict minerals, and to product certification risks; risks related to tax provision changes, the adoption of new tax legislation or exposure to additional tax liabilities, which could materially impact BlackBerry’s financial condition; risks related to the fluctuation of BlackBerry’s quarterly revenue and operating results; the volatility of the market price of BlackBerry’s common shares; and risks related to adverse economic and geopolitical conditions, which may negatively affect BlackBerry.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry's Annual Information Form, which is included in its Annual Report on Form 40-F and the "Cautionary Note Regarding Forward-Looking Statements" section of BlackBerry's MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry’s shareholders to view the anticipated performance and prospects of BlackBerry from management’s perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry’s financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry’s business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.” data-reactid=”67″>These risk factors and others relating to BlackBerry are discussed in greater detail in BlackBerry’s Annual Information Form, which is included in its Annual Report on Form 40-F and the “Cautionary Note Regarding Forward-Looking Statements” section of BlackBerry’s MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). All of these factors should be considered carefully, and readers should not place undue reliance on BlackBerry’s forward-looking statements. Any statements that are forward-looking statements are intended to enable BlackBerry’s shareholders to view the anticipated performance and prospects of BlackBerry from management’s perspective at the time such statements are made, and they are subject to the risks that are inherent in all forward-looking statements, as described above, as well as difficulties in forecasting BlackBerry’s financial results and performance for future periods, particularly over longer periods, given changes in technology and BlackBerry’s business strategy, evolving industry standards, intense competition and short product life cycles that characterize the industries in which BlackBerry operates. BlackBerry has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions except share and per share amounts) (unaudited)
Consolidated Statements of Operations
For the Three Months Ended
For the Nine Months Ended
November 30, 2019
August 31, 2019
November 30, 2018
November 30, 2019
November 30, 2018
Revenue
$
267
$
244
$
226
$
758
$
649
Cost of sales
69
68
56
207
157
Gross margin
198
176
170
551
492
Gross margin %
74.2
%
72.1
%
75.2
%
72.7
%
75.8
%
Operating expenses
Research and development
66
62
55
199
167
Selling, marketing and administration
132
132
93
385
299
Amortization
49
48
33
146
105
Debentures fair value adjustment
(20)
(23)
(69)
(71)
(111)
227
219
112
659
460
Operating income (loss)
(29)
(43)
58
(108)
32
Investment income (loss), net
(1)
—
2
2
13
Income (loss) before income taxes
(30)
(43)
60
(106)
45
Provision for income taxes
2
1
1
5
3
Net income (loss)
$
(32)
$
(44)
$
59
$
(111)
$
42
Earnings (loss) per share
Basic
$
(0.06)
$
(0.08)
$
0.11
$
(0.20)
$
0.08
Diluted
$
(0.07)
$
(0.10)
$
(0.01)
$
(0.27)
$
(0.09)
Weighted-average number of common shares outstanding (000s)
Basic
554,585
552,343
540,406
552,931
538,251
Diluted
615,085
612,843
600,906
613,431
598,751
Total common shares outstanding (000s)
552,132
548,336
547,084
552,132
547,084
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Balance Sheets
As at
November 30, 2019
February 28, 2019
Assets
Current
Cash and cash equivalents
$
515
$
548
Short-term investments
367
368
Accounts receivable, net
216
233
Other receivables
13
19
Income taxes receivable
10
9
Other current assets
58
56
1,179
1,233
Restricted cash and cash equivalents
32
34
Long-term investments
56
55
Other long-term assets
23
28
Deferred income tax assets
—
2
Operating lease right-of-use assets
133
—
Property, plant and equipment, net
76
85
Goodwill
1,459
1,463
Intangible assets, net
955
1,068
$
3,913
$
3,968
Liabilities
Current
Accounts payable
$
27
$
48
Accrued liabilities
193
192
Income taxes payable
19
17
Debentures
609
—
Deferred revenue, current
264
253
1,112
510
Deferred revenue, non-current
117
136
Operating lease liabilities
127
—
Other long-term liabilities
8
19
Long-term debentures
—
665
Deferred income tax liabilities
1
2
1,365
1,332
Shareholders’ equity
Capital stock and additional paid-in capital
2,742
2,688
Deficit
(157)
(32)
Accumulated other comprehensive loss
(37)
(20)
2,548
2,636
$
3,913
$
3,968
BlackBerry Limited
Incorporated under the Laws of Ontario
(United States dollars, in millions) (unaudited)
Consolidated Statements of Cash Flows
For the Nine Months Ended
November 30, 2019
November 30, 2018
Cash flows from operating activities
Net income (loss)
$
(111)
$
42
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization
160
116
Stock-based compensation
46
53
Non-cash consideration received from contract with a customer
(8)
—
Debentures fair value adjustment
(71)
(111)
Other long-term assets
—
2
Operating leases
(12)
—
Other
9
4
Net changes in working capital items:
Accounts receivable, net
17
13
Other receivables
6
46
Income taxes receivable
(1)
13
Other assets
3
(1)
Accounts payable
(21)
(14)
Income taxes payable
2
(1)
Accrued liabilities
(24)
(57)
Deferred revenue
(10)
(23)
Other long-term liabilities
7
—
Net cash provided by (used in) operating activities
(8)
82
Cash flows from investing activities
Acquisition of long-term investments
(1)
(2)
Proceeds on sale or maturity of long-term investments
—
2
Acquisition of property, plant and equipment
(9)
(14)
Proceeds on sale of property, plant and equipment
—
1
Acquisition of intangible assets
(24)
(24)
Business acquisitions, net of cash acquired
1
—
Acquisition of short-term investments
(829)
(2,754)
Proceeds on sale or maturity of short-term investments
830
2,962
Net cash provided by (used in) investing activities
(32)
171
Cash flows from financing activities
Issuance of common shares
8
5
Finance lease liability
(2)
—
Net cash provided by financing activities
6
5
Effect of foreign exchange loss on cash, cash equivalents, restricted cash, and restricted cash equivalents
(1)
(3)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents during the period
(35)
255
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of period
582
855
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period
Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.
The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.
Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.
The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.
Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”
“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.
“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”
Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.
The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.
It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.
Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.
It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.
“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.
Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.
The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.
Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.
The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.
“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.
Asked how long that environment could last, he said that’s out of Telus’ hands.
“What I can control, though, is how we go to market and how we lead with our products,” he said.
“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”
Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.
On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.
That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.
Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”
“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.
“We will continue to monitor developments and will take further action if our codes are not being followed.”
French said any initiative to boost transparency is a step in the right direction.
“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.
“I think everyone looking in the mirror would say there’s room for improvement.”
This report by The Canadian Press was first published Nov. 8, 2024.
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
