MONTREAL – BCE Inc. cut its quarterly dividend payment to shareholders and announced a partnership deal with the Public Sector Pension Investment Board to help accelerate the development of fibre infrastructure in the U.S.
BCE chief executive Mirko Bibic said Thursday the dividend cut comes as the company faces intense price competition and sustained regulatory uncertainty against a backdrop of macroeconomic and geopolitical instability.
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.
“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.”
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.
The dividend cut came as BCE reported net earnings attributable to common shareholders of $630 million or 68 cents per diluted share for its first quarter, up from $402 million or 44 cents per diluted share a year earlier.
On an adjusted basis, BCE says it earned 69 cents per share in its latest quarter, down from an adjusted profit of 72 cents per share in the same quarter last year.
Operating revenue totalled $5.93 billion, down from $6.01 billion a year ago.
BCE announced a deal earlier this year to buy U.S. fibre internet provider Ziply Fiber for about $5 billion in cash.
Under the plan announced Thursday, Ziply Fiber will become a long-term partner to Network FiberCo, jointly owned by PSP Investments and BCE, as the exclusive internet service provider to locations passed by Network FiberCo.
BCE through Ziply Fiber will hold a 49 per cent equity stake in Network FiberCo, while PSP Investments will own 51 per cent.
PSP Investments has agreed to a potential commitment in excess of US$1.5 billion.
This report by The Canadian Press was first published May 8, 2025.
Companies in this story: (TSX:BCE)
