BCE(US:BCE)2025-11-06 13:33Financial 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].