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  5. BCE: Please comment on BCE's latest result and outlook. [BCE Inc.]
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Q: Please comment on BCE's latest result and outlook. Thanks
Asked by george on February 06, 2025
5i Research Answer:

EPS of 79c beat estimates of 72c. Revenue of $6.42B beat estimates of $6.35B. EBITDA of $2.60B beat estimates by 1%. The dividend was maintained. Still, BCE has a growth problem, with its 4Q revenue down 0.8% amid intense wireless pricing pressure and a decline in legacy services. Unfavorable regulations in the fiber market have prompted it to pull back on its build-out, which will crimp growth. It's focused instead on US expansion through its Zipley Fiber acquisition. Bell presented a detailed plan to restore revenue growth and will keep cutting costs and reduce debt to maximize returns. On the dividend, despite the maintenance, we are sure the board is reviewing a possible dividend cut still as the payout ratio trends above the historical range. BCE expects wireless pricing pressure to ease in 2025 and it will focus on adding premium customers and bundling to improve results. Media is a bright spot and part of the growth plan as the company expands its digital services and ad revenue.