Slide 1: Q2 2020 Results Conference Call
Q2 2020 Results Conference Call August 6, 2020
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 the potential impacts on our business, financial condition, liquidity and financial results of the COVID-19 pandem
Slide 3: Q2 highlights
Q2 highlights • Continued execution of COVID-19 operating principles – Maintained overall network availability at 99.99%+ – Enabled work from home for ~90% of employees, including 12K call centre agents – Ramped up PPE procurement and implemented stringent sanitization procedures • 99% of all Bell,
Slide 4: Progress on Strategic Imperatives
Progress on Strategic Imperatives • FTTP coverage now at 55% of total fibre footprint – 5.4M homes and businesses passed at end of Q2’20, up 500K y/y • Accelerated rollout of Wireless Home Internet in Q2 – 400K rural locations now equipped with WTTP – Doubling download speed to 50 Mbps starting this
Slide 5: Q2 operating metrics
Q2 operating metrics Bell Wireless Bell Wireline Bell Media • Postpaid gross adds down 35.2%, • Retail Internet net additions of 19k • COVID-19 significantly impacted due to retail store closures and stable y/y advertising revenue in Q2 fewer promotional offers during – Demand picked up in June with
Slide 6: Financial Results
Financial Results Bell
Slide 7: Q2 financial review
Q2 financial review ($M) except per share data Q2’20 Y/Y • Revenue and adjusted EBITDA results for Q2 reflect full-quarter impact of slower consumer Revenue 5,354 (9.1%) and business activity due to COVID-19 Service 4,800 (7.5%) Product 554 (20.7%) • ~$85M of COVID-19 related incremental costs incur
Slide 8: Wireless financials
Wireless financials Revenue ($M) • Revenue down 11.0% in Q2, driving a 9.2% y/y decline in adjusted EBITDA 2,160 -11.0% • 6.2% service revenue decrease driven by 1,922 reduced roaming, an accelerated decline in data overage revenue and impact of customer accommodations as a result of COVID-19 Q2'19
Slide 9: Wireline financials
Wireline financials Revenue ($M) • Overall Q2 revenue decline comparable to Q1 even with full-quarter of COVID-19 impacts -1.0% 3,073 • Total combined broadband Internet and TV 3,043 revenues up ~2% in Q2 • Voice revenue decline in Q2 improved to 3.8%, reflecting higher conferencing and LD usage, Q2
Slide 10: Media financials
Media financials Revenue ($M) • Q2 adjusted EBITDA down 31.9% on flow- through impact of 31.2% y/y revenue decrease • Significant decline in revenue reflects reduced 842 -31.2% advertiser spending across all media platforms 579 due to COVID-19 • Maintained Q2 margin stable y/y at ~30% Q2'19 Q2'20 –
Slide 11: Adjusted EPS
Adjusted EPS Adjusted EPS(1) • Lower y/y adjusted EBITDA contributed a 20¢ ($) decrease in adjusted EPS in Q2 -32.3% 0.93 • Lower y/y tax adjustments consistent with 2020 0.63 expectation • Higher Other Expense reflects lower y/y equity income pick-up from MLSE due to COVID-19 Q2'19 Q2'20 impact and
Slide 12: Free cash flow
Free cash flow Free cash flow(1) • Adjusted EBITDA decline in Q2 contributed ($M) $235M less FCF y/y +49.7% 1,611 • Lower capex reflects timing of wireline spend 1,076 and decreased demand capital from slower subscriber activity and delays due to COVID-19 • Interest paid lower y/y, due to timing of
Slide 13: Strong balance sheet and liquidity position
Strong balance sheet and liquidity position Available liquidity • $5.4B of available liquidity at end of Q2’20 – Cash proceeds to be received from sale of data centres will further strengthen liquidity position $5.4B • Ready access to financial markets during *At June 30, 2020 times of uncertainty –