07:17 AM EDT, 05/08/2025 (MT Newswires) -- BCE (TSX and NYSE: BCE) was at last look up 1% in pre-market trade on Thursday as it reported a first-quarter earnings beat. The Canadian telco giant slashed its annual dividend by more than 50%.

For Q1, BCE said adjusted net earnings of $633 million yielded adjusted EPS of $0.69, down 4.2% from $0.72 a year earlier but beating a FactSet forecast of $0.62. The company had net earnings of $683 million, up 50% with net earnings attributable to common shareholders of $630 million, up 57% or $0.68 per common share from $0.44 a year earlier.

Operating revenue fell to $5.93 billion, compared with $6.01 billion a year earlier. That beat a FactSet forecast of $5.92 billion.

The company slashed its common share annual dividend to $1.75 from a $3.99.

"There are a number of significant changes in our economic and operating environments that have occurred since the Fall of 2024 that we need to address," said Mirko Bibic, president and CEO. "We have made the appropriate decision to adjust our annualized dividend to $1.75 per common share to strengthen our balance sheet while maintaining flexibility in the context of economic uncertainty. As we look ahead to the rest of 2025, we will be focused on disciplined execution and continuing to strengthen the balance sheet."

Separately, BCE said the board approved modifications to the company's shareholder dividend reinvestment and stock purchase plan whereby common shares distributed under the DRP will no longer be issued from treasury at a 2% discount to the average market price and will instead be purchased by BCE's agent, TSX Trust Company, on the secondary market with cash provided by BCE. The modifications will be effective commencing with the dividend payable on July 15, 2025 to eligible holders of common shares as of the June 16, 2025 record date, and subsequently until further notice.

BCE lost 1.1% on the TSX yesterday.