Slide 1: Q1 2022 Results Conference Call
Q1 2022 Results Conference Call May 5, 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: Q1 highlights & progress on strategic imperatives
Q1 highlights & progress on strategic imperatives • Strong start to year with 2.5% higher revenue and 6.4% adjusted EBITDA(1) growth, Financial driving 36.0% y/y increase in net earnings performance • Total BCE revenue at ~103% and adjusted EBITDA at ~108% of pre-COVID Q1’19 levels • On pace with di
Slide 4: Q1 highlights & progress on strategic imperatives (cont’d)
Q1 highlights & progress on strategic imperatives (cont’d) Broadband • First major provider in Canada to offer 3 Gbps symmetrical Internet speeds growth & • 38,284 total retail Internet and IPTV subscriber net adds, up 20.0% y/y Residential share • Acquisition of EBOX to accelerate market share gain
Slide 5: Q1 highlights & progress on strategic imperatives (cont’d)
Q1 highlights & progress on strategic imperatives (cont’d) • Bell leads national peers in CCTS performance improvement for 7th consecutive year(1) Champion – 36% reduction in customer complaints; share of overall complaints down 13% customer • Customer churn rates lower across all wireless and wirel
Slide 6: Q1 operating metrics
Q1 operating metrics Bell Wireless Bell Wireline Bell Media 34,230 26,024 84% Postpaid net adds Retail Internet net adds Digital revenue growth +4.0% y/y +22.7% y/y 38,049 FTTH net adds SAM TV bookings +45% YTD 0.79% 12,260 3M+ Postpaid churn IPTV net adds Crave subscribers Improved 10 bps y/y +14.6
Slide 7: Financial & Operating Results
Financial & Operating Results
Slide 8: Consolidated financial results
Consolidated financial results ($M) except per share data Q1’22 Y/Y • Strong 4.2% service revenue growth driven by wireless, residential Internet and media Revenue 5,850 2.5% Service 5,177 4.2% • Product revenue softness due mainly to Product 673 (8.8%) ongoing global supply chain challenges Adjuste
Slide 9: Wireless financials
Wireless financials Service revenue ($M) • Service revenue up 8.7% y/y – best quarterly organic growth rate in 11 years +8.7% 1,646 • Product revenue down 3.8%, reflecting lower y/y 1,514 transaction volumes due to longer handset lifecycles and high mix of pre-owned device customer activations Q1'21
Slide 10: Wireline financials
Wireline financials Revenue ($M) • Total revenue down 2.2% y/y, due mainly to 28.6% decline in product revenue -2.2% 3,081 • Positive residential wireline revenue growth 3,013 driven by ~8% y/y increase in Internet revenue • Business wireline revenue down y/y – Global supply chain shortages impactin
Slide 11: Media financials
Media financials Revenue ($M) • Higher y/y revenue across all media platforms – TV advertising revenue up 7% y/y and 11% ahead of pre-COVID Q1’19 level +15.7% 825 • Advertising revenue up 8.5% y/y 713 – Increased TV advertiser demand driven by fuller live sports and TV programming schedules – Radio
Slide 12: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $2.8B total available liquidity(1) at end of Q1 – US$750M public debt offering in February – Weighted average annual after-tax cost of public debt $2.8B of ~2.8% with average term to maturity of ~14 years incl. $104M in cash – Next public lon
Slide 13: Financial targets for 2022
Financial targets for 2022 BCE 2021 2022E Revenue growth 2.5% 1% to 5% Adjusted EBITDA growth 3.0% 2% to 5% Capital intensity 20.6% 21% Adjusted EPS growth 5.6% 2% to 7% Free cash flow growth(1) (10.5%) 2% to 10% Annual common share dividend(2) $3.50 $3.68 (1) For the full-year 2022, we expect growt
Slide 14: Appendix
Appendix Bell
Slide 15: 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 16: 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