Slide 1: Q2 2022 Results Conference Call
Q2 2022 Results Conference Call August 4, 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: Q2 highlights & progress on strategic imperatives
Q2 highlights & progress on strategic imperatives • Continued consistent, disciplined execution Financial • 3.8% consolidated service revenue growth and 4.6% higher adjusted EBITDA(1) performance • Net earnings declined 10.9% due to non-cash equity derivatives net loss • On track to deliver approxim
Slide 4: Q2 highlights & progress on strategic imperatives (cont’d)
Q2 highlights & progress on strategic imperatives (cont’d) • Continued strong wireless financial results: 7.8% service revenue growth; 8.3% higher adjusted EBITDA; 3.8% y/y increase in mobile phone blended ARPU(1) High-value wireless • 110,761 total mobile phone net additions, up 65K y/y subscribers
Slide 5: Q2 highlights & progress on strategic imperatives (cont’d)
Q2 highlights & progress on strategic imperatives (cont’d) • 3rd consecutive quarter of improved y/y wireless, retail residential Internet and IPTV churn Champion customer • More than 85% of Bell customers now mainly interacting online experience • Industry recognition for Bell’s MyBell, Virgin Plus
Slide 6: Q2 operating metrics
Q2 operating metrics Bell Wireless Bell Wireline Bell Media 83,197 22,620 55% Postpaid net adds Retail Internet net adds Digital revenue growth Up 87.2% y/y Up 27.9% y/y • Advertising revenue up ~5% y/y • 36,473 FTTH net adds, up 19.5% 0.75% 56% TSN & RDS Postpaid churn Fibre footprint overlap #1 sp
Slide 7: Financial & Operating Results
Financial & Operating Results
Slide 8: Consolidated financial results
Consolidated financial results ($M) except per share data Q2’22 Y/Y • 3.8% higher service revenue delivered strong 4.6% growth in adjusted EBITDA Revenue 5,861 2.9% Service 5,233 3.8% • Product revenue reflects ongoing data Product 628 (4.6%) equipment supply chain bottlenecks Adjusted EBITDA 2,590
Slide 9: Wireless financials
Wireless financials Service revenue ($M) • Strong service revenue growth of 7.8% reflects successful execution of higher-value mobile phone strategy and higher y/y roaming revenue +7.8% 1,703 1,580 • Product revenue down 0.9% y/y, due to fewer customer device upgrades Q2'21 Q2'22 • Strong adjusted E
Slide 10: Wireline financials
Wireline financials Revenue ($M) • Improving performance trajectory with total revenue down 0.3% vs. 2.2% in Q1’22 – Positive overall service revenue growth of 0.6% -0.3% – Product revenue down 23.2% 3,003 2,995 • Healthy residential wireline revenue growth driven by 8% y/y increase in Internet reve
Slide 11: Media financials
Media financials Revenue ($M) • 8.7% increase in total revenue – Return of Formula 1 Canadian Grand Prix and increased activity as COVID recovery continues +8.7% 821 • Advertising revenue up 4.7% y/y 755 – Stronger specialty TV sports and news performance – Improved y/y radio and out of home results
Slide 12: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • $3.1B total available liquidity at end of Q2 • Manageable net debt leverage ratio at 3.1x $3.1B incl. $596M in cash *At June 30, 2022 • Good predictability over debt service costs – ~85% fixed-rate debt Net debt leverage – Adjusted EBITDA to
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(1) 20.7% 21% Adjusted EPS growth 5.6% 2% to 7% Free cash flow growth(1),(2) (11.0%) 2% to 10% Annual common share dividend(3) $3.50 $3.68 (1) In Q2 2022, we applied the IFRIC
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) Available liquidity Available liquidity 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 issu
Slide 17: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Total of segments measures Adjusted EBITDA Adjusted EBITDA is a total of segments measure. Refer to section 9.3, Total of segments measures – Adjusted EBITDA, of BCE’s 2022 Second Quarter MD&A, which is incorporated by reference herein, for more informa