In an interview, chief executive officer Mirko Bibic said the company is anticipating 'more appropriate pricing that’s reflective of the value that we provide' during the current quarter, which includes the busy back-to-school season.EDUARDO LIMA/The Globe and Mail
BCE Inc. BCE-T posted improved revenue and net earnings in the second quarter of 2025, adding more mobile subscribers than expected as it updated guidance for the year.
In its second quarter ended June 30, Bell Canada parent company BCE added 94,000 net new mobile customers, much higher than analyst expectations of 60,000, though the company added 43 per cent fewer postpaid subscribers compared to last year.
Bell’s mobile adds beat rivals Rogers Communications Inc. RCI-B-T and Telus Corp. T-T, which had 61,000 and 55,000 net new subscribers, respectively. Bell had lagged peers in wireless for recent quarters, and analysts had hoped the company would make up ground as mobile pricing stabilized during the quarter.
In an interview Thursday morning, BCE and Bell chief executive officer Mirko Bibic said the company anticipates “more appropriate pricing that’s reflective of the value that we provide” during the current quarter, which includes the busy back-to-school season.
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Operating revenue was $6-billion, up 1.3 per cent from last year, beating the analyst consensus of $5.9-billion.
Following the closing of BCE’s acquisition of U.S. internet company Ziply Fiber, the telecom and media company increased revenue guidance for 2025 to between zero and 2-per-cent growth, up from previous expectations of between a 3-per-cent loss and 1-per-cent growth.
It also slightly increased its capital intensity expectations and lowered its free cash flow growth expectations by nearly half, reflecting increased capital expenditure for Ziply Fiber for the rest of the year. Beyond 2025, most of that expenditure will fall to Network FiberCo, Bell’s joint venture with PSP Investments.
Network FiberCo will have its own non-recourse debt financing, which is expected to provide the majority of its capital over time. Mr. Bibic declined to provide an update to the company’s debt-raising efforts.
BCE maintained its annualized dividend payout of $1.75 per share, which lowered the company’s yield to about 5.3 per cent, months after it sliced its previous $3.99 distribution to help balance its long-term financial position.
The company currently carries a long-term debt load of $32.5-billion. To help pay that down, BCE previously identified $1.3-billion of non-core assets that could be sold to help strengthen its balance sheet.
It made a small move toward that target by selling its home security assets for up to $170-million, contingent on performance obligations.
Mr. Bibic said BCE is not currently prioritizing infrastructure asset sales, but is closely looking at recent industry deals. While the company could seek a partner for its AI Fabric business or tower portfolio, “there’s nothing on the go right now,” he said.
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That $1.3-billion goal does not include Bell’s planned sale of Northwestel Inc. for $1-billion. The deal had yet to close as of June, more than a year after being announced, as the buyer, a consortium of Indigenous organizations known as Sixty North Unity, had yet to secure the financing needed.
Mr. Bibic said there is “continuing dialog between the new Liberal government and the potential buyers around tapping into Indigenous Loan Guarantee Programs,” which facilitate access to affordable capital to Indigenous groups.
Following the end of the quarter, BCE concluded the sale of its ownership stake in Maple Leaf Sports and Entertainment to Rogers for $4.7-billion. The company used the proceeds from this deal to complete the purchase of U.S. fibre internet company Ziply for $5-billion in August.
Net earnings were $644-million, up 6.6 per cent from last year, compared with expectations of $628-million. This was mainly due to lower “other expense” and impairment costs, offset by higher severance and acquisition costs.
Media revenue was up 3.8 per cent to $843-million, driven by higher subscriber revenue but offset by lower advertising revenue.
Internet net additions of 5,000 missed the analyst consensus of 14,000.