EPS of 76c did beat estimates of 74c; revenue of $6.47B matched estimates. It generally posted in-line 4Q results, though 2024 guidance was mixed, with its free-cash-flow outlook reflecting a 7% decline vs. the 21.6% gain seen in consensus as it faces rising costs in a mature market. The company is cutting costs aggressively, including a 9% workforce reduction. It aims to lower capital spending 10.9% or more in 2024 and curb dividend growth to 3.1% from 5.2% in 2023. These actions are in response to rising interest costs, $400 million in severance, elevated inflation and a tough regulatory environment. The cuts will likely let the company increase adjusted Ebitda 3% this year. BCE is expanding its technology offerings, including cloud and security services, to boost growth. It’s also enhancing digital-ad capabilities and partnered with Best Buy to transform some of its stores. Overall, not a disaster, but the job and spending cuts remind investors this is clearly not a growth business right now. The dividend news also was disappointing.
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