BCE Earnings: Good Financial Results Come With Signs of Competitive Pressure

BCE had a good third quarter but exhibited some signs that are worth watching. On the positive side, sales and profits are tracking full-year targets, and net customer additions remain strong in wireless and broadband. However, wireless customer churn ticked up significantly in the wake of Quebecor’s entrance as a nationwide competitor, and pressure on average revenue per customer, or ARPU, worsened. We’re adjusting our long-term forecast slightly to reflect the competitive dynamic and reducing our fair value estimate to CAD 65 from CAD 67.