Slide 1: Q2 2021 Results Conference Call
Q2 2021 Results Conference Call August 5, 2021
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: Q2 highlights
Q2 highlights • Exceptionally strong consolidated revenue and adjusted EBITDA(1) growth of more than 6% contributed to y/y net earnings growth of 150% • 115,916 total mobile phone and connected devices, retail Internet and IPTV net additions, up 75% y/y • Continued residential Internet momentum with
Slide 4: Executing on Strategic Imperatives
Executing on Strategic Imperatives • Bell accelerates 5G leadership with 37% of total 3.5 GHz spectrum available to national carriers – Acquired 30% of spectrum available to national carriers at auction for $2.07B – Lowest average blended cost among national carriers at $1.25 per MHz-Pop • Growing o
Slide 5: Q2 operating metrics
Q2 operating metrics Bell Wireless Bell Wireline Bell Media • Industry-leading blended ABPU • 27k retail residential Internet net • Recovery slowed by COVID 3rd wave growth of 3.3% – 1st quarter of adds in FTTH footprint, up 80% y/y growth since Q3’19 • TV advertising revenue up 70% y/y – 18k total
Slide 6: Financial Results
Financial Results Bell
Slide 7: Q2 financial review
Q2 financial review ($M) except per share data Q2’21 Y/Y • Significant COVID impacts from Q2’20 lapped Revenue 5,698 6.4% • $44M regulatory charge related to CRTC Service 5,040 5.0% decision on wholesale Internet rates Product 658 18.8% – Revenue and adjusted EBITDA up 7.2% and 8.1%, respectively, e
Slide 8: Wireless financials
Wireless financials Revenue ($M) • Service revenue up 5.8% -- first quarter of growth since start of COVID – Reflects strategic focus on higher-value mobile phone 2,128 loadings and COVID-related impacts +10.7% – Roaming recovery marginal 1,922 • 27.7% product revenue growth reflects higher y/y sale
Slide 9: Wireline financials
Wireline financials Revenue ($M) • Service revenue up 0.6% y/y, excluding wholesale Internet regulatory impact Wholesale Internet regulatory impact -1.3% 44 • Residential Internet revenue up 12% y/y 3,043 3,003 • Business wireline results impacted by COVID- related revenue upside in Q2’20 and lower
Slide 10: Media financials
Media financials Revenue ($M) • Revenue improvement across all media platforms as advertiser demand rebounds from Q2’20 lows – Recovery moderated by COVID 3rd wave +30.4% 755 • Advertising revenue up 65% y/y 579 – TV recovery driven by return of sports and more original programming – Incremental con
Slide 11: Net earnings per common share & adjusted EPS
Net earnings per common share & adjusted EPS Net earnings per Adjusted EPS(1) common share (EPS) • EPS up 192.3% y/y – Lower y/y media impairment charge ($) ($) – Significant non-cash equity derivative gain in Q2’21 +31.7% 0.83 +192.3% 0.76 0.63 • Adjusted EPS 31.7% higher y/y 0.26 • Adjusted EBITDA
Slide 12: Cash flows from operating activities & free cash flow
Cash flows from operating activities & free cash flow Cash flows from Free cash flow(1) operating activities • Strong adjusted EBITDA growth reflects recovery off COVID lows of Q2’20 ($M) -2.5% ($M) 2,562 2,499 -22.5% • Cash taxes in Q2’20 reflected COVID-related 1,611 delay in instalment payments 1
Slide 13: Outlook
Outlook BCE Revenue growth 2% to 5% Adjusted EBITDA growth 2% to 5% Capital intensity 18% to 20% Adjusted EPS growth(1) 1% to 6% Free cash flow(2) $2,850M to $3,200M Annualized common dividend(3) $3.50 per share (1) Defined as net earnings attributable to common shareholders before severance, acquis