Slide 1: Q1 2021 Results Conference Call
Q1 2021 Results Conference Call April 29, 2021
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: Q1 highlights and progress on Strategic Imperatives
Q1 highlights and progress on Strategic Imperatives • 1st quarter of positive revenue and adjusted EBITDA growth since Q4’19 • 108,468 total mobile phone and connected devices, retail Internet and IPTV net additions, up 51% y/y • Total Internet revenue up 12% y/y • FCF of $940M, up 54% y/y, contribu
Slide 4: Leading the way in ESG
Leading the way in ESG E Environment S Social G Governance Carbon For our operations 32% Women in Bell executive 93% Independent Board starting in 2025 leader positions at YE2020 members neutral 30% target of women Executive compensation Greenhouse gas (GHG) 36%* Board members exceeded Yes linked to
Slide 5: Q1 operating metrics
Q1 operating metrics Bell Wireless Bell Wireline Bell Media • 33k postpaid mobile phone • 37k retail residential Internet net • Improving advertising trajectory customer net adds, up 31k y/y adds in FTTH footprint, up 43% y/y – TV advertising revenue up 3.5% y/y – Gross adds up 19% y/y – 21k total r
Slide 6: Financial Results
Financial Results Bell
Slide 7: Q1 financial review
Q1 financial review ($M) except per share data Q1’21 Y/Y • Delivered positive consolidated revenue and adjusted EBITDA growth despite ongoing COVID Revenue 5,706 1.2% operating environment Service 4,968 (1.0%) Product 738 18.6% • Net earnings down 6.3% y/y Adjusted EBITDA 2,429 0.5% Margin 42.6% (0.
Slide 8: Wireless financials
Wireless financials Revenue ($M) • Return to positive revenue growth in Q1 • Continued steady sequential quarterly +3.2% 2,100 improvement in y/y service revenue decline 2,035 – 2.1% decrease due to COVID-related impact on roaming – Service revenue up 1.9% adjusting for roaming reduction • Product r
Slide 9: Wireline financials
Wireline financials Revenue ($M) • Best quarterly revenue growth in past two years – Service revenue up 0.9% – Product revenue up 14.1% +1.5% 3,081 3,036 • Total Internet revenue up 12% y/y • Residential revenue up 3.8% y/y on strong fibre growth, higher ARPU and COVID-related impacts Q1'20 Q1'21 •
Slide 10: Media financials
Media financials Revenue ($M) • Sequential improvement in Q1 total revenue – Stronger sports and news specialty TV advertiser demand, contribution from Noovo and Crave growth 752 -5.2% • Advertising revenue down 10% vs. 13% in Q4’20 713 – Higher y/y TV advertising more than offset by continued COVID
Slide 11: Adjusted EPS
Adjusted EPS Adjusted EPS(1) • Continuing trajectory improvement in adjusted EBITDA contributed favourably to EPS in Q1 ($) -1.3% • Higher depreciation and amortization reflects 0.79 0.78 growth in capital assets and transition to 5G • Net interest expense down y/y, due mainly to lower average inter
Slide 12: Free cash flow
Free cash flow Free cash flow(1) • Positive y/y adjusted EBITDA contribution, ($M) despite ongoing COVID impacts +53.8% 940 • Higher y/y capex spending consistent with plan 611 • Cash taxes lower y/y due to timing of instalment payments Q1'20 Q1'21 • Increased cash from working capital driven by red
Slide 13: Outlook
Outlook BCE Revenue growth 2% to 5% Adjusted EBITDA growth 2% to 5% Capital intensity 18% to 20% Adjusted EPS growth(1) 1% to 6% Free cash flow(2) $2,850M to $3,200M Annualized common dividend(3) $3.50 per share (1) Before severance, acquisition and other costs, net mark-to-market (gains) losses on