BCE (NYSE:BCE) Conference Transcript

BCE Conference Call Summary Company Overview - Company: BCE Inc. (NYSE: BCE) - Date of Conference: November 24, 2025 Key Industry Insights - Canadian Telecom Market: The competitive environment in Canada is stabilizing, with a return to rational pricing compared to the US market, which has been more aggressive recently [4][5] - Market Trends: The company is experiencing a shift in revenue sources, moving from legacy services to growth areas such as wireless, internet, and AI-powered solutions [2][3] Financial Performance and Projections - EBITDA Growth: BCE expects a resumption of EBITDA growth over the next three years, although margin improvement may not be anticipated during this period [1][2] - Free Cash Flow: The company is targeting a 15% growth in free cash flow while deleveraging and funding new business initiatives [3] - Revenue Per User (RPU): Monthly rates are increasing year-over-year, indicating a healthier competitive environment with new subscribers contributing to higher RPU [5][6] Strategic Initiatives - Fiber Expansion: BCE has set a target to pass 8 million homes with fiber in the US, leveraging partnerships and funding to support this initiative [10][11] - B2B Opportunities: The company is focusing on improving its B2B segment, which has been outperforming other enterprise businesses in North America [17] - AI and Technology Solutions: BCE is investing in AI-powered solutions and cybersecurity, aiming to provide comprehensive solutions to government and enterprise customers [18][20] Capital Allocation and Investment Strategy - CapEx Guidance: BCE plans to maintain a CapEx of $3.7 billion in 2025 and 2028, focusing on efficiency and strategic growth initiatives [30][31] - Investment Criteria: The company has established a higher bar for capital investments, prioritizing projects with strong returns and operational efficiencies [30][31] Market Share and Subscriber Growth - Subscriber Strategy: BCE is focused on profitable subscriber growth, emphasizing the importance of maintaining a strong brand and reducing churn [9][28] - Fiber Penetration: The company aims to increase fiber penetration significantly, with a target of over 50% market share in areas where fiber is available [29] Conclusion - Future Outlook: BCE is positioned for positive growth in free cash flow by 2026, with a clear strategy to execute its plans in fiber expansion, technology solutions, and capital allocation [32][33]