BCE Inc. reported a 113 percent increase in its artificial intelligence services revenue during the first quarter, marking the first time the Canadian telecom company has disclosed earnings from its AI operations. This growth helped offset weaker service revenue in its traditional business segments.
Strong AI Performance Boosts Results
The company's consolidated revenue grew four percent, with adjusted EBITDA rising 2.9 percent. Chief Executive Mirko Bibic highlighted the significance of the AI revenue surge during Thursday's earnings call, stating, "That's a powerful number, and it reflects the compounding momentum across all three of our AI powered businesses."
The AI-powered solutions include Ateko, Bell Cyber, and Bell AI Fabric, which drove Bell Business Markets revenue up by 9.7 percent. Bibic emphasized that "Bell AI Fabric is creating considerable value in a very short period of time and I want to make sure investors fully understand the story."
Legacy Services Continue to Decline
Despite the AI growth, service revenue for Bell CTS Canada fell 1.2 percent in the quarter to $4.433 billion, as legacy voice, data, and TV services continued to decline. The company also reported lower mobile phone blended average revenue per user (ARPU). These declines were partially offset by the strong performance in AI-powered solutions.
Overall, the company's consolidated revenue increased by four percent, supported by the robust demand for AI services. The adjusted EBITDA improvement of 2.9 percent further underscores the positive impact of the AI segment on the company's financial health.
