Telecom firm BCE's Q2 revenue rises 1.3%

Overview

• BCE Q2 2025 revenue up 1.3% to $6.085 bln, adjusted EBITDA down 0.9%

• Net earnings rose 6.6% to $644 mln, adjusted EPS fell 19.2% to $0.63

• Co completed Ziply Fiber acquisition, enhancing North American fiber strategy

Outlook

• BCE sees 2025 revenue growth between 0% and 2%

• Company expects adjusted EBITDA growth of 0% to 2% in 2025

• BCE anticipates 2025 adjusted EPS decline of 13% to 10%

• Company projects free cash flow growth of 6% to 11% for 2025

Result Drivers

• WIRELESS IMPROVEMENT - BCE reports first year-over-year improvement in mobile phone postpaid churn since Q3 2022, attributed to customer service enhancements

• BELL MEDIA GROWTH - Bell Media's revenue and adjusted EBITDA rose, driven by digital platforms and advertising technology

• BELL BUSINESS MARKETS - Revenue growth supported by Ateko managed services, cybersecurity, and Bell AI Fabric

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 9 "hold" and 5 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for BCE Inc is C$33.00, about 3% above its August 6 closing price of C$32.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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