BCE's Wireless and Broadband Results Are Phenomenal in an Overall Good Third Quarter

The magnitude of subscriber additions in both wireless and fixed-line broadband was the highlight of BCE’s third-quarter results. On the downside, the media business is seeing weakness due to the broader economic environment. Also, consolidated margins were relatively weak, and strength with retail broadband subscribers is barely enough to offset weakness in wireline voice and enterprise services. While the quarter was good and some of the negatives will be only short-term in nature, our long-term outlook is unaltered, and we are maintaining our CAD 67 fair value estimate. We think the stock is attractive but not overly compelling.