BCE Inc. Reports Third Quarter 2024 Financial Results
BCE Inc. (TSX: BCE, NYSE: BCE) reported its financial results for the third quarter (Q3) of 2024 on November 7, illustrating both achievements and challenges in a competitive market landscape.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change | Wall Street Consensus for Q3 2024 |
|---|---|---|---|---|
| Total Revenue | $5.97 billion | $6.09 billion | -1.8% | $4.36 billion |
| Adjusted Earnings per Share | $0.75 | $0.81 | -7.4% | $0.56 |
BCE's revenue for Q3 2024 was $5.97 billion, marking a year-over-year decline of 1.8% due to a dip in product revenue. Despite the challenges, the company exceeded consensus estimates in both revenue and earnings per share.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | Year-over-Year Change |
|---|---|---|
| Bell Communication (Bell CTS) | $5.28 billion | -3.3% |
| Bell Media | $782 million | +10.1% |
Bell Media experienced strong growth with a 10.1% increase in revenue, driven by digital advertising and subscription expansions. However, Bell CTS saw a decline in revenue of 3.3% due to decreased product sales and service revenue.
Operational Highlights - Acquisition and Divestiture Announcements: - Intent to acquire Ziply Fiber for approximately C$5 billion. - Sale of 37.5% ownership in MLSE for approximately CA$4.7 billion.
- Strategic Partnerships:
- Expanded partnership with Hyundai Motor Group for IoT services.
- Collaboration with MacLean Engineering on mining operations.
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Investment in Ax-C, an entrepreneurship hub in Montréal.
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Media Initiatives:
- Extended partnership with Warner Bros. Discovery, securing exclusive content rights for HBO and Max in Canada.
Comments from Company Officers
Mirko Bibic, President and CEO, emphasized BCE's focus on attracting higher-margin subscribers and reducing costs amidst competitive pressures, enabling a stabilized EBITDA margin. He also noted the success in internet and media segments and strategic efforts in business transformation and partnerships.
Dividend Announcement
BCE declared a quarterly dividend of $0.9975 per common share, payable on January 15, 2025, maintaining its yield amid reinforced financial strategies.
Forward Guidance
The company has revised its revenue guidance for 2024 downward, anticipating a 1.5% decline due to wireless pricing pressures and product revenue shortfalls, while maintaining other financial targets consistent.
Stock Price Movement
Post-earnings release, the company's stock saw a minor decrease of 0.35%, reflecting market reaction to the revised revenue projections.
BCE Inc. continues to navigate its strategic objectives, focusing on growth through fiber expansion and content generation, while positioning itself securely in the face of economic and market challenges.
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