By Adriano Marchese

BCE has set targets for 2025 that could see revenue continue to fall due to higher competition for subscribers among Canada's major telecom brands, a trend that was seen in the fourth quarter.

The Canadian telecom giant company on Thursday set targets for revenue to fall by 3% or rise as much as 1% for 2025. BCE cited wireless and broadband competitive pricing pressures from 2024 to be felt in its revenue this year, while lower subscriber trends are expected to continue.

Adjusted earnings per share are expected to fall between 8% and 13% in the year.

Canada's lower immigration targets--which translate into fewer new subscribers--have helped to intensify competition among the country's telecom companies alongside the addition of a fourth carrier: Quebecor's Freedom Mobile.

For the fourth quarter, BCE posted net income of 505 million Canadian dollars ($352.8 million), or C$0.51 a share, up from C$435 million, or C$0.42 a share, in the comparable quarter a year ago.

The rise was mainly due to lower asset impairment charges. The company in the prior-year fourth quarter logged a C$109 million charge due to its Bell Media French-language TV properties and broadcast licenses.

Adjusted earnings, which excludes one-off costs and exceptional items, came to C$0.79 a share, topping expectations of C$0.72 a share forecasted by analysts, taken from FactSet.

Operating revenues fell to C$6.42 billion from C$6.47 billion, falling above targets of a greater decline to C$6.35 billion, according to analysts polled on FactSet.

The decline was due largely to a 1.1% decline in service revenue.

In the quarter, BCE added 151,413 mobile phone and connected device net subscribers and 34,187 net retail internet subscriber activations. This is down from 170,831 mobile and 55,591 net additions a year earlier, respectively.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 06, 2025 07:35 ET (12:35 GMT)

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