Bce Inc ((TSE:BCE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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BCE Inc’s recent earnings call paints a picture of a company in positive momentum, buoyed by significant growth in AI-powered solutions and strong performance from Ziply Fiber. Despite challenges in Bell Media revenue and traditional advertising demand, BCE is executing well on its strategic priorities, showcasing a robust outlook for the future.
Strong Postpaid Wireless Growth
BCE Inc reported impressive growth in its postpaid wireless segment, with premium Bell branded postpaid wireless loadings significantly surpassing consolidated reported postpaid net additions. The Bell brand’s postpaid year-over-year growth exceeded 100%, highlighting the company’s strong foothold in the wireless market.
AI-Powered Solutions Revenue Surge
The company’s revenue from AI-powered solutions surged by 34% year-over-year, driven primarily by organic growth from Ateko and Bell Cyber. This growth underscores BCE’s strategic focus on leveraging AI to enhance its service offerings and drive revenue.
Fiber Network Expansion
BCE’s fiber network expansion continues to make strides, with 65,000 net new fiber subscribers added this quarter. Ziply Fiber, a key component of this growth, has expanded its network to pass 1.4 million homes in the U.S., with plans to reach 3 million locations by the end of 2028.
Ziply Fiber Outperforms
Ziply Fiber’s financial results have exceeded expectations, contributing strongly to BCE’s consolidated financials. This performance highlights the success of BCE’s investment strategy and its positive impact on the company’s overall growth.
Cost Management Success
BCE has successfully reduced operating costs by 0.6% in Bell CTS Canada, reflecting its continued focus on cost management. This reduction is a testament to the company’s commitment to improving operational efficiency.
Partnership with AST SpaceMobile
BCE’s partnership with AST SpaceMobile aims to deliver direct-to-cell satellite service by late 2026. This initiative is expected to enhance network reach and reliability, further strengthening BCE’s service offerings.
Decline in Bell Media Revenue
Bell Media experienced a 6.4% decline in total revenue year-over-year, primarily due to softness in traditional advertising demand and the divestiture of 45 radio stations. This decline poses a challenge for BCE as it navigates the evolving media landscape.
Wireless Service Revenue Slight Decline
BCE reported a slight decline in wireless service revenue and ARPU, both decreasing by less than 0.5 percentage points. Despite this, the company’s overall wireless segment remains strong, supported by robust postpaid growth.
Challenges in Traditional Advertising
The company continues to face challenges in traditional advertising demand, particularly for non-sports programming. This ongoing softness underscores the shifting dynamics in the advertising industry.
Forward-Looking Guidance
Looking ahead, BCE remains focused on its 2025 financial guidance, aiming for 2% to 4% revenue growth and 2% to 3% EBITDA growth annually from 2025 to 2028. The company reported a 1.3% increase in total revenue and a 1.5% growth in adjusted EBITDA this quarter, marking their strongest performance in over 30 years. With a significant increase in free cash flow and improved wireless postpaid churn, BCE is well-positioned to achieve its strategic goals.
In conclusion, BCE Inc’s earnings call reflects a company on a positive trajectory, driven by strategic growth in AI solutions and fiber network expansion. While challenges persist in media revenue and advertising, BCE’s strong execution on strategic priorities and forward-looking guidance suggest a promising outlook for the future.