Slide 1: Q1 2020 Results Conference Call
Q1 2020 Results Conference Call May 7, 2020
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 the potential impacts on our business, financial condition, liquidity and financial results of the outbreak of the
Slide 3: Operating principles during COVID-19 crisis (1/2)
Operating principles during COVID-19 crisis (1/2) • Business continuity plans implemented to maintain uninterrupted service of our broadband wireline, wireless & media broadcast networks to keep all Canadians connected and informed – Networks operating at 99.99%+ overall availability despite surge i
Slide 4: Operating principles during COVID-19 crisis (2/2)
Operating principles during COVID-19 crisis (2/2) • Supporting frontline COVID-19 response with mobile phones and airtime, and Bell Let’s Talk – Over 3,500 mobile phones and SIM cards donated to institutions in need across Canada – Donated 1.5M protective N95 and KN95 face masks for distribution to
Slide 5: Financial outlook
Financial outlook • Withdrawing 2020 financial guidance previously issued on February 6th due to COVID-19 – Length, severity and outcome of COVID-19 situation unknown at this time – Financial impact of COVID-19 limited in Q1, but expected to accelerate • Sharp focus on managing cost structure and en
Slide 6: Q1 operating highlights
Q1 operating highlights Bell Wireless Bell Wireline Bell Media • Transaction volumes impacted by • Retail Internet net additions • Enhancing Crave’s customer store closures and call centre stable y/y at 23k reach with additional streaming disruptions due to COVID-19 devices • Continued deployment of
Slide 7: Financial Results
Financial Results Bell
Slide 8: Q1 financial review
Q1 financial review ($M) except per share data Q1’20 Y/Y • Service revenue growth positive in Q1, despite COVID-19 impact in March and initiatives to Revenue 5,680 (0.9%) support Bell customers Service 5,058 0.3% Product 622 (9.7%) • Q1 product revenue down 9.7% on reduced wireless transactions due
Slide 9: Wireless financials
Wireless financials Revenue ($M) • 2.0% y/y decline in Q1 total revenue 2,077 -2.0% • Service revenue up 0.5%, reflecting subscriber 2,035 base growth over past year and higher y/y prepaid revenue contribution • Product revenue down 9.1%, due to reduced Q1'19 Q1'20 retail activity as a result of COV
Slide 10: Wireline financials
Wireline financials Revenue ($M) • Combined broadband Internet and TV revenue growth of ~3% in Q1 -0.7% 3,097 3,076 • Improved voice revenue decline of 3.9% in Q1, reflects increased importance of staying connected during COVID-19 crisis • Softer y/y business markets performance in Q1, Q1'19 Q1'20 d
Slide 11: Media financials
Media financials Revenue ($M) • Total revenue 0.9% higher y/y • Subscriber revenue up 5.6%, reflecting strong +0.9% y/y Crave growth and BDU contract renewals 752 745 • Advertising revenue declined 2.5%, impacted by reduced or delayed spending by advertisers Q1'19 Q1'20 across all media platforms du
Slide 12: Adjusted EPS
Adjusted EPS Adjusted EPS(1) • Adjusted EBITDA main driver of adjusted EPS ($) growth, contributing 3¢ y/y increase +3.9% • Net interest expense down y/y, due to lower 0.80 average interest rates 0.77 • Favourable tax expense impact in Q1’20 from change in Nova Scotia corporate tax rate Q1'19 Q1'20
Slide 13: Free cash flow
Free cash flow Free cash flow(1) • Adjusted EBITDA growth and lower capex ($M) drove $106M of higher y/y FCF in Q1 -2.3% 642 • Interest paid up y/y, due to higher level of 627 debenture debt outstanding • Cash pension funding stable y/y Q1'19 Q1'20 • Cash taxes lower y/y due to COVID-19 related dela
Slide 14: Strong balance sheet and liquidity position
Strong balance sheet and liquidity position BCE liquidity position ($M) • ~$3.2B of available liquidity at end of Q1’20 Cash & cash equivalents (03/31/2020) 2,679 • Continued access to financial markets Committed credit facilities 4,000 – Completed two long-term public debt offerings in Q1’20 totall