Core Insights - BCE Inc. reported second-quarter 2025 adjusted EPS of C$0.63, down from C$0.78 in the prior-year quarter, missing the Zacks Consensus Estimate of C$0.52 per share [1][8] - Total operating revenues increased by 1.3% year over year to C$6,085 million, surpassing the consensus estimate of C$4,324.9 million [2][8] - Product revenues surged by 17.4% to C$818 million, while total service revenues dipped by 1.5% to C$5,267 million [2][8] Financial Performance - Bell CTS segment's operating revenues rose by 1% year over year to C$5,334 million, driven by higher product revenues, although service revenues fell by 1.5% to C$4,516 million [3][8] - Mobile phone blended ARPU decreased by 0.7% to C$57.61, attributed to competitive pricing pressures and lower data overage revenues [9] - Adjusted EBITDA fell by 0.9% year over year to C$2,674 million, with a margin of 43.9% compared to 44.9% in the prior-year quarter [11] Subscriber Metrics - Postpaid mobile phone net subscriber activations were 44,547, down from 78,500 in the prior-year quarter, due to a 14.8% decline in gross activations [5][8] - Prepaid mobile phone net subscriber activations decreased to 49,932 from 52,543 in the prior-year quarter, driven by a 3.7% decline in gross activations [6][8] Media Segment - Bell Media revenues grew by 3.8% year over year to C$843 million, supported by an 8.1% increase in subscriber revenues, despite a 3.1% decline in ad revenues [10][8] Cash Flow and Guidance - Operating cash flow decreased by 8.9% year over year to C$1,947 million, while free cash flow increased by 5% to C$1,152 million [12][8] - BCE updated its 2025 financial guidance, now anticipating revenue growth of 0-2%, adjusted EBITDA growth of 0-2%, and a revised free cash flow outlook of 6% to 11% lower [13][14]

For the quarter ended June 2025, BCE (BCE) reported revenue of $4.4 billion, up 0.2% over the same period last year. EPS came in at $0.46, compared to $0.57 in the year-ago quarter.The reported revenue represents a surprise of +1.69% over the Zacks Consensus Estimate of $4.32 billion. With the consensus EPS estimate being $0.52, the EPS surprise was -11.54%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, ...

Financial Data and Key Metrics Changes - BCE reported a total revenue growth of 1.3% in Q2 2025, driven by fiber strategy and premium wireless subscriber retention [32] - EBITDA decreased by 0.9% due to higher cost of goods sold, while net earnings and statutory EPS increased due to lower asset impairment charges [33] - Adjusted EPS fell by 19.2%, reflecting noncash mark-to-market losses on FX hedges and options, higher interest expense, and lower tax adjustments [33] - Free cash flow increased by 5% in Q2 2025 [34] Business Line Data and Key Metrics Changes - Internet revenue grew by 3%, supported by the addition of 27,000 new FTTH customers in Canada [12][36] - Wireless service revenue declined by approximately 3%, marking the second consecutive quarter of improvement in the year-over-year rate of decline [37] - Bell Media's total revenue increased by approximately 4%, driven by an 8.1% rise in subscription revenue [38] Market Data and Key Metrics Changes - BCE's acquisition of Zipline Fiber expanded its fiber footprint by 1.4 million locations, positioning it as the third-largest fiber Internet provider in North America [11] - The Canadian AI data center market is projected to grow at an annual rate exceeding 20% [26] Company Strategy and Development Direction - BCE's strategic priorities include putting customers first, delivering superior fiber and wireless networks, leading with AI-powered solutions, and building a digital media powerhouse [6] - The company aims to become the backbone of Canada's AI economy through its Bell AI Fabric initiative, which includes purpose-built AI data centers [24] - BCE is focused on executing its strategic plan while investing significantly in Canadian content and technology services [30] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the federal government's decision regarding CRTC's wholesale access but remains focused on executing the strategic plan [30] - The company anticipates continued growth in free cash flow and revenue, particularly from the integration of Zipline Fiber and the PSP partnership [46] Other Important Information - BCE's balance sheet remains strong with $3.8 billion in available liquidity and a net debt leverage ratio of approximately 3.5 times adjusted EBITDA [39] - The company is targeting a year-end 2025 net debt leverage ratio of approximately 3.8 times, reflecting the impacts of the MLSE sale and Zipline Fiber acquisition [40] Q&A Session Summary Question: Can you unpack guidance regarding Zipline and any adjustments? - Management indicated that Zipline continues to outperform initial financial expectations, and the revised guidance reflects the combined company's performance [51][52] Question: What is the expected free cash flow profile evolution from Zipline? - Management expects continued EBITDA growth from Zipline, with significant free cash flow growth anticipated once the PSP partnership is operational [61] Question: Can you discuss the long-term revenue opportunity for Bell AI Fabric? - Management highlighted a large total addressable market (TAM) for AI services and emphasized the integration of various elements of the enterprise strategy to drive growth [64][66] Question: How sustainable are the improvements in wireless churn metrics? - Management noted that churn reduction is a multifaceted approach, with ongoing customer service improvements contributing to the positive trend [89] Question: How should investors view the existing business compared to earlier guidance? - Management stated that the midpoint of guidance has increased, reflecting improved expectations for revenue and EBITDA, while free cash flow remains stable [91]

Financial Data and Key Metrics Changes - BCE reported a total revenue growth of 1.3% in Q2 2025, driven by fiber strategy and premium wireless subscriber retention [30] - EBITDA decreased by 0.9% due to higher cost of goods sold, while net earnings and statutory EPS increased due to lower asset impairment charges [31] - Adjusted EPS fell by 19.2%, reflecting noncash mark-to-market losses and higher interest expenses [31] - Free cash flow increased by 5% in Q2 2025 [31] Business Line Data and Key Metrics Changes - Internet revenue grew by 3%, supported by strong fiber service offerings [32] - Wireless service revenue declined by approximately 3%, marking a second consecutive quarter of improvement in the year-over-year decline rate [34] - Bell Media's revenue increased by approximately 4%, driven by strong digital momentum and a significant rise in streaming subscribers [35] Market Data and Key Metrics Changes - BCE added 94,479 new net mobile phone subscribers in Q2, with postpaid churn improving to 1.06%, marking the first year-over-year improvement in nearly three years [12][13] - The company added 27,000 new FTTH customers in Canada, despite a slowdown in fiber build [11] - Zipline Fiber's acquisition expanded BCE's fiber footprint by 1,400,000 locations, positioning it as the third-largest fiber Internet provider in North America [10] Company Strategy and Development Direction - BCE's strategic priorities include putting customers first, enhancing fiber and wireless networks, leading in AI-powered solutions, and building a digital media powerhouse [4][5] - The acquisition of Zipline Fiber is a key milestone in BCE's fiber growth strategy, aimed at diversifying revenue in unregulated markets [10] - The company aims to become the backbone of Canada's AI economy through initiatives like Bell AI Fabric, which includes purpose-built AI data centers [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed disappointment over the federal government's decision regarding CRTC's wholesale access but remains focused on executing the strategic plan [28] - The company anticipates continued growth in free cash flow and revenue driven by customer-first initiatives and momentum in wireless and enterprise sectors [29] - Management highlighted the strong demand for AI services and the expected growth in Canadian AI data centers, projecting an annual growth rate exceeding 20% [24] Other Important Information - BCE plans to host an Investor Day on October 14, 2025, to showcase its strategic elements and long-term shareholder value creation [29] - The company is targeting a year-end 2025 net debt leverage ratio of approximately 3.8 times, reflecting the impacts of the Zipline Fiber acquisition [37] Q&A Session Summary Question: Can you unpack guidance regarding Zipline and any adjustments? - Management indicated that Zipline continues to outperform initial financial expectations, and the revised guidance reflects the combined company's performance [48][49] Question: What is the expected free cash flow profile evolution from Zipline? - Management expects continued EBITDA growth from Zipline, with a significant reduction in CapEx due to the PSP partnership, leading to improved free cash flow [56][58] Question: What is the long-term revenue opportunity for Bell AI Fabric? - Management highlighted a large total addressable market (TAM) for AI services and emphasized the integration of various elements of the enterprise strategy to drive growth [61][62] Question: How sustainable are the improvements in wireless churn metrics? - Management noted that churn reduction is a multifaceted approach, with ongoing customer service improvements and a focus on retention strategies [89] Question: How does the new guidance reflect the existing business versus initial expectations? - Management stated that the midpoint of guidance has increased, indicating a more positive view of the existing business compared to earlier in the year [92]

BCE (BCE) came out with quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -11.54%. A quarter ago, it was expected that this Canada's largest telecommunications company would post earnings of $0.44 per share when it actually produced earnings of $0.48, delivering a surprise of +9.09%.Over the last fou ...

Q2 2025 Results Conference Call August 7, 2025 Safe harbour notice Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to: statements relating to BCE's 2025 financial guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS, free cash flow and annualized common share dividend); BCE's capital allocation priorities; BCE's net debt leverage ratio and net debt leverage policy target expected to be reached ...

This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Regarding Forward-Looking Statements" later in this news release. The information contained in this news release is unaudited. Consolidated revenue up 1.3% in Q2 2025 compared with Q2 2024, while consolidated adjusted EBITDA1 declined 0.9% reflecting higher operating costs for strong product revenue growth Net earnings of $644 million, up 6.6% with ne ...

This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled "Caution Concerning Forward-Looking Statements" later in this news release. MONTRÉAL, Aug 1, 2025 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that it has successfully completed its acquisition of Ziply Fiber, the leading fibre Internet provider in the Pacific Northwest of the United States for C$5.0 billion (U.S. $3.65 billion) in cash, and ...

The market expects BCE (BCE) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on August 7, might help the stock move higher if these key numbers are better than expecta ...

Core Viewpoint - BCE is positioned well to continue its trend of beating earnings estimates, supported by a strong history of performance in the telecommunications industry [1][2]. Group 1: Earnings Performance - BCE has consistently surpassed earnings estimates, achieving an average beat of 10.55% over the last two quarters [2]. - In the most recent quarter, BCE reported earnings of $0.44 per share against an expectation of $0.48, resulting in a surprise of 9.09% [3]. - For the previous quarter, BCE exceeded the consensus estimate of $0.50 per share by reporting $0.56, marking a surprise of 12.00% [3]. Group 2: Earnings Estimates and Predictions - There has been a favorable adjustment in earnings estimates for BCE, with a positive Earnings ESP (Expected Surprise Prediction) indicating potential for another earnings beat [6]. - BCE currently has an Earnings ESP of +3.52%, reflecting increased analyst optimism regarding its near-term earnings potential [9]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data indicating that nearly 70% of stocks with this combination achieve positive surprises [7][9]. Group 3: Importance of Earnings ESP - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [8]. - A negative Earnings ESP can diminish predictive power but does not necessarily indicate an earnings miss [10]. - Utilizing the Earnings ESP metric is crucial for identifying stocks with a higher probability of beating consensus estimates prior to earnings releases [11].