Bell's Q2 results lead to a hike in the dividend
squeeze more profits out of each dollar of revenue in the period. EBITDA margins for the second quarter came to 44.6% from 39.2% year-over year.
Bell released some interesting statistics related to their wireless business. The cost to acquire each postpaid customer was $381, a decline of 4.8% from the $400 it took to rope in a new contract-signing account last year. The cost of retaining these accounts rose to 9.8% of wireless revenue from 9.1% in 2011. Bell says that it is focusing on the more profitable postpaid customer and on a net basis added 102,067 such customers in period from 94,309 in Q2 2011. The net number of new pre-paid subscribers declined to 54,859 in the three month period compared with 57,802 last year. But that was actually the result of fewer customer deactivations. Postpaid churn dropped to 1.3% in the period from 1.5% last year, while pre-paid churn was flat at 3.7%.
The carrier says it has the largest next-generation LTE pipeline in Canada, covering more than 49% of all the country's population across 23 markets in 7 provinces and territories. It plans on expanding ts 4G HSPA+ and enhanced 4G HSPA+ DC (Dual Cell) networks, which now cover more than 97% and more than 80% of the Canadian population, respectively.
source: Bell via MobileSyrup