The company said it will now pay a quarterly dividend of 43.75 cents per share, down from 99.75 cents per share. The decision cuts BCE’s annualized dividend to $1.75 per common share from $3.99.
BCE Inc. Q1 2025 earnings
Operating revenue: $5.93 billion
Quarterly dividend: 43.75 cents per share
“As we debated this, deliberated at the board, certainly having taken and having listened to the perspectives of investors over the last few months, we decided that resetting the dividend … was the most responsible way to address our capital allocation strategy,” Bibic said in an interview.
“Essentially the new dividend level allows us to de-lever and invest for growth.”
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Effect of inflation affecting Canadians’ mobile shopping habits
Inflation and the prospect of a global recession are weighing on consumer confidence, the company said, while reductions in BCE’s share price have resulted in higher capital costs. BCE’s board also considered factors such as an “unsupportive regulatory environment given recent CRTC decisions” and a slowdown in immigration to Canada.
Bibic said there have been “significant changes” in the economic and operating environments since the fall of 2024 that the company needs to address.
While last quarter began with wireless prices stabilizing, the latter half of that period saw more fluctuations. That, along with the “overall macro environment” affected Bell’s ability to boost subscriptions, Bibic said.
BCE had a net loss of 9,598 postpaid mobile phone subscribers in its first quarter, compared with 45,247 net activations during the same period a year earlier.
The company cited a “less active market,” slowing population growth due to federal immigration policies, and its own focus on “higher-value subscriber loadings.” Bibic said there were 25,000 net new customers on the main Bell brand in the quarter, which was down 9,000 year-over-year.
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