Key Numbers from Q2
- Q2 2025 net earnings: $579M ($0.63/share) vs. $537M ($0.59/share) in Q2 2024
- Operating revenue: $6.08B, up slightly from $6.0B last year
- Adjusted EPS: $0.63, down from $0.78 a year earlier and below analyst consensus of $0.71
- Postpaid mobile net adds: 44,547 vs. 78,500 a year ago; churn down to 1.06% from 1.18%
- Ziply Fiber acquisition expands U.S. fibre footprint by 1.4M locations
BCE Inc. (TSX:BCE)(NYSE:BCE) signaled a major shift in its network strategy after the federal government upheld the CRTC’s wholesale fibre internet policy. CEO Mirko Bibic confirmed that Bell’s Canadian fibre buildout — currently reaching eight million homes — will plateau, abandoning earlier targets of 8.3 to 9 million. The company argues the CRTC framework, which allows competitors to access its network for a fee and lets large rivals re-sell outside their core regions, undermines investment incentives. Bell has already cut $500 million from its 2025 capital plans in response.
With Canadian fibre expansion slowing, BCE is turning to U.S. growth following last week’s $5 billion purchase of Ziply Fiber. The deal adds 1.4 million fibre passings in the Pacific Northwest and positions Bell to target up to eight million U.S. locations through Network FiberCo, its joint venture with the Public Sector Pension Investment Board. Bibic cited the lower U.S. fibre penetration rate — around 50% of homes — as a strong long-term opportunity.
Second-quarter financial results showed modest revenue growth to $6.08 billion and higher net profit year-over-year, though adjusted EPS fell to $0.63, missing expectations. BCE added 44,547 postpaid wireless subscribers, down sharply from last year, as the company emphasized “higher-value” activations amid a softer market and slower immigration-driven population growth. Churn improved to 1.06%, its first annual improvement since 2022. Mobile ARPU slipped 0.7% to $57.61 due to competitive pricing, reduced overage fees, and weaker U.S. roaming.
The company raised its 2025 revenue outlook to flat-to-2% growth, from a prior range of -3% to +1%, reflecting Ziply’s contribution. However, domestic network investment will remain constrained unless wholesale rules change.
Given the earnings miss, strategic pivot to the U.S., and regulatory headwinds in Canada, BCE may appeal more to dividend-oriented investors seeking stable cash flows than to growth-focused investors in the near term. Year to date, BCE’s stock is up less than 4%, and it currently yields 5.2%.