BCE, the parent company of Bell, reported its Q1 2025 earnings today—and it came with a surprise. Bell is cutting its annual dividend from $3.99 to $1.75 per share, a drop of more than 50%. That means shareholders will now get paid much less per year.
The company says the move will help it stay financially flexible as the economy and government regulations remain uncertain. It’s also ending its discount program for people who reinvest their dividends in Bell stock.
While Bell made more money this quarter, its wireless business is struggling. The company lost nearly 9,600 postpaid mobile customers—the ones on monthly phone plans—compared to a gain of 45,000 in the same quarter last year. Prepaid signups grew by about 9,000, but overall wireless revenue per user dropped 1.8% to $57.08. That’s because people are paying for cheaper plans, using less roaming in the U.S., and not going over their data limits as much.
Still, Bell made a solid profit. Its net income rose 49.5% to $683 million. Of that, $630 million went to regular shareholders, up 56.7% from last year. Revenue overall was down 1.3% to $5.93 billion, mostly because of lower sales of devices and services.
On the media side, things looked better. Bell Media’s revenue jumped almost 7%, thanks to growth in digital ads and more people subscribing to Crave. Its media profit (adjusted EBITDA) went up 36%.
Bell also brought in $798 million in free cash flow—basically money it can use for investments or debt—up from just $85 million last year, thanks to cutting back on spending and better cash management.
The company announced a major U.S. fibre partnership too. It’s teaming up with PSP Investments in a deal worth over US$1.5 billion to grow Ziply Fiber in underserved areas across the United States.
Bell says it’s sticking with its 2025 financial goals but warned that competition, content costs, and tough regulations will continue to make growth harder this year. Shares of BCE are up 5.8% today, trading at $31.08 per share.
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