This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled “Caution Regarding Forward-Looking Statements” later in this news release. The information contained in this news release is unaudited.
MONTRÉAL, Feb. 6, 2025 /PRNewswire/ – BCE Inc. (TSX: BCE) (NYSE: BCE) today reported results for the fourth quarter (Q4) and full-year 2024 and provided financial guidance for 2025.
“Bell’s financial results for Q4 and throughout 2024 demonstrate steady execution as we balanced growth with profitability, while transforming our business and reducing costs,” said Mirko Bibic, President and CEO of BCE and Bell Canada.
“Through our disciplined approach, we achieved all of our non-revenue targets for 2024 and were also within our revised revenue guidance objective. We also achieved our highest annual adjusted EBITDA margin in over 30 years at 43.4%.
We delivered positive wireless service revenue growth in 2024 despite the intensely competitive market. All new postpaid customer net activations were on the main Bell brand. We’re continuing to see a clear preference for fibre with total Internet revenue up 3.3% year-over-year, and we now have three million residential Internet customers on our FTTH network, up 10% in 2024. Digital now comprises 42% of total media revenue, compared to 35% in 2023, with digital revenue up 19% over last year. We’re also gaining momentum in our objective to become a tech services leader with strong business solutions revenue growth of 18%6.
In 2025, BCE is implementing a strategic roadmap that aims to generate revenue growth, while managing costs and capital allocation priorities. Our focus is centered around four key pillars: putting the customer first; continuing to deliver the best pure fibre Internet and 5G wireless networks and services; growing our business technology services for our enterprise customers; and continued momentum in digital media and offering the most compelling content. We will focus on these four key competitive advantages while continuing to transform our business by leveraging technology, AI and automation to modernize our operations and realize operational cost efficiencies.
Our purpose is to advance how Canadians connect with each other and the world. In 2025, we intend to continue delivering on our purpose for our customers, while delivering value for our shareholders.”
________________
1 Adjusted EBITDA is a total of segments measure, adjusted net earnings and free cash flow are non-GAAP financial measures and adjusted EPS is a non-GAAP ratio. Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on these measures.
2 Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on adjusted EBITDA margin.
3 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on subscriber (or customer) units.
4 Digital revenues are comprised of advertising revenue from digital platforms including websites, mobile apps, connected TV apps and out-of-home (OOH) digital assets/platforms, as well as advertising procured through Bell digital buying platforms and subscription revenue from direct-to-consumer (DTC) services and video-on-demand services.
5 Subject to the discretion of, and dividends being declared by, the BCE Board of Directors.
6 Business solutions revenues within our Bell Business Markets unit are comprised of managed services, which include network management, voice management, hosting and security, and professional services, which include consulting, integration and resource services.
Innovative partnerships delivering new solutions to customers
Championing the Customer Experience
Delivering the most compelling content
Bell Let’s Talk Day
Bell for Better
________________
7 2023-2024 Annual Report from the Commission for Complaints for Telecom-television Services.
8 According to Corporate Knights Inc.’s global rankings released on January 22, 2025. BCE was ranked #34 overall and #1 in our sector and industry, in its 2025 ranking of the world’s 100 most sustainable corporations. The ranking is based on an assessment of more than 8000 public companies with revenue over US $1 billion, whose fiscal year ends between July 1, 2023 and June 30, 2024. All companies are scored on applicable metrics relative to their peers, with 50% of the weight assigned to sustainable revenue and sustainable investment.
9 Bell was recognized as one of “Canada’s Top 100 Employers” in years 2016 to 2025 by Canada’s Top Employers, an editorial competition organized by Mediacorp Canada Inc., a publisher of employment periodicals. Winners are evaluated and selected based on their industry leadership in offering exceptional workplaces for their employees. Employers are compared to others in their field to determine which offers the most progressive and forward-thinking programs.
10 Bell was recognized as one of “Canada’s Top Employers for Young People” in years 2018 to 2025 by Canada’s Top 100 Employers. Winners are evaluated and selected based on the programs offered to attract and retain young employees, when compared to other employers in the same field.
Financial Highlights
($ millions except per
share amounts)
(unaudited)
Q4 2024
Q4 2023
% change
2024
2023
% change
BCE
Operating revenues
6,422
6,473
(0.8 %)
24,409
24,673
(1.1 %)
Net earnings
505
435
16.1 %
375
2,327
(83.9 %)
Net earnings attributable to common shareholders
461
382
20.7 %
163
2,076
(92.1 %)
Adjusted net earnings
719
691
4.1 %
2,773
2,926
(5.2 %)
Adjusted EBITDA
2,605
2,567
1.5 %
10,589
10,417
1.7 %
Net earnings per common share (EPS)
0.51
0.42
21.4 %
0.18
2.28
(92.1 %)
Adjusted EPS
0.79
0.76
3.9 %
3.04
3.21
(5.3 %)
Cash flows from operating activities
1,877
2,373
(20.9 %)
6,988
7,946
(12.1 %)
Capital expenditures
(963)
(1,029)
6.4 %
(3,897)
(4,581)
14.9 %
Free cash flow
874
1,289
(32.2 %)
2,888
3,144
(8.1 %)
“BCE’s Q4 results reflect our continued focus on competing in a hyper-competitive communications market, while progressing on our transformation and driving costs out of the business,” said Curtis Millen, Chief Financial Officer of BCE and Bell Canada.
“The Bell team demonstrated discipline in managing operating costs with EBITDA growth in both our CTS and Bell Media segments. We reduced our capital expenditures by $66 million in Q4, bringing total capex savings to $684 million in 2024. We have good financial flexibility with access to $4.5 billion of liquidity and a pension solvency surplus totalling $3.7 billion as at December 31, 2024.
As we look ahead, our 2025 financial guidance reflects an uncertain macroeconomic and regulatory environment. Despite ongoing competitive pricing pressures, we believe that the superiority of fibre over cable, our 5G wireless services, enterprise solutions business and digital subscriptions and advertising present opportunities for growth. Overall, we remain confident in our ability to execute under any circumstances and to deliver value for our shareholders.”
______________________
11 Capital intensity is defined as capital expenditures divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on capital intensity.
Bell Communication and Technology Services12 (Bell CTS)
______________________
12 In Q1 2024, we adjusted our mobile phone postpaid subscriber base to remove very low to non-revenue generating business market subscribers of 105,802. Additionally, in Q1 2024 our retail high-speed Internet subscriber base increased by 3,850 business subscribers as a result of a small acquisition. We also removed 11,645 turbo hub subscribers from our retail high-speed Internet subscriber base in Q1 2024, as we are no longer actively marketing this product in our wireless-to-the-home footprint. Lastly, as of Q1 2024, we are no longer reporting retail satellite TV subscribers as this no longer represents a significant proportion of our revenues. As a result, satellite TV subscribers have been removed from our retail TV subscriber base, and we now report exclusively retail IPTV subscribers.
13 In Q3 2024, we removed 77,971 Virgin Plus prepaid mobile phone subscribers from our prepaid mobile phone subscriber base as at September 30, 2024, as we stopped selling new plans for this service as of that date. Additionally, as a result of a recent CRTC decision on wholesale high-speed Internet access services, we are no longer able to resell cable Internet services to new customers in our wireline footprint as of September 12, 2024, and consequently we removed all of the existing 106,259 cable subscribers in our wireline footprint from our retail high-speed Internet subscriber base as of that date.
14 In Q4 2024, we removed 124,216 Bell prepaid mobile phone subscribers from our prepaid mobile phone subscriber base as at December 31, 2024, as we stopped selling new plans for this service as of that date.
15 ARPU is defined as Bell CTS wireless external services revenues, divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on blended ARPU.
16 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on churn and subscriber (or customer) units.
17 In Q2 2024, we increased our retail IPTV subscriber base by 40,997 to align the deactivation policy for our Fibe TV streaming services to our traditional Fibe TV service. While in Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080,243 and 7,458 subscribers, respectively, as a result of small acquisitions.
Bell Media
We are maintaining BCE’s annualized common share dividend at its current level of $3.99 per common share.
BCE’s Board of Directors has declared today a quarterly dividend of $0.9975 per common share, payable on April 15, 2025 to shareholders of record at the close of business on March 14, 2025.
BCE’s common share dividend and common share dividend payout policy will continue to be reviewed by the Board. In its review, the Board will consider the competitive, macroeconomic and regulatory environments as well as progress being made on our strategic and operational roadmap.
The table below provides our 2025 financial guidance targets. We expect wireless and broadband competitive pricing flowthrough pressure from 2024, lower subscriber loadings, decreased wireless product sales and higher media content and programming costs to impact revenue and adjusted EBITDA. We expect a slowdown of our fibre build in Canada and efficiencies from transformation initiatives to drive lower capital expenditures. We expect increased interest expense, higher depreciation and amortization expense, lower gains on sale of real estate and a higher number of common shares outstanding due to the implementation of a discounted dividend reinvestment plan. For 2025, we also expect lower capital expenditures to drive higher free cash flow. The guidance ranges below are unaffected by the pending divestiture of Northwestel and also exclude the acquisition of Ziply Fiber, which is expected to close in the second half of 2025.
2024 Guidance
2024 Results
2025 Guidance
Revenue growth
Approx. (1.5%)
(1.1 %)
(3%) to 1%
Adjusted EBITDA growth
1.5% to 4.5%
1.7 %
(2%) to 2%
Capital intensity
<16.5%
16.0 %
Approx. 14%
Adjusted EPS growth
(7%) to (2%)
(5.3 %)
(13%) to (8%)
Free cash flow growth
(11%) to (3%)
(8.1 %)
11% to 19%
Annualized common dividend per share
$3.99
$3.99
$3.99
Please see the section entitled “Caution Regarding Forward-Looking Statements” later in this news release for a description of the principal assumptions on which BCE’s 2025 financial guidance targets are based, as well as the principal related risk factors.
BCE will hold a conference call with the financial community to discuss Q4 2024 results and 2025 financial guidance on Thursday, February 6, 2025 at 8:00 am eastern. Media are welcome to participate on a listen-only basis. To participate, please dial toll-free 1-844-933-2401 or 647-724-5455. A replay will be available until midnight on March 6, 2025 by dialing 1-877-454-9859 or 647-483-1416 and entering passcode 1483538#. A live audio webcast of the conference call will be available on BCE’s website at BCE Q4-2024 conference call.
BCE uses various financial measures to assess its business performance. Certain of these measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP) while certain other measures do not have a standardized meaning under GAAP. We believe that our GAAP financial measures, read together with adjusted non-GAAP and other financial measures, provide readers with a better understanding of how management assesses BCE’s performance.
National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure (NI 52-112), prescribes disclosure requirements that apply to the following specified financial measures:
This section provides a description and classification of the specified financial measures contemplated by NI 52-112 that we use in this news release to explain our financial results except that, for supplementary financial measures, an explanation of such measures is provided where they are first referred to in this news release if the supplementary financial measures’ labelling is not sufficiently descriptive.
Non-GAAP Financial Measures
A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in BCE’s consolidated primary financial statements. We believe that non-GAAP financial measures are reflective of our on-going operating results and provide readers with an understanding of management’s perspective on and analysis of our performance.
Below are descriptions of the non-GAAP financial measures that we use in this news release to explain our results as well as reconciliations to the most directly comparable IFRS financial measures.
Adjusted net earnings – Adjusted net earnings is a non-GAAP financial measure and it does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and non-controlling interest (NCI).
We use adjusted net earnings and we believe that certain investors and analysts use this measure, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.
The most directly comparable IFRS financial measure is net earnings attributable to common shareholders.
The following table is a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.
($ millions)
Q4 2024
Q4 2023
2024
2023
Net earnings attributable to common shareholders
461
382
163
