BCE Inc., the parent company of Bell Canada, reported its fourth-quarter financial results, revealing a mixed performance driven by its successful streaming service, Crave. The company announced net earnings of $632 million for the quarter ending December 31, showing a notable 25% increase year-over-year.
BCE’s Revenue and Profit Overview
The total revenue for BCE in the fourth quarter was $6.4 billion, a slight decline of 0.3% from the previous year. This outcome was slightly below analyst expectations, which had estimated revenue at $6.5 billion. The company attributed the drop to falls in both its media and telecommunications segments, alongside contributions from its newly acquired U.S. fibre business.
Growth in Crave Subscriptions and Media Performance
Despite facing challenges, the media division’s revenue decreased by 3.4% due to reduced advertising income. However, Crave subscriptions saw a significant surge, increasing by 26% during the quarter, largely driven by the popularity of its original series, “Heated Rivalry.” This growth indicates a strong viewer engagement on the platform.
Mobile and Internet Services Update
- BCE added 56,000 net new postpaid mobile customers, meeting analyst predictions.
- However, the company experienced a slight drop in its average revenue per user (ARPU).
- Internet revenue saw a robust growth of 16.6%, supported by Bell’s acquisition of Ziply Fiber.
- Nevertheless, new retail internet subscribers fell to 13,000, a 61% decline compared to last year.
Financial Guidance for 2026
BCE has maintained its financial guidance for 2026, projecting revenue growth between 1% and 5%, with free cash flow growth anticipated at 4% to 10%. The guidance reflects BCE’s aim to expand in new business segments while addressing the challenges faced in its legacy operations, particularly in a competitive wireless market.
Cost Management and Strategic Shifts
In a bid to stabilize its financial footing, BCE undertook significant cost-cutting measures, trimming its workforce and paying down debt. CEO Mirko Bibic remarked on the company’s progress in resetting its strategy, focusing on both operational and capital market aspects.
Conclusion
Overall, BCE’s fourth-quarter results highlight both the opportunities and challenges the company faces. With a clear strategy in place, the company is positioned to harness growth from its new offerings while navigating uncertainties in the competitive landscape.
