BCE, Canada's largest telecom company, announced lower-than-expected wireless subscriber growth and forecast a decline in earnings per share for 2025 due to intense competition, pricing pressures, and macroeconomic headwinds. While BCE saw higher net earnings in the fourth quarter, it added fewer wireless subscribers than anticipated and predicts a decline in revenue for 2025.
“It’s been a highly competitive environment, with the lowest pricing we’ve ever seen,” BCE CEO Mirko Bibic said in an interview.posted higher net earnings in the fourth quarter, but added fewer wireless subscribers than expected and forecast a drop in earnings per share for 2025.
The company cited continuing competitive wireless and broadband pressure, lower subscriber loading, higher media costs, increased interest expense and a higher number of common shares outstanding due to the implementation of a discounted dividend reinvestment plan. “It’s been a highly competitive environment, with the lowest pricing we’ve ever seen,” Mr. Bibic said. Slowing immigration and lower number of housing starts have also been headwinds for the industry, he added.
In a slight departure from that message, Mr. Bibic told analysts Thursday morning the company would continue to reassess the dividend based on macroeconomic, competitive and regulatory factors. The company currently carries a high debt load of more than $40.5-billion. In order to help pay that down, Mr. Bibic said the company had identified an added $1.3-billion of non-core assets that could be sold to help strengthen the balance sheet, aside from the company’s ongoing sales of Northwestel for $1.3-billion and Maple Leaf Sports & Entertainment for $4.7-billion.
BCE Telecom Earnings Competition Subscriber Growth Dividend Debt
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