BCE warns trade war threatens economic growth in Canada

BCE Inc., Canada’s largest telecom firm, has expressed concerns about the impact of an ongoing trade war on the economy. The company’s CEO, Mirko Bibic, said slower economic growth could result from fewer permanent residents and lower consumer demand. He noted that the expected economic effects of tariffs might lead to reduced sales for the company. BCE recently reported a significant drop in new wireless subscribers. This reflects a 56% decrease in net postpaid additions in the last quarter compared to the previous year. Canada intends to reduce its immigration targets this year, affecting the market further. While BCE’s stock has recently seen a slight recovery, it remains near its lowest levels since 2011, having declined 27% over the past year. The company's quarterly dividend remains steady, although some analysts suggest it should be cut to ensure sustainability. Analysts have indicated that a 50% reduction in dividends might be necessary for long-term viability. They point to potential trade-related recession risks as a valid reason for such changes. However, Bibic did not disclose any specific plans regarding the dividend. BCE is also focusing on expanding its fiber optic broadband connections. A recent proposal to acquire Northwest Fiber LLC for C$5 billion has drawn mixed reactions, with some investors questioning the decision. Bibic believes that growing international ventures will ultimately benefit the Canadian market. Overall, BCE faces challenges from both trade dynamics and internal market pressures, making the future uncertain for the telecom giant.