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Exhibit 99.2
| ||
| Q4 |
Supplementary Financial Information
Fourth Quarter 2023 | |
| BCE Investor Relations Thane Fotopoulos
514-870-4619 thane.fotopoulos@bell.ca |
| |
BCE (1)
Consolidated Operational Data
| (In millions of Canadian dollars, except share amounts) (unaudited) |
Q4 2023 |
Q4 2022 |
$ change | % change |
Total 2023 |
Total 2022 |
$ change | % change | ||||||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||||||||||||||
| Service |
5,348 | 5,353 | (5 | ) | (0.1%) | 21,154 | 20,956 | 198 | 0.9% | |||||||||||||||||||||||||||
| Product |
1,125 | 1,086 | 39 | 3.6% | 3,519 | 3,218 | 301 | 9.4% | ||||||||||||||||||||||||||||
| Total operating revenues |
6,473 | 6,439 | 34 | 0.5% | 24,673 | 24,174 | 499 | 2.1% | ||||||||||||||||||||||||||||
| Operating costs |
(3,906 | ) | (4,002 | ) | 96 | 2.4% | (14,256 | ) | (13,975 | ) | (281 | ) | (2.0%) | |||||||||||||||||||||||
| Adjusted EBITDA (A) |
2,567 | 2,437 | 130 | 5.3% | 10,417 | 10,199 | 218 | 2.1% | ||||||||||||||||||||||||||||
| Adjusted EBITDA margin (B)(3) |
39.7% | 37.8% | 1.9 pts | 42.2% | 42.2% | - | ||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
(41 | ) | (19 | ) | (22 | ) | n.m. | (200 | ) | (94 | ) | (106 | ) | n.m. | ||||||||||||||||||||||
| Depreciation |
(954 | ) | (922 | ) | (32 | ) | (3.5%) | (3,745 | ) | (3,660 | ) | (85 | ) | (2.3%) | ||||||||||||||||||||||
| Amortization |
(299 | ) | (270 | ) | (29 | ) | (10.7%) | (1,173 | ) | (1,063 | ) | (110 | ) | (10.3%) | ||||||||||||||||||||||
| Finance costs |
||||||||||||||||||||||||||||||||||||
| Interest expense |
(399 | ) | (319 | ) | (80 | ) | (25.1%) | (1,475 | ) | (1,146 | ) | (329 | ) | (28.7%) | ||||||||||||||||||||||
| Net return on post-employment benefit plans |
27 | 13 | 14 | n.m. | 108 | 51 | 57 | n.m. | ||||||||||||||||||||||||||||
| Impairment of assets |
(109 | ) | (150 | ) | 41 | 27.3% | (143 | ) | (279 | ) | 136 | 48.7% | ||||||||||||||||||||||||
| Other (expense) income |
(147 | ) | 19 | (166 | ) | n.m. | (466 | ) | (115 | ) | (351 | ) | n.m. | |||||||||||||||||||||||
| Income taxes |
(210 | ) | (222 | ) | 12 | 5.4% | (996 | ) | (967 | ) | (29 | ) | (3.0%) | |||||||||||||||||||||||
| Net earnings |
435 | 567 | (132 | ) | (23.3%) | 2,327 | 2,926 | (599 | ) | (20.5%) | ||||||||||||||||||||||||||
| Net earnings attributable to: |
||||||||||||||||||||||||||||||||||||
| Common shareholders |
382 | 528 | (146 | ) | (27.7%) | 2,076 | 2,716 | (640 | ) | (23.6%) | ||||||||||||||||||||||||||
| Preferred shareholders |
48 | 44 | 4 | 9.1% | 187 | 152 | 35 | 23.0% | ||||||||||||||||||||||||||||
| Non-controlling interest |
5 | (5 | ) | 10 | n.m. | 64 | 58 | 6 | 10.3% | |||||||||||||||||||||||||||
| Net earnings |
435 | 567 | (132 | ) | (23.3%) | 2,327 | 2,926 | (599 | ) | (20.5%) | ||||||||||||||||||||||||||
| Net earnings per common share - basic and diluted | $ | 0.42 | $ | 0.58 | $ | (0.16 | ) | (27.6%) | $ | 2.28 | $ | 2.98 | $ | (0.70 | ) | (23.5%) | ||||||||||||||||||||
| Dividends per common share |
$ | 0.9675 | $ | 0.9200 | $ | 0.0475 | 5.2% | $ | 3.8700 | $ | 3.6800 | $ | 0.1900 | 5.2% | ||||||||||||||||||||||
| Weighted average number of common shares outstanding - basic (millions) | 912.3 | 912.0 | 912.2 | 911.5 | ||||||||||||||||||||||||||||||||
| Weighted average number of common shares outstanding - diluted (millions) | 912.3 | 912.2 | 912.2 | 912.0 | ||||||||||||||||||||||||||||||||
| Number of common shares outstanding (millions) |
912.3 | 912.0 | 912.3 | 912.0 | ||||||||||||||||||||||||||||||||
| Adjusted net earnings and adjusted EPS |
||||||||||||||||||||||||||||||||||||
| Net earnings attributable to common shareholders |
382 | 528 | (146 | ) | (27.7%) | 2,076 | 2,716 | (640 | ) | (23.6%) | ||||||||||||||||||||||||||
| Reconciling items: |
||||||||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
41 | 19 | 22 | n.m. | 200 | 94 | 106 | n.m. | ||||||||||||||||||||||||||||
| Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans |
(6 | ) | (27 | ) | 21 | 77.8% | 103 | 53 | 50 | 94.3% | ||||||||||||||||||||||||||
| Net equity losses on investment in associates and joint ventures |
204 | - | 204 | - | 581 | 42 | 539 | n.m. | ||||||||||||||||||||||||||||
| Net (gains) losses on investments |
(2 | ) | 29 | (31 | ) | n.m. | (80 | ) | (24 | ) | (56 | ) | n.m. | |||||||||||||||||||||||
| Early debt redemption costs |
- | - | - | - | 1 | 18 | (17 | ) | (94.4%) | |||||||||||||||||||||||||||
| Impairment of assets |
109 | 150 | (41 | ) | (27.3%) | 143 | 279 | (136 | ) | (48.7%) | ||||||||||||||||||||||||||
| Income taxes for the above reconciling items |
(39 | ) | (37 | ) | (2 | ) | (5.4%) | (100 | ) | (117 | ) | 17 | 14.5% | |||||||||||||||||||||||
| Non-controlling interest (NCI) for the above reconciling items |
2 | (8 | ) | 10 | n.m. | 2 | (4 | ) | 6 | n.m. | ||||||||||||||||||||||||||
| Adjusted net earnings (A) |
691 | 654 | 37 | 5.7% | 2,926 | 3,057 | (131 | ) | (4.3%) | |||||||||||||||||||||||||||
| Adjusted EPS (A) |
$ | 0.76 | $ | 0.71 | $ | 0.05 | 7.0% | $ | 3.21 | $ | 3.35 | $ | (0.14 | ) | (4.2%) | |||||||||||||||||||||
n.m. : not meaningful
| (A) | Adjusted EBITDA is a total of segments measure, adjusted net earnings is a non-GAAP financial measure and adjusted EPS is a non-GAAP ratio. Refer to note 2.3, Total of segments measures, note 2.1, Non-GAAP financial measures and note 2.2, Non-GAAP ratios in the Accompanying Notes to this report for more information on these measures. |
| (B) | Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues. |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 2
BCE
Consolidated Operational Data - Historical Trend
| (In millions of Canadian dollars, except share amounts) (unaudited) | |
TOTAL 2023 |
|
Q4 23 | Q3 23 | Q2 23 | Q1 23 | |
TOTAL 2022 |
|
Q4 22 | Q3 22 | Q2 22 | Q1 22 | ||||||||||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||||||||||||||||||||||||
| Service |
21,154 | 5,348 | 5,281 | 5,303 | 5,222 | 20,956 | 5,353 | 5,193 | 5,233 | 5,177 | ||||||||||||||||||||||||||||||||||||
| Product |
3,519 | 1,125 | 799 | 763 | 832 | 3,218 | 1,086 | 831 | 628 | 673 | ||||||||||||||||||||||||||||||||||||
| Total operating revenues |
24,673 | 6,473 | 6,080 | 6,066 | 6,054 | 24,174 | 6,439 | 6,024 | 5,861 | 5,850 | ||||||||||||||||||||||||||||||||||||
| Operating costs |
(14,256) | (3,906) | (3,413) | (3,421) | (3,516) | (13,975) | (4,002) | (3,436) | (3,271) | (3,266) | ||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA |
10,417 | 2,567 | 2,667 | 2,645 | 2,538 | 10,199 | 2,437 | 2,588 | 2,590 | 2,584 | ||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA margin |
42.2% | 39.7% | 43.9% | 43.6% | 41.9% | 42.2% | 37.8% | 43.0% | 44.2% | 44.2% | ||||||||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
(200) | (41) | (10) | (100) | (49) | (94) | (19) | (22) | (40) | (13) | ||||||||||||||||||||||||||||||||||||
| Depreciation |
(3,745) | (954) | (937) | (936) | (918) | (3,660) | (922) | (914) | (933) | (891) | ||||||||||||||||||||||||||||||||||||
| Amortization |
(1,173) | (299) | (295) | (296) | (283) | (1,063) | (270) | (267) | (266) | (260) | ||||||||||||||||||||||||||||||||||||
| Finance costs |
||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense |
(1,475) | (399) | (373) | (359) | (344) | (1,146) | (319) | (298) | (269) | (260) | ||||||||||||||||||||||||||||||||||||
| Net return on post-employment benefit plans |
108 | 27 | 27 | 27 | 27 | 51 | 13 | 13 | 7 | 18 | ||||||||||||||||||||||||||||||||||||
| Impairment of assets |
(143) | (109) | - | - | (34) | (279) | (150) | (21) | (106) | (2) | ||||||||||||||||||||||||||||||||||||
| Other (expense) income |
(466) | (147) | (129) | (311) | 121 | (115) | 19 | (130) | (97) | 93 | ||||||||||||||||||||||||||||||||||||
| Income taxes |
(996) | (210) | (243) | (273) | (270) | (967) | (222) | (178) | (232) | (335) | ||||||||||||||||||||||||||||||||||||
| Net earnings |
2,327 | 435 | 707 | 397 | 788 | 2,926 | 567 | 771 | 654 | 934 | ||||||||||||||||||||||||||||||||||||
| Net earnings attributable to: | ||||||||||||||||||||||||||||||||||||||||||||||
| Common shareholders |
2,076 | 382 | 640 | 329 | 725 | 2,716 | 528 | 715 | 596 | 877 | ||||||||||||||||||||||||||||||||||||
| Preferred shareholders |
187 | 48 | 47 | 46 | 46 | 152 | 44 | 39 | 35 | 34 | ||||||||||||||||||||||||||||||||||||
| Non-controlling interest |
64 | 5 | 20 | 22 | 17 | 58 | (5) | 17 | 23 | 23 | ||||||||||||||||||||||||||||||||||||
| Net earnings |
2,327 | 435 | 707 | 397 | 788 | 2,926 | 567 | 771 | 654 | 934 | ||||||||||||||||||||||||||||||||||||
| Net earnings per common share - basic and diluted | $ | 2.28 | $ | 0.42 | $ | 0.70 | $ | 0.37 | $ | 0.79 | $ | 2.98 | $ | 0.58 | $ | 0.78 | $ | 0.66 | $ | 0.96 | ||||||||||||||||||||||||||
| Dividends per common share | $ | 3.8700 | $ | 0.9675 | $ | 0.9675 | $ | 0.9675 | $ | 0.9675 | $ | 3.6800 | $ | 0.9200 | $ | 0.9200 | $ | 0.9200 | $ | 0.9200 | ||||||||||||||||||||||||||
| Weighted average number of common shares outstanding - basic (millions) | 912.2 | 912.3 | 912.3 | 912.2 | 912.1 | 911.5 | 912.0 | 911.9 | 911.9 | 910.1 | ||||||||||||||||||||||||||||||||||||
| Weighted average number of common shares outstanding - diluted (millions) | 912.2 | 912.3 | 912.3 | 912.5 | 912.3 | 912.0 | 912.2 | 912.3 | 912.8 | 910.8 | ||||||||||||||||||||||||||||||||||||
| Number of common shares outstanding (millions) | 912.3 | 912.3 | 912.3 | 912.3 | 912.2 | 912.0 | 912.0 | 911.9 | 911.9 | 911.8 | ||||||||||||||||||||||||||||||||||||
| Adjusted net earnings and adjusted EPS | ||||||||||||||||||||||||||||||||||||||||||||||
| Net earnings attributable to common shareholders | 2,076 | 382 | 640 | 329 | 725 | 2,716 | 528 | 715 | 596 | 877 | ||||||||||||||||||||||||||||||||||||
| Reconciling items: | ||||||||||||||||||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
200 | 41 | 10 | 100 | 49 | 94 | 19 | 22 | 40 | 13 | ||||||||||||||||||||||||||||||||||||
| Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans |
103 | (6) | 128 | (1) | (18) | 53 | (27) | 74 | 81 | (75) | ||||||||||||||||||||||||||||||||||||
| Net equity losses on investments in associates and joint ventures |
581 | 204 | - | 377 | - | 42 | - | - | 42 | - | ||||||||||||||||||||||||||||||||||||
| Net (gains) losses on investments |
(80) | (2) | 1 | (79) | - | (24) | 29 | - | (16) | (37) | ||||||||||||||||||||||||||||||||||||
| Early debt redemption costs |
1 | - | - | 1 | - | 18 | - | - | - | 18 | ||||||||||||||||||||||||||||||||||||
| Impairment of assets |
143 | 109 | - | - | 34 | 279 | 150 | 21 | 106 | 2 | ||||||||||||||||||||||||||||||||||||
| Income taxes for the above reconciling items |
(100) | (39) | (38) | (5) | (18) | (117) | (37) | (31) | (62) | 13 | ||||||||||||||||||||||||||||||||||||
| NCI for the above reconciling items |
2 | 2 | - | - | - | (4) | (8) | - | 4 | - | ||||||||||||||||||||||||||||||||||||
| Adjusted net earnings | 2,926 | 691 | 741 | 722 | 772 | 3,057 | 654 | 801 | 791 | 811 | ||||||||||||||||||||||||||||||||||||
| Adjusted EPS | $ | 3.21 | $ | 0.76 | $ | 0.81 | $ | 0.79 | $ | 0.85 | $ | 3.35 | $ | 0.71 | $ | 0.88 | $ | 0.87 | $ | 0.89 | ||||||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 3
BCE (1)
Segmented Data
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) |
Q4 2023 |
Q4 2022 |
$ change | % change |
TOTAL 2023 |
TOTAL 2022 |
$ change | % change | ||||||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||||||||||||||
| Bell Communication and Technology Services (Bell CTS) |
5,744 | 5,649 | 95 | 1.7% | 21,926 | 21,301 | 625 | 2.9% | ||||||||||||||||||||||||||||
| Bell Media |
822 | 889 | (67 | ) | (7.5%) | 3,117 | 3,254 | (137 | ) | (4.2%) | ||||||||||||||||||||||||||
| Inter-segment eliminations |
(93 | ) | (99 | ) | 6 | 6.1% | (370 | ) | (381 | ) | 11 | 2.9% | ||||||||||||||||||||||||
| Total |
6,473 | 6,439 | 34 | 0.5% | 24,673 | 24,174 | 499 | 2.1% | ||||||||||||||||||||||||||||
| Operating costs |
||||||||||||||||||||||||||||||||||||
| Bell CTS |
(3,325 | ) | (3,341 | ) | 16 | 0.5% | (12,206 | ) | (11,847 | ) | (359 | ) | (3.0%) | |||||||||||||||||||||||
| Bell Media |
(674 | ) | (760 | ) | 86 | 11.3% | (2,420 | ) | (2,509 | ) | 89 | 3.5% | ||||||||||||||||||||||||
| Inter-segment eliminations |
93 | 99 | (6 | ) | (6.1%) | 370 | 381 | (11 | ) | (2.9%) | ||||||||||||||||||||||||||
| Total |
(3,906 | ) | (4,002 | ) | 96 | 2.4% | (14,256 | ) | (13,975 | ) | (281 | ) | (2.0%) | |||||||||||||||||||||||
| Adjusted EBITDA |
||||||||||||||||||||||||||||||||||||
| Bell CTS |
2,419 | 2,308 | 111 | 4.8% | 9,720 | 9,454 | 266 | 2.8% | ||||||||||||||||||||||||||||
| Margin |
42.1% | 40.9% | 1.2 pts | 44.3% | 44.4% | (0.1) pts | ||||||||||||||||||||||||||||||
| Bell Media |
148 | 129 | 19 | 14.7% | 697 | 745 | (48 | ) | (6.4%) | |||||||||||||||||||||||||||
| Margin |
18.0% | 14.5% | 3.5 pts | 22.4% | 22.9% | (0.5) pts | ||||||||||||||||||||||||||||||
| Total |
2,567 | 2,437 | 130 | 5.3% | 10,417 | 10,199 | 218 | 2.1% | ||||||||||||||||||||||||||||
| Margin |
39.7% | 37.8% | 1.9 pts | 42.2% | 42.2% | - | ||||||||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||||||
| Bell CTS |
975 | 1,559 | 584 | 37.5% | 4,421 | 4,971 | 550 | 11.1% | ||||||||||||||||||||||||||||
| Capital intensity (A)(3) |
17.0% | 27.6% | 10.6 pts | 20.2% | 23.3% | 3.1 pts | ||||||||||||||||||||||||||||||
| Bell Media |
54 | 79 | 25 | 31.6% | 160 | 162 | 2 | 1.2% | ||||||||||||||||||||||||||||
| Capital intensity |
6.6% | 8.9% | 2.3 pts | 5.1% | 5.0% | (0.1) pts | ||||||||||||||||||||||||||||||
| Total |
1,029 | 1,638 | 609 | 37.2% | 4,581 | 5,133 | 552 | 10.8% | ||||||||||||||||||||||||||||
| Capital intensity |
15.9% | 25.4% | 9.5 pts | 18.6% | 21.2% | 2.6 pts | ||||||||||||||||||||||||||||||
| (A) | Capital intensity is defined as capital expenditures divided by operating revenues. |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 4
BCE
Segmented Data - Historical Trend
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | TOTAL 2023 |
Q4 23 | Q3 23 | Q2 23 | Q1 23 | TOTAL 2022 |
Q4 22 | Q3 22 | Q2 22 | Q1 22 | ||||||||||||||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||||||||||||||||||||||||
| Bell CTS |
21,926 | 5,744 | 5,461 | 5,354 | 5,367 | 21,301 | 5,649 | 5,401 | 5,135 | 5,116 | ||||||||||||||||||||||||||||||||||||
| Bell Media |
3,117 | 822 | 710 | 805 | 780 | 3,254 | 889 | 719 | 821 | 825 | ||||||||||||||||||||||||||||||||||||
| Inter-segment eliminations |
(370 | ) | (93 | ) | (91 | ) | (93 | ) | (93 | ) | (381 | ) | (99 | ) | (96 | ) | (95 | ) | (91 | ) | ||||||||||||||||||||||||||
| Total |
24,673 | 6,473 | 6,080 | 6,066 | 6,054 | 24,174 | 6,439 | 6,024 | 5,861 | 5,850 | ||||||||||||||||||||||||||||||||||||
| Operating costs |
||||||||||||||||||||||||||||||||||||||||||||||
| Bell CTS |
(12,206 | ) | (3,325 | ) | (2,997 | ) | (2,923 | ) | (2,961 | ) | (11,847 | ) | (3,341 | ) | (2,995 | ) | (2,771 | ) | (2,740 | ) | ||||||||||||||||||||||||||
| Bell Media |
(2,420 | ) | (674 | ) | (507 | ) | (591 | ) | (648 | ) | (2,509 | ) | (760 | ) | (537 | ) | (595 | ) | (617 | ) | ||||||||||||||||||||||||||
| Inter-segment eliminations |
370 | 93 | 91 | 93 | 93 | 381 | 99 | 96 | 95 | 91 | ||||||||||||||||||||||||||||||||||||
| Total |
(14,256 | ) | (3,906 | ) | (3,413 | ) | (3,421 | ) | (3,516 | ) | (13,975 | ) | (4,002 | ) | (3,436 | ) | (3,271 | ) | (3,266 | ) | ||||||||||||||||||||||||||
| Adjusted EBITDA |
||||||||||||||||||||||||||||||||||||||||||||||
| Bell CTS |
9,720 | 2,419 | 2,464 | 2,431 | 2,406 | 9,454 | 2,308 | 2,406 | 2,364 | 2,376 | ||||||||||||||||||||||||||||||||||||
| Margin |
44.3% | 42.1% | 45.1% | 45.4% | 44.8% | 44.4% | 40.9% | 44.5% | 46.0% | 46.4% | ||||||||||||||||||||||||||||||||||||
| Bell Media |
697 | 148 | 203 | 214 | 132 | 745 | 129 | 182 | 226 | 208 | ||||||||||||||||||||||||||||||||||||
| Margin |
22.4% | 18.0% | 28.6% | 26.6% | 16.9% | 22.9% | 14.5% | 25.3% | 27.5% | 25.2% | ||||||||||||||||||||||||||||||||||||
| Total |
10,417 | 2,567 | 2,667 | 2,645 | 2,538 | 10,199 | 2,437 | 2,588 | 2,590 | 2,584 | ||||||||||||||||||||||||||||||||||||
| Margin |
42.2% | 39.7% | 43.9% | 43.6% | 41.9% | 42.2% | 37.8% | 43.0% | 44.2% | 44.2% | ||||||||||||||||||||||||||||||||||||
| Capital expenditures |
||||||||||||||||||||||||||||||||||||||||||||||
| Bell CTS |
4,421 | 975 | 1,123 | 1,271 | 1,052 | 4,971 | 1,559 | 1,286 | 1,190 | 936 | ||||||||||||||||||||||||||||||||||||
| Capital intensity |
20.2% | 17.0% | 20.6% | 23.7% | 19.6% | 23.3% | 27.6% | 23.8% | 23.2% | 18.3% | ||||||||||||||||||||||||||||||||||||
| Bell Media |
160 | 54 | 36 | 36 | 34 | 162 | 79 | 31 | 29 | 23 | ||||||||||||||||||||||||||||||||||||
| Capital intensity |
5.1% | 6.6% | 5.1% | 4.5% | 4.4% | 5.0% | 8.9% | 4.3% | 3.5% | 2.8% | ||||||||||||||||||||||||||||||||||||
| Total |
4,581 | 1,029 | 1,159 | 1,307 | 1,086 | 5,133 | 1,638 | 1,317 | 1,219 | 959 | ||||||||||||||||||||||||||||||||||||
| Capital intensity |
18.6% | 15.9% | 19.1% | 21.5% | 17.9% | 21.2% | 25.4% | 21.9% | 20.8% | 16.4% | ||||||||||||||||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 5
Bell CTS (1)
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | |
Q4 2023 |
|
|
Q4 2022 |
|
% change | |
TOTAL 2023 |
|
|
TOTAL 2022 |
|
% change | ||||||||||
| Bell CTS |
||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||
| Wireless |
1,803 | 1,735 | 3.9% | 7,120 | 6,821 | 4.4% | ||||||||||||||||||
| Wireline data |
2,030 | 2,006 | 1.2% | 8,084 | 7,920 | 2.1% | ||||||||||||||||||
| Wireline voice |
697 | 736 | (5.3%) | 2,862 | 3,002 | (4.7%) | ||||||||||||||||||
| Other wireline services |
81 | 77 | 5.2% | 312 | 309 | 1.0% | ||||||||||||||||||
| External service revenues |
4,611 | 4,554 | 1.3% | 18,378 | 18,052 | 1.8% | ||||||||||||||||||
| Inter-segment service revenues |
8 | 9 | (11.1%) | 29 | 31 | (6.5%) | ||||||||||||||||||
| Operating service revenues |
4,619 | 4,563 | 1.2% | 18,407 | 18,083 | 1.8% | ||||||||||||||||||
| Wireless |
961 | 917 | 4.8% | 2,885 | 2,714 | 6.3% | ||||||||||||||||||
| Wireline |
164 | 169 | (3.0%) | 634 | 504 | 25.8% | ||||||||||||||||||
| External/Operating product revenues |
1,125 | 1,086 | 3.6% | 3,519 | 3,218 | 9.4% | ||||||||||||||||||
| Total external revenues |
5,736 | 5,640 | 1.7% | 21,897 | 21,270 | 2.9% | ||||||||||||||||||
| Total operating revenues |
5,744 | 5,649 | 1.7% | 21,926 | 21,301 | 2.9% | ||||||||||||||||||
| Operating costs |
(3,325) | (3,341) | 0.5% | (12,206) | (11,847) | (3.0%) | ||||||||||||||||||
| Adjusted EBITDA |
2,419 | 2,308 | 4.8% | 9,720 | 9,454 | 2.8% | ||||||||||||||||||
| Adjusted EBITDA margin |
42.1% | 40.9% | 1.2 pts | 44.3% | 44.4% | (0.1) pts | ||||||||||||||||||
| Capital expenditures |
975 | 1,559 | 37.5% | 4,421 | 4,971 | 11.1% | ||||||||||||||||||
| Capital intensity |
17.0% | 27.6% | 10.6 pts | 20.2% | 23.3% | 3.1 pts | ||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 6
Bell CTS - Historical Trend
|
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) |
TOTAL 2023 |
Q4 23 | Q3 23 | Q2 23 | Q1 23 | TOTAL 2022 |
Q4 22 | Q3 22 | Q2 22 | Q1 22 | ||||||||||||||||||||||||||||||||||||||||||
| Bell CTS |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating revenues |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Wireless |
7,120 | 1,803 | 1,828 | 1,766 | 1,723 | 6,821 | 1,735 | 1,759 | 1,692 | 1,635 | ||||||||||||||||||||||||||||||||||||||||||
| Wireline data |
8,084 | 2,030 | 2,032 | 2,021 | 2,001 | 7,920 | 2,006 | 1,987 | 1,974 | 1,953 | ||||||||||||||||||||||||||||||||||||||||||
| Wireline voice |
2,862 | 697 | 717 | 722 | 726 | 3,002 | 736 | 739 | 756 | 771 | ||||||||||||||||||||||||||||||||||||||||||
| Other wireline services |
312 | 81 | 78 | 75 | 78 | 309 | 77 | 77 | 78 | 77 | ||||||||||||||||||||||||||||||||||||||||||
| External service revenues |
18,378 | 4,611 | 4,655 | 4,584 | 4,528 | 18,052 | 4,554 | 4,562 | 4,500 | 4,436 | ||||||||||||||||||||||||||||||||||||||||||
| Inter-segment service revenues |
29 | 8 | 7 | 7 | 7 | 31 | 9 | 8 | 7 | 7 | ||||||||||||||||||||||||||||||||||||||||||
| Operating service revenues |
18,407 | 4,619 | 4,662 | 4,591 | 4,535 | 18,083 | 4,563 | 4,570 | 4,507 | 4,443 | ||||||||||||||||||||||||||||||||||||||||||
| Wireless |
2,885 | 961 | 672 | 626 | 626 | 2,714 | 917 | 692 | 542 | 563 | ||||||||||||||||||||||||||||||||||||||||||
| Wireline |
634 | 164 | 127 | 137 | 206 | 504 | 169 | 139 | 86 | 110 | ||||||||||||||||||||||||||||||||||||||||||
| External/Operating product revenues |
3,519 | 1,125 | 799 | 763 | 832 | 3,218 | 1,086 | 831 | 628 | 673 | ||||||||||||||||||||||||||||||||||||||||||
| Total external revenues |
21,897 | 5,736 | 5,454 | 5,347 | 5,360 | 21,270 | 5,640 | 5,393 | 5,128 | 5,109 | ||||||||||||||||||||||||||||||||||||||||||
| Total operating revenues |
21,926 | 5,744 | 5,461 | 5,354 | 5,367 | 21,301 | 5,649 | 5,401 | 5,135 | 5,116 | ||||||||||||||||||||||||||||||||||||||||||
| Operating costs |
(12,206 | ) | (3,325 | ) | (2,997 | ) | (2,923 | ) | (2,961 | ) | (11,847 | ) | (3,341 | ) | (2,995 | ) | (2,771 | ) | (2,740 | ) | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA |
9,720 | 2,419 | 2,464 | 2,431 | 2,406 | 9,454 | 2,308 | 2,406 | 2,364 | 2,376 | ||||||||||||||||||||||||||||||||||||||||||
| Adjusted EBITDA margin |
44.3% | 42.1% | 45.1% | 45.4% | 44.8% | 44.4% | 40.9% | 44.5% | 46.0% | 46.4% | ||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures |
4,421 | 975 | 1,123 | 1,271 | 1,052 | 4,971 | 1,559 | 1,286 | 1,190 | 936 | ||||||||||||||||||||||||||||||||||||||||||
| Capital intensity |
20.2% | 17.0% | 20.6% | 23.7% | 19.6% | 23.3% | 27.6% | 23.8% | 23.2% | 18.3% | ||||||||||||||||||||||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 7
Bell CTS Metrics (1)
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) |
Q4 2023 |
Q4 2022 |
% change |
TOTAL 2023 |
TOTAL 2022 |
% change | ||||||||||||||||||||||||||
| Mobile phone subscribers(3) |
||||||||||||||||||||||||||||||||
| Gross subscriber activations |
712,310 | 605,034 | 17.7% | 2,224,555 | 1,953,912 | 13.9% | ||||||||||||||||||||||||||
| Postpaid |
564,784 | 467,294 | 20.9% | 1,608,503 | 1,355,772 | 18.6% | ||||||||||||||||||||||||||
| Prepaid |
147,526 | 137,740 | 7.1% | 616,052 | 598,140 | 3.0% | ||||||||||||||||||||||||||
| Net subscriber activations (losses) |
92,085 | 122,621 | (24.9%) | 411,189 | 489,901 | (16.1%) | ||||||||||||||||||||||||||
| Postpaid |
128,715 | 154,617 | (16.8%) | 426,172 | 439,842 | (3.1%) | ||||||||||||||||||||||||||
| Prepaid |
(36,630 | ) | (31,996 | ) | (14.5%) | (14,983 | ) | 50,059 | n.m. | |||||||||||||||||||||||
| Subscribers end of period (EOP)(C) |
10,287,046 | 9,949,086 | 3.4% | 10,287,046 | 9,949,086 | 3.4% | ||||||||||||||||||||||||||
| Postpaid(C) |
9,422,830 | 9,069,887 | 3.9% | 9,422,830 | 9,069,887 | 3.9% | ||||||||||||||||||||||||||
| Prepaid |
864,216 | 879,199 | (1.7%) | 864,216 | 879,199 | (1.7%) | ||||||||||||||||||||||||||
| Blended average revenue per user (ARPU) ($/month)(B)(3) |
58.71 | 58.49 | 0.4% | 59.08 | 58.92 | 0.3% | ||||||||||||||||||||||||||
| Blended churn (%) (average per month)(3) |
2.03% | 1.63% | (0.40) pts | 1.51% | 1.27% | (0.24) pts | ||||||||||||||||||||||||||
| Postpaid |
1.63% | 1.22% | (0.41) pts | 1.15% | 0.92% | (0.23) pts | ||||||||||||||||||||||||||
| Prepaid |
6.15% | 5.74% | (0.41) pts | 5.31% | 4.85% | (0.46) pts | ||||||||||||||||||||||||||
| Mobile connected device subscribers(3) |
||||||||||||||||||||||||||||||||
| Net subscriber activations |
78,746 | 104,447 | (24.6%) | 293,307 | 202,024 | 45.2% | ||||||||||||||||||||||||||
| Subscribers EOP(C) |
2,732,548 | 2,451,818 | 11.4% | 2,732,548 | 2,451,818 | 11.4% | ||||||||||||||||||||||||||
| Retail high-speed Internet subscribers(3) |
||||||||||||||||||||||||||||||||
| Retail net subscriber activations |
55,591 | 63,466 | (12.4%) | 187,126 | 201,762 | (7.3%) | ||||||||||||||||||||||||||
| Retail subscribers EOP(A)(D)(E) |
4,473,429 | 4,258,570 | 5.0% | 4,473,429 | 4,258,570 | 5.0% | ||||||||||||||||||||||||||
| Retail TV subscribers(3) |
||||||||||||||||||||||||||||||||
| Retail net subscriber (losses) activations |
(2,318 | ) | 14,183 | n.m. | (26,449 | ) | 5,148 | n.m. | ||||||||||||||||||||||||
| Internet protocol television (IPTV) |
23,537 | 40,209 | (41.5%) | 81,918 | 94,400 | (13.2%) | ||||||||||||||||||||||||||
| Satellite |
(25,855 | ) | (26,026 | ) | 0.7% | (108,367 | ) | (89,252 | ) | (21.4%) | ||||||||||||||||||||||
| Total retail subscribers EOP(A)(E) |
2,725,292 | 2,751,498 | (1.0%) | 2,725,292 | 2,751,498 | (1.0%) | ||||||||||||||||||||||||||
| IPTV(A)(E) |
2,070,342 | 1,988,181 | 4.1% | 2,070,342 | 1,988,181 | 4.1% | ||||||||||||||||||||||||||
| Satellite |
654,950 | 763,317 | (14.2%) | 654,950 | 763,317 | (14.2%) | ||||||||||||||||||||||||||
| Retail residential network access services (NAS)(3) |
||||||||||||||||||||||||||||||||
| Retail residential NAS lines net losses |
(38,347 | ) | (37,878 | ) | (1.2%) | (176,612 | ) | (175,788 | ) | (0.5%) | ||||||||||||||||||||||
| Retail residential NAS lines(A)(E) |
2,021,617 | 2,190,771 | (7.7%) | 2,021,617 | 2,190,771 | (7.7%) | ||||||||||||||||||||||||||
n.m. : not meaningful
| (A) | In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions. |
| (B) | Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. |
| (C) | In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively. |
| (D) | In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers. |
| (E) | In Q4 2022, as a result of the acquisition of Distributel Communications Limited (Distributel), our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively. |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 8
Bell CTS Metrics - Historical Trend
|
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) |
TOTAL 2023 |
Q4 23 | Q3 23 | Q2 23 | Q1 23 | TOTAL 2022 |
Q4 22 | Q3 22 | Q2 22 | Q1 22 | ||||||||||||||||||||||||||||||||||||||||||
| Mobile phone subscribers |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross subscriber activations |
2,224,555 | 712,310 | 603,770 | 502,940 | 405,535 | 1,953,912 | 605,034 | 583,700 | 415,270 | 349,908 | ||||||||||||||||||||||||||||||||||||||||||
| Postpaid |
1,608,503 | 564,784 | 423,364 | 347,746 | 272,609 | 1,355,772 | 467,294 | 391,165 | 266,600 | 230,713 | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid |
616,052 | 147,526 | 180,406 | 155,194 | 132,926 | 598,140 | 137,740 | 192,535 | 148,670 | 119,195 | ||||||||||||||||||||||||||||||||||||||||||
| Net subscriber activations (losses) |
411,189 | 92,085 | 166,930 | 125,539 | 26,635 | 489,901 | 122,621 | 224,343 | 110,761 | 32,176 | ||||||||||||||||||||||||||||||||||||||||||
| Postpaid |
426,172 | 128,715 | 142,886 | 111,282 | 43,289 | 439,842 | 154,617 | 167,798 | 83,197 | 34,230 | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid |
(14,983 | ) | (36,630 | ) | 24,044 | 14,257 | (16,654 | ) | 50,059 | (31,996 | ) | 56,545 | 27,564 | (2,054 | ) | |||||||||||||||||||||||||||||||||||||
| Subscribers end of period (EOP)(C) |
10,287,046 | 10,287,046 | 10,194,961 | 10,028,031 | 9,902,492 | 9,949,086 | 9,949,086 | 9,826,465 | 9,602,122 | 9,491,361 | ||||||||||||||||||||||||||||||||||||||||||
| Postpaid(C) |
9,422,830 | 9,422,830 | 9,294,115 | 9,151,229 | 9,039,947 | 9,069,887 | 9,069,887 | 8,915,270 | 8,747,472 | 8,664,275 | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid |
864,216 | 864,216 | 900,846 | 876,802 | 862,545 | 879,199 | 879,199 | 911,195 | 854,650 | 827,086 | ||||||||||||||||||||||||||||||||||||||||||
| Blended ARPU ($/month)(B) |
59.08 | 58.71 | 60.28 | 59.16 | 58.15 | 58.92 | 58.49 | 60.39 | 59.17 | 57.61 | ||||||||||||||||||||||||||||||||||||||||||
| Blended churn (%) (average per month) |
1.51% | 2.03% | 1.45% | 1.27% | 1.29% | 1.27% | 1.63% | 1.24% | 1.07% | 1.12% | ||||||||||||||||||||||||||||||||||||||||||
| Postpaid |
1.15% | 1.63% | 1.10% | 0.94% | 0.90% | 0.92% | 1.22% | 0.90% | 0.75% | 0.79% | ||||||||||||||||||||||||||||||||||||||||||
| Prepaid |
5.31% | 6.15% | 5.10% | 4.68% | 5.28% | 4.85% | 5.74% | 4.58% | 4.41% | 4.61% | ||||||||||||||||||||||||||||||||||||||||||
| Mobile connected device subscribers |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net subscriber activations (losses) |
293,307 | 78,746 | 64,282 | 79,537 | 70,742 | 202,024 | 104,447 | 49,044 | (344 | ) | 48,877 | |||||||||||||||||||||||||||||||||||||||||
| Subscribers EOP(C) |
2,732,548 | 2,732,548 | 2,653,802 | 2,589,520 | 2,509,983 | 2,451,818 | 2,451,818 | 2,347,371 | 2,298,327 | 2,298,671 | ||||||||||||||||||||||||||||||||||||||||||
| Retail high-speed Internet subscribers |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail net subscriber activations |
187,126 | 55,591 | 79,327 | 24,934 | 27,274 | 201,762 | 63,466 | 89,652 | 22,620 | 26,024 | ||||||||||||||||||||||||||||||||||||||||||
| Retail subscribers EOP(A)(D)(E) |
4,473,429 | 4,473,429 | 4,417,838 | 4,338,511 | 4,278,497 | 4,258,570 | 4,258,570 | 4,067,039 | 3,977,387 | 3,954,767 | ||||||||||||||||||||||||||||||||||||||||||
| Retail TV subscribers |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail net subscriber (losses) activations |
(26,449 | ) | (2,318 | ) | 4,222 | (14,404 | ) | (13,949 | ) | 5,148 | 14,183 | 10,853 | (11,527 | ) | (8,361 | ) | ||||||||||||||||||||||||||||||||||||
| IPTV |
81,918 | 23,537 | 35,976 | 11,506 | 10,899 | 94,400 | 40,209 | 38,093 | 3,838 | 12,260 | ||||||||||||||||||||||||||||||||||||||||||
| Satellite |
(108,367 | ) | (25,855 | ) | (31,754 | ) | (25,910 | ) | (24,848 | ) | (89,252 | ) | (26,026 | ) | (27,240 | ) | (15,365 | ) | (20,621 | ) | ||||||||||||||||||||||||||||||||
| Total retail subscribers EOP(A)(E) |
2,725,292 | 2,725,292 | 2,727,610 | 2,723,388 | 2,737,549 | 2,751,498 | 2,751,498 | 2,735,000 | 2,724,147 | 2,735,674 | ||||||||||||||||||||||||||||||||||||||||||
| IPTV(A)(E) |
2,070,342 | 2,070,342 | 2,046,805 | 2,010,829 | 1,999,080 | 1,988,181 | 1,988,181 | 1,945,657 | 1,907,564 | 1,903,726 | ||||||||||||||||||||||||||||||||||||||||||
| Satellite |
654,950 | 654,950 | 680,805 | 712,559 | 738,469 | 763,317 | 763,317 | 789,343 | 816,583 | 831,948 | ||||||||||||||||||||||||||||||||||||||||||
| Retail residential NAS |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retail residential NAS lines net losses |
(176,612 | ) | (38,347 | ) | (41,776 | ) | (49,608 | ) | (46,881 | ) | (175,788 | ) | (37,878 | ) | (42,853 | ) | (52,712 | ) | (42,345 | ) | ||||||||||||||||||||||||||||||||
| Retail residential NAS lines(A)(E) |
2,021,617 | 2,021,617 | 2,059,964 | 2,101,740 | 2,143,890 | 2,190,771 | 2,190,771 | 2,164,151 | 2,207,004 | 2,259,716 | ||||||||||||||||||||||||||||||||||||||||||
| (A) | In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions. |
| (B) | Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. |
| (C) | In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively. |
| (D) | In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers. |
| (E) | In Q4 2022, as a result of the acquisition of Distributel, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively. |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 9
BCE
Net debt and other information
| BCE - Net debt and preferred shares | ||||||||||||||||||||||||||||||||||||||||
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | ||||||||||||||||||||||||||||||||||||||||
| December 31 2023 |
September 30 2023 |
June 30 2023 |
March 31 2023 |
December 31 2022 |
||||||||||||||||||||||||||||||||||||
| Long-term debt |
31,135 | 29,532 | 28,314 | 27,456 | 27,783 | |||||||||||||||||||||||||||||||||||
| Debt due within one year |
5,042 | 5,171 | 6,039 | 6,347 | 4,137 | |||||||||||||||||||||||||||||||||||
| 50% of preferred shares |
1,834 | 1,871 | 1,891 | 1,914 | 1,935 | |||||||||||||||||||||||||||||||||||
| Cash |
(547) | (569) | (450) | (651) | (99) | |||||||||||||||||||||||||||||||||||
| Cash equivalents |
(225) | (50) | (450) | (90) | (50) | |||||||||||||||||||||||||||||||||||
| Short-term investments |
(1,000) | - | - | - | - | |||||||||||||||||||||||||||||||||||
| Net debt (A) |
36,239 | 35,955 | 35,344 | 34,976 | 33,706 | |||||||||||||||||||||||||||||||||||
| Net debt leverage ratio (A) |
3.48 | 3.50 | 3.46 | 3.44 | 3.30 | |||||||||||||||||||||||||||||||||||
| Adjusted EBITDA /adjusted net interest expense ratio (A) |
6.94 | 7.12 | 7.48 | 7.94 | 8.50 | |||||||||||||||||||||||||||||||||||
| Cash flow information | ||||||||||||||||||||||||||||||||||||||||
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q4 2023 |
Q4 2022 |
$ change | % change | TOTAL 2023 |
TOTAL 2022 |
$ change | % change | ||||||||||||||||||||||||||||||||
| Free cash flow (FCF) (A) |
||||||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities |
2,373 | 2,056 | 317 | 15.4% | 7,946 | 8,365 | (419) | (5.0%) | ||||||||||||||||||||||||||||||||
| Capital expenditures |
|
(1,029) | (1,638) | 609 | 37.2% | (4,581) | (5,133) | 552 | 10.8% | |||||||||||||||||||||||||||||||
| Cash dividends paid on preferred shares |
|
(46) | (42) | (4) | (9.5%) | (182) | (136) | (46) | (33.8%) | |||||||||||||||||||||||||||||||
| Cash dividends paid by subsidiaries to non-controlling interest |
|
(12) | (3) | (9) | n.m. | (47) | (39) | (8) | (20.5%) | |||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
|
3 | 3 | - | - | 8 | 10 | (2) | (20.0%) | |||||||||||||||||||||||||||||||
| FCF |
1,289 | 376 | 913 | n.m. | 3,144 | 3,067 | 77 | 2.5% | ||||||||||||||||||||||||||||||||
| Cash flow information - Historical trend | ||||||||||||||||||||||||||||||||||||||||
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | TOTAL 2023 |
Q4 2023 |
Q3 2023 |
Q2 2023 |
Q1 2023 |
Total 2022 |
Q4 2022 |
Q3 2022 |
Q2 2022 |
Q1 2022 |
||||||||||||||||||||||||||||||
| FCF |
||||||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities |
7,946 | 2,373 | 1,961 | 2,365 | 1,247 | 8,365 | 2,056 | 1,996 | 2,597 | 1,716 | ||||||||||||||||||||||||||||||
| Capital expenditures |
(4,581) | (1,029) | (1,159) | (1,307) | (1,086) | (5,133) | (1,638) | (1,317) | (1,219) | (959) | ||||||||||||||||||||||||||||||
| Cash dividends paid on preferred shares |
(182) | (46) | (35) | (46) | (55) | (136) | (42) | (27) | (34) | (33) | ||||||||||||||||||||||||||||||
| Cash dividends paid by subsidiaries to non-controlling interest |
(47) | (12) | (13) | (1) | (21) | (39) | (3) | (11) | (14) | (11) | ||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
8 | 3 | - | 5 | - | 10 | 3 | 1 | 3 | 3 | ||||||||||||||||||||||||||||||
| FCF |
3,144 | 1,289 | 754 | 1,016 | 85 | 3,067 | 376 | 642 | 1,333 | 716 | ||||||||||||||||||||||||||||||
n.m. : not meaningful
| (A) | Net debt and free cash flow are non-GAAP financial measures and net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio are capital management measures. Refer to note 2.1, Non-GAAP financial measures and note 2.4, Capital management measures in the Accompanying Notes to this report for more information on these measures. |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 10
Consolidated Statements of Financial Position
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | December 31 2023 |
September 30 2023 |
June 30 2023 |
March 31 2023 |
December 31 2022 | |||||||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||||||
| Current assets |
||||||||||||||||||||||||||||
| Cash |
547 | 569 | 450 | 651 | 99 | |||||||||||||||||||||||
| Cash equivalents |
225 | 50 | 450 | 90 | 50 | |||||||||||||||||||||||
| Short-term investments |
1,000 | - | - | - | - | |||||||||||||||||||||||
| Trade and other receivables |
4,031 | 3,838 | 3,771 | 3,828 | 4,138 | |||||||||||||||||||||||
| Inventory |
465 | 636 | 656 | 673 | 656 | |||||||||||||||||||||||
| Contract assets |
443 | 404 | 403 | 419 | 436 | |||||||||||||||||||||||
| Contract costs |
633 | 590 | 559 | 538 | 540 | |||||||||||||||||||||||
| Prepaid expenses |
230 | 338 | 395 | 378 | 244 | |||||||||||||||||||||||
| Other current assets |
264 | 312 | 282 | 330 | 324 | |||||||||||||||||||||||
| Assets held for sale |
60 | - | - | 260 | - | |||||||||||||||||||||||
| Total current assets |
7,898 | 6,737 | 6,966 | 7,167 | 6,487 | |||||||||||||||||||||||
| Non-current assets |
||||||||||||||||||||||||||||
| Contract assets |
292 | 251 | 243 | 260 | 288 | |||||||||||||||||||||||
| Contract costs |
779 | 732 | 683 | 633 | 603 | |||||||||||||||||||||||
| Property, plant and equipment |
30,352 | 30,158 | 29,909 | 29,233 | 29,256 | |||||||||||||||||||||||
| Intangible assets |
16,609 | 16,491 | 16,395 | 16,338 | 16,183 | |||||||||||||||||||||||
| Deferred tax assets |
96 | 114 | 108 | 102 | 84 | |||||||||||||||||||||||
| Investments in associates and joint ventures |
323 | 326 | 322 | 664 | 608 | |||||||||||||||||||||||
| Post-employment benefit assets |
2,935 | 3,299 | 3,207 | 3,407 | 3,559 | |||||||||||||||||||||||
| Other non-current assets |
1,714 | 1,241 | 1,194 | 1,341 | 1,355 | |||||||||||||||||||||||
| Goodwill |
10,942 | 11,023 | 11,022 | 10,830 | 10,906 | |||||||||||||||||||||||
| Total non-current assets |
64,042 | 63,635 | 63,083 | 62,808 | 62,842 | |||||||||||||||||||||||
| Total assets |
71,940 | 70,372 | 70,049 | 69,975 | 69,329 | |||||||||||||||||||||||
| LIABILITIES |
||||||||||||||||||||||||||||
| Current liabilities |
||||||||||||||||||||||||||||
| Trade payables and other liabilities |
4,729 | 4,354 | 4,347 | 4,080 | 5,221 | |||||||||||||||||||||||
| Contract liabilities |
811 | 798 | 793 | 851 | 857 | |||||||||||||||||||||||
| Interest payable |
332 | 258 | 305 | 208 | 281 | |||||||||||||||||||||||
| Dividends payable |
910 | 910 | 900 | 900 | 867 | |||||||||||||||||||||||
| Current tax liabilities |
268 | 279 | 207 | 164 | 106 | |||||||||||||||||||||||
| Debt due within one year |
5,042 | 5,171 | 6,039 | 6,347 | 4,137 | |||||||||||||||||||||||
| Liabilities held for sale |
15 | - | - | 109 | - | |||||||||||||||||||||||
| Total current liabilities |
12,107 | 11,770 | 12,591 | 12,659 | 11,469 | |||||||||||||||||||||||
| Non-current liabilities |
||||||||||||||||||||||||||||
| Contract liabilities |
277 | 271 | 257 | 244 | 228 | |||||||||||||||||||||||
| Long-term debt |
31,135 | 29,532 | 28,314 | 27,456 | 27,783 | |||||||||||||||||||||||
| Deferred tax liabilities |
4,869 | 4,954 | 4,898 | 4,969 | 4,953 | |||||||||||||||||||||||
| Post-employment benefit obligations |
1,278 | 1,225 | 1,339 | 1,348 | 1,311 | |||||||||||||||||||||||
| Other non-current liabilities |
1,717 | 1,313 | 1,201 | 1,032 | 1,070 | |||||||||||||||||||||||
| Total non-current liabilities |
39,276 | 37,295 | 36,009 | 35,049 | 35,345 | |||||||||||||||||||||||
| Total liabilities |
51,383 | 49,065 | 48,600 | 47,708 | 46,814 | |||||||||||||||||||||||
| EQUITY |
||||||||||||||||||||||||||||
| Equity attributable to BCE shareholders |
||||||||||||||||||||||||||||
| Preferred shares |
3,667 | 3,742 | 3,781 | 3,827 | 3,870 | |||||||||||||||||||||||
| Common shares |
20,859 | 20,859 | 20,859 | 20,851 | 20,840 | |||||||||||||||||||||||
| Contributed surplus |
1,258 | 1,230 | 1,204 | 1,179 | 1,172 | |||||||||||||||||||||||
| Accumulated other comprehensive (loss) income |
(42 | ) | (145 | ) | (105 | ) | 3 | (55 | ) | |||||||||||||||||||
| Deficit |
(5,513 | ) | (4,716 | ) | (4,618 | ) | (3,926 | ) | (3,649 | ) | ||||||||||||||||||
| Total equity attributable to BCE shareholders |
20,229 | 20,970 | 21,121 | 21,934 | 22,178 | |||||||||||||||||||||||
| Non-controlling interest |
328 | 337 | 328 | 333 | 337 | |||||||||||||||||||||||
| Total equity |
20,557 | 21,307 | 21,449 | 22,267 | 22,515 | |||||||||||||||||||||||
| Total liabilities and equity |
71,940 | 70,372 | 70,049 | 69,975 | 69,329 | |||||||||||||||||||||||
| Number of common shares outstanding (millions) |
912.3 | 912.3 | 912.3 | 912.2 | 912.0 | |||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 11
BCE
Consolidated Cash Flow Data
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q4 2023 |
Q4 2022 |
$ change |
TOTAL 2023 |
TOTAL 2022 |
$ change | ||||||||||||||||||||||||||||||
| Net earnings |
435 | 567 | (132) | 2,327 | 2,926 | (599) | ||||||||||||||||||||||||||||||
| Adjustments to reconcile net earnings to cash flows from operating activities |
||||||||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
41 | 19 | 22 | 200 | 94 | 106 | ||||||||||||||||||||||||||||||
| Depreciation and amortization |
1,253 | 1,192 | 61 | 4,918 | 4,723 | 195 | ||||||||||||||||||||||||||||||
| Post-employment benefit plans cost |
23 | 47 | (24) | 98 | 198 | (100) | ||||||||||||||||||||||||||||||
| Net interest expense |
374 | 319 | 55 | 1,408 | 1,124 | 284 | ||||||||||||||||||||||||||||||
| Impairment of assets |
109 | 150 | (41) | 143 | 279 | (136) | ||||||||||||||||||||||||||||||
| (Gains) losses on investments |
(2) | 29 | (31) | (80) | (24) | (56) | ||||||||||||||||||||||||||||||
| Net equity losses on investments in associates and joint ventures |
204 | - | 204 | 581 | 42 | 539 | ||||||||||||||||||||||||||||||
| Income taxes |
210 | 222 | (12) | 996 | 967 | 29 | ||||||||||||||||||||||||||||||
| Contributions to post-employment benefit plans |
(12) | (12) | - | (52) | (140) | 88 | ||||||||||||||||||||||||||||||
| Payments under other post-employment benefit plans |
(16) | (17) | 1 | (64) | (64) | - | ||||||||||||||||||||||||||||||
| Severance and other costs paid |
(59) | (27) | (32) | (178) | (129) | (49) | ||||||||||||||||||||||||||||||
| Interest paid |
(326) | (243) | (83) | (1,486) | (1,197) | (289) | ||||||||||||||||||||||||||||||
| Income taxes paid (net of refunds) |
(169) | (340) | 171 | (700) | (749) | 49 | ||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
(3) | (3) | - | (8) | (10) | 2 | ||||||||||||||||||||||||||||||
| Change in contract assets |
(81) | (94) | 13 | (11) | (59) | 48 | ||||||||||||||||||||||||||||||
| Change in wireless device financing plan receivables |
(127) | (99) | (28) | (46) | 22 | (68) | ||||||||||||||||||||||||||||||
| Net change in operating assets and liabilities |
519 | 346 | 173 | (100) | 362 | (462) | ||||||||||||||||||||||||||||||
| Cash flows from operating activities |
2,373 | 2,056 | 317 | 7,946 | 8,365 | (419) | ||||||||||||||||||||||||||||||
| Capital expenditures |
(1,029) | (1,638) | 609 | (4,581) | (5,133) | 552 | ||||||||||||||||||||||||||||||
| Cash dividends paid on preferred shares |
(46) | (42) | (4) | (182) | (136) | (46) | ||||||||||||||||||||||||||||||
| Cash dividends paid by subsidiaries to non-controlling interest |
(12) | (3) | (9) | (47) | (39) | (8) | ||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
3 | 3 | - | 8 | 10 | (2) | ||||||||||||||||||||||||||||||
| Free cash flow |
1,289 | 376 | 913 | 3,144 | 3,067 | 77 | ||||||||||||||||||||||||||||||
| Business acquisitions |
(2) | (287) | 285 | (222) | (429) | 207 | ||||||||||||||||||||||||||||||
| Business dispositions |
- | (1) | 1 | 209 | 52 | 157 | ||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
(3) | (3) | - | (8) | (10) | 2 | ||||||||||||||||||||||||||||||
| Short-term investments |
(1,000) | - | (1,000) | (1,000) | - | (1,000) | ||||||||||||||||||||||||||||||
| Spectrum licences |
(24) | - | (24) | (183) | (3) | (180) | ||||||||||||||||||||||||||||||
| Other investing activities |
(3) | (13) | 10 | (4) | (4) | - | ||||||||||||||||||||||||||||||
| (Decrease) increase in notes payable |
(162) | (511) | 349 | (646) | 111 | (757) | ||||||||||||||||||||||||||||||
| Increase in securitized receivables |
- | - | - | - | 700 | (700) | ||||||||||||||||||||||||||||||
| Issue of long-term debt |
1,331 | 1,006 | 325 | 5,195 | 1,951 | 3,244 | ||||||||||||||||||||||||||||||
| Repayment of long-term debt |
(293) | (250) | (43) | (1,858) | (2,023) | 165 | ||||||||||||||||||||||||||||||
| Repurchase of a financial liability |
- | - | - | (149) | - | (149) | ||||||||||||||||||||||||||||||
| Issue of common shares |
- | 2 | (2) | 18 | 171 | (153) | ||||||||||||||||||||||||||||||
| Purchase of shares for settlement of share-based payments |
(44) | (49) | 5 | (223) | (255) | 32 | ||||||||||||||||||||||||||||||
| Repurchase of preferred shares |
(50) | (10) | (40) | (140) | (125) | (15) | ||||||||||||||||||||||||||||||
| Cash dividends paid on common shares |
(882) | (839) | (43) | (3,486) | (3,312) | (174) | ||||||||||||||||||||||||||||||
| Other financing activities |
(4) | (5) | 1 | (24) | (31) | 7 | ||||||||||||||||||||||||||||||
| (1,136) | (960) | (176) | (2,521) | (3,207) | 686 | |||||||||||||||||||||||||||||||
| Net (decrease) increase in cash |
(22) | (484) | 462 | 448 | (190) | 638 | ||||||||||||||||||||||||||||||
| Cash at beginning of period |
569 | 583 | (14) | 99 | 289 | (190) | ||||||||||||||||||||||||||||||
| Cash at end of period |
547 | 99 | 448 | 547 | 99 | 448 | ||||||||||||||||||||||||||||||
| Net increase (decrease) in cash equivalents |
175 | (100) | 275 | 175 | 50 | 125 | ||||||||||||||||||||||||||||||
| Cash equivalents at beginning of period |
50 | 150 | (100) | 50 | - | 50 | ||||||||||||||||||||||||||||||
| Cash equivalents at end of period |
225 | 50 | 175 | 225 | 50 | 175 | ||||||||||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 12
BCE
Consolidated Cash Flow Data - Historical Trend
| (In millions of Canadian dollars, except where otherwise indicated) (unaudited) | TOTAL 2023 |
Q4 23 | Q3 23 | Q2 23 | Q1 23 | TOTAL 2022 |
Q4 22 | Q3 22 | Q2 22 | Q1 22 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net earnings |
2,327 | 435 | 707 | 397 | 788 | 2,926 | 567 | 771 | 654 | 934 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustments to reconcile net earnings to cash flows from operating activities |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Severance, acquisition and other costs |
200 | 41 | 10 | 100 | 49 | 94 | 19 | 22 | 40 | 13 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization |
4,918 | 1,253 | 1,232 | 1,232 | 1,201 | 4,723 | 1,192 | 1,181 | 1,199 | 1,151 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Post-employment benefit plans cost |
98 | 23 | 23 | 21 | 31 | 198 | 47 | 48 | 52 | 51 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net interest expense |
1,408 | 374 | 358 | 346 | 330 | 1,124 | 319 | 282 | 265 | 258 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment of assets |
143 | 109 | - | - | 34 | 279 | 150 | 21 | 106 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
| (Gains) losses on investments |
(80 | ) | (2 | ) | 1 | (79 | ) | - | (24 | ) | 29 | - | (16 | ) | (37 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Net equity losses on investments in associates and joint ventures |
581 | 204 | - | 377 | - | 42 | - | - | 42 | - | |||||||||||||||||||||||||||||||||||||||||||||||||
| Income taxes |
996 | 210 | 243 | 273 | 270 | 967 | 222 | 178 | 232 | 335 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Contributions to post-employment benefit plans |
(52 | ) | (12 | ) | (12 | ) | (13 | ) | (15 | ) | (140 | ) | (12 | ) | (14 | ) | (35 | ) | (79 | ) | |||||||||||||||||||||||||||||||||||||||
| Payments under other post-employment benefit plans |
(64 | ) | (16 | ) | (16 | ) | (17 | ) | (15 | ) | (64 | ) | (17 | ) | (17 | ) | (15 | ) | (15 | ) | |||||||||||||||||||||||||||||||||||||||
| Severance and other costs paid |
(178 | ) | (59 | ) | (55 | ) | (39 | ) | (25 | ) | (129 | ) | (27 | ) | (44 | ) | (30 | ) | (28 | ) | |||||||||||||||||||||||||||||||||||||||
| Interest paid |
(1,486 | ) | (326 | ) | (451 | ) | (270 | ) | (439 | ) | (1,197 | ) | (243 | ) | (385 | ) | (196 | ) | (373 | ) | |||||||||||||||||||||||||||||||||||||||
| Income taxes paid (net of refunds) |
(700 | ) | (169 | ) | (167 | ) | (200 | ) | (164 | ) | (749 | ) | (340 | ) | (150 | ) | (143 | ) | (116 | ) | |||||||||||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
(8 | ) | (3 | ) | - | (5 | ) | - | (10 | ) | (3 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
| Change in contract assets |
(11 | ) | (81 | ) | (8 | ) | 33 | 45 | (59 | ) | (94 | ) | (20 | ) | 23 | 32 | |||||||||||||||||||||||||||||||||||||||||||
| Change in wireless device financing plan receivables |
(46 | ) | (127 | ) | 16 | 24 | 41 | 22 | (99 | ) | (6 | ) | 68 | 59 | |||||||||||||||||||||||||||||||||||||||||||||
| Net change in operating assets and liabilities |
(100 | ) | 519 | 80 | 185 | (884 | ) | 362 | 346 | 130 | 354 | (468 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
| Cash flows from operating activities |
7,946 | 2,373 | 1,961 | 2,365 | 1,247 | 8,365 | 2,056 | 1,996 | 2,597 | 1,716 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Capital expenditures |
(4,581 | ) | (1,029 | ) | (1,159 | ) | (1,307 | ) | (1,086 | ) | (5,133 | ) | (1,638 | ) | (1,317 | ) | (1,219 | ) | (959 | ) | |||||||||||||||||||||||||||||||||||||||
| Cash dividends paid on preferred shares |
(182 | ) | (46 | ) | (35 | ) | (46 | ) | (55 | ) | (136 | ) | (42 | ) | (27 | ) | (34 | ) | (33 | ) | |||||||||||||||||||||||||||||||||||||||
| Cash dividends paid by subsidiaries to non-controlling interest |
(47 | ) | (12 | ) | (13 | ) | (1 | ) | (21 | ) | (39 | ) | (3 | ) | (11 | ) | (14 | ) | (11 | ) | |||||||||||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
8 | 3 | - | 5 | - | 10 | 3 | 1 | 3 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Free cash flow |
3,144 | 1,289 | 754 | 1,016 | 85 | 3,067 | 376 | 642 | 1,333 | 716 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Business acquisitions |
(222 | ) | (2 | ) | 1 | (196 | ) | (25 | ) | (429 | ) | (287 | ) | (3 | ) | - | (139 | ) | |||||||||||||||||||||||||||||||||||||||||
| Business dispositions |
209 | - | 1 | 208 | - | 52 | (1 | ) | (1 | ) | 2 | 52 | |||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition and other costs paid |
(8 | ) | (3 | ) | - | (5 | ) | - | (10 | ) | (3 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||||||||||||||||||||||||||||||||||
| Short-term investments |
(1,000 | ) | (1,000 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Spectrum licences |
(183 | ) | (24 | ) | (3 | ) | (145 | ) | (11 | ) | (3 | ) | - | (3 | ) | - | - | ||||||||||||||||||||||||||||||||||||||||||
| Other investing activities |
(4 | ) | (3 | ) | (16 | ) | (16 | ) | 31 | (4 | ) | (13 | ) | (8 | ) | 27 | (10 | ) | |||||||||||||||||||||||||||||||||||||||||
| (Decrease) increase in notes payable |
(646 | ) | (162 | ) | (300 | ) | (101 | ) | (83 | ) | 111 | (511 | ) | (34 | ) | 187 | 469 | ||||||||||||||||||||||||||||||||||||||||||
| (Decrease) increase in securitized receivables |
- | - | - | (500 | ) | 500 | 700 | - | 700 | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||
| Issue of long-term debt |
5,195 | 1,331 | 1,161 | 1,199 | 1,504 | 1,951 | 1,006 | - | - | 945 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Repayment of long-term debt |
(1,858 | ) | (293 | ) | (920 | ) | (346 | ) | (299 | ) | (2,023 | ) | (250 | ) | (270 | ) | (245 | ) | (1,258 | ) | |||||||||||||||||||||||||||||||||||||||
| Repurchase of a financial liability |
(149 | ) | - | - | - | (149 | ) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Issue of common shares |
18 | - | - | 8 | 10 | 171 | 2 | 1 | 7 | 161 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Purchase of shares for settlement of share-based payments |
(223 | ) | (44 | ) | (44 | ) | (42 | ) | (93 | ) | (255 | ) | (49 | ) | (49 | ) | (51 | ) | (106 | ) | |||||||||||||||||||||||||||||||||||||||
| Repurchase of preferred shares |
(140 | ) | (50 | ) | (27 | ) | (32 | ) | (31 | ) | (125 | ) | (10 | ) | - | - | (115 | ) | |||||||||||||||||||||||||||||||||||||||||
| Cash dividends paid on common shares |
(3,486 | ) | (882 | ) | (883 | ) | (882 | ) | (839 | ) | (3,312 | ) | (839 | ) | (839 | ) | (839 | ) | (795 | ) | |||||||||||||||||||||||||||||||||||||||
| Other financing activities |
(24 | ) | (4 | ) | (5 | ) | (7 | ) | (8 | ) | (31 | ) | (5 | ) | 2 | - | (28 | ) | |||||||||||||||||||||||||||||||||||||||||
| (2,521 | ) | (1,136 | ) | (1,035 | ) | (857 | ) | 507 | (3,207 | ) | (960 | ) | (505 | ) | (915 | ) | (827 | ) | |||||||||||||||||||||||||||||||||||||||||
| Net increase (decrease) in cash |
448 | (22 | ) | 119 | (201 | ) | 552 | (190 | ) | (484 | ) | (13 | ) | 418 | (111 | ) | |||||||||||||||||||||||||||||||||||||||||||
| Cash at beginning of period |
99 | 569 | 450 | 651 | 99 | 289 | 583 | 596 | 178 | 289 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash at end of period |
547 | 547 | 569 | 450 | 651 | 99 | 99 | 583 | 596 | 178 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Net increase (decrease) in cash equivalents |
175 | 175 | (400 | ) | 360 | 40 | 50 | (100 | ) | 150 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents at beginning of period |
50 | 50 | 450 | 90 | 50 | - | 150 | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
| Cash equivalents at end of period |
225 | 225 | 50 | 450 | 90 | 50 | 50 | 150 | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 13
Accompanying Notes
| (1) | Effective Q1 2023, our results are now reported in two segments: Bell CTS and Bell Media. |
In 2022, we began modifying our internal and external reporting processes to align with organizational changes that were made to reflect an increasing strategic focus on multiproduct sales, the continually increasing technological convergence of our wireless and wireline telecommunications infrastructure and operations driven by the deployment of our Fifth Generation (5G) and fibre networks, and our digital transformation. These factors have made it increasingly difficult to distinguish between our wireless and wireline operations and resulted in changes in Q1 2023 to the financial information that is regularly provided to our chief operating decision maker to measure performance and allocate resources.
Effective with our Q1 2023 results, our previous Bell Wireless and Bell Wireline operating segments were combined to form a single reporting segment called Bell Communication and Technology Services (Bell CTS). Bell Media remains a distinct reportable segment and is unaffected. Our results are therefore reported in two segments: Bell CTS and Bell Media. As a result of our reporting changes, prior periods have been restated for comparative purposes.
Our Bell CTS segment provides a wide range of communication products and services to consumers, businesses and government customers across Canada. Wireless products and services include mobile data and voice plans and devices and are available nationally. Wireline products and services comprise data (including Internet access, IPTV, cloud-based services and business solutions), voice, and other communication services and products, which are available to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers, as well as the results of operations of our national consumer electronics retailer, The Source (Bell) Electronics Inc. (The Source).
Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home and advanced advertising services to customers nationally across Canada.
Furthermore, effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.
Throughout this report, we, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates.
| (2) | 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 GAAP. We believe that our GAAP financial measures, read together with adjusted non-GAAP and other financial measures, provide readers with a better understanding of how management assesses BCE’s performance.
National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure (NI 52-112), prescribes disclosure requirements that apply to the following specified financial measures:
| ● | Non-GAAP financial measures; |
| ● | Non-GAAP ratios; |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 14
| ● | Total of segments measures; |
| ● | Capital management measures; and |
| ● | Supplementary financial measures. |
This section provides a description and classification of the specified financial measures contemplated by NI 52-112 that we use in this report to explain our financial results except that, for supplementary financial measures, an explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.
| (2.1) | Non-GAAP financial measures |
A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in BCE’s consolidated primary financial statements. We believe that non-GAAP financial measures are reflective of our on-going operating results and provide readers with an understanding of management’s perspective on and analysis of our performance.
Below are descriptions of the non-GAAP financial measures that we use in this report to explain our results. Except for adjusted net interest expense, for which a reconciliation is provided below, reconciliations to the most directly comparable IFRS financial measures on a consolidated basis are set out earlier in this report.
Adjusted net earnings
The term adjusted net earnings does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI.
We use adjusted net earnings and we believe that certain investors and analysts use this measure, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.
The most directly comparable IFRS financial measure is net earnings attributable to common shareholders. Refer to pages 2 and 3 of this report for a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.
Adjusted net interest expense
The term adjusted net interest expense does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 15
We define adjusted net interest expense as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements.
We use adjusted net interest expense as a component in the calculation of the adjusted EBITDA to adjusted net interest expense ratio, which is a capital management measure. For further details on the adjusted EBITDA to adjusted net interest expense ratio, see note 2.4, Capital management measures below. We use and believe that certain investors and analysts use the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.
The most directly comparable IFRS financial measure is net interest expense. The following tables provide reconciliations of net interest expense to adjusted net interest expense on a consolidated basis.
| Q4 2023 | Q4 2022 | |||||||
|
Net interest expense (twelve months ended December 31, 2023 and 2022, respectively) |
1,408 | 1,124 | ||||||
|
50% of net earnings attributable to preferred shareholders (twelve months ended December 31, 2023 and 2022, respectively) |
94 | 76 | ||||||
|
Adjusted net interest expense for the twelve months ended December 31, 2023 and 2022, respectively |
1,502 | 1,200 | ||||||
| Q3 2023 | ||||||||
| Net interest expense (nine months ended September 30, 2023) |
1,034 | |||||||
| Net interest expense (year ended December 31, 2022) |
1,124 | |||||||
|
Net interest expense (nine months ended September 30, 2022) |
(805) | |||||||
|
12-month trailing net interest expense (ended September 30, 2023) |
1,353 | |||||||
| 50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2023) |
70 | |||||||
| 50% of net earnings attributable to preferred shareholders (year ended December 31, 2022) |
76 | |||||||
|
50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2022) |
(54) | |||||||
|
50% of 12-month trailing net earnings attributable to preferred shareholders (ended September 30, 2023) |
92 | |||||||
|
Adjusted net interest expense for the twelve months ended September 30, 2023 |
1,445 | |||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 16
| Q2 2023 | ||||||||
| Net interest expense (six months ended June 30, 2023) |
676 | |||||||
| Net interest expense (year ended December 31, 2022) |
1,124 | |||||||
|
Net interest expense (six months ended June 30, 2022) |
(523) | |||||||
|
12-month trailing net interest expense (ended June 30, 2023) |
1,277 | |||||||
| 50% of net earnings attributable to preferred shareholders (six months ended June 30, 2023) |
46 | |||||||
| 50% of net earnings attributable to preferred shareholders (year ended December 31, 2022) |
76 | |||||||
|
50% of net earnings attributable to preferred shareholders (six months ended June 30, 2022) |
(35) | |||||||
|
50% of 12-month trailing net earnings attributable to preferred shareholders (ended June 30, 2023) |
87 | |||||||
|
Adjusted net interest expense for the twelve months ended June 30, 2023 |
1,364 | |||||||
| Q1 2023 | ||||||||
| Net interest expense (three months ended March 31, 2023) |
330 | |||||||
| Net interest expense (year ended December 31, 2022) |
1,124 | |||||||
|
Net interest expense (three months ended March 31, 2022) |
(258) | |||||||
|
12-month trailing net interest expense (ended March 31, 2023) |
1,196 | |||||||
| 50% of net earnings attributable to preferred shareholders (three months ended March 31, 2023) |
23 | |||||||
| 50% of net earnings attributable to preferred shareholders (year ended December 31, 2022) |
76 | |||||||
|
50% of net earnings attributable to preferred shareholders (three months ended March 31, 2022) |
(17) | |||||||
|
50% of 12-month trailing net earnings attributable to preferred shareholders (ended March 31, 2023) |
82 | |||||||
|
Adjusted net interest expense for the twelve months ended March 31, 2023 |
1,278 | |||||||
Free cash flow
The term free cash flow does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
We define free cash flow as cash flows from operating activities, excluding cash from discontinued operations, acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude cash from discontinued operations, acquisition and other costs paid and voluntary pension funding because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.
We consider free cash flow to be an important indicator of the financial strength and performance of our businesses. Free cash flow shows how much cash is available to pay dividends on common shares, repay debt and reinvest in our company. We believe that certain investors and analysts use free
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 17
cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most directly comparable IFRS financial measure is cash flows from operating activities. Refer to pages 10, 12 and 13 of this report for a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.
Net debt
The term net debt does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
We define net debt as debt due within one year plus long-term debt and 50% of preferred shares, less cash, cash equivalents and short-term investments, as shown in BCE’s consolidated statements of financial position. We include 50% of outstanding preferred shares in our net debt as it is consistent with the treatment by certain credit rating agencies. In Q4 2023, we updated our definition of net debt to account for short-term investments as these funds are liquid and may be used to repay the debt due within one year. This change does not impact the net debt amounts previously presented.
We consider net debt to be an important indicator of the company’s financial leverage because it represents the amount of debt that is not covered by available cash, cash equivalents and short-term investments. We believe that certain investors and analysts use net debt to determine a company’s financial leverage.
Net debt is calculated using several asset and liability categories from the statements of financial position. The most directly comparable IFRS financial measure is long-term debt. Refer to page 10 of this report for a reconciliation of long-term debt to net debt on a consolidated basis.
| (2.2) | Non-GAAP ratios |
A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components.
Adjusted EPS
The term adjusted EPS does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
We define adjusted EPS as adjusted net earnings per BCE common share. Adjusted net earnings is a non-GAAP financial measure. For further details on adjusted net earnings, see note 2.1 – Non-GAAP financial measures above.
We use adjusted EPS, and we believe that certain investors and analysts use this measure, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.
| (2.3) | Total of segments measures |
A total of segments measure is a financial measure that is a subtotal or total of 2 or more reportable segments and is disclosed within the Notes to BCE’s consolidated primary financial statements.
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 18
Adjusted EBITDA
We define adjusted EBITDA as operating revenues less operating costs as shown in BCE’s consolidated income statements.
The most directly comparable IFRS financial measure is net earnings. The following tables provide reconciliations of net earnings to adjusted EBITDA on a consolidated basis.
| Total 2023 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | ||||||||||||||||||
| Net earnings | 2,327 | 435 | 707 | 397 | 788 | |||||||||||||||||
| Severance, acquisition and other costs |
200 | 41 | 10 | 100 | 49 | |||||||||||||||||
| Depreciation |
3,745 | 954 | 937 | 936 | 918 | |||||||||||||||||
| Amortization |
1,173 | 299 | 295 | 296 | 283 | |||||||||||||||||
| Finance costs |
||||||||||||||||||||||
| Interest expense |
1,475 | 399 | 373 | 359 | 344 | |||||||||||||||||
| Net return on post-employment benefit plans |
(108) | (27) | (27) | (27) | (27) | |||||||||||||||||
| Impairment of assets |
143 | 109 | - | - | 34 | |||||||||||||||||
| Other expense (income) |
466 | 147 | 129 | 311 | (121) | |||||||||||||||||
| Income taxes |
996 | 210 | 243 | 273 | 270 | |||||||||||||||||
|
Adjusted EBITDA |
10,417 | 2,567 | 2,667 | 2,645 | 2,538 | |||||||||||||||||
| Total 2022 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 | ||||||||||||||||||
| Net earnings | 2,926 | 567 | 771 | 654 | 934 | |||||||||||||||||
| Severance, acquisition and other costs |
94 | 19 | 22 | 40 | 13 | |||||||||||||||||
| Depreciation |
3,660 | 922 | 914 | 933 | 891 | |||||||||||||||||
| Amortization |
1,063 | 270 | 267 | 266 | 260 | |||||||||||||||||
| Finance costs |
||||||||||||||||||||||
| Interest expense |
1,146 | 319 | 298 | 269 | 260 | |||||||||||||||||
| Net return on post-employment benefit plans |
(51) | (13) | (13) | (7) | (18) | |||||||||||||||||
| Impairment of assets |
279 | 150 | 21 | 106 | 2 | |||||||||||||||||
| Other expense (income) |
115 | (19) | 130 | 97 | (93) | |||||||||||||||||
| Income taxes |
967 | 222 | 178 | 232 | 335 | |||||||||||||||||
|
Adjusted EBITDA |
10,199 | 2,437 | 2,588 | 2,590 | 2,584 | |||||||||||||||||
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 19
| (2.4) | Capital management measures |
A capital management measure is a financial measure that is intended to enable a reader to evaluate our objectives, policies and processes for managing our capital and is disclosed within the Notes to BCE’s consolidated financial statements.
The financial reporting framework used to prepare the financial statements requires disclosure that helps readers assess the company’s capital management objectives, policies, and processes, as set out in IFRS in IAS 1 – Presentation of Financial Statements. BCE has its own methods for managing capital and liquidity, and IFRS does not prescribe any particular calculation method.
Adjusted EBITDA to adjusted net interest expense ratio
The adjusted EBITDA to adjusted net interest expense ratio represents adjusted EBITDA divided by adjusted net interest expense. For the purposes of calculating our adjusted EBITDA to adjusted net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Adjusted net interest expense used in the calculation of the adjusted EBITDA to adjusted net interest expense ratio is a non-GAAP financial measure defined as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements. For further details on adjusted net interest expense, see note 2.1, Non-GAAP financial measures above.
We use, and believe that certain investors and analysts use, the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.
Net debt leverage ratio
The net debt leverage ratio represents net debt divided by adjusted EBITDA. Net debt used in the calculation of the net debt leverage ratio is a non-GAAP financial measure. For further details on net debt, see note 2.1, Non-GAAP financial measures above. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.
We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage.
| (2.5) | Supplementary financial measures |
A supplementary financial measure is a financial measure that is not reported in BCE’s consolidated financial statements, and is, or is intended to be, reported periodically to represent historical or expected future financial performance, financial position, or cash flows.
An explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.
| (3) | Key performance indicators (KPIs) |
In addition to the non-GAAP financial measures and other financial measures described previously, we use the following KPIs to measure the success of our strategic imperatives. These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers.
Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.
Capital intensity is defined as capital expenditures divided by operating revenues.
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 20
Mobile phone blended ARPU is defined as Bell CTS wireless external services revenues divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.
Mobile phone churn is the rate at which existing mobile phone subscribers cancel their services. It is a measure of our ability to retain our customers. Mobile phone churn is calculated by dividing the number of mobile phone deactivations during a given period by the average number of mobile phone subscribers in the base for the specified period and is expressed as a percentage per month.
Mobile phone subscriber unit is comprised of a recurring revenue generating portable unit (e.g. smartphones and feature phones) on an active service plan, that has access to our wireless networks and includes voice, text and/or data connectivity. We report mobile phone subscriber units in two categories: postpaid and prepaid. Prepaid mobile phone subscriber units are considered active for a period of 90 days following the expiry of the subscriber’s prepaid balance.
Mobile connected device subscriber unit is comprised of a recurring revenue generating portable unit (e.g. tablets, wearables, mobile Internet devices and Internet of Things) on an active service plan, that has access to our wireless networks and is intended for limited or no cellular voice capability.
Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail Internet, satellite TV, IPTV, and/or residential NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established.
| ● | Retail Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit |
| ● | Retail residential NAS subscribers are based on a line count and are represented by a unique telephone number |
BCE Supplementary Financial Information - Fourth Quarter 2023 Page 21
