Bce Inc ( (BCE) ) has released its Q3 earnings. Here is a breakdown of the information Bce Inc presented to its investors.
BCE Inc. is Canada’s largest communications company, offering broadband Internet, wireless, TV, media, and business communications services. In the third quarter of 2024, BCE Inc. reported a mixed financial performance, with a notable increase in consolidated adjusted EBITDA by 2.1%, achieving the highest quarterly margin in over 30 years at 45.6%. However, the company faced a net loss of $1,191 million due to significant non-cash media asset impairment charges. Despite these challenges, the company saw a 10.3% rise in free cash flow to $832 million and a strong performance in mobile phone and Internet subscriber activations.
Key highlights from the earnings report include a 10.1% rise in Bell Media revenue, driven by a 19% increase in digital revenue and a 25.1% growth in adjusted EBITDA. The company also announced strategic moves such as the intent to acquire Ziply Fiber and the sale of its stake in MLSE. These transactions aim to bolster BCE’s market position and expand its fiber footprint.
Despite experiencing a 1.8% decline in operating revenues, BCE showed resilience through cost-cutting measures, resulting in a 4.8% reduction in operating costs and a 17.7% decrease in capital expenditures. However, product revenues fell by 14.3%, reflecting challenges in the consumer electronics market and competitive pricing pressures in the wireless sector.
Looking forward, BCE has adjusted its revenue guidance for 2024, anticipating a 1.5% decline due to lower-than-expected product revenues and ongoing pricing pressures in the wireless market. The company plans to maintain its focus on cost efficiency and subscriber growth, with no changes to other financial guidance targets. BCE’s strategic initiatives and robust liquidity position it well for future challenges and opportunities.
