Core Insights - BCE reported $4.13 billion in revenue for Q1 2025, a year-over-year decline of 7.4% and a surprise of -2.17% compared to the Zacks Consensus Estimate of $4.22 billion [1] - The EPS for the same period was $0.48, down from $0.53 a year ago, with an EPS surprise of +9.09% against the consensus estimate of $0.44 [1] Financial Performance - BCE's shares returned +1.2% over the past month, while the Zacks S&P 500 composite increased by +11.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3] Subscriber Metrics - Gross Subscriber Activations for Postpaid were 320,250, below the average estimate of 357,978 [4] - Retail residential NAS lines for Wireline voice were 1,772,611, compared to the average estimate of 1,790,718 [4] - Total Gross Subscriber Activations for Mobile Phone Subscribers were 468,585, under the estimated 496,869 [4] - Net Subscriber Activations for Postpaid were -9,598, significantly lower than the average estimate of 13,979 [4] - Net Subscriber Activations for Prepaid were 9,002, exceeding the average estimate of -3,060 [4] - Total Net Subscriber Activations were -596, compared to the estimated 10,919 [4] - End of Period Subscribers for Postpaid were 9,520,838, slightly below the average estimate of 9,544,415 [4] - End of Period Subscribers for Prepaid were 767,140, above the average estimate of 755,078 [4] - Total End of Period Subscribers were 10,287,980, close to the average estimate of 10,299,490 [4] - Blended churn rate was 1.6%, matching the average estimate [4] - Blended churn for Postpaid was 1.2%, consistent with the average estimate [4] - Blended churn for Prepaid was 5.8%, slightly above the average estimate of 5.6% [4]

Core Viewpoint - BCE reported quarterly earnings of $0.48 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, but down from $0.53 per share a year ago, indicating a 9.09% earnings surprise [1] - The company posted revenues of $4.13 billion for the quarter, missing the Zacks Consensus Estimate by 2.17% and down from $4.46 billion year-over-year [2] Earnings Performance - BCE has surpassed consensus EPS estimates two times over the last four quarters [2] - The company had an earnings surprise of 12% in the previous quarter, with actual earnings of $0.56 per share against an expectation of $0.50 [1][2] Stock Performance - BCE shares have declined approximately 8.3% since the beginning of the year, compared to a 4.3% decline in the S&P 500 [3] - The current Zacks Rank for BCE is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $4.2 billion, and for the current fiscal year, it is $1.96 on revenues of $17.1 billion [7] - The trend of estimate revisions for BCE is mixed, which could change following the recent earnings report [6] Industry Context - The Diversified Communication Services industry, to which BCE belongs, is currently ranked in the bottom 32% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Core Insights - BCE Inc. reported Q1 2025 results, adjusting its annualized common share dividend to $1.75 from $3.99, reflecting a strategic response to economic uncertainty [2][4][45] - The company is focusing on strengthening its balance sheet amid intense price competition and regulatory challenges [3][4][6] - BCE announced a strategic partnership with PSP Investments to enhance fiber infrastructure development in underserved U.S. markets, with a potential commitment exceeding US$1.5 billion [5] Financial Performance - Operating revenues for Q1 2025 were $5,930 million, a decrease of 1.3% from Q1 2024 [15][18] - Net earnings increased by 49.5% to $683 million, with net earnings attributable to common shareholders rising 56.7% to $630 million, or $0.68 per share [9][18] - Adjusted net earnings decreased by 3.2% to $633 million, resulting in adjusted EPS of $0.69, down 4.2% [9][18] Operational Highlights - Consolidated adjusted EBITDA was stable at $2,558 million, with a slight increase in margin to 43.1% [19][18] - Free cash flow surged to $798 million, up from $85 million in Q1 2024, driven by higher cash flows from operating activities [9][20] - Bell Media revenue grew by 6.9%, with a 35.9% increase in adjusted EBITDA, and digital revenues rose by 12% [41][9] Strategic Developments - BCE is enhancing its technology services, including the launch of AI-driven solutions for customer security and a new technology solutions provider, Ateko [16][12] - The company is focusing on disciplined execution and capital management to navigate the challenging economic landscape [6][4] - BCE's capital expenditures in Q1 2025 were $729 million, down 27.2% from the previous year, reflecting a planned reduction in spending [20][18] Market Position - BCE's pure fiber Internet was recognized as Canada's fastest, and its 5G networks were ranked highest among Canadian carriers [16][14] - The company is experiencing competitive pressure, particularly in mobile services, with a decline in postpaid mobile phone net subscriber activations [22][25] - Bell Media's acquisition of Sphere Abacus aims to expand content distribution capabilities [17]

Core Viewpoint - BCE Inc. has announced modifications to its Shareholder Dividend Reinvestment and Stock Purchase Plan (DRP), changing the method of share distribution from a 2% discount to treasury issuances to purchasing shares on the secondary market [2][10]. Group 1: DRP Modifications - The DRP will now involve BCE's agent, TSX Trust Company, purchasing common shares on the secondary market with cash provided by BCE, effective from the dividend payable on July 15, 2025 [2]. - Existing participants in the DRP will remain enrolled unless they choose to terminate their participation by June 9, 2025 [4]. - Eligible shareholders not participating in the DRP will continue to receive regular cash dividends [5]. Group 2: Participation Details - Participation in the DRP is optional, allowing eligible shareholders to reinvest cash dividends or make optional cash payments without incurring commission or brokerage fees [3][5]. - Shareholders holding BCE common shares through intermediaries should consult with their brokers regarding participation or withdrawal from the DRP [4]. Group 3: Company Overview - BCE is recognized as Canada's largest communications company, providing a range of services including broadband Internet, wireless, TV, media, and business communications [7].

Core Viewpoint - BCE Inc. and PSP Investments have formed a strategic partnership, Network FiberCo, to enhance fibre infrastructure development in underserved U.S. markets through Ziply Fiber, with a potential investment exceeding US$1.5 billion from PSP Investments [2][3][4] Strategic Partnership Highlights - Network FiberCo aims to deploy last-mile fibre outside of Ziply Fiber's current service areas, potentially reaching up to 8 million total fibre passings [3][7] - BCE will hold a 49% equity stake in Network FiberCo, while PSP Investments will own 51%, contingent on the completion of BCE's acquisition of Ziply Fiber [7] - The partnership is expected to improve BCE's free cash flow generation and strengthen EBITDA accretion over the long term [4][5] Market Opportunity - The U.S. fibre broadband market presents significant growth potential, with lower penetration rates compared to Canada and favorable construction costs for large-scale deployment [7] - Network FiberCo plans to develop approximately 1 million fibre passings in existing states and target an additional 5 million passings [7] Operational Structure - Upon completion of the acquisition, BCE will own 100% of Ziply Fiber, which will continue its existing operations and fibre-to-the-home strategy [11] - Ziply Fiber will serve as the exclusive Internet service provider for locations passed by Network FiberCo [11] Financial Aspects - The partnership is designed to be capital-efficient, with non-recourse debt financing anticipated to cover the majority of Network FiberCo's capital needs over time [7][8] - PSP Investments' commitment is expected to generate inflation-linked and downside-protected returns, aligning with its mission to support Canadian public sector pensions [5]

Group 1 - BCE Inc. will hold its first-quarter 2025 results conference call on May 8, 2025, at 8:00 am eastern, featuring CEO Mirko Bibic and CFO Curtis Millen [1] - Participants can join the call by dialing toll-free numbers, and a replay will be available until June 8, 2025 [2] - BCE is recognized as Canada's largest communications company, providing a range of services including broadband Internet, wireless, TV, media, and business communications [3] Group 2 - The company is committed to social and economic prosperity through initiatives like Bell for Better and Bell Let's Talk, which focuses on mental health awareness and community support [4] - BCE's leadership in the communications sector is based on total revenue and combined customer connections [5]

Core Insights - BCE Inc.'s Bell Media has acquired a majority stake in Sphere Abacus, enhancing its global content distribution capabilities [1][2] - The partnership aims to accelerate growth, expand international content reach, and create more opportunities for Canadian creators [2] - The combined content library will exceed 5,500 hours of premium programming, featuring notable titles across various genres [3][4] Strategic Developments - The acquisition of Sphere Abacus allows Bell Media to actively participate in the creative value chain and strengthens its distribution pipeline [2][4] - Bell Media has introduced new subscription bundles for Crave, enhancing its offerings for both English and French viewers [5] - Collaborations with Point Grey Pictures and Lionsgate Studios aim to develop new scripted content for the Canadian market [6] Financial Performance - Bell Media reported a 1.2% increase in operating revenues to C$832 million, with digital revenues rising to 42% of total revenues in 2024, up from 35% in 2023 [8] - Despite growth, BCE anticipates challenges in pricing, subscriber growth, and media expenses, projecting revenue changes between (3%) and 1% for 2025 [9] - Free cash flow growth is expected to be between 11% and 19%, while adjusted EPS growth is projected to range from (13%) to (8%) [10]

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]