Slide 1: Q3 2024 Results Conference Call
Q3 2024 Results Conference Call November 7, 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: Q3 highlights & progress on strategic priorities
Q3 highlights & progress on strategic priorities • 2.1% adjusted EBITDA(1) growth reflects disciplined execution in a highly competitive market Financial • Highest adjusted EBITDA margin(2) in over 30 years of 45.6%, up 1.7 points y/y performance • Net earnings down $1.9B y/y, due to $2.1B non-cash
Slide 4: Q3 highlights & progress on strategic priorities (cont'd)
Q3 highlights & progress on strategic priorities (cont’d) • Leveraging technology, automation and simplification to drive capex and cost efficiencies Capex & • At least $1B decrease in capex investment in 2024-2025, including more than $500M reduction Cost saving in 2024, while still delivering on f
Slide 5: Q3 operating metrics
Q3 operating metrics Wireless Wireline Media 33,111 42,415 7.9% Postpaid net adds Retail Internet net adds Advertising • Balancing volume growth with economics • Slowing industry growth, fewer newcomers revenue growth and less new FTTH deployed • All net adds on main premium Bell brand • 3rd consecu
Slide 6: Financial Results
Financial Results Bell
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q3’24 Y/Y • Positive service revenue growth delivered in a challenging competitive environment Revenue 5,971 (1.8%) Service 5,286 0.1% • Revenue down 1.8% y/y, driven by 14.3% Product 685 (14.3%) decrease in product revenue Adjusted EBITDA 2,
Slide 8: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • Product revenue down 14.3% or $114M y/y – $61M of the decline attributable to The Source store closures and timing of transition to Best Buy Express -3.3% – 25% decline in mobile phone contracted sales 5,461 5,280 – Timing of B2B mobile and dat
Slide 9: Bell Media
Bell Media Revenue ($M) • Total revenue grew 10.1% y/y – Digital revenues increased 19% and now represent 42% of total media revenue, up 3 pts from Q3’23 +10.1% 782 • Advertising revenue 7.9% higher y/y 710 – 23% growth in digital advertising revenue(1) – Stronger sports performance driven by NFL, P
Slide 10: Balance sheet & liquidity update
Balance sheet & liquidity update • $4.4B total available liquidity at end of Q3 Available liquidity(1) • DB pension plans solvency surplus of ~$4.1B $4.4B • Net debt leverage ratio at ~3.7x incl. $1.86B in cash • Ziply Fiber acquisition structured to maintain *At September 30, 2024 relatively stable
Slide 11: Updated financial targets for 2024
Updated financial targets for 2024 BCE Prior guidance Current guidance Revenue growth 0% to 4% ~(1.5%) Adjusted EBITDA growth 1.5% to 4.5% No change Capital intensity(1) < 16.5% No change Adjusted EPS growth(2) (7%) to (2%) No change Free cash flow growth(3) (11%) to (3%) No change Annual common sha
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