Slide 1: Q1 2024 Results Conference Call
Q1 2024 Results Conference Call May 2, 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: Q1 highlights & progress on strategic priorities
Q1 highlights & progress on strategic priorities • Q1 revenue and adjusted EBITDA(1) generally in line with 2024 quarterly budget – Results reflect one-time retroactive media subscriber revenue benefit in Q1’23 and modest revenue elimination from transition of The Source stores to Best Buy Express i
Slide 4: Q1 highlights & progress on strategic priorities (cont’d)
Q1 highlights & progress on strategic priorities (cont’d) Broadband • Highest Q1 retail Internet net additions in 17 years growth & • Households in fibre footprint subscribing to Mobility + Internet bundles up 22% y/y multi-product bundling • Cellular and Internet CPI down 26.2% and 15.5% respective
Slide 5: Q1 operating metrics
Q1 operating metrics Wireless Wireline Media 45,247 31,078 +1.6% Mobile phone postpaid Retail Internet net adds Advertising net adds +13.9% y/y revenue growth +4.5% y/y • Best Q1 performance since 2007 • 1st quarter of growth since Q4’22 • Highest Q1 result since 2018 56% +39% +33% Postpaid subscrib
Slide 6: Financial Results
Financial Results Bell
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q1’24 Y/Y • Revenue down 0.7% y/y – ~$300M revenue decrease expected in 2024 due to Revenue 6,011 (0.7%) Best Buy Canada transaction – Result impacted by media revenue adjustment in Q1’23 Service 5,192 (0.6%) and lower business wireline produ
Slide 8: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • Residential Internet revenue up ~3% y/y • Total wireless service revenue growth of 3.0% +0.1% impacted by aggressive rate plan pricing 5,375 5,367 • Business wireline strength due to FX Innovation acquisition and higher service solutions sales
Slide 9: Bell Media
Bell Media Revenue ($M) • Advertising revenue up 1.6% y/y – 72% increase in digital advertising revenue – Super Bowl ad sales up 23% y/y -7.1% – Return to growth for Out of Home and Radio in Q1 780 725 • Subscriber revenue down 13.8% y/y – Q1’23 result included a favourable one-time retroactive reve
Slide 10: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $4.7B total available liquidity at end of Q1 – US$1.45B public debt offering completed February 15th $4.7B incl. $789M in cash • Lowest net debt leverage ratio among national *At March 31, 2024 peers at ~3.6x – All 2024 public debt maturities
Slide 11: Financial targets for 2024
Financial targets for 2024 BCE 2023 guidance 2023 results 2024 guidance Revenue growth 1% to 5% 2.1% 0% to 4% Adjusted EBITDA growth 2% to 5% 2.1% 1.5% to 4.5% Capital intensity(1) 19% to 20% 18.6% <16.5% Adjusted EPS growth(2) (7%) to (3%) (4.2%) (7%) to (2%) Free cash flow growth(3) 2% to 10% 2.5%
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