Slide 1: Q2 2023 Results Conference Call
Q2 2023 Results Conference Call August 3, 2023
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: Q2 highlights & progress on strategic imperatives
Q2 highlights & progress on strategic imperatives • 3.5% revenue growth drove 2.1% higher adjusted EBITDA(1); net earnings down 39.3% due Financial to a non-cash loss on BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint venture equity investments pe
Slide 4: Q2 highlights & progress on strategic imperatives (cont’d)
Q2 highlights & progress on strategic imperatives (cont’d) Broadband • Highest Q2 retail Internet net additions in 16 years growth & • 52,148 retail FTTH Internet net additions, up 38.2% y/y residential market share • 7% residential Internet revenue growth • Digital revenue(1) up 20% y/y Digital-fir
Slide 5: Q2 operating metrics
Q2 operating metrics Wireless Wireline Media 111,282 24,934 20% Postpaid net adds Retail Internet net adds Digital revenue growth Up 33.8% y/y Up 10.2% y/y • Mobile phone gross adds up 30.4% • Retail gross additions up 19% y/y • 33% of total media revenues, up 6 pts 47% 52,148 ~3.2M Postpaid subscri
Slide 6: Financial Results
Financial Results Bell
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q2’23 Y/Y • 3.5% revenue growth delivered 2.1% y/y increase in adjusted EBITDA Revenue 6,066 3.5% – Improved service revenue trajectory vs. Q1’23 Service 5,303 1.3% Product 763 21.5% • Net earnings and statutory EPS down y/y, due mainly to hi
Slide 8: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • 1.9% total service revenue growth – Residential Internet up 7% – Wireless up 4.4% on strong customer volume growth – Improving business wireline performance trajectory +4.3% 5,354 5,135 • Product revenue up 21.5%, driven by higher business data
Slide 9: Bell Media
Bell Media Revenue ($M) • Advertising revenue down 9.0%, due mainly to ongoing ad recession that is affecting advertiser demand and spending across -1.9% most media platforms 821 – Digital advertising revenue grew 19% y/y 805 • Subscriber revenue up 3.9% on strong Crave and sports DTC streaming grow
Slide 10: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $4.4B total available liquidity at end of Q2 – US$850M public debt offering in May 2023 $4.4B incl. $450M in cash • Lowest net debt leverage ratio among national *At June 30, 2023 peers at 3.46x – No remaining required refinancing requirement
Slide 11: Financial targets for 2023
Financial targets for 2023 BCE 2022 2023E YTD Q2 2023 Revenue growth 3.1% 1% to 5% 3.5% Adjusted EBITDA growth 3.1% 2% to 5% 0.2% Capital intensity 21.2% 19% to 20% 19.7% Adjusted EPS growth(1) 5.0% (3%) to (7%) (6.8%) Free cash flow growth(2) 2.9% 2% to 10% (46.3%) Annual common share dividend(3) $
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