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Research Alert: Bce Cuts Dividend By 56%, Signs Fiber Deal With Psp
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Research Alert: Bce Cuts Dividend By 56%, Signs Fiber Deal With Psp
May 26, 2025 4:24 AM

12:35 PM EDT, 05/08/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

BCE reported mixed Q1 2025 results, with net earnings surging 49.5% Y/Y to $683M due to early debt redemption gains, while adjusted EPS declined 4.2% to $0.69 and operating revenues fell 1.3% to $5,930M. The Bell CTS segment revenue dropped 2.4%, partially offset by Bell Media's 6.9% growth, while adjusted EBITDA remained relatively stable at $2,558M, down 0.3%. The company faced significant wireless headwinds, reporting a net loss of 9,598 postpaid mobile phone subscribers compared to 45,247 net additions last year, attributed to a less active market and slowing population growth. In a major shift, BCE announced a substantial dividend reduction to $1.75 from $3.99 annually, aiming to strengthen its balance sheet amid economic uncertainty. We believe the company's focus on deleveraging, targeting a net debt leverage ratio of 3.5x adjusted EBITDA by 2027, reflects a necessary but prudent approach to address the challenging operating environment.

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