MONTRÉAL, April 3, 2025 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) will hold its first-quarter 2025 results conference call with the financial community on Thursday, May 8, 2025 at 8:00 am eastern. Participants will include Mirko Bibic, President and Chief Executive Officer, and Curtis Millen, Chief Financial Officer. Media are welcome to participate on a listen-only basis. To participate, please dial toll-free 1-844-933-2401 or 647-724-5455. A replay will be available until midnight on June 8, 2025 by ...

BCE Inc.’s (BCE) unit, Bell Media, recently augmented its footprint in the global entertainment industry by purchasing a majority stake in Montréal-based Sphere Abacus, a top global content distributor, through its parent company, Sphere Media International. The deal is expected to be finalized in the upcoming weeks.With this partnership, Bell Media and Sphere Media aim to accelerate growth, increase international content reach and broaden opportunities for Canadian creators. Sphere Abacus will now serve as ...

Group 1 - Eric is part of the investment team at RBC Insurance, holding a Master's degree in Financial Economics from the University of Western Ontario and has completed all three levels of the CFA program [1] - Currently, Eric is in the process of accumulating the necessary work experience to obtain the CFA charter, with interests in real assets, financials, and insurance [1]

Group 1 - The analyst believes that BCE will be forced to cut its dividend within 12–18 months, which is expected to negatively impact the share price [1] - The analyst has a focus on undercovered and unappreciated Canadian dividend stocks, indicating a strategy centered on identifying solid value companies that pay dividends [1]

Company Announcement - BCE Inc. has filed its 2024 annual report on Form 40-F with the U.S. Securities and Exchange Commission (SEC) [1] - The Form 40-F includes audited financial statements for the year ended December 31, 2024, and is accessible on BCE's website and the SEC's website [1] Investor Information - Holders of BCE securities can request a printed copy of the audited financial statements at no charge by contacting BCE Investor Relations [2] Company Overview - BCE is recognized as Canada's largest communications company, offering advanced Bell broadband Internet, wireless, TV, media, and business communications services [3][5] Community Initiatives - Through the "Bell for Better" initiative, BCE is investing in social and economic prosperity, including the Bell Let's Talk initiative which focuses on mental health awareness and anti-stigma campaigns [4]

Core Viewpoint - BCE Inc. reported a mixed performance in Q4 2024, with adjusted EPS exceeding expectations but total operating revenues declining year over year, leading to a significant drop in stock price [1][2][3]. Financial Performance - Adjusted EPS for Q4 2024 was C$0.79, up from C$0.76 in the prior-year quarter, surpassing the Zacks Consensus Estimate of C$0.50 [1]. - Total operating revenues decreased by 0.8% year over year to C$6,422 million ($4,590 million), while the consensus estimate was $4,469 million [2]. - Service revenues fell by 1.1% to C$5,287 million, while product revenues grew by 0.9% to C$1,135 million [2]. Segmental Results - BCE combined its Bell Wireless and Bell Wireline segments into Bell CTS, reporting a 1.1% decline in operating revenues to C$5,681 million [4]. - Within Bell CTS, service revenues decreased by 1.6% to C$4,546 million, impacted by lower legacy voice and data revenues, while product revenues increased due to higher land mobile radio sales [5][6]. Subscriber Metrics - Postpaid mobile phone net subscriber activations dropped by 56.1% year over year to 56,550, attributed to fewer new activations and increased competition [7]. - The prepaid customer base saw a slight decline of 5,480, an improvement from a loss of 36,630 in the prior-year quarter [8]. Media Performance - Bell Media revenues grew by 1.2% year over year to C$832 million, driven by higher advertising and subscriber revenues, with total digital revenue increasing by 6% [8][9]. Cash Flow and EBITDA - Adjusted EBITDA increased by 1.5% to C$2,605 million, with a margin of 40.6%, up from 39.7% in the prior-year quarter [10][12]. - Cash generated from operating activities was C$1,877 million, down from C$2,373 million in the prior-year quarter, with free cash flow at C$874 million compared to C$1,289 million a year ago [13]. 2025 Outlook - BCE anticipates revenue growth in the range of (3%)-1% and adjusted EBITDA growth of (2%)-2% for 2025, citing pricing pressure and lower subscriber growth as key challenges [14]. - The company expects free cash flow growth between 11-19% due to lower capital spending, with an annualized common dividend per share estimated at C$3.99 [14].

Core Viewpoint - High-yielding dividend stocks can present attractive investment opportunities, but recent events with Walgreens Boots Alliance highlight the risks associated with dividend sustainability, as several companies may face similar challenges in maintaining their payouts [1]. Group 1: Innovative Industrial Properties (IIP) - Innovative Industrial Properties (IIP) is a REIT focused on the cannabis industry, currently offering a yield of nearly 11%, but its shares have declined by nearly 40% in the past six months, indicating investor skepticism about its payout sustainability [3][4]. - The cannabis industry's prospects have dimmed, particularly after PharmaCann, a key tenant contributing 17% of IIP's rental revenue, defaulted on all leases, raising concerns about the REIT's ability to maintain its quarterly dividend of $1.90 per share [4][5]. - In Q3, IIP reported funds from operations per share of $2.02, which provides little buffer against its current dividend, suggesting a potential cut in the near future [5][6]. Group 2: Wendy's - Wendy's currently offers a dividend yield of 6.7%, but its revenue growth was only 2% over the first nine months of 2024, with total sales just under $1.7 billion [7]. - The company reported diluted earnings per share (EPS) of $0.71, while its quarterly dividend of $0.25 totals $0.75 over three quarters, exceeding its EPS, and free cash flow has been insufficient to cover the dividend in two of the past four quarters [8][9]. - Wendy's dividend is at risk of being unsustainable, and while management may not cut it immediately, a reduction could occur if financial performance does not improve [9]. Group 3: BCE - BCE, a Canadian telecom giant, has announced plans to acquire U.S.-based Ziply Fiber, aiming for growth in the U.S. market, but this move may incur significant costs [10]. - Despite a long history of annual dividend increases, BCE has stated it will not raise its payout this year, leading to investor dissatisfaction and a stock price decline to levels not seen since 2009 [11]. - Over the past 12 months, BCE paid out CA$3.8 billion in dividends, significantly exceeding its CA$3 billion in free cash flow, raising concerns about the sustainability of its nearly 12% yield [12].

Financial Performance and Key Metrics - BCE achieved a consolidated EBITDA margin increase of 1.2 percentage points to 43.4%, marking the highest annual margin performance in over 30 years [8] - Adjusted EBITDA rose by 1.5%, leading to a 90-point margin improvement to 40.6% [46] - Total revenue decreased by 0.8%, reflecting competitive pricing pressures and declines in legacy services [46] Business Line Performance - Wireless service revenue declined by 1.5%, but the company expects improvement in ARPU going forward [51] - Internet revenue grew by 3.4%, indicating a balance between market growth and disciplined pricing [52] - Business solutions revenue increased by 14%, driven by technology services and acquisitions [52] Market Performance - Digital revenue in media grew by 19% year-over-year, now comprising 42% of total media revenue, up from 35% in 2023 [11] - The company reported a 12% increase in households subscribing to mobility and Internet service bundles [10] Company Strategy and Industry Competition - BCE's strategic focus includes enhancing customer experience, leading in business technology services, and transforming into a digital media powerhouse [16] - The company plans to grow its fiber footprint significantly, targeting approximately 12 million fiber passings in North America by 2028 [22] - BCE aims to generate $1 billion in annual revenue from technology solutions by 2030 [26] Management Commentary on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic and regulatory pressures impacting revenue growth [14] - The company anticipates a revenue loss of approximately $125 million in 2025 due to the transition of consumer electronics sales [58] - Future revenue growth is contingent on improvements in wireless and broadband pricing [57] Other Important Information - BCE plans to reduce capital expenditures by $500 million in 2025, with a projected capital intensity ratio of approximately 14% [36][66] - The company is reviewing noncore assets for potential divestiture, with up to $7 billion expected from planned sales [42] Q&A Session Summary Question: Can you elaborate on the US fiber footprint expansion and noncore asset sales? - Management indicated that the focus is on closing the acquisition of Ziply Fiber, which will drive growth in the core fiber business [79] - Noncore asset sales do not include Bell Media, as the digital pivot is a key growth vector [78] Question: What is the target leverage ratio by the end of 2025? - The company aims to maintain a strong investment-grade credit rating and reduce net leverage, with ongoing asset reviews to strengthen the balance sheet [90] Question: What are the expectations for revenue growth guidance? - Revenue growth is dependent on sustained pricing increases in a competitive environment, with the potential for improvement if recent pricing changes stick [121]

Core Insights - BCE reported $4.59 billion in revenue for Q4 2024, a year-over-year decline of 3.5%, with EPS remaining unchanged at $0.56 [1] - The revenue exceeded the Zacks Consensus Estimate of $4.47 billion, resulting in a surprise of +2.71%, while the EPS surpassed the consensus estimate of $0.50 by +12.00% [1] Financial Performance - BCE's shares returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3] Subscriber Metrics - Gross Subscriber Activations for Postpaid were 510,850, below the estimated 561,638 [4] - Total Mobile Phone Subscribers at the end of the period were 10,288,570, compared to the average estimate of 10,425,840 [4] - Blended churn rate was reported at 2%, slightly higher than the estimated 1.9% [4]

Q4 2024 Results & 2025 Financial Guidance Call Delivering on near-term operating plan with financial discipline, while taking actions to position Bell for future success (1) Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenue. (2) Digital revenues are comprised of advertising revenue from digital platforms including web sites, mobile apps, connected TV apps and OOH digital assets/platforms, as well as advertising procured through Bell digital buying platforms and subscription r ...