BCE Inc. reported a decline in first-quarter profit compared to the same period last year, even as revenue edged higher. The Montreal-based telecommunications giant said net income attributable to common shareholders was $XXX million, down from $XXX million a year earlier. Revenue rose to $XXX million, up from $XXX million in the first quarter of 2025.
Competitive pressures weigh on results
The company cited intense competition in the telecom sector, particularly in wireless and internet services, as a key factor affecting profitability. BCE has been investing heavily in network upgrades and customer retention efforts, which have squeezed margins. Adjusted earnings per share came in at $0.XX, compared to $0.XX in the prior year.
Revenue growth driven by broadband and media
Revenue growth was supported by increases in broadband internet subscriptions and media advertising sales. BCE's media division, which includes Bell Media, saw a modest uptick in revenue as advertising demand rebounded. However, wireline voice and legacy TV services continued to decline, reflecting ongoing cord-cutting trends.
Capital expenditures rose to $XXX million as BCE expanded its fibre-optic network and 5G coverage. The company said it remains on track to meet its full-year financial targets, despite the challenging environment.
Outlook and analyst reaction
Analysts noted that BCE's results were largely in line with expectations, though profit margins came under pressure. The company's dividend remains unchanged at $0.XXX per share quarterly. BCE shares closed at $XX.XX on the Toronto Stock Exchange, down X% on the day.
Looking ahead, BCE expects continued revenue growth from its digital and broadband services, but warned that competitive dynamics and regulatory costs could weigh on earnings in the near term. The company is also navigating potential changes to telecom regulations under the federal government.
