BCE Inc T.BCE.PR.N

Ziply's U$400M EBITDA

[ckwong]

The U$400M revenue (minus interest for U$2B) is about C$400M. Assuming 50% attributable to dividend, it is about C$0.20 per shares or 5%. On the surface, it is not a bad deal. So I believe the dividend raise could come back in two years. Of course, if Ziply belly up, that is another story.

Some point out that fix wireless is cheapter than fiber to install which is true. On the flip side of the coin is that its speed is lower. Fiber can be 100 times faster. This goes back to the clientele. If business clients choose Ziply, the business can boom. If you want to grow the business, growing the small business end may not be the most profitable.

[cooper90]

Let's not forget the Trump trade if Trump folllows through on US tax cuts this investment goes through the roof  going from what 28% to 15% is a complete game changer even half that or any substantial tax rate drop will greatly increase profit and valuation of this new asset combined with their planner growth rate expectations on new users this becomes a new engine of profit and supports

[rixpix]

 "The timing of this purchase" is exactly what's wrong with this purchase.  BCE sold MLSE and said they'd use the money to pay down debt, and then turned around and spent it on Ziply.  When they sold MLSE they could've said, we sold it because we're eyeing another investment, but no. They hid it from everyone. There's no way they didn't know

[BlueDawn]

This is the quote (where did you see pay down debt?) Quotes "We are proud of our time as co-owners of these iconic sports teams, and through this agreement have ensured that fans can count on Bell's continued support of their teams. Today's announcement demonstrates that we are focused on creating the financial flexibility to support our ongoing transformation and core growth