Q2 2025 BCE Inc Earnings Call Transcript
Key Points
- BCE Inc (BCE) reported a solid 1.3% increase in revenue for Q2 2025, driven by successful fiber strategy and premium wireless subscriber growth.
- The acquisition of Ziply Fiber was completed ahead of schedule, expanding BCE's fiber footprint by 1.4 million locations and positioning it as the third largest fiber Internet provider in North America.
- BCE's self-install program has been a success, with over 1 million self-installs since 2022, leading to significant cost savings and improved customer satisfaction.
- The company reported a 5% increase in cash flow in Q2 2025, reflecting strong financial management and operational efficiency.
- BCE's Bell Media segment showed continued digital momentum with a 9% increase in digital revenue, now comprising 43% of total media revenues.
- EBITDA was down 19% due to higher costs of goods sold associated with significant growth in product revenue.
- Adjusted EPS declined by 19.2%, impacted by noncash mark-to-market losses on FX hedges and options, higher interest expenses, and lower year-over-year tax.
- Wireless service revenue decreased by about 3%, reflecting sustained competitive pricing pressure and lower roaming revenues.
- The decision by the federal government to uphold the CRTC's decision on mandatory wholesale access was a disappointment, potentially impacting future network investments.
- BCE's guidance for adjusted EPS in 2025 was revised downward to a range of minus 13% to minus 10%, reflecting higher depreciation, amortization, and interest expenses related to the Ziply Fiber acquisition.
Good morning. (inaudible) meeting over to Kris Somers. Please go ahead, Mr. Somers.
Thank you, Matthew. Good morning everyone and thank you for joining our call. With me here today are Mirko Bibic, BCE's President and CEO; and our CFO, Curtis Millen. You can find all our Q2 disclosure documents on the investor relations page of the BCE.ca website which we posted earlier this morning.
Now before we begin, I'd like to draw your attention to our Safe Harbor statement on slide 2, reminding you that today's slide presentation and remarks made during the call will include forward-looking information and therefore are subject to risks and uncertainties. Results could differ materially. We disclaim any obligation to update forward-looking statements except as required by law. Please refer to our publicly filed documents for more details on assumptions and risks.
With that out of the way, I'll turn the call over to Mirko.
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