BCE (NYSE:BCE) FY Conference Transcript

BCE FY Conference Summary Company Overview - Company: BCE Inc. (NYSE: BCE) - Event: FY Conference held on September 25, 2025 Key Points Industry and Market Dynamics - BCE has acquired Ziply, focusing on the U.S. fiber market, which is underpenetrated compared to Canada, where fiber penetration is approximately 75% versus about 50% in the U.S. [2][3] - The U.S. fiber market presents significant growth opportunities due to a lack of infrastructure build-out by telcos over the past decade [3] - BCE plans to double its U.S. fiber footprint over the next three years, aiming for approximately 3 million locations by 2028 [5] - The strategy involves not competing directly with major players like AT&T or Verizon but rather taking market share from cable providers [6] Financial Performance and Strategy - BCE emphasizes free cash flow over net adds, indicating a shift in focus towards profitability rather than just subscriber growth [8][9] - Churn rates have improved, with a reduction of 12 basis points, indicating better customer retention strategies [10] - The company has 8 million fiber homes in Canada and aims to manage penetration effectively as growth slows [11][12] Competitive Positioning - BCE's strategy in Quebec involves increasing fiber penetration from below 30% to mid-40%, challenging cable competitors [14] - The company is exploring partnerships and bolt-on acquisitions to enhance its market position and drive returns [7] Technology and AI Integration - BCE is positioning itself to capitalize on AI and business transformation, providing end-to-end solutions for enterprise customers [18][20] - The company is not looking to replicate large language models but rather to partner with hyperscalers to deliver integrated solutions [19][24] - BCE has secured over 500 megawatts of renewable hydroelectric power for its data centers, enhancing its operational capabilities [26] Cost Management and Infrastructure - BCE aims to reduce costs by automating processes and simplifying operations, with a target of $1.5 billion in cost savings by 2028 [30][31] - The company views its infrastructure as a valuable asset, considering potential monetization strategies while maintaining strategic control [32][33] Future Outlook - BCE is focused on increasing its capital efficiency and scrutinizing asset ownership to ensure optimal returns [34] - The company is committed to leveraging its fiber infrastructure to drive growth and profitability in both Canadian and U.S. markets [16][34] Additional Insights - The Canadian wireless pricing environment is stabilizing, with double-digit increases in flanker pricing compared to the previous year [8] - BCE's approach to AI is cautious, emphasizing the importance of tangible business outcomes over mere buzzwords [21][24] This summary encapsulates the critical insights and strategic directions discussed during the BCE FY Conference, highlighting the company's focus on growth, profitability, and technological integration in a competitive landscape.