Slide 1: Q3 2022 Results Conference Call
Q3 2022 Results Conference Call November 3, 2022
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: Q3 highlights & progress on strategic imperatives
Q3 highlights & progress on strategic imperatives • 3.2% consolidated revenue growth and 1.2% higher adjusted EBITDA(1) – $38M in storm-related costs and inflationary pressures absorbed in Q3(2) Financial performance • Net earnings down 5.2% y/y, due mainly to non-cash equity derivatives net loss •
Slide 4: Q3 highlights & progress on strategic imperatives (cont’d)
Q3 highlights & progress on strategic imperatives (cont’d) • Highest-ever retail FTTH Internet net additions of 95,036, up 33.2% y/y Broadband growth & • 8% residential Internet revenue growth residential • Multi-Gig symmetrical Internet speeds (3 Gbps+) available to 5M locations by YE2022 market sh
Slide 5: Q3 operating metrics
Q3 operating metrics Bell Wireless Bell Wireline Bell Media 224,343 89,652 40% Mobile phone net adds Retail Internet net adds Digital revenue growth Up 64.4% y/y Up 36.3% y/y • 31% of total media revenues, • Record quarterly result • Best quarterly result in 17 years up from 22% in Q3’21 167,798 38,
Slide 6: Financial & Operating Results
Financial & Operating Results
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q3’22 Y/Y • 3.2% revenue growth delivered 1.2% higher adjusted EBITDA Revenue 6,024 3.2% – Adjusted EBITDA growth impacted by record Service 5,193 1.8% subscriber net activations and $38M in storm-related and inflationary cost pressures Produ
Slide 8: Wireless financials
Wireless financials Revenue ($M) • 7.0% higher service revenue driven by focus on high-quality subscriber growth, customer base management and roaming revenue strength +7.4% 2,466 – Roaming revenue at 114% of pre-COVID Q3’19 level 2,296 • Product revenue up 8.6% y/y, reflecting a greater sales mix o
Slide 9: Wireline financials
Wireline financials Revenue ($M) • 1st quarter of positive revenue growth since Q1’21 • Residential Internet revenue up 8% y/y +1.0% 3,046 3,015 • Improved business wireline performance – Total wireline product revenue up 46.3% y/y although global supply chain chip shortages persist – Rate of y/y qu
Slide 10: Media financials
Media financials Revenue ($M) • Total revenue stable y/y • Advertising revenue down 2.3% y/y +0.0% – Softer TV advertiser demand and slow radio 719 719 recovery due to macroeconomic uncertainty/economic slowdown – Q3’21 benefitted from federal election, Euro Cup and Tokyo Olympics – Continued strong
Slide 11: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $3.5B total available liquidity at end of Q3 • Manageable net debt leverage ratio at 3.2x $3.5B incl. $583M in cash • Well protected from interest rate increases *At September 30, 2022 – ~85% fixed-rate debt – Next public long-term debt matur
Slide 12: Financial targets for 2022
Financial targets for 2022 BCE 2021 2022E YTD Q3’22 Revenue growth 2.5% 1% to 5% 2.9% Adjusted EBITDA growth 3.0% 2% to 5% 4.0% Capital intensity(1) 20.7% 21% 19.7% Adjusted EPS growth 5.6% 2% to 7% 8.6% Free cash flow growth(1),(2) (11.0%) 2% to 10% (2.2%) Annual common share dividend(3) $3.50 $3.6
Slide 13: Appendix
Appendix Bell
Slide 14: 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 15: 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