BCE reports second quarter 2025 results

Executive Summary

• BCE Inc. reported second quarter 2025 financial results, showing a 1.3% increase in consolidated revenue to $6,085 million and a 6.6% increase in net earnings to $644 million.
• The company announced the completion of its acquisition of Ziply Fiber on August 1, 2025, and the sale of its 37.5% stake in Maple Leaf Sports and Entertainment (MLSE) to Rogers Communications for $4.7 billion.
• BCE updated its 2025 financial guidance to reflect the Ziply Fiber acquisition, raising revenue growth expectations to 0%-2% and adjusted EBITDA growth to 0%-2%.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Consolidated Revenue: $6,085 million (+1.3%).
  • Net Earnings: $644 million (+6.6%).
  • Net Earnings Attributable to Common Shareholders: $579 million (+7.8%), or $0.63 per share.
  • Adjusted Net Earnings: $592 million (-16.9%).
  • Adjusted EPS: $0.63 (-19.2%).
  • Adjusted EBITDA: $2,674 million (-0.9%).
  • Free Cash Flow: $1,152 million (+5.0%).
  • Cash Flows from Operating Activities: $1,947 million (-8.9%).
  • Capital Expenditures: $763 million (-22.0%).
• Segment Results:
  • Bell CTS: Revenue increased 1.0% to $5,334 million. Product revenue surged 17.4% to $818 million, while service revenue declined 1.5% to $4,516 million. Adjusted EBITDA decreased 1.6% to $2,439 million.
  • Bell Media: Revenue increased 3.8% to $843 million. Subscriber revenue grew 8.1%, while advertising revenue fell 3.1%. Adjusted EBITDA rose 7.8% to $235 million.
• Operational Metrics:
  • Wireless: Total mobile phone net subscriber activations were 94,479. Postpaid churn improved to 1.06% (down 0.12 points). Postpaid net activations were 44,547; Prepaid net activations were 49,932.
  • Broadband: Consumer fibre Internet net subscriber activations totaled 26,583. Retail high-speed subscribers totaled 4,421,961 (-2.2% YoY).
  • IPTV: Retail IPTV subscribers decreased by 15,851 net subscribers to 2,100,690.
  • Crave: Total subscriptions increased 29% to approximately 4.1 million.
• Strategic Transactions:
  • Ziply Fiber Acquisition: Completed on August 1, 2025, accelerating North American fibre growth.
  • MLSE Divestiture: Sold 37.5% stake to Rogers Communications for $4.7 billion ($4.2 billion net of taxes). Proceeds supported the Ziply Fiber acquisition. Bell Media secured content rights for Toronto Maple Leafs and Raptors on TSN through the 2043/2044 season.
  • Home Security Divestiture: Agreement entered to sell home security and monitored alarm assets to a.p.i. ALARM Inc., expected to close in H2 2025.
• 2025 Guidance Update:
  • Revenue Growth: 0% to 2% (prior: -3% to 1%).
  • Adjusted EBITDA Growth: 0% to 2% (prior: -2% to 2%).
  • Capital Intensity: Approx. 15% (prior: approx. 14%).
  • Adjusted EPS Growth: (13%) to (10%) (prior: (13%) to (8%)).
  • Free Cash Flow Growth: 6% to 11% (prior: 11% to 19%).
  • Annualized Common Dividend: $1.75 per share.
• Corporate Actions:
  • Board declared a quarterly dividend of $0.4375 per common share, payable October 15, 2025.
  • Investor Day scheduled for October 14, 2025.
  • Mark McDonald promoted to Executive Vice President and Chief Technology Officer.

Notable Quotes

• "Bell's second quarter results showcase our sharp focus on executing our strategic plan and delivering value for customers and shareholders," said Mirko Bibic, President and CEO, BCE and Bell Canada.
• "Q2 further represents the first quarter of year-over-year improvement in our mobile phone postpaid customer churn in nearly three years – the direct result of our customer service improvements."