BCE’s total operating revenue was up 3.7% in Q4 and 3.1% for the full year.

Media operating revenue at Bell Media increased by 4.7% year-over-year in Q4, with a 3.8% increase in ad revenue and 5.4% growth in subscriber revenue. For the full year, media revenues were up 7.2%, with 3.7% growth in ad revenue, BCE reported on Thursday (Feb. 2).

Bell said while there is “soft” demand for TV and radio advertising due to current economic conditions, it managed to deliver growth due to demand for its broadcasts of the FIFA World Cup. It also said that out-of-home advertising and digital channels continue to grow, with the former recovering well after downturns during the pandemic.

Digital revenues at Bell grew by 46% in Q4 and 54% in 2022, due to growth in Crave subscriptions and more bookings through SAM, the company’s audience segmentation and sales tool. Digital revenues now represent 29% of Bell’s total revenue, up from 20% in 2021.

Subscriber revenue increased by 5.4% in Q4 and 8.3% for the full year, driven mainly by growth at Crave (6% over the course of 2022) and TSN.

Adjusted EBITDA, however, was down 15.7% in Q4 across the Media segment, which the company attributed to higher sports programming costs, including the World Cup, as well as the normalization of entertainment content deliveries.

Net earnings across Bell were also down 13.8% in Q4 and up by only 1.2% for the full year. The company attributed this to impairment charges French-language TV properties to reflect declining advertising demand, as well as higher interest rates increasing that expense.

In its other segments, Bell Wireless revenue was up 7.7% in Q4, with wireline revenue roughly flat at 0.5% year-over-year growth. Bell’s capital expenditures were also up by 11.7% in Q4 as it continues to invest in building out its fibre and 5G networks.

Bell offered revenue guidance of between 1% and 5% for the full year. In its outlook for 2023, the company said it had its eyes on several potential headwinds, including the impact of an economic recession, inflation and supply chain challenges on the ad market, though it expects improvement on those factors by the second half of the year. It also said there was potential for a smaller data and voice market as consumers switch to lower-price pans or OTT competition.

Rogers

Meanwhile, Rogers revenue grew by 6% year-over-year at Rogers in Q4, including 17% growth in the company’s Media segment. For the full year, revenue was up 5%, with 15% growth in media.

The company said the increase in Media revenue came from its sports properties, including the Toronto Blue Jays, as well as increases in advertising revenue. Both were attributed to economic recovery from the COVID-19 pandemic, as well as the lifting of various mandates resulting in things like sporting events being permitted to fill to full capacity.

Elsewhere at the company, Rogers had 7% year-over-year revenue growth both for Q4 and the full year. Operating expenses for the segment were also up due to more device upgrades by customers and more advertising behind its wireless service. Revenue in its cable segment was flat.

Rogers offered full-year guidance of between 4% to 7% revenue growth. While the company predicted a “moderate” recession in the first half of 2023, it was not listed among the factors it took into account for its outlook. Rogers said it was “confident” that it has “the right team, a strong balance sheet and the world-class networks” to maintain its growth; it did not mention advertiser demand in its results.

This story originally appeared in Media in Canada.

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