BCE (BCE) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA grew 2.1% year-over-year to a record margin of 45.6%, driven by disciplined execution and premium brand focus in a competitive market.

• Net loss of $1,191 million due to $2.1 billion in non-cash media asset impairment charges; adjusted net earnings were $688 million, down 7.2%.

• Free cash flow increased 10.3% year-over-year to $832 million, while cash flows from operating activities declined 6.1%.

• Strategic focus on cost savings, digital transformation, and growth in fibre and media segments, with disciplined customer acquisition and bundled offerings to drive ARPU and reduce churn.

• Resale business impacted by CRTC ruling, halting new TPIA subscriber additions; existing customers are grandfathered and migration to fiber continues where possible.

Financial highlights

• Revenue was $5,971 million, down 1.8% year-over-year, with service revenue flat and product revenue down 14.3%.

• Adjusted EBITDA reached $2,722 million, up 2.1% year-over-year, with a margin of 45.6%.

• Adjusted EPS was $0.75, down 7.4% year-over-year; net loss per share was $1.36.

• Capital expenditures decreased 17.7% to $954 million, reducing capital intensity to 16.0%.

• Free cash flow rose to $832 million, up 10.3% year-over-year.

Outlook and guidance

• 2024 revenue growth guidance revised downward to approximately -1.5% due to lower wireless product revenues and device sales.

• All other 2024 financial guidance targets, including adjusted EBITDA, capital intensity, adjusted EPS, and free cash flow, remain unchanged.

• Dividend guidance maintained at $3.99 per share annualized for 2025, with dividend growth paused until payout and leverage ratios improve.