BCE(US:BCE) Prnewswireยท2025-10-14 10:30Core Insights - BCE has unveiled a three-year strategic plan aimed at sustainable growth through investments in fibre, wireless, AI-powered enterprise solutions, and digital media, which is expected to enhance total shareholder returns [1][7][34] - The company anticipates a compound annual growth rate (CAGR) of approximately 15% in free cash flow after lease liabilities from 2025 to 2028, alongside $1.5 billion in cost savings by 2028 [7][12][30] - BCE's capital intensity is projected to decrease to around 14% by 2028, which will support improved cash flow and investment flexibility [7][12][30] Financial Outlook - BCE expects to generate approximately $22 billion in cumulative free cash flow before capital expenditures and lease liabilities over the next three years [10][12] - The company has set a target net debt leverage ratio of 3.5x by the end of 2027, aiming for approximately 3.0x by 2030 [7][13] - Anticipated dividend payments to common shareholders are around $5 billion over the next three years, supported by a sustainable dividend strategy [7][12][13] Strategic Priorities - The strategic plan is anchored by four core priorities: putting the customer first, delivering the best fibre and wireless networks, leading in enterprise with AI-powered solutions, and building a digital media and content powerhouse [3][21][30] - BCE aims to enhance customer experience through foundational investments in operational simplicity driven by AI, expecting to achieve a higher Net Promoter Score and lower churn rates [16][17][20] - The company plans to expand its fibre Internet subscriber base to 3 million and wireless subscribers to 10.5 million by the end of 2025 [18][20] Digital Media and Content - BCE's digital revenue mix is expected to grow from 45% of Bell Media revenue in 2025 to approximately 60% by 2028, with Crave aiming for around 6 million subscribers and $1 billion in annual revenue by the end of 2028 [30][31] - The company plans to expand its content offerings significantly, with over 40,000 hours of content available by the end of 2025 [31][30] Expansion and Partnerships - BCE completed the acquisition of Ziply Fiber, enhancing its position as the third-largest fibre Internet provider in North America, with potential access to 8 million fibre locations in the U.S. through a partnership with PSP Investments [27][30] - The company is also pursuing strategic partnerships to optimize its cost of capital and drive long-term growth [13][30]