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BCE's Q4 Earnings Surpass Estimates, Stock Falls on Lower Revenues
BCEBCE(BCE) ZACKS·2025-02-07 15:25

Core Viewpoint - BCE Inc. reported a mixed performance in Q4 2024, with adjusted EPS exceeding expectations but total operating revenues declining year over year, leading to a significant drop in stock price [1][2][3]. Financial Performance - Adjusted EPS for Q4 2024 was C0.79,upfromC0.79, up from C0.76 in the prior-year quarter, surpassing the Zacks Consensus Estimate of C0.50[1].−Totaloperatingrevenuesdecreasedby0.80.50 [1]. - Total operating revenues decreased by 0.8% year over year to C6,422 million (4,590million),whiletheconsensusestimatewas4,590 million), while the consensus estimate was 4,469 million [2]. - Service revenues fell by 1.1% to C5,287million,whileproductrevenuesgrewby0.95,287 million, while product revenues grew by 0.9% to C1,135 million [2]. Segmental Results - BCE combined its Bell Wireless and Bell Wireline segments into Bell CTS, reporting a 1.1% decline in operating revenues to C5,681million[4].−WithinBellCTS,servicerevenuesdecreasedby1.65,681 million [4]. - Within Bell CTS, service revenues decreased by 1.6% to C4,546 million, impacted by lower legacy voice and data revenues, while product revenues increased due to higher land mobile radio sales [5][6]. Subscriber Metrics - Postpaid mobile phone net subscriber activations dropped by 56.1% year over year to 56,550, attributed to fewer new activations and increased competition [7]. - The prepaid customer base saw a slight decline of 5,480, an improvement from a loss of 36,630 in the prior-year quarter [8]. Media Performance - Bell Media revenues grew by 1.2% year over year to C832million,drivenbyhigheradvertisingandsubscriberrevenues,withtotaldigitalrevenueincreasingby6832 million, driven by higher advertising and subscriber revenues, with total digital revenue increasing by 6% [8][9]. Cash Flow and EBITDA - Adjusted EBITDA increased by 1.5% to C2,605 million, with a margin of 40.6%, up from 39.7% in the prior-year quarter [10][12]. - Cash generated from operating activities was C1,877million,downfromC1,877 million, down from C2,373 million in the prior-year quarter, with free cash flow at C874millioncomparedtoC874 million compared to C1,289 million a year ago [13]. 2025 Outlook - BCE anticipates revenue growth in the range of (3%)-1% and adjusted EBITDA growth of (2%)-2% for 2025, citing pricing pressure and lower subscriber growth as key challenges [14]. - The company expects free cash flow growth between 11-19% due to lower capital spending, with an annualized common dividend per share estimated at C$3.99 [14].