Bell tops estimates, but sees weaker year ahead as wireless slows

financialpost.com:

BCE Inc. beat analysts’ fourth-quarter expectations as Canada’s largest telecommunications firm reduced costs.

The company earned 79 Canadian cents per share on an adjusted basis in the fourth quarter, more than the 72 Canadian cents expected by analysts in a Bloomberg survey.

The firm issued subdued guidance for 2025 based on an uncertain macroeconomic environment and competitive pricing pressures, expecting adjusted Ebitda to range between two per cent lower and two per cent higher. The company achieved 1.7 per cent growth in that metric last year.

Shares fell as much as 7.1 per cent to $33.35 within the first hour of trading in Toronto.

BCE maintained its quarterly dividend at just below $1 per share. Bank of Nova Scotia’s Maher Yaghi and analysts with Toronto Dominion Cowen have called for BCE to halve its dividend to mitigate cash flow issues. On a call with analysts, the company acknowledged its high payout ratio is outside of its policy range.

“That’s reflected in BCE’s share price and dividend yield, which we are disappointed with,” chief executive Mirko Bibic said during the call, adding that the board of directors will continue to review the payout ratio.

Operating revenue for the three months ended Dec. 31 was $6.4 billion, slightly above estimates.

BCE shares have fallen by more than 32 per cent over the past year, closing at $35.90 on Wednesday. The stock is trading around 2011 levels.

“We’re in full rejuvenation mode,” Bibic said in an interview, adding that the focus is on fibre networks and digital media.

The telecom company’s mobile division added 56,550 postpaid subscribers in the fourth quarter, down 56 per cent from a year earlier. The company pointed to lower activations stemming from slower