Bce Inc. · TSX:BCE
Bce — Q3 2023 Earnings Presentation
14 slides from Bce's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Results Conference Call
Q3 2023 Results Conference Call November 2, 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: Q3 highlights & progress on strategic imperatives
Q3 highlights & progress on strategic imperatives • 3.1% consolidated adjusted EBITDA(1) growth; 0.9 point margin(2) increase to 43.9% Financial • Net earnings down 8.3% y/y, due to higher interest expense, higher depreciation and performance amortization expense, and tax provision reversal in Q3’22
Slide 4: Q3 highlights & progress on strategic imperatives (cont'd)
Q3 highlights & progress on strategic imperatives (cont’d) • Record quarter for consumer FTTH: 104,159 retail Internet net additions, up 7.9% y/y Broadband growth & • 71% of new Internet activations and 52% of total FTTH subscribers on Gigabit+ speeds multi-product • 6.1% residential Internet revenu
Slide 5: Q3 operating metrics
Q3 operating metrics Wireless Wireline Media 142,886 104,159 26% Mobile phone postpaid net FTTH Internet net adds Digital revenue growth adds Record quarter 2 highest Q3 since 2010 nd • 39% of total media revenues, up 9 pts • 79,327 retail net adds, down 11.5% y/y • Crave DTC subscribers up 13% y/y
Slide 6: Financial Results
Financial Results Bell
Slide 7: Consolidated financial results
Consolidated financial results ($M) except per share data Q3’23 Y/Y • 3.1% increase in adjusted EBITDA — highest quarterly growth rate since Q2’22 Revenue 6,080 0.9% – 43.9% margin, up 0.9 pts y/y Service 5,281 1.7% Product 799 (3.9%) • Net earnings and statutory EPS down y/y on increased interest e
Slide 8: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • Service revenue up 2.0% y/y – Residential Internet up 6.1% y/y – Wireless growth reflects continued focus on +1.1% higher-value mobile phone subscriber loadings 5,461 – Business wireline strength driven by higher y/y 5,401 service solutions spe
Slide 9: Bell Media
Bell Media Revenue ($M) • Advertising revenue down 5.2% on lower y/y advertiser demand attributable to economic conditions and Hollywood strikes -1.3% – Digital advertising revenue up 34% y/y(1) 719 710 • Subscriber revenue up 2.9% y/y on continued Crave and sports DTC streaming growth Q3'22 Q3'23 •
Slide 10: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $4.5B total available liquidity at end of Q3 $4.5B • Lowest net debt leverage ratio among national incl. $569M in cash peers at 3.5x *At September 30, 2023 – $1B public debt offering in August 2023 – Manageable debt maturity schedule in 2024
Slide 11: Financial targets for 2023
Financial targets for 2023 BCE 2022 2023E Revenue growth 3.1% 1% to 5% Adjusted EBITDA growth 3.1% 2% to 5% Capital intensity 21.2% 19% to 20% Adjusted EPS growth(1) 5.0% (3%) to (7%) Free cash flow growth(2) 2.9% 2% to 10% Annual common share dividend(3) $3.68 $3.87 (1) For 2023, we expect lower ta
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