Bell Media sees ad revenue boost in Q2

The company also reported a 21% increase in Crave subscribers for Q2, which helped to offset losses in BDU subscribers.

BCE saw positive financial results for its media business in the second quarter of fiscal 2024, including an increase in ad revenue.

Bell Media’s operating income increased 0.9% to $812 million in Q2 2024 compared to the second quarter of 2023. This was driven by a 1.9% increase in advertising revenue, due in part to a strong performance in specialty sports TV for the quarter, as well as the acquisition of OOH company Outedge Media Canada, which was completed in June.

The Canadian Grand Prix and higher international sales of Bell Media content also contributed to an increase in total media revenue in the quarter, according to the company. An average of 1.48 million people tuned in to watch the Grand Prix on TSN, RDS, CTV and Noovo, making it the highest F1 audience on record.

Bell Media’s digital revenues grew by 23%, also as a result of advertising, as well as Crave and sports direct-to-consumer streaming subscriber growth.

Crave subscribers grew 21%, while sports subscribers doubled over last year, due to major events such as UEFA and Copa América. A total of 18.7 million people tuned into Bell’s sports coverage through TSN, RDS and CTV, according to the company. However, the company reported an overall 4.7% year-over-year decline in subscriber revenues, due to losses in BDU subscribers.

Overall, BCE increased its earnings, despite a 1% drop in operating revenues, coming in at more than $6 billion. Net earnings increased to $604 million in Q2 from $397 million during the same period in 2023.

Earnings attributable to shareholders increased 63% year-over-year to $537 million in Q2. Its operating revenue was $6 billion, down 1% compared to 2023. CEO Mirko Bibic attributed the decline to competition from rival mobile and internet providers, as well as the closure of 107 outlets of The Source, which is wholly owned by Bell and is currently being rebranded as Best Buy Express.

Service revenue was up 0.1% to $5.31 million, as growth in Bell Media was offset primarily by a year-over-year decline in Bell Communication and Technology Services (Bell CTS).

This story originally appeared in Media in Canada

Image courtesy of Bell Media