BCE reports 2024 Q4 and full-year results, announces 2025 financial targets

Core Insights - BCE Inc. reported steady financial results for Q4 and full-year 2024, balancing growth with profitability while transforming its business and reducing costs [2][5] - The company achieved its highest annual adjusted EBITDA margin in over 30 years at 43.4% [3][25] - BCE's strategic roadmap for 2025 focuses on customer-centric initiatives, enhancing fibre and 5G services, growing business technology services, and expanding digital media offerings [5][21] Financial Performance - Q4 2024 operating revenues were $6,422 million, down 0.8$24,409 million [19][21] - Net earnings for Q4 increased 16.1% to $505 million, with net earnings attributable to common shareholders rising 20.7$461 million, or $0.51 per share [19][21] - Adjusted EBITDA for Q4 grew 1.5$2,605 million, with an adjusted EBITDA margin of 40.6%, the highest for Q4 in over three decades [19][25] Subscriber Metrics - Total mobile phone and connected device net subscriber activations in Q4 reached 151,413, while retail Internet net activations were 34,187, contributing to a 3.4% growth in Internet revenue [19][34] - Postpaid mobile phone net activations decreased significantly by 56.1% year-over-year to 56,550 due to competitive pressures and market conditions [28] - BCE's retail IPTV customer base saw a net decrease of 444 subscribers in Q4, contrasting with a net gain of 23,537 in the same quarter of the previous year [28] Digital and Media Growth - Digital revenues accounted for 42% of total media revenue in 2024, up from 35% in 2023, with a 19% increase in digital revenue year-over-year [4][34] - Bell Media's operating revenue increased by 1.2% in Q4 to $832 million, driven by higher advertising and subscriber revenues [34] - Crave subscriptions grew by 18$963 million, down 6.4% from the previous year, with total capital expenditures for 2024 at $3,897 million [19][25] - Free cash flow decreased by 32.2$874 million, attributed to lower cash flows from operating activities and higher interest payments [19][25] - BCE maintained its annualized common share dividend at $3.99 per share, with a participation rate of approximately 34% in its discounted treasury dividend reinvestment plan [36][21]