Group 1 - BCE Inc. will participate in a fireside chat at the 24th Annual CIBC Eastern Institutional Investor Conference on September 25, 2025, at 8:00 am eastern time [1] - BCE is recognized as Canada's largest communications company, focusing on advanced fibre and wireless networks, enterprise services, and digital media [1] - The company emphasizes the delivery of next-generation technology that utilizes cloud-based and AI-driven solutions to enhance customer connectivity and business competitiveness [1] Group 2 - Bell Canada has launched Bell Cyber, consolidating its cybersecurity capabilities under a single brand to provide integrated protection across networks and cloud services [2] - The company has completed the redemption of all Ziply Fiber debt prior to maturity, indicating a strategic financial move [3]

Group 1 - BCE Inc. has experienced a significant decline in stock value, down approximately 35% over the past 52 weeks despite some recent recovery [1] - The company is noted for its generous dividend offerings, which may attract income-focused investors [1]

Core Insights - BCE Inc. has experienced a significant decline in stock value, down approximately 35% over the past 52 weeks, despite some recent recovery [1] Group 1 - The stock performance of BCE Inc. indicates a challenging year, with a notable drop in value [1]

Company Overview - BCE Inc. is Canada's leading integrated telecommunications and media provider, operating primarily through Bell Canada and Bell Media [2][3] - The company offers a diverse range of services including wireless networks, broadband internet, television, and content distribution, serving both consumer and enterprise markets [2][4] Market Positioning - BCE leverages its extensive last-mile copper and fibre assets, along with ongoing upgrades to fibre-to-the-premises (FTTP) and 5G wireless, to enhance its market positioning [5][25] - The company captures approximately 30% of the national wireless subscriber market, placing it among the "Big Three" wireless carriers in Canada [37][40] Financial Performance - BCE's market capitalization is approximately CA$31.6 billion, with annual revenues ranging from CA$23 to CA$24 billion [10][11] - The company generates steady cash flows driven by recurring subscription revenues, with a dividend yield around 5.5% to 5.8% [14][41] Revenue Streams - BCE's revenue is derived from multiple lines including consumer wireless subscriptions, broadband and video packages, enterprise connectivity, and media advertising [11][18] - The integration of network and content allows for cross-selling opportunities, enhancing average revenue per user (ARPU) [5][48] Strategic Assets - Bell Media's content rights and distribution capabilities are key strategic assets, allowing BCE to bundle exclusive content with connectivity services [21][48] - The company's operational strength lies in combining network ownership with content distribution, which helps defend ARPU and reduce churn [25][48] Leadership and Governance - BCE's leadership is focused on aligning long-term capital expenditure with evolving content strategies and regulatory compliance [34][32] - The executive team, led by CEO Mirko Bibic, oversees both telecom and media franchises, ensuring integrated decision-making [32][42] Industry Dynamics - BCE operates in a highly regulated sector, with spectrum licensing and cultural content obligations influencing its strategies [7][24] - The competitive landscape includes challenges from digital-first players and global streaming services, necessitating optimization of content spend and local programming [23][24]

Core Insights - BCE Inc. is considered one of the most undervalued telecom stocks, with a price target raised to C$36 from C$35 by CIBC analyst Stephanie Price, maintaining a Neutral rating [1] Financial Performance - BCE's revenue increased by 2.28% year-over-year in Q2, reaching $4.43 billion, driven by its fiber strategy and growth in premium wireless subscribers [2] Strategic Developments - The acquisition of Ziply Fiber was completed ahead of schedule, expanding BCE's fiber footprint by 1.4 million locations, making it the third-largest fiber Internet provider in North America [3] - Ziply's EBITDA is projected to grow by over 20% in 2025, indicating strong future performance [3] - BCE's self-install program has seen success, with over 1 million self-installs since 2022 [3] Company Overview - BCE Inc. provides a range of communication services including wireless, wireline, internet, streaming, and television services to various customer segments in Canada [4]

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]

Financial Performance - BCE reported revenue of $4.4 billion for the quarter ended June 2025, reflecting a 0.2% increase year-over-year [1] - The earnings per share (EPS) was $0.46, down from $0.57 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.32 billion by 1.69%, while the EPS fell short of the consensus estimate of $0.52 by 11.54% [1] Key Metrics - BCE's shares have returned -2.4% over the past month, compared to a +1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market [3] Subscriber Metrics - Gross subscriber activations for postpaid mobile phone subscribers were 331,438, below the average estimate of 360,735 [4] - Retail residential NAS lines for wireline voice were reported at 1,727,911, slightly below the estimated 1,728,052 [4] - Total gross subscriber activations for mobile phone subscribers were 510,597, compared to the average estimate of 532,751 [4] - Net subscriber activations for postpaid mobile phone subscribers were 44,547, exceeding the estimate of 33,740 [4] - Net subscriber activations for prepaid mobile phone subscribers were 49,932, significantly above the estimate of 28,457 [4] - Total net subscriber activations reached 94,479, compared to the average estimate of 62,197 [4] - End-of-period subscribers for postpaid were 9,565,385, slightly above the estimate of 9,554,578 [4] - End-of-period subscribers for prepaid were 817,072, exceeding the estimate of 795,597 [4] - Total end-of-period subscribers were 10,382,460, above the average estimate of 10,328,670 [4] - Blended churn rate was reported at 1.4%, better than the estimated 1.5% [4] - Blended churn for postpaid was 1.1%, compared to the estimate of 1.2% [4] - Blended churn for prepaid was 5.1%, slightly below the average estimate of 5.2% [4]

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]

分组1 - BCE reported quarterly earnings of $0.46 per share, missing the Zacks Consensus Estimate of $0.52 per share, and down from $0.57 per share a year ago, representing an earnings surprise of -11.54% [1] - The company posted revenues of $4.4 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.69%, compared to year-ago revenues of $4.39 billion [2] - BCE has surpassed consensus EPS estimates two times over the last four quarters and topped consensus revenue estimates two times as well [2] 分组2 - The stock's immediate price movement will depend on management's commentary on the earnings call and the sustainability of earnings expectations [3] - BCE shares have added about 0.3% since the beginning of the year, underperforming the S&P 500's gain of 7.9% [3] - The current consensus EPS estimate for the coming quarter is $0.51 on $4.28 billion in revenues, and $2.03 on $17.61 billion in revenues for the current fiscal year [7] 分组3 - The Zacks Industry Rank indicates that the Diversified Communication Services sector is currently in the top 21% of over 250 Zacks industries, suggesting a favorable outlook for the industry [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for BCE was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]