Slide 1: Q3 2019 Results Conference Call
Q3 2019 Results Conference Call October 31, 2019
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 revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow)
Slide 3: George Cope, President & Chief Executive Officer
George Cope President & Chief Executive Officer
Slide 4: Q3 highlights
Q3 highlights • Record Q3 total wireless net additions of 204k, up 14.8% y/y, combined with approximately 1% ABPU growth and lower postpaid churn of 1.12%, delivered strong revenue growth of 3.5% and 7.9% higher adjusted EBITDA • 294k total wireless, Internet and IPTV net customer additions, up 8.4%
Slide 5: Mirko Bibic, Chief Operating Officer
Mirko Bibic Chief Operating Officer
Slide 6: Wireless operating metrics
Wireless operating metrics Subscriber metrics Q3’19 Y/Y • Best quarterly performance since Q4’06 with 204k total postpaid and prepaid net additions Total gross additions 594k 10.8% – 392k net subscribers added in YTD’19, up 16.4% y/y Postpaid net additions 127k (6.0%) • 127k postpaid net additions d
Slide 7: Wireline operating metrics
Wireline operating metrics Retail Internet and IPTV net additions • 58k retail Internet net additions, up 9.4% y/y – Record Q3 gross activations and lower churn Internet IPTV • 78k new FTTH customers added in Q3 169.7k 158.4k +7.1% • 32k IPTV net adds driven by continued strong 100.2k 84.1k customer
Slide 8: Bell Media
Bell Media • Leading TV viewership and ratings maintained – 4 of top 10 programs of the summer for CTV, including #1 program The Amazing Race Canada – CTV was the most-watched network in premiere week • TSN was the top-rated Canadian sports network and specialty TV channel overall in Q3 – US Open Wo
Slide 9: Glen LeBlanc, EVP & Chief Financial Officer
Glen LeBlanc EVP & Chief Financial Officer
Slide 10: Q3 financial review
Q3 financial review ($M) except per share data Q3’19 Y/Y YTD’19 Y/Y Revenue 5,984 1.8% 17,648 2.3% Service 5,185 1.3% 15,461 1.7% Product 799 5.1% 2,187 7.0% Adjusted EBITDA 2,594 5.6% 7,598 6.4% Margin 43.3% 1.5 pts 43.1% 1.7 pts Net earnings 922 6.3% 2,530 8.5% Statutory EPS 0.96 6.7% 2.63 8.7% Ad
Slide 11: Wireless financials
Wireless financials ($M) Q3’19 Y/Y YTD’19 Y/Y Revenue 2,348 3.5% 6,649 3.7% Service 1,673 2.5% 4,857 2.8% Product 675 6.0% 1,792 6.2% Operating costs 1,335 (0.4%) 3,751 0.5% Adjusted EBITDA 1,013 7.9% 2,898 9.7% Margin (total revenue) 43.1% 1.7 pts 43.6% 2.4 pts Capex 167 8.7% 486 8.5% Capital inten
Slide 12: Wireline financials
Wireline financials ($M) Q3’19 Y/Y YTD’19 Y/Y Revenue 3,066 0.2% 9,218 1.0% Service 2,941 0.2% 8,819 0.6% Product 125 0.8% 399 10.8% Operating costs 1,711 0.8% 5,163 (0.3%) Adjusted EBITDA 1,355 1.4% 4,055 1.8% Margin 44.2% 0.5 pts 44.0% 0.4 pts Capex 824 (3.4%) 2,278 4.4% Capital intensity (CI) 26.
Slide 13: Media financials
Media financials ($M) Q3’19 Y/Y YTD’19 Y/Y Revenue 751 2.7% 2,338 3.0% Operating costs 525 4.4% 1,693 3.5% Adjusted EBITDA 226 24.2% 645 24.8% Margin 30.1% 5.2 pts 27.6% 4.8 pts Capex 22 26.7% 71 13.4% Capital intensity (CI) 2.9% 1.2 pts 3.0% 0.6 pts 2019 operating results presented in accordance
Slide 14: Adjusted EPS
Adjusted EPS Adjusted EPS(1) • Adjusted EBITDA growth, including IFRS 16, contributed 11¢ increase to adjusted EPS in Q3 $2.62 $2.62 • Higher y/y depreciation and amortization expense reflects adoption of IFRS 16 and higher capital asset base YTD'18 YTD'19 • Net interest expense up y/y, due to impac
Slide 15: Free cash flow
Free cash flow FCF • Q3 FCF up 17.3% y/y on strong adjusted EBITDA growth, lower cash taxes and ($M) +14.9% increase in working capital +17.3% $2,924 • Higher interest paid mainly reflects imputed $2,545 interest on IFRS 16-designated leases $1,189 • Completed 10-year C$550M 2.9% public debt $1,014
Slide 16: Outlook
Outlook 2019 guidance(1) February 7 October 31 Revenue growth 1% to 3% On track Adjusted EBITDA growth 5% to 7% On track Capital intensity ~16.5% On track Adjusted EPS(2) $3.48 to $3.58 On track Free cash flow (FCF)(3) $3,800M to $4,000M On track Growth y/y 7% to 12% 65% to 75% On track Dividend pay