BCE says more cost restructuring possible in media division as Q2 net earnings fall almost 40%
Following a quarter in which it began cutting 1,300 positions, shuttered six radio stations and closed two foreign news bureaus, BCE Inc. says more cost restructuring could be in store in response to declining ad revenue and regulatory hurdles.
The Montreal-based telecommunications and media company reiterated the significance of those challenges on Aug. 3 as it reported its second-quarter earnings and addressed analysts on a conference call.
Bell Media faces operating losses across its news divisions, “a prolonged advertising slump with no signs of immediate recovery,” rising content production costs and “a more challenging regulatory environment that has not adapted to the new realities facing media,” said chief financial officer Glen LeBlanc.
“This has required us to rightsize our operating cost structure and asset portfolio to align with the expected revenue potential of our media business,” he said.
“Going forward, we will need to continue doing so in order to deliver for our shareholders in this unconstructive economic and regulatory environment.”
President and chief executive officer Mirko Bibic added that the company would continue monitoring regulatory and political developments that could impact Bell’s bottom line.
“On the media front, more needs to be done by the CRTC faster. The ecosystem in Canada is under severe stress and requires urgent government assistance,” Bibic said.
“The regulatory playing field does not present an environment where the same rules apply to all.”
In June, Bell Media asked the federal telecommunications regulator to waive local news and Canadian programming requirements for its television stations, saying those obligations are based on outdated market realities.
The application, which
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