#Canada #Montreal #Q4 2024 #BCE #Bell Canada

BCE Inc. Financial Results Overview

On February 6, 2025, BCE Inc., the largest telecommunications company in Canada, released its financial results for the fourth quarter of 2024 and the entire fiscal year. The company reported a commendable performance across several key metrics, surpassing many of its strategic targets.

Strong Q4 Performance

In the fourth quarter of 2024, BCE recorded net earnings of CAD 505 million, reflecting a significant increase of 16.1% compared to the same period in 2023. The net earnings attributable to common shareholders rose by 20.7% to CAD 461 million, translating to earnings per share of CAD 0.51. This uptick can be attributed to several factors, including reductions in asset impairment charges and lower operational expenses.

Despite experiencing a decline in cash flows from operating activities, which fell by 20.9% year-over-year to CAD 1,877 million, BCE managed to maintain its solid adjusted EBITDA at CAD 2,605 million, driven by a growth rate of 1.5%. Notably, the adjusted EBITDA margin improved to 40.6%, marking the highest level observed in over three decades.

BCE's total operating revenues for Q4 2024 stood at CAD 6,422 million, slightly down from CAD 6,473 million in Q4 2023. This decline was primarily attributed to a decrease in service revenue within its Bell Communication and Technology Services segment, although the company noted improvements in its media sector revenue.

Annual Results and Highlights

For the full year of 2024, BCE’s total operating revenues decreased by 1.1% to CAD 24,409 million. However, the annual net earnings dropped significantly by 83.9% to CAD 375 million. This drastic reduction was mainly due to substantial non-cash asset impairment charges totaling CAD 2,190 million, reflective of ongoing changes in the traditional advertising landscape.

Despite these challenges, BCE's adjusted EBITDA showed resilience, growing by 1.7% to reach CAD 10,589 million, while the adjusted EBITDA margin increased to 43.4%, the best annual performance in over three decades.

Subscriber Growth and Market Positioning

BCE continues to see positive trends in its subscriber activations. During Q4 2024, the company reported net activations of 151,413 mobile phone and connected device subscribers. The retail Internet segment also performed well, with a total of 34,187 net new subscribers added during the quarter, contributing to a year-over-year revenue growth of 3.4% in this area.

Further reinforcing its market position, BCE’s Bell Media segment saw revenues and adjusted EBITDA grow by 1.2% and 14.2% respectively, showcasing the effectiveness of its digital advertising strategies.

Looking Ahead to 2025

As part of its strategic roadmap for 2025, BCE aims to enhance revenue growth while simultaneously managing costs. The focus will be on four key pillars: prioritizing customer satisfaction, expanding its pure fibre Internet and 5G services, increasing business technology services for enterprises, and continuing the momentum in the digital media space.

BCE plans to invest significantly in technology, AI, and automation to streamline operations and reduce costs. The outlook for 2025 anticipates revenue growth in a range from -3% to 1%, while adjusted EBITDA is expected to decline by 2% to 2% as the company navigates a competitive market environment.

Conclusion

BCE Inc. has reported a solid Q4 2024 performance, showcasing resilience amid a challenging market landscape. With significant plans for future growth, the company remains committed to delivering value to its shareholders while enhancing consumer connectivity through innovation and responsible service delivery.