BCE reported lower second-quarter profit as continued competition among telecoms weighed on its Canadian wireless business, though growth from its U.S. fiber business helped keep overall revenues steady.

The Canadian telecom company on Thursday posted a decline in net income to 629 million Canadian dollars ($448.9 million), or C$0.60 a share, down from C$644 million, or C$0.63 a share, in the comparable quarter a year ago.

Adjusted earnings were C$0.65 a share. According to FactSet, analysts were expecting C$0.64 a share.

Operating revenues rose 1.5% C$6.18 billion, in line with expectations for the quarter.

Bell CTS, which is BCE's telecommunications and technology infrastructure segment, its largest, saw operating revenues increase by 0.4% to C$5.36 billion. The company benefited from its acquisition of Ziply Fiber in the U.S. a year ago, where revenue contributions have offset declines in Canada.

BCE onboarded 41,594 mobile users to its network in the quarter, about 6.6% fewer than a year earlier. Average revenue per unit fell 2.3% to C$56.30.

The Canadian telecom sector has been under pressure in recent years, largely due to intensifying competition among rivals after Quebecor joined the national stage in 2023, all vying for a smaller pool of customers as Canada curbed its immigration intake. To win customers, carriers like Rogers Communications and Telus have had to resort higher promotions and discounts to attract new customers, driving down mobile plan prices nationally.