BCE, Canada’s largest telecommunications company, has released its strong Q4 results, achieving all non-revenue and revised revenue guidance targets for 2024 and setting the stage for its 2025 targets.
BCE’s 2024 operating revenue plummeted by 1.1% to USD 24,409 million, with Q4 declining by 0.8% to USD 6,422 million compared to the same period in 2023. The decline was attributed to the offset growth of Bell Communication and Technology Services (Bell CTS) to Bell Media.
Despite the slight revenue decline, BCE saw an increase in net earnings by 16.1% to USD 505 million, with adjusted EBITDA growth of 1.5% leading to a 0.9 percentage-point increase in adjusted EBITDA margin to 40.6%—the highest recorded Q4 margin in over three decades.
Adjusted net earnings rose by 4.1% to USD 719 million. Subscriber growth remained strong, with 151,413 total mobile phone and connected device net activations, and 34,187 total retail internet net activations during Q4.
Mirko Bibic, President and CEO of BCE and Bell Canada, highlighted, “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.”
Read more: Bell Canada Enters U.S. Fiber Market with Ziply Acquisition
Other Key Insights
BCE reported a strong preference for fiber, with total revenue rising 3.3% year-over-year and a 10% increase in FTTH network coverage, resulting in three million residential internet customers. Efficient business solutions revenue grew by 18%, reflecting BCE’s momentum in becoming a technology services leader.
Additionally, the Bell team saw powerful operation cost management in CTS and Bell Media segments, reducing capital expenditures by USD 66 million during Q4 and a total capex savings of USD 684 million in 2024.
Curtis Millen, BCE and Bell Canada’s Chief Financial Officer, stated, “BCE’s Q4 results reflect our continued focus on competing in a hyper-competitive communications market, while progressing in our transformation and driving costs out of the business.”
Also Read: Bell Canada Increases Internet Speeds
2025 Target Overview
Looking ahead to 2025, BCE plans to execute a strategic roadmap to generate revenue growth, alongside managing costs and capital allocation priorities.
The focus will be on four key pillars: putting customers first; continuing to deliver the best pure fiber internet and 5G wireless networks and services; growing business technology services for enterprise customers; and continued momentum in digital media and offering the most compelling content.
By leveraging modern technologies, such as artificial intelligence (AI) and automation, BCE will continue modernizing business operations and managing operational cost efficiencies.
With the 2025 financial guidance reflecting the uncertainties in macroeconomic and regulatory environments, the BCE CFO stated, “Despite ongoing competitive pricing pressures, we believe in the superiority of fiber over cable, 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 deliver value for our shareholders.”
Complementing the CFO’s positive outlook, the BCE CEO emphasized the company’s mission for 2025, stating, “Our purpose is to advance how Canadians connect with each other and the world. In 2025, we intend to continue delivering on this purpose for our customers, while driving value for our shareholders.”
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