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BCE’s 300-Megawatt AI Bet: Can Data Centers Reset Growth?

The results presented by Bell Canada Enterprises highlighted steady progress across its strategic priorities amid a competitive telecommunications environment. Consolidated revenue increased by 4% year-over-year, driven notably by growth in Bell Business Markets and contributions from Ziply Fiber. Adjusted EBITDA rose 2.9%, though the margin declined slightly by 40 basis points to 42.7%, reflecting a shift toward higher-growth yet lower-margin service segments. Adjusted earnings per share decreased by CAD 0.06, influenced by increased depreciation, amortization, and interest expenses consistent with guidance. Free cash flow edged up modestly by 0.8% to CAD 804 million, excluding one-time income taxes related to the sale of the MLSE stake. Bell Canada Enterprises continued its capital allocation discipline, balancing de-leveraging, investing in strategic growth areas, and maintaining sustainable dividends. The company completed a CAD 675 million divestiture of its land mobile radio business to Motorola Solutions, further simplifying its business and advancing leverage targets.