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BCE's Subsidiary Bell Implements Restructuring Measures
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BCE Inc’s (BCE - Free Report) subsidiary Bell announced significant measures to address the decline in revenues in its legacy phone and news businesses, per a report from Reuters. The company plans to cut 1,300 jobs, close six radio stations, and sell three radio stations. These actions are due to the challenges faced by the media industry, such as reduced advertising revenues, inflation, and the shift from traditional cable TV to streaming services.
The majority of the job cuts will impact management positions, reflecting the broader trend of cost-cutting in the media sector. Bell anticipates an annual decline of $250 million in legacy phone revenues. Additionally, the news operation is experiencing annual operating losses amounting to $40 million, per a report from Reuters.
The Canadian telecom industry has faced pressure from the government to reduce phone bills in the market characterized by limited competition. Furthermore, proposed legislation aimed at compelling Internet giants, like Google and Facebook, to pay news publishers for their content has faced obstacles. As a response, these companies have conducted tests to restrict some users' access to news content, added Reuters.
As part of its restructuring efforts, Bell will close the CTV television network's bureaus in London and Los Angeles, as well as scale back its Washington outpost. This move has drawn heavy criticism due to the loss of experienced journalists, added Reuters.
Overall, these measures reflect Bell's strategy to adapt to the evolving media landscape and address the financial challenges it faces in its legacy phone and news businesses. Bell plans to inform affected employees about the changes this week.
BCE provides wireless service, data communications, telephone and high-speed Internet to small and medium-sized businesses. In the first quarter, Bell Media generated revenues of C$780 million, declining 5.5% year over year. The revenues decreased due to lower subscribers and advertisers.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans.
BCE currently has a Zacks Rank #3 (Hold). Shares of the company have lost 4.7% in the past year compared with the sub-industry’s decline of 5.1%.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 16% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 102.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of the company have jumped 31.1% in the past year.
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BCE's Subsidiary Bell Implements Restructuring Measures
BCE Inc’s (BCE - Free Report) subsidiary Bell announced significant measures to address the decline in revenues in its legacy phone and news businesses, per a report from Reuters. The company plans to cut 1,300 jobs, close six radio stations, and sell three radio stations. These actions are due to the challenges faced by the media industry, such as reduced advertising revenues, inflation, and the shift from traditional cable TV to streaming services.
The majority of the job cuts will impact management positions, reflecting the broader trend of cost-cutting in the media sector. Bell anticipates an annual decline of $250 million in legacy phone revenues. Additionally, the news operation is experiencing annual operating losses amounting to $40 million, per a report from Reuters.
The Canadian telecom industry has faced pressure from the government to reduce phone bills in the market characterized by limited competition. Furthermore, proposed legislation aimed at compelling Internet giants, like Google and Facebook, to pay news publishers for their content has faced obstacles. As a response, these companies have conducted tests to restrict some users' access to news content, added Reuters.
BCE, Inc. Price and Consensus
BCE, Inc. price-consensus-chart | BCE, Inc. Quote
As part of its restructuring efforts, Bell will close the CTV television network's bureaus in London and Los Angeles, as well as scale back its Washington outpost. This move has drawn heavy criticism due to the loss of experienced journalists, added Reuters.
Overall, these measures reflect Bell's strategy to adapt to the evolving media landscape and address the financial challenges it faces in its legacy phone and news businesses. Bell plans to inform affected employees about the changes this week.
BCE provides wireless service, data communications, telephone and high-speed Internet to small and medium-sized businesses. In the first quarter, Bell Media generated revenues of C$780 million, declining 5.5% year over year. The revenues decreased due to lower subscribers and advertisers.
Prepaid mobile phone and net subscriber activations decreased owing to higher customer churn due to promotional offers on postpaid plans.
BCE currently has a Zacks Rank #3 (Hold). Shares of the company have lost 4.7% in the past year compared with the sub-industry’s decline of 5.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks in the broader technology space are Dropbox (DBX - Free Report) , Badger Meter (BMI - Free Report) and Blackbaud (BLKB - Free Report) . Dropbox sports a Zacks Rank #1 (Strong Buy), whereas Badger Meter and Blackbaud hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 16% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have surged 102.9% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of the company have jumped 31.1% in the past year.