BCE Conference Call Summary Company Overview - **Company**: BCE Inc. (NYSE: BCE) - **Date of Conference**: November 24, 2025 Key Industry Insights - **Canadian Telecom Market**: The competitive environment in Canada is stabilizing, with a return to rational pricing compared to the US market, which has been more aggressive recently [4][5] - **Market Trends**: The company is experiencing a shift in revenue sources, moving from legacy services to growth areas such as wireless, internet, and AI-powered solutions [2][3] Financial Performance and Projections - **EBITDA Growth**: BCE expects a resumption of EBITDA growth over the next three years, although margin improvement may not be anticipated during this period [1][2] - **Free Cash Flow**: The company is targeting a 15% growth in free cash flow while deleveraging and funding new business initiatives [3] - **Revenue Per User (RPU)**: Monthly rates are increasing year-over-year, indicating a healthier competitive environment with new subscribers contributing to higher RPU [5][6] Strategic Initiatives - **Fiber Expansion**: BCE has set a target to pass 8 million homes with fiber in the US, leveraging partnerships and funding to support this initiative [10][11] - **B2B Opportunities**: The company is focusing on improving its B2B segment, which has been outperforming other enterprise businesses in North America [17] - **AI and Technology Solutions**: BCE is investing in AI-powered solutions and cybersecurity, aiming to provide comprehensive solutions to government and enterprise customers [18][20] Capital Allocation and Investment Strategy - **CapEx Guidance**: BCE plans to maintain a CapEx of $3.7 billion in 2025 and 2028, focusing on efficiency and strategic growth initiatives [30][31] - **Investment Criteria**: The company has established a higher bar for capital investments, prioritizing projects with strong returns and operational efficiencies [30][31] Market Share and Subscriber Growth - **Subscriber Strategy**: BCE is focused on profitable subscriber growth, emphasizing the importance of maintaining a strong brand and reducing churn [9][28] - **Fiber Penetration**: The company aims to increase fiber penetration significantly, with a target of over 50% market share in areas where fiber is available [29] Conclusion - **Future Outlook**: BCE is positioned for positive growth in free cash flow by 2026, with a clear strategy to execute its plans in fiber expansion, technology solutions, and capital allocation [32][33]

Monty Rakusen/DigitalVision via Getty Images All financial figures are reported in CAD unless otherwise noted. All financial figures are from Seeking Alpha, unless otherwise noted. A Bounceback Is On The Horizon We are revisiting BCE Inc. (BCE:CA) (BCE), or “Bell,” after ...

, /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today announced that none of its fixed rate Cumulative Redeemable First Preferred Shares, Series R (Series R Preferred Shares) will be converted into floating rate Cumulative Redeemable First Preferred Shares, Series Q (Series Q Preferred Shares) on December 1, 2025.  Based on total revenue and total combined customer connections. Media inquiries Ellen Murphy [email protected] Investor inquiries Krishna Somers [email protected] On October 17, 2025, BCE no ...

Core Insights - BCE Inc. reported third-quarter 2025 adjusted earnings per share (EPS) of C$0.79, an increase from C$0.75 in the prior-year quarter, surpassing the Zacks Consensus Estimate of 52 cents [1][11] - The company's quarterly operating revenues rose 1.3% year over year to C$6.05 billion, driven by a 0.8% increase in service revenue and a 5.1% rise in product revenue [2][11] Financial Performance - BCE's operating revenues were C$6.05 billion, with service revenue at C$5.33 billion and product revenue at C$720 million, aided by the acquisition of Ziply Fiber [2][3] - Free cash flow surged 20.6% to C$1 billion, attributed to lower capital expenditures and costs [11][18] - Adjusted EBITDA rose 1.5% year over year to C$2.76 billion, with a steady adjusted EBITDA margin of 45.7% [15] Segment Analysis - The newly structured Bell CTS segment generated C$5.41 billion in revenue, up 2.4% year over year, benefiting from both service and product revenue growth [6] - Bell CTS Canada's operating revenue declined 0.6% to C$5.2 billion, with service revenue falling 1.5% to C$4.5 billion due to declines in legacy services [7] - Bell Media's operating revenue decreased 6.4% to C$732 million, impacted by weak advertising and subscriber revenues [14] Customer Metrics - Postpaid mobile phone net additions totaled 11,511, down 65.2% year over year, reflecting a decline in gross activations [9] - Prepaid mobile phone net additions were 56,507, down from 69,085 in the prior-year quarter, due to a decrease in gross activations and higher churn [12] Capital Expenditures and Cash Flow - Capital expenditures decreased 6.6% to C$891 million, with capital intensity dropping to 14.7% from 16% in the prior-year quarter [17] - Cash flow from operating activities rose 3.9% to C$1.91 billion, driven by improved working capital [18] Future Guidance - For 2025, BCE anticipates revenue growth of 0-2% and adjusted EBITDA growth in the same range, while free cash flow is forecasted to grow by 6% to 11% [19]

Core Insights - BCE reported revenue of $4.39 billion for the quarter ended September 2025, reflecting a year-over-year increase of 0.4% and a surprise of +0.96% over the Zacks Consensus Estimate of $4.35 billion [1] - The earnings per share (EPS) for BCE was $0.57, up from $0.55 in the same quarter last year, with an EPS surprise of +9.62% compared to the consensus estimate of $0.52 [1] Financial Performance Metrics - BCE's shares have returned -3.6% over the past month, underperforming the Zacks S&P 500 composite, which increased by +1.3% [3] - The company currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3] Subscriber Metrics - Gross subscriber activations for postpaid mobile phone subscribers were 315,607, below the estimated 350,352 [4] - Retail residential NAS lines for wireline voice were reported at 1,766,361, exceeding the average estimate of 1,685,630 [4] - Total gross subscriber activations for mobile phone subscribers were 514,661, compared to the estimated 544,918 [4] - Net subscriber activations for postpaid mobile phone subscribers were 11,511, significantly lower than the estimated 25,949 [4] - Net subscriber activations for prepaid mobile phone subscribers were 56,507, surpassing the estimated 44,649 [4] - Total net subscriber activations were 68,018, slightly below the estimated 70,599 [4] - End-of-period subscribers for postpaid mobile phone subscribers were 9,525,355, compared to the estimated 9,591,334 [4] - End-of-period subscribers for prepaid mobile phone subscribers were 873,579, slightly above the estimated 861,931 [4] - Total end-of-period subscribers were 10,398,930, below the estimated 10,453,270 [4] - Blended churn rate was reported at 1.5%, matching the average estimate [4] - Blended churn for postpaid subscribers was 1.1%, slightly better than the estimated 1.2% [4] - Blended churn for prepaid subscribers was 5.1%, higher than the estimated 4.9% [4]

Financial Data and Key Metrics Changes - Total revenue increased by 1.3%, driven by the acquisition of Ziply Fiber [14] - Adjusted EBITDA rose by 1.5%, leading to a margin increase of 10 basis points to 45.7%, the strongest result in over 30 years [14] - Net earnings and statutory EPS saw significant increases, largely due to a $5.2 billion gain from the sale of a minority stake in MLSE [15] - Free cash flow increased by $171 million in Q3, supported by lower CapEx and higher cash from working capital [15] Business Line Data and Key Metrics Changes - Internet revenue grew by 2%, with strong performance in fiber driving subscriber growth [16] - Wireless service revenue declined modestly by 0.4%, while post-paid churn improved by 15 basis points [9][16] - AI-powered solutions revenue grew by 34% year-over-year, indicating strong demand and validation of the company's strategy [11][16] Market Data and Key Metrics Changes - In the U.S. market, Ziply Fiber's revenue reached $160 million, with a 15% year-over-year growth in internet revenue [17][18] - The Canadian wireless environment has stabilized, with expectations for continued improvement [9] Company Strategy and Development Direction - The company unveiled a three-year strategic plan focusing on four priorities: customer service, network delivery, AI-powered solutions, and digital media [4][10] - The strategy includes leveraging unique assets in fiber, wireless, media, and enterprise to drive efficiencies and sustainable free cash flow growth [4][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the positive impact of the federal budget on investment in the Canadian economy [27] - The company is well-positioned for growth amid rising global instability and technological advancements [10] - Management anticipates strong EBITDA growth for Bell CTS U.S. in line with the three-year plan [19] Other Important Information - The company plans to increase product intensity by approximately 25% over the next three years, with a focus on content bundling [8] - The partnership with AST SpaceMobile aims to enhance network reliability and expand service reach [9] Q&A Session Summary Question: Can you help us unpack the federal budget a bit? - Management noted that the budget is positive for investment in the Canadian economy and encourages companies to invest [27] Question: Can you provide an update on the internet competitive landscape? - Management emphasized a twofold approach: protecting retail positions in the east and enhancing services in the west, with a full launch of fiber resale expected in January [35] Question: Do you expect margin growth in the Canadian telecom business between 2026 and 2028? - Management indicated a focus on operating cost reduction and expects relatively flat margins over time [39] Question: Can you provide more details on the AI Fabric and its expected financials? - Management highlighted a strong pipeline of demand and expects significant growth from AI Fabric in the coming months [42] Question: What kind of competition is faced in the enterprise market for AI-powered solutions? - Management stated that the company is unique in its offering, combining network security with AI automation, which sets it apart from competitors [76]

Financial Data and Key Metrics Changes - Total revenue increased by 1.3%, driven by the acquisition of Ziply Fiber [13] - Adjusted EBITDA rose by 1.5%, leading to a margin increase of 10 basis points to 45.7%, the strongest result in over 30 years [13] - Net earnings and statutory EPS saw significant increases, largely due to a $5.2 billion gain from the sale of a minority stake in MLSE [14] - Adjusted EPS increased by 5.3%, supported by higher EBITDA [14] - Free cash flow increased by $171 million in Q3, driven by lower CapEx and higher cash from working capital [14] Business Line Data and Key Metrics Changes - Internet revenue in Canada grew by 2%, supported by fiber [15] - Wireless service revenue declined modestly by 0.4%, while post-paid churn improved by 15 basis points [8][15] - AI-powered solutions revenue grew by 34% year-over-year, indicating strong demand [10][15] - Ziply Fiber's total revenue reached $160 million, with a 15% year-over-year growth in internet revenue [16] Market Data and Key Metrics Changes - The Canadian wireless environment has stabilized, with expectations for continued stability [7] - The partnership with AST SpaceMobile aims to enhance network reach in challenging geographical areas, with an initial service launch scheduled for late 2026 [8] - Ziply Fiber's network currently passes 1.4 million homes, with plans to reach approximately 3 million by the end of 2028 [6] Company Strategy and Development Direction - The company unveiled a three-year strategic plan focusing on four priorities: fiber, wireless, media, and enterprise [3] - A renewed focus on customer service has led to significant reductions in post-paid churn [4] - The company aims to increase product intensity by approximately 25% over the next three years [7] - The digital media and content strategy includes new streaming bundles and partnerships to enhance advertising opportunities [12] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the growth potential of AI-powered solutions, with a strong pipeline of interest [10] - The Canadian economy is changing, and the company is well-positioned for growth amid rising global instability [9] - Management remains focused on reducing leverage and maintaining a healthy balance sheet, with a net debt leverage ratio of approximately 3.8 times adjusted EBITDA [20] Other Important Information - The company anticipates a year-over-year increase in overall spending in Q4 as Ziply Fiber executes its fiber buildout [14] - The balance sheet remains healthy, with $3.6 billion of available liquidity and a pension solvency surplus of $4.5 billion [20] Q&A Session Summary Question: Can you help us unpack the federal budget a bit? - Management noted that the budget includes initiatives to spur investment in the Canadian economy, which is viewed positively [26] Question: Can you provide an update on the competitive landscape in Eastern Canada? - Management emphasized a twofold approach: protecting Bell's retail position and driving higher fiber network penetration [36] Question: Do you expect margin growth in the Canadian telecom business between 2026 and 2028? - Management indicated a focus on operating cost reduction and expects flat margins with potential for dollar growth [39] Question: Can you provide an update on the $1.5 billion cost savings initiative? - Management confirmed they are halfway through the initiative and expect continued acceleration in cost savings [58] Question: What is the competitive landscape for AI-powered solutions? - Management stated that the company is uniquely positioned with integrated offerings in AI, cybersecurity, and automation [72]

Core Insights - BCE reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.52 per share, and showing an increase from $0.55 per share a year ago, resulting in an earnings surprise of +9.62% [1] - The company generated revenues of $4.39 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.96%, and slightly up from $4.38 billion year-over-year [2] Earnings Performance - Over the last four quarters, BCE has surpassed consensus EPS estimates three times, indicating a positive trend in earnings performance [2] - The current consensus EPS estimate for the upcoming quarter is $0.48, with projected revenues of $4.67 billion, while the estimate for the current fiscal year is $1.96 on revenues of $17.69 billion [7] Market Position and Outlook - BCE shares have underperformed the market, losing about 3.4% since the beginning of the year, compared to the S&P 500's gain of 15.6% [3] - The Zacks Rank for BCE is currently 4 (Sell), indicating expectations of underperformance in the near future due to unfavorable estimate revisions prior to the earnings release [6] Industry Context - The Diversified Communication Services industry, to which BCE belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Another competitor in the same industry, Telus, is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year decline of -9.5%, with revenues anticipated to be $3.72 billion, down 0.5% from the previous year [9][10]

Financial Performance - BCE reported a consolidated net earnings of CAD 1,200 million for Q3 2025, representing a 5% increase compared to Q3 2024[1]. - The company achieved an adjusted EBITDA of CAD 2,500 million, reflecting a 4% year-over-year growth[1]. - Operating revenues for Q3 2025 were CAD 6,800 million, up 6% from the same quarter last year[1]. - BCE's net debt stood at CAD 22 billion, with a net debt to adjusted EBITDA ratio of 3.5x[1]. - BCE anticipates a 7% growth in operating revenues for the full year 2025, driven by increased demand for broadband services[7]. - BCE's adjusted net earnings for Q3 2025 were $733 million, or $0.79 per common share, up from $688 million, or $0.75 per common share, in Q3 2024[26]. - BCE's free cash flow in Q3 2025 increased by $171 million to $1,003 million, a 20.6% rise compared to Q3 2024[21][28]. - BCE's adjusted EBITDA for Q3 2025 was $2,762 million, reflecting a 1.5% increase year-over-year, with an adjusted EBITDA margin of 45.7%[19][24]. - BCE's net earnings for Q3 2025 reached $4,555 million, a significant increase of $5,746 million compared to a net loss of $1,191 million in Q3 2024[19]. Subscriber Growth - Customer connections increased by 3% year-over-year, reaching a total of 10 million connections[1]. - Total BCE customer connections reached 22,398,707 in Q3 2025, up 2.9% year over year[55]. - Total mobile phone subscribers as of September 30, 2025, were 10.4 million, with a 0.4% increase year-over-year[18]. - The acquisition of Ziply Fiber on August 1, 2025, contributed to an increase of 442,225 subscribers in U.S. retail high-speed Internet services[18]. - Bell CTS retail high-speed Internet subscribers grew by 9.7% to 4,890,297, with the U.S. segment contributing 446,910 subscribers due to the acquisition of Ziply Fiber[56]. - Mobile phone net subscriber activations decreased by 33.4% in Q3 2025 compared to Q3 2024, totaling 68,018[48]. - Bell CTS retail high-speed Internet net subscriber activations decreased by 38.4% in Q3 2025 and by 58.3% in the first nine months of the year compared to the same periods last year[154]. Capital Expenditures and Investments - Capital expenditures in Q3 2025 were $891 million, a decrease of 6.6% compared to Q3 2024[21]. - The company completed a public debt offering of $2.0 billion in medium-term note debentures on August 14, 2025, to fund the redemption of Ziply Fiber's debt[33][35]. - BCE entered into an agreement to sell its home security and monitored alarm assets to a.p.i. ALARM Inc. for $170 million, completed on October 1, 2025[38]. - Long-term debt increased by $2,320 million (7.1%) to $35,155 million as of September 30, 2025, while debt due within one year decreased by $1,849 million (24.1%) to $5,820 million[196]. - The company issued Series A, B, and C Junior Subordinated Notes totaling $3,916 million in U.S. dollars (approximately $5,586 million in Canadian dollars) during the reporting period[199]. Strategic Initiatives - The company plans to deploy low Earth orbit direct-to-cell services in 2026, aiming to enhance service offerings[7]. - BCE's strategic plan focuses on sustainable free cash flow growth and long-term shareholder value, emphasizing customer service and AI-powered solutions[30]. - Bell Canada launched Bell Cyber on September 9, 2025, consolidating its cybersecurity capabilities with a new autonomous Security Operations Centre[102]. - A partnership with BUZZ HPC was established to deliver a sovereign AI ecosystem through Bell AI Fabric, integrating NVIDIA GPU clusters with Bell's infrastructure[103]. Market Presence and Acquisitions - The acquisition of Northwest Fiber Holdco, LLC (Ziply Fiber) is expected to enhance BCE's market presence in the U.S.[4]. - The acquisition of Ziply Fiber on August 1, 2025, significantly impacted subscriber growth in the U.S. segment, adding 442,225 high-speed Internet subscribers[50]. - BCE expects to close the disposition of Northwestel to Sixty North Unity in 2026 for up to $1 billion, subject to certain conditions[37]. Revenue and Cost Analysis - BCE's operating costs rose by 1.2% in Q3 2025 to $3,287 million, influenced by a 2.5% increase in Bell CTS costs[66]. - Wireless revenues decreased by 0.4% in Q3 2025, impacted by competitive pricing pressures and reduced roaming revenues[127]. - Bell Media operating revenues decreased by 6.4% in Q3 2025, totaling $732 million, compared to $782 million in Q3 2024[188]. - Advertising revenues decreased by 11.5% in Q3 2025, primarily due to lower demand for traditional advertising[192]. - Subscriber revenues decreased by 5.2% in Q3 2025, attributed to the erosion in BDU subscribers, despite growth in DTC streaming revenues[192]. Shareholder Returns - BCE's annualized common share dividend is targeted at CAD 3.00 per share, with a payout policy of 60% of adjusted earnings[7]. - BCE authorized to renew its NCIB to repurchase up to 10% of the public float of each series of its outstanding First Preferred Shares, totaling approximately 9.7 million shares[36]. - BCE repurchased and cancelled 9,770,589 Preferred Shares for a total cost of $176 million since the previous NCIB began[36]. - Common shares outstanding increased from 912,283,103 to 932,525,817, reflecting an increase of 20,242,714 shares[200].

Financial Performance - Revenue increased by 1.3% year-over-year to $6,049 million[12] - Adjusted EBITDA increased by 1.5% year-over-year to $2,762 million[12] - Adjusted EPS increased by 5.3% to $0.79[12] - Free cash flow increased by 20.6% to $1,003 million[14] - Capital expenditures decreased by 6.6% year-over-year to $891 million[12] Subscriber Metrics - Postpaid churn rate improved by 15 bps year-over-year[6] - Retail FTTH Internet net additions were 65,239[9] - Crave subscribers increased by 24% year-over-year to 4.3 million[9] Bell Media - Bell Media revenue decreased by 6.4% year-over-year to $732 million[23] - Bell Media adjusted EBITDA decreased by 6.7% year-over-year to $237 million[24] Bell CTS U.S.(Ziply Fiber) - Bell CTS U.S revenue was $160 million for the 2-month period from August 1, 2025 through September 30, 2025[18] - Bell CTS U.S adjusted EBITDA was $71 million for the 2-month period from August 1, 2025 through September 30, 2025[18]