Bell Canada Q1 2025 Earnings, Revenue and Key Highlights

BCE Inc. reduced its quarterly dividend and announced a strategic partnership with the Public Sector Pension Investment Board (PSP Investments) to accelerate U.S. fiber infrastructure deployment. CEO Mirko Bibic said the dividend adjustment reflects intense price competition and the broader uncertainty in the global macroeconomic and geopolitical landscape.

The company will now pay a quarterly dividend of $0.4375 per common share, down from $0.9975. That change lowers BCE’s annualized dividend to $1.75 per share from $3.99.

“After careful consideration and discussions with our board — and after listening to investors over recent months — we concluded that resetting the dividend was the most responsible way to align our capital allocation strategy,” Bibic said in an interview. He added that the new dividend will enable the company to reduce leverage and prioritize investments that support future growth.

Effect of inflation affecting Canadians’ mobile shopping habits

BCE pointed to weakening consumer confidence amid inflationary pressures and the risk of a global recession. The company also noted that its share price decline has increased capital costs. The board weighed these financial pressures alongside regulatory headwinds — including recent CRTC rulings — and a slowdown in population growth linked to changes in federal immigration policy.

Bibic said the economic and operating environment has changed significantly since fall 2024 and required a reassessment of priorities. While wireless pricing showed signs of stabilization early in the quarter, the latter half brought renewed volatility that, together with the broader macroeconomic backdrop, limited Bell’s ability to grow subscription volumes.

In the first quarter, BCE recorded a net loss of 9,598 postpaid mobile phone subscribers, compared with 45,247 net activations in the same quarter a year earlier. The company attributed the decline to a softer market, slower population growth, and a deliberate focus on higher-value subscribers. Bibic highlighted that the Bell-branded business added 25,000 net new customers in the quarter, a decline of 9,000 from the prior year.

Customer churn remained steady at 1.21%. Average revenue per user (ARPU) for mobile service fell to $57.08, down 1.8% year-over-year, reflecting continued pricing pressure in wireless.

How much BCE is paying for dividends—and other earnings data

BCE reported net earnings attributable to common shareholders of $630 million, or $0.68 per diluted share, for the first quarter — up from $402 million, or $0.44 per diluted share, a year earlier. On an adjusted basis, the company said it earned $0.69 per share for the quarter, slightly below the $0.72 adjusted earnings per share reported in the prior-year period.

Operating revenue for the quarter totaled $5.93 billion, down from $6.01 billion a year ago.

Bibic told analysts that BCE’s previously announced acquisition of U.S. fiber provider Ziply Fiber — a roughly $5 billion cash transaction — is expected to close in the second half of 2025.

BCE announces Ziply Fiber plan

Under the new arrangement, Ziply Fiber will serve as the long-term retail partner for Network FiberCo, the fiber infrastructure company that will be jointly owned by PSP Investments and BCE. Ziply will be the exclusive internet service provider for locations passed by Network FiberCo.

BCE, through Ziply Fiber, will hold a 49% equity stake in Network FiberCo; PSP Investments will own the remaining 51% and has signaled a potential commitment in excess of US$1.5 billion. Network FiberCo will focus on last-mile fiber deployment outside Ziply’s incumbent service areas in the U.S. Pacific Northwest, with the potential to pass up to eight million locations.

Desjardins analyst Jerome Dubreuil noted that the deal could attract institutional investors seeking exposure to North American fiber infrastructure and may help offset selling pressure from investors motivated by dividend income.

Bibic said the expanded U.S. footprint would position BCE as one of the largest fiber providers in North America and effectively double the number of locations where BCE offers fiber service in Canada. “There’s clearly long-term growth potential in this critical space,” he said.

Earlier this year, BCE scaled back planned fiber builds in Canada in response to CRTC rules affecting internet resell access. Bibic reiterated the company will continue to press the telecom regulator and the federal government on competition policy, arguing that large competitors should invest in their own networks rather than reselling access to Bell’s fiber. “We’re continuing to build fiber — just at a slower pace than we previously planned,” he said. “More investment by large players enhances competition, network resiliency and helps ensure Canadians, including those in rural areas, get connected.”

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