In Bell Canada Enterprise’s (BCE) Q1 2025 results, Bell Media saw a 6.9% year-over-year increase in operating revenue to $775 million, attributed to higher year-over-year advertising and subscriber revenues.
However, that operating revenue decreased from last quarter’s Q4 2024 results, which were $832 million. BCE’s total revenues were down 1.3% from the previous quarter to about $5.9 billion, attributed to a year-over-year decline at Bell Communication and Technology Services. However, this was offset by the Bell Media growth.
BCE also has a goal of $1.5 billion in cost savings by 2028, a $500 million increase from its original target.
Total Crave subscriptions are now at approximately 3.8 million, which is a 22% year-over-year increase. This is driven by a 57% increase in DTC subscribers (those who subscribe directly to Crave and not through a third-party or TV/mobile provider) from the same period last year, which now comprise the majority of Crave subscriptions. Meanwhile, sports DTC streaming subscribers increased 62%. In January, Bell bundled TSN and RDS with Crave.
According to a company presentation issued during today’s (May 8) earnings call, Q1 2025 had the most streams for Crave in the company’s history, beating out Q4 2024.
The same presentation states BCE plans to grow Crave subscribers to six million by 2028. Total subscriber revenue increased 7.8% in the quarter from the same period last year.
Bell Media’s advertising revenue was up 3.9% from Q1 2024, attributed to financial contributions from BCE’s $410 million Outedge Media Canada acquisition, broadcasts such as the Super Bowl and the Academy Awards as well as coverage of the Canadian federal election.
Adjusted EBITDA for the segment increased 35.9% year-over-year to $159 million from $117 million. This was attributed to the higher operating revenue, despite a 1.3% increase in operating costs due to higher TV content costs and the Outedge acquisition. According to a BCE release, these were partly off set by workforce reductions.
Total digital revenues grew 12% from Q1 2024 and now comprise 43% of Bell Media’s top line. BCE’s digital revenues comprise advertising revenue from digital platforms including web sites, mobile apps, connected TV apps and out-of-home digital assets and platforms, as well as advertising procured through Bell digital buying platforms and subscription revenue from DTC and VOD services.
“Our digital pivot in media is bearing fruit after a lot of hard work and focused investments. Digital advertising is expected to have a total addressable market of $22 billion in Canada in 2028, up from $16 billion in 2024,” said Mirko Bibic, BCE and Bell Canada president and CEO, during the earnings call. “As we continue to capture more share of that digital advertising market, profitable growth lies ahead for Bell Media.”
Bibic also mentioned a focus on “accelerating conversion to digital inventory and a focus on extending content value and monetization,” which he explained has begun with Bell Media’s majority acquisition of U.K.-based international distribution company Sphere Abacus announced in March. Following the acquisition, the companies’ combined catalogue will total more than 5,500 hours of content.
-This article originally appeared in Playback
