Yahoo Finance BCE Divests Its MLSE Ownership Stake to Rogers for C$4.7 Billion
BCE Inc. BCE has finalized an agreement to sell its ownership stake in Maple Leaf Sports and Entertainment ("MLSE") to Rogers Communications Inc. ("Rogers") for C$4.7 billion. The deal is subject to approval from the relevant sports leagues and other customary conditions, and it is anticipated to close in mid-2025.
Furthermore, Bell Media has obtained a long-term agreement with Rogers to secure content rights for the Toronto Maple Leafs and Toronto Raptors, allowing The Sports Network (“TSN”) to broadcast games of these teams for the next 20 years, pending league approvals. This partnership reinforces TSN’s position as Canada’s sports leader, providing the country’s top sports content, highlighted BCE. TSN will also continue to air games for the Toronto Argonauts and Toronto FC through separate agreements with their respective leagues.
Bell will continue to serve as the official telecommunications sponsor for the Toronto Raptors while maintaining its sponsorships of the Toronto Argonauts and Toronto FC. This commitment emphasizes Bell's dedication to MLSE, its teams, their fans and the leagues. The partnership will also support joint community initiatives through Bell for Better, including programs like Bell Inbound Assist with the Toronto Raptors, added BCE.
BCE Plans to Pay Off Debt
As of June 30, 2024, BCE's long-term debt was C$38.887 billion, up from C$37.816 billion on March 31, 2024, while cash reserves increased to C$1.398 billion from C$789 million. Consequently, BCE’s debt-to-capital ratio has also risen, now at 0.62. This substantial debt is a significant concern for the company.
BCE noted that it plans to use the proceeds from this sale to reduce its debt levels and support its transition from a telecommunications firm to a technology-focused business.
BCE, Inc. Price and Consensus
BCE, Inc. price-consensus-chart | BCE, Inc. Quote
BCE is Canada’s largest communications service provider and serves as the holding company for Bell Canada.
Its Bell Media segment generated revenues of C$812 million in the second quarter of 2024, increasing 0.9% year over year. The uptick was the result of a 1.9% rise in advertising revenues driven by solid TV sports specialty performance along with continued strength in digital advertising. The F1 Canadian Grand Prix and increasing international sales of Bell Media programming contributed to this revenue performance. The acquisition of OUTFRONT Media in June 2024 was another tailwind.
However, soft demand trends in product revenues affected the company’s performance, resulting in a revenue decline of 1% year over year to C$6,005 million in the said quarter.
BCE’s Zacks Rank & Stock Price Performance
BCE currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 2.5% in the past year against the sub-industry's growth of 7.5%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Manhattan Associates, Inc. MANH, ANSYS, Inc. ANSS and American Software, Inc. AMSWA. MANH presently sports a Zacks Rank #1 (Strong Buy), whereas ANSS and AMSWA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Manhattan Associates delivered an earnings surprise of 26.6%, on average, in the trailing four quarters. In the last reported quarter, MANH pulled off an earnings surprise of 22.9%. The Zacks Consensus Estimate for MANH has increased 9.2% to $4.26 in the past 60 days.
ANSYS delivered an earnings surprise of 4.8%, on average, in three of the trailing four quarters. In the last reported quarter, ANSS pulled off an earnings surprise of 28.9%. It has a long-term earnings growth expectation of 6.4%.
American Software delivered an earnings surprise of 84.5%, on average, in the trailing four quarters. In the last reported quarter, AMSWA pulled off an earnings surprise of 71.4%. The Zacks Consensus Estimate for AMSWA has increased 8.6% to 38 cents in the past 60 days.
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