Slide 1: Q2 2024 Results Conference Call
Q2 2024 Results Conference Call August 1, 2024
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to BCE’s financial guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow),
Slide 3: Q2 highlights & progress on strategic priorities
Q2 highlights & progress on strategic priorities • Consistent, disciplined execution in a highly competitive market environment Financial • Adjusted EBITDA(1) up 2.0% y/y, delivering margin(2) increase of 1.3 points to 44.9% performance • Net earnings up 52.1% y/y • Free cash flow(3) 8.0% higher y/y
Slide 4: Q2 highlights & progress on strategic priorities (cont'd)
Q2 highlights & progress on strategic priorities (cont’d) • Digital advertising revenues(1) up 35% y/y Digital-first media • New ad offerings and partnerships announced at June Upfront – Strategic sales partnerships with TikTok’s premium advertising product (Pulse Premiere) and Dotdash strategy – La
Slide 5: Q2 operating metrics
Q2 operating metrics Wireless Wireline Media 131,043 23,841 1.9% Mobile phone net adds Retail Internet net adds Advertising Up 4.4% y/y 2nd best Q2 result since revenue growth • Gross adds up 14.4% y/y 2007 after Q2’23 • 2nd consecutive quarter of growth 1.18% 23% 23% Postpaid churn rate Mobility +
Slide 6: Financial Results
Financial Results Bell
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q2’24 Y/Y • Return to positive service revenue growth Revenue 6,005 (1.0%) • Revenue down 1.0% y/y, driven by 8.7% Service 5,308 0.1% decrease in low-margin product revenue Product 697 (8.7%) • Adjusted EBITDA up 2.0% y/y, driving 1.3-point A
Slide 8: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • Product revenue down $66M in Q2, representing 93% of the 1.3% y/y decline in total revenue – Lower mobile phone contracted sales with 70% of new -1.3% activations on BYOD, revenue elimination from The Source 5,354 and decreased business wirelin
Slide 9: Bell Media
Bell Media Revenue ($M) • Total revenue up 0.9% y/y – 1.9% advertising growth reflects stronger y/y specialty sports performance and continued digital momentum – F1 Canadian Grand Prix growth and higher +0.9% international sales of Bell Media programming 805 812 – OUTFRONT Media acquisition complete
Slide 10: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $5.0B total available liquidity at end of Q2 – $1.5B public debt offering completed in May 2024 $5.0B incl. ~$1.4B in cash • Net debt leverage of 3.7x reflects final 3800 MHz *At June 30, 2024 spectrum payment of $414M in Q2 – 2025 maturities
Slide 11: Financial targets for 2024
Financial targets for 2024 BCE 2024 guidance Revenue growth 0% to 4% Adjusted EBITDA growth 1.5% to 4.5% Capital intensity(1) <16.5% Adjusted EPS growth(2) (7%) to (2%) Free cash flow growth(3) (11%) to (3%) Annual common share dividend(4) $3.99 (1) For 2024, we expect a slowdown in fibre build and
Slide 12: Appendix
Appendix Bell
Slide 13: Non-GAAP and other financial measures
Non-GAAP and other financial measures BCE uses various financial measures to assess its business performance. Certain of these measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP) while certain other measures do not have a standardized meaning under G
Slide 14: Non-GAAP and other financial measures (cont'd)
Non-GAAP and other financial measures (cont’d) Non-GAAP financial measures (cont’d) Net debt Net debt is a non-GAAP financial measure and it does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. Refer to section