Exhibit 99.1

MD&A

Management’s discussion and analysis

Table of contents

 

1		Overview					6
		1.1		Financial highlights			6
		1.2		Key corporate and business developments			8
		1.3		Assumptions			9
2		Consolidated financial analysis					10
		2.1		BCE consolidated income statements			10
		2.2		Customer connections			11
		2.3		Operating revenues			12
		2.4		Operating costs			13
		2.5		Net earnings			14
		2.6		Adjusted EBITDA			14
		2.7		Severance, acquisition and other costs			15
		2.8		Depreciation and amortization			15
		2.9		Finance costs			15
		2.10		Impairment of assets			15
		2.11		Other expense			16
		2.12		Income taxes			16
		2.13		Net earnings attributable to common shareholders and EPS			16
3		Business segment analysis					17
		3.1		Bell CTS			17
		3.2		Bell Media			24
4		Financial and capital management					27
		4.1		Net debt			27
		4.2		Outstanding share data			27
		4.3		Cash flows			28
		4.4		Post-employment benefit plans			30
		4.5		Financial risk management			31
		4.6		Credit ratings			33
		4.7		Liquidity			33
		4.8		Litigation			33
5		Quarterly financial information					34
6		Regulatory environment					35
7		Accounting policies					36
8		Non-GAAP financial measures, other financial measures and key performance indicators (KPIs)					37
		8.1		Non-GAAP financial measures			37
		8.2		Non-GAAP ratios			40
		8.3		Total of segments measures			40
		8.4		Capital management measures			41
		8.5		Supplementary financial measures			41
		8.6		KPIs			42
9		Controls and procedures					43

 

 

3

MD&A

Management’s discussion and analysis

In this management’s discussion and analysis (MD&A), 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.

All amounts in this MD&A are in millions of Canadian dollars, except where noted. Please refer to section 8, Non-GAAP financial measures, other financial measures and key performance indicators (KPIs) for a list of defined non-GAAP financial measures, other financial measures and KPIs.

Please refer to BCE’s unaudited consolidated financial statements for the third quarter of 2023 (Q3 2023 Financial Statements) when reading this MD&A. We also encourage you to read BCE’s MD&A for the year ended December 31, 2022 dated March 2, 2023 (BCE 2022 Annual MD&A) as updated in BCE’s MD&A for the first quarter of 2023 dated May 3, 2023 (BCE 2023 First Quarter MD&A) and BCE’s MD&A for the second quarter of 2023 dated August 2, 2023 (BCE 2023 Second Quarter MD&A). In preparing this MD&A, we have taken into account information available to us up to November 1, 2023, the date of this MD&A, unless otherwise stated.

You will find additional information relating to BCE, including BCE’s annual information form for the year ended December 31, 2022 dated March 2, 2023 (BCE 2022 AIF) and recent financial reports, including the BCE 2022 Annual MD&A, the BCE 2023 First Quarter MD&A and the BCE 2023 Second Quarter MD&A, on BCE’s website at BCE.ca, on SEDAR+ at sedarplus.ca and on EDGAR at sec.gov.

Documents and other information contained in BCE’s website or in any other site referred to in BCE’s website or in this MD&A are not part of this MD&A and are not incorporated by reference herein.

This MD&A comments on our business operations, performance, financial position and other matters for the three months (Q3) and nine months (YTD) ended September 30, 2023 and 2022.

 

 

Caution regarding forward-looking statements

This MD&A and, in particular, but without limitation, section 1.2, Key corporate and business developments, the section and sub-sections entitled Assumptions and section 4.7, Liquidity, contain forward-looking statements. These forward-looking statements include, without limitation, statements relating to the expectation that our available liquidity, 2023 estimated cash flows from operations and capital markets financing will permit us to meet our cash requirements in 2023, our environmental, social and governance (ESG) objectives, including our board of directors diversity target and our goal to achieve our science-based targets (SBTs) and annual sustainability performance targets for greenhouse gas (GHG) emissions reduction and supplier engagement, the expected timing and completion of the proposed acquisition of the Canadian out-of-home media business of OUTFRONT Media Inc. and the benefits expected to result therefrom, potential future purchases by BCE of its preferred shares pursuant to a normal course issuer bid (NCIB), BCE’s business outlook, objectives, plans and strategic priorities, and other statements that do not refer to historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target, commitment and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the safe harbour provisions of applicable Canadian securities laws and of the United States (U.S.) Private Securities Litigation Reform Act of 1995.

Unless otherwise indicated by us, forward-looking statements in this MD&A describe our expectations as at November 1, 2023 and, accordingly, are subject to change after that date. Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in, or implied by, such forward-looking statements and that our business outlook, objectives, plans and strategic priorities may not be achieved. These statements are not guarantees of future performance or events, and we caution you against relying on any of these forward-looking statements. Forward-looking statements are presented in this MD&A for the purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes.

We have made certain economic, market, operational and other assumptions in preparing the forward-looking statements contained in this MD&A and, in particular, but without limitation, the forward-looking statements contained in the previously mentioned sections of this MD&A. These assumptions include, without limitation, the assumptions described in this section and in the section and sub-sections of this MD&A entitled Assumptions, which section and sub-sections are incorporated by reference in this cautionary statement. Subject to various factors including, without limitation, the future impacts of general economic conditions and of geopolitical events, which are difficult to predict, we believe that our assumptions were reasonable at November 1, 2023. If our assumptions turn out to be inaccurate, our actual results could be materially different from what we expect.

Important risk factors that could cause actual results or events to differ materially from those expressed in, or implied by, the previously-mentioned forward-looking statements and other forward-looking statements contained in this MD&A, include, but are not limited to: the negative effect of adverse economic conditions, including a potential recession, and related inflationary cost pressures, higher interest rates and financial and capital market volatility; the negative effect of adverse conditions associated with geopolitical events; a declining level of business and consumer spending, and the resulting negative impact on the demand for, and prices of, our products and services; regulatory initiatives, proceedings and decisions, government consultations and government positions that affect us and influence our business including, without limitation, concerning mandatory access to networks, spectrum auctions, the imposition of consumer-related codes of conduct, approval of acquisitions, broadcast and spectrum licensing, foreign ownership requirements, privacy and cybersecurity obligations and control of copyright piracy; the inability to implement enhanced compliance frameworks and to comply with legal and regulatory obligations; unfavourable resolution of legal proceedings; the intensity of competitive activity and the failure to effectively respond to evolving competitive dynamics; the combination of Rogers Communications Inc. and Shaw Communications Inc. creating a Canadian competitor with larger scale, and the acquisition of Freedom Mobile by Videotron Ltd. (Videotron) also increasing its scale with a change in competitive dynamics in several provinces; the level of technological substitution and the presence of alternative service providers contributing to disruptions and disintermediation in each of our business segments; changing customer behaviour and the expansion of cloud-based, over-the-top

 

4		BCE INC. 2023 THIRD QUARTER SHAREHOLDER REPORT

MD&A

 

(OTT) and other alternative solutions; advertising market pressures from economic conditions, fragmentation and non-traditional/global digital services; rising content costs and challenges in our ability to acquire or develop key content; higher Canadian smartphone penetration and reduced or slower immigration flow; the inability to protect our physical and non-physical assets from events such as information security attacks, unauthorized access or entry, fire and natural disasters; the failure to implement effective data governance; the failure to evolve and transform our networks, systems and operations using next-generation technologies while lowering our cost structure; the inability to drive a positive customer experience; the failure to attract, develop and retain a diverse and talented team capable of furthering our strategic imperatives; the failure to adequately manage health and safety concerns; labour disruptions and shortages; the failure to maintain operational networks; the risk that we may need to incur significant capital expenditures to provide additional capacity and reduce network congestion; the inability to maintain service consistency due to network failures or slowdowns, the failure of other infrastructure, or disruptions in the delivery of services; service interruptions or outages due to legacy infrastructure and the possibility of instability as we transition towards converged wireline and wireless networks and newer technologies; the failure by us, or by other telecommunications carriers on which we rely to provide services, to complete planned and sufficient testing, maintenance, replacement or upgrade of our or their networks, equipment and other facilities, which could disrupt our operations including through network or other infrastructure failures; events affecting the functionality of, and our ability to protect, test, maintain, replace and upgrade, our networks, information technology (IT) systems, equipment and other facilities; the complexity of our operations; the failure to implement or maintain highly effective processes and IT systems; in-orbit and other operational risks to which the satellites used to provide our satellite television (TV) services are subject; our dependence on third-party suppliers, outsourcers, and consultants to provide an uninterrupted supply of the products and services we need; the failure of our vendor selection, governance and oversight processes, including our management of supplier risk in the areas of security, data governance and responsible procurement; the quality of our products and services and the extent to which they may be subject to defects or fail to comply with applicable government regulations and standards; reputational risks and the inability to meaningfully integrate ESG considerations into our business strategy and operations; the failure to take appropriate actions to adapt to current and emerging environmental impacts, including climate change; pandemics, epidemics and other health risks, including health concerns about radio frequency emissions from wireless communications devices and equipment; the inability to adequately manage social issues; the failure to develop and implement strong corporate governance practices; various internal and external factors could challenge our ability to achieve our ESG targets including, without limitation, those related to GHG emissions reduction and diversity, equity, inclusion and belonging; the inability to access adequate sources of capital and generate sufficient cash flows from operating activities to meet our cash requirements, fund capital expenditures and provide for planned growth; uncertainty as to whether dividends will be declared by BCE’s board of directors or whether the dividend on common shares will be increased; the inability to manage various credit, liquidity and market risks; the failure to reduce costs, as well as unexpected increases in costs; the failure to evolve practices to effectively monitor and control fraudulent activities; new or higher taxes due to new tax laws or changes thereto or in the interpretation thereof, and the inability to predict the outcome of government audits; the impact on our financial statements and estimates from a number of factors; pension obligation volatility and increased contributions to post-employment benefit plans; and the expected timing and completion of the proposed acquisition of the Canadian out-of-home media business of OUTFRONT Media Inc. is subject to closing conditions and other risks and uncertainties, and there can be no certainty that the anticipated benefits will be realized.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also materially adversely affect us. Please see section 9, Business risks of the BCE 2022 Annual MD&A for a more complete description of the above-mentioned and other risks, which section, and the other sections of the BCE 2022 Annual MD&A referred to therein, are incorporated by reference in this cautionary statement. In addition, please see section 4.8, Litigation in the BCE 2023 Second Quarter MD&A and in this MD&A for an update to the legal proceedings described in the BCE 2022 AIF, which sections 4.8 are incorporated by reference in this cautionary statement. Please also see section 6, Regulatory environment in the BCE 2023 First Quarter MD&A, in the BCE 2023 Second Quarter MD&A and in this MD&A for an update to the regulatory initiatives and proceedings described in the BCE 2022 Annual MD&A, which sections 6 are incorporated by reference in this cautionary statement. Please also see section 7, Competitive environment in the BCE 2023 First Quarter MD&A for an update to the risk factors relating to our competitive environment described in the BCE 2022 Annual MD&A, which section 7 is incorporated by reference in this cautionary statement. Any of those risks could cause actual results or events to differ materially from our expectations expressed in, or implied by, the forward-looking statements set out in this MD&A. Except for the updates set out in section 6, Regulatory environment and in section 7, Competitive environment of the BCE 2023 First Quarter MD&A; in section 4.8, Litigation and in section 6, Regulatory environment of the BCE 2023 Second Quarter MD&A; as well as in section 4.8, Litigation and in section 6, Regulatory environment in this MD&A, the risks described in the BCE 2022 Annual MD&A remain substantially unchanged.

Forward-looking statements contained in this MD&A for periods beyond 2023 involve longer-term assumptions and estimates than forward-looking statements for 2023 and are consequently subject to greater uncertainty. In particular, our GHG emissions reduction and supplier engagement targets are based on a number of assumptions including, without limitation, the following principal assumptions: implementation of various corporate and business initiatives to reduce our electricity and fuel consumption, as well as reduce other direct and indirect GHG emissions enablers; no new corporate initiatives, business acquisitions, business divestitures or technologies that would materially change our anticipated levels of GHG emissions; our ability to purchase sufficient credible carbon credits and renewable energy certificates to offset or further reduce our GHG emissions; no negative impact on the calculation of our GHG emissions from refinements in or modifications to international standards or the methodology we use for the calculation of such GHG emissions; no required changes to our SBTs pursuant to the Science Based Targets initiative (SBTi) methodology that would make the achievement of our updated SBTs more onerous or unachievable in light of business requirements; and sufficient supplier engagement and collaboration in setting their own SBTs, no significant change in the allocation of our spend by supplier and sufficient collaboration with partners in reducing their own GHG emissions.

Forward-looking statements for periods beyond 2023 further assume, unless otherwise indicated, that the risks described above and in section 9, Business risks of the BCE 2022 Annual MD&A will remain substantially unchanged during such periods, except for an assumed improvement in the risks related to the COVID-19 pandemic in future years.

Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, liquidity, financial results or reputation. We regularly consider potential acquisitions, dispositions, mergers, business combinations, investments, monetizations, joint ventures and other transactions, some of which may be significant. Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any such transactions or of special items that may be announced or that may occur after November 1, 2023. The financial impact of these transactions and special items can be complex and depends on facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way, or in the same way we present known risks affecting our business.

 

5

1 MD&A Overview

 

1

Overview

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.

 

 

 

1.1	Financial highlights

BCE Q3 2023 selected quarterly information

 

Operating revenues		Net earnings		Adjusted EBITDA (1)
$6,080		$707		$2,667
million		million		million
0.9% vs. Q3 2022		(8.3%) vs. Q3 2022		3.1% vs. Q3 2022

 

 

 

Net earnings attributable		Adjusted net earnings (1)		Cash flows from		Free cash flow (1)
to common shareholders				operating activities
$640		$741		$1,961		$754
million		million		million		million
(10.5%) vs. Q3 2022		(7.5%) vs. Q3 2022		(1.8%) vs. Q3 2022		17.4% vs. Q3 2022
BCE customer connections
Total mobile phones (3)		Retail high-speed		Retail TV (2) (5)		Retail residential network
		Internet (2) (4) (5)				access services (NAS) lines (2) (5)
+3.8%		+8.6%		(0.3%)		(4.8%)
10.2 million subscribers		4.4 million subscribers		2.7 million subscribers		2.1 million subscribers
at September 30, 2023		at September 30, 2023		at September 30, 2023		at September 30, 2023

 

(1)	Adjusted EBITDA is a total of segments measure, and adjusted net earnings and free cash flow are non-GAAP financial measures. See section 8.3, Total of segments measures and section 8.1, Non-GAAP financial measures in this MD&A for more information on these measures.

 

(2)	In Q2 2023, our retail high-speed Internet, retail Internet protocol television (IPTV) and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.

 

(3)	In Q1 2023, we adjusted our mobile phone postpaid subscriber base to remove older non-revenue generating business subscribers of 73,229.

 

(4)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

 

(5)	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.

 

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1 MD&A Overview

 

BCE income statements – selected information

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Operating revenues
Service			5,281				5,193				88				1.7%				15,806				15,603				203				1.3%
Product			799				831				(32	)			(3.9%	)			2,394				2,132				262				12.3%
Total operating revenues			6,080				6,024				56				0.9%				18,200				17,735				465				2.6%
Operating costs			(3,413	)			(3,436	)			23				0.7%				(10,350	)			(9,973	)			(377	)			(3.8%	)
Adjusted EBITDA			2,667				2,588				79				3.1%				7,850				7,762				88				1.1%
Adjusted EBITDA margin (1)			43.9%				43.0%								0.9 pts				43.1%				43.8%								(0.7) pts
Net earnings attributable to:
Common shareholders			640				715				(75	)			(10.5%	)			1,694				2,188				(494	)			(22.6%	)
Preferred shareholders			47				39				8				20.5%				139				108				31				28.7%
Non-controlling interest			20				17				3				17.6%				59				63				(4	)			(6.3%	)
Net earnings			707				771				(64	)			(8.3%	)			1,892				2,359				(467	)			(19.8%	)
Adjusted net earnings			741				801				(60	)			(7.5%	)			2,235				2,403				(168	)			(7.0%	)
Net earnings per common share (EPS)			0.70				0.78				(0.08	)			(10.3%	)			1.86				2.40				(0.54	)			(22.5%	)
Adjusted EPS (2)			0.81				0.88				(0.07	)			(8.0%	)			2.45				2.64				(0.19	)			(7.2%	)

 

(1)	Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.

 

(2)	Adjusted EPS is a non-GAAP ratio. Refer to section 8.2, Non-GAAP ratios in this MD&A for more information on this measure.

BCE statements of cash flows – selected information

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Cash flows from operating activities			1,961				1,996				(35	)			(1.8%	)			5,573				6,309				(736	)			(11.7%	)
Capital expenditures			(1,159	)			(1,317	)			158				12.0%				(3,552	)			(3,495	)			(57	)			(1.6%	)
Free cash flow			754				642				112				17.4%				1,855				2,691				(836	)			(31.1%	)

Q3 2023 financial highlights

BCE operating revenues grew by 0.9% in Q3 2023, compared to Q3 2022, driven by higher service revenues of 1.7%, partly offset by lower product revenues of 3.9%. The increase in service revenues was driven by ongoing growth in wireless and Internet revenues, along with the contribution from various acquisitions and higher media subscriber revenues. This was partly offset by continued erosion in voice and satellite TV revenues and reduced media advertising revenues, mainly as a result of the advertising recession. The decline in product revenues was primarily attributable to timing of sales to large business customers.

Net earnings and net earnings attributable to common shareholders in the third quarter of 2023 decreased by $64 million and $75 million, respectively, compared to the same period last year, mainly due to higher interest expense, higher income taxes and higher depreciation and amortization, partly offset by higher adjusted EBITDA.

BCE’s adjusted EBITDA increased by 3.1% in the third quarter of 2023, compared to the same period last year, due to growth in both our Bell CTS and Bell Media segments. The year-over-year increase in adjusted EBITDA was driven by higher operating revenues, coupled with lower operating expenses, including the favourable impact from various cost reduction initiatives and operating efficiencies across the company. This resulted in a corresponding adjusted EBITDA margin of 43.9% in Q3 2023, up 0.9 pts over the same period last year, due to a reduced proportion of low-margin product sales in our total revenue base, lower operating costs and service revenue flow-through.

BCE’s EPS of $0.70 in Q3 2023 decreased by $0.08 compared to the same period last year.

In the third quarter of 2023, adjusted net earnings, which excludes the impact of severance, acquisition and other costs, net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans, net equity gains (losses) on investments in associates and joint ventures, net gains (losses) on investments, early debt redemption costs and impairment of assets, net of tax and NCI, was $741 million, or $0.81 per common share, compared to $801 million, or $0.88 per common share, for the same period last year.

Cash flows from operating activities in the third quarter of 2023 decreased by $35 million, compared to the same period last year, mainly due to lower cash from working capital, due in part to timing of supplier payments, and higher interest paid, partly offset by higher adjusted EBITDA.

Free cash flow in Q3 2023 increased by $112 million, compared to the same period last year, due to lower capital expenditures, partly offset by lower cash flows from operating activities, excluding cash from acquisition and other costs paid.

 

7

1 MD&A Overview

 

 

1.2	Key corporate and business developments

This section contains forward-looking statements, including relating to our ESG objectives, the proposed acquisition of the Canadian out-of-home media business of OUTFRONT Media Inc., and potential future purchases by BCE of its preferred shares pursuant to a NCIB. Refer to the section Caution regarding forward-looking statements at the beginning of this MD&A.

Appointment to BCE’s and Bell Canada’s Boards of Directors

On November 1, 2023, Johan Wibergh was appointed to the BCE and Bell Canada Boards of Directors. Mr. Wibergh is the former Chief Technology and Information Officer of Vodafone Group Plc. Previously, Mr. Wibergh was Executive Vice President and Head of Business Unit Networks for Telefonaktiebolaget LM Ericsson. He brings to BCE’s and Bell Canada’s Boards a wealth of experience in technology innovation and leadership in networking and telecommunications. Mr. Wibergh is also a corporate director who serves on the board of directors of Trimble Inc., Inception Holdings, LLC (comprising Marconi, LLC and Avanci, LLC), and Cohere Technologies.

Following the appointment of Johan Wibergh, 33% of all directors identify as women. The BCE Board will be temporarily below its target of a minimum of 35% gender diverse directors, to allow for an orderly transition ahead of the retirement of Robert C. Simmonds at the 2024 Annual General Shareholder Meeting, after which directors identifying as women will represent more than 35% of all directors.

BCE executive team update

On November 1, 2023, Sean Cohan assumed leadership of Bell Media and joined the BCE leadership team, following the retirement of Wade Oosterman as President of Bell Media. Sean Cohan joined Bell Media after having spent decades in media and consumer businesses, including a 15-year tenure at A+E Networks ultimately in the role of President, International and Digital Media. He and his A+E teams are credited with driving global content, digital, and commercial transformation and notable growth across the business. Wade Oosterman will remain in his role as Vice-Chair, BCE Inc. and Bell Canada until early January 2024, and will provide support to the new President of Bell Media to ensure a smooth transition.

Public debt offering

On August 11, 2023, Bell Canada completed a public offering in Canada of Cdn $1.0 billion of medium-term notes (MTN) debentures in two series pursuant to its MTN program. The $600 million Series M-60 MTN debentures will mature on November 14, 2028 and carry an annual interest rate of 5.15%. The $400 million Series M-61 MTN debentures will mature on August 11, 2053 and carry an annual interest rate of 5.60%. The net proceeds of the offering were used to repay short-term debt and for general corporate purposes.

Amendments to securitization program to add sustainability-linked pricing

Bell amended its existing Cdn $2.3 billion securitization program to add sustainability-linked pricing. These amendments underscore Bell’s continued focus on ESG priorities and our purpose to advance how Canadians connect with each other and the world. The amendments introduce an annual pricing adjustment that reduces or increases the financing cost based on Bell’s performance of two key annual sustainability performance targets (SPTs) related to the following Bell science-based targets for GHG emissions reduction and supplier engagement⁽¹⁾:

 

•	Reducing absolute scope 1 and 2 GHG emissions 58% by 2030 from a 2020 base year; and

 

•	Reaching 64% of our suppliers by spend, covering purchased goods and services, having science-based targets by 2026.

Bell selected these two targets as they collectively cover the vast majority⁽²⁾ of Bell’s total carbon footprint.

Proposed acquisition of the Canadian out-of-home media business

of OUTFRONT Media Inc.

On October 23, 2023, Bell Media announced it plans to acquire the Canadian out-of-home media business of OUTFRONT Media Inc. The transaction is valued at $410 million, subject to certain adjustments, and is expected to close in the first half of 2024, subject to regulatory approval and other closing conditions. The acquisition of the Canadian out-of-home media business of OUTFRONT Media Inc. is expected to support Bell Media’s digital media strategy and to deliver impactful, multi-channel marketing solutions coast-to-coast. The results of the Canadian out-of-home media business of OUTFRONT Media Inc. will be included in our Bell Media segment.

 

(1)

The Science Based Targets initiative (SBTi) has approved our targets in 2022, prior to the recalculation to reflect restated GHG emissions for our 2020 base year. The impact of this recalculation is a targeted reduction of our absolute scope 1 and 2 GHG emissions of 58% instead of 57% by 2030, from a 2020 base year. This recalculation does not impact our other science-based targets covering scope 3 GHG emissions. The recalculated target has been submitted to the SBTi for approval on October 20, 2023. Our science-based targets may need to be further adjusted in the future because the SBTi requires that targets be recalculated (following the most recent applicable SBTi criteria and recommendations) at a minimum every five years, or more often if significant changes occur (e.g. business acquisitions/divestitures).

 

(2)	GHG emissions from our scope 1 and 2, and category 1 (purchased goods and services) of scope 3 represented 84% of BCE’s total GHG emissions in 2022.

 

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1 MD&A Overview

 

Renewal of normal course issuer bid for BCE first preferred shares

On November 1, 2023, BCE’s Board of Directors authorized the company to renew its NCIB to purchase for cancellation up to 10% of the public float of each series of BCE’s outstanding First Preferred Shares (Preferred Shares) that are listed on the Toronto Stock Exchange (TSX). The NCIB will extend from November 9, 2023 to November 8, 2024, or an earlier date should BCE complete its purchases under the NCIB. Under the NCIB, BCE is authorized to repurchase up to 789,480 Series R Preferred Shares, 206,496 Series S Preferred Shares, 535,483 Series T Preferred Shares, 666,705 Series Y Preferred Shares, 278,569 Series Z Preferred Shares, 1,160,466 Series AA Preferred Shares, 705,563 Series AB Preferred Shares, 650,577 Series AC Preferred Shares, 1,267,112 Series AD Preferred Shares, 609,791 Series AE Preferred Shares, 914,538 Series AF Preferred Shares, 863,693 Series AG Preferred Shares, 487,837 Series AH Preferred Shares, 936,254 Series AI Preferred Shares, 427,996 Series AJ Preferred Shares, 2,245,531 Series AK Preferred Shares, 176,118 Series AL Preferred Shares, 1,025,397 Series AM Preferred Shares, 104,232 Series AN Preferred Shares and 841,041 Series AQ Preferred Shares, representing approximately 10% of the public float in respect of each series of Preferred Shares. The actual number of Preferred Shares to be repurchased under the NCIB and the timing of such repurchases will be at BCE’s discretion and shall be subject to the limitations set out by the TSX. BCE is making this NCIB because it believes that, from time to time, the Preferred Shares may trade in price ranges that do not fully reflect their value. BCE believes that, in such circumstances, the repurchase of its Preferred Shares represents an appropriate use of its available funds. Since the beginning of BCE’s previous NCIB for Preferred Shares on November 9, 2022 until October 31, 2023, BCE repurchased and canceled 6,730,536 Preferred Shares with a stated capital of $169 million for a total of cost of $116 million. A copy of BCE’s Notice of Intention to Make a Normal Course Issuer Bid through the facilities of the TSX may be obtained, without charge, by contacting BCE’s Investor Relations department at investor.relations@bce.ca or by phone at 1-800-339-6353.

 

 

 

1.3	Assumptions

As at the date of this MD&A, our forward-looking statements set out in the BCE 2022 Annual MD&A, as updated or supplemented in the BCE 2023 First Quarter MD&A, in the BCE 2023 Second Quarter MD&A and in this MD&A, are based on certain assumptions including, without limitation, the following assumptions, the various assumptions referred to under the sub-sections entitled Assumptions set out in section 3, Business segment analysis of this MD&A, as well as the assumptions referred to in the section Caution regarding forward-looking statements at the beginning of this MD&A.

Assumptions about the Canadian economy

We have made certain assumptions concerning the Canadian economy. In particular, we have assumed:

 

•	Slowing economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 1.2% in 2023, representing a decrease from the earlier estimate of 1.8%

 

•	Easing, but still elevated, consumer price index (CPI) inflation as the effects of past interest rate increases work through the economy

 

•	Easing labour market pressures

 

•	Muted growth in household spending due to the ongoing effects of higher interest rates and the rising cost of living

 

•	Soft business investment growth due to elevated borrowing costs, tight credit conditions and the prospect of slowing economic activity

 

•	Prevailing high interest rates expected to remain at or near current levels

 

•	Population growth resulting from strong immigration

 

•	Canadian dollar expected to remain near current levels. Further movements may be impacted by the degree of strength of the U.S. dollar, interest rates and changes in commodity prices

Market assumptions

 

•	A higher level of wireline and wireless competition in consumer, business and wholesale markets

 

•	Higher, but slowing, wireless industry penetration

 

•	A shrinking data and voice connectivity market as business customers migrate to lower-priced telecommunications solutions or alternative OTT competitors

 

•	The Canadian advertising market is experiencing a slowdown consistent with trends in the global advertising market, with improvement expected in the medium term, although visibility to the specific timing and pace of recovery remains limited

 

•	Declines in broadcasting distribution undertaking (BDU) subscribers driven by increasing competition from the continued rollout of subscription video-on-demand (SVOD) streaming services together with further scaling of OTT aggregators

Assumptions underlying expected reductions in 2023 annual contributions

to our pension plans

 

•	At the relevant time, our defined benefit (DB) pension plans will remain in funded positions with going concern surpluses and maintain solvency ratios that exceed the minimum legal requirements for a contribution holiday to be taken for applicable DB and defined contribution (DC) components

 

•	No significant declines in our DB pension plans’ financial position due to declines in investment returns or interest rates

 

•	No material experience losses from other events such as through litigation or changes in laws, regulations or actuarial standards

 

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2 MD&A Consolidated financial analysis

 

2	Consolidated financial analysis

This section provides detailed information and analysis about BCE’s performance in Q3 and YTD 2023 compared with Q3 and YTD 2022. It focuses on BCE’s consolidated operating results and provides financial information for our Bell CTS and Bell Media business segments. For further discussion and analysis of our business segments, refer to section 3, Business segment analysis.

 

 

 

2.1	BCE consolidated income statements

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Operating revenues
Service			5,281				5,193				88				1.7%				15,806				15,603				203				1.3%
Product			799				831				(32	)			(3.9%)				2,394				2,132				262				12.3%
Total operating revenues			6,080				6,024				56				0.9%				18,200				17,735				465				2.6%
Operating costs			(3,413	)			(3,436	)			23				0.7%				(10,350	)			(9,973	)			(377	)			(3.8%)
Adjusted EBITDA			2,667				2,588				79				3.1%				7,850				7,762				88				1.1%
Adjusted EBITDA margin			43.9%				43.0%								0.9 pts				43.1%				43.8%								(0.7) pts
Severance, acquisition and other costs			(10	)			(22	)			12				54.5%				(159	)			(75	)			(84	)			n.m.
Depreciation			(937	)			(914	)			(23	)			(2.5%)				(2,791	)			(2,738	)			(53	)			(1.9%)
Amortization			(295	)			(267	)			(28	)			(10.5%)				(874	)			(793	)			(81	)			(10.2%)
Finance costs
Interest expense			(373	)			(298	)			(75	)			(25.2%)				(1,076	)			(827	)			(249	)			(30.1%)
Net return on post-employment benefit plans			27				13				14				n.m.				81				38				43				n.m.
Impairment of assets			–				(21	)			21				100.0%				(34	)			(129	)			95				73.6%
Other expense			(129	)			(130	)			1				0.8%				(319	)			(134	)			(185	)			n.m.
Income taxes			(243	)			(178	)			(65	)			(36.5%)				(786	)			(745	)			(41	)			(5.5%)
Net earnings			707				771				(64	)			(8.3%)				1,892				2,359				(467	)			(19.8%)
Net earnings attributable to:
Common shareholders			640				715				(75	)			(10.5%)				1,694				2,188				(494	)			(22.6%)
Preferred shareholders			47				39				8				20.5%				139				108				31				28.7%
Non-controlling interest			20				17				3				17.6%				59				63				(4	)			(6.3%)
Net earnings			707				771				(64	)			(8.3%)				1,892				2,359				(467	)			(19.8%)
Adjusted net earnings			741				801				(60	)			(7.5%)				2,235				2,403				(168	)			(7.0%)
EPS			0.70				0.78				(0.08	)			(10.3%)				1.86				2.40				(0.54	)			(22.5%)
Adjusted EPS			0.81				0.88				(0.07	)			(8.0%)				2.45				2.64				(0.19	)			(7.2%)

n.m.: not meaningful

 

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2.2	Customer connections

BCE net activations (losses)

 

		Q3 2023				Q3 2022				% change				YTD 2023				YTD 2022				% change
Mobile phone net subscriber activations			166,930				224,343				(25.6%	)			319,104				367,280				(13.1%	)
Postpaid			142,886				167,798				(14.8%	)			297,457				285,225				4.3%
Prepaid			24,044				56,545				(57.5%	)			21,647				82,055				(73.6%	)
Mobile connected devices net subscriber activations			64,282				49,044				31.1%				214,561				97,577				n.m.
Retail high-speed Internet net subscriber activations			79,327				89,652				(11.5%	)			131,535				138,296				(4.9%	)
Retail TV net subscriber activations (losses)			4,222				10,853				(61.1%	)			(24,131	)			(9,035	)			n.m.
IPTV			35,976				38,093				(5.6%	)			58,381				54,191				7.7%
Satellite			(31,754	)			(27,240	)			(16.6%	)			(82,512	)			(63,226	)			(30.5%	)
Retail residential NAS lines net losses			(41,776	)			(42,853	)			2.5%				(138,265	)			(137,910	)			(0.3%	)
Total services net activations			272,985				331,039				(17.5%	)			502,804				456,208				10.2%

n.m.: not meaningful

Total BCE customer connections

 

		Q3 2023				Q3 2022				% change
Mobile phone subscribers (2)			10,194,961				9,826,465				3.8%
Postpaid (2)			9,294,115				8,915,270				4.2%
Prepaid			900,846				911,195				(1.1%	)
Mobile connected devices subscribers (2)			2,653,802				2,347,371				13.1%
Retail high-speed Internet subscribers (1) (3) (4)			4,417,838				4,067,039				8.6%
Retail TV subscribers (1) (4)			2,727,610				2,735,000				(0.3%	)
IPTV (1) (4)			2,046,805				1,945,657				5.2%
Satellite			680,805				789,343				(13.8%	)
Retail residential NAS lines (1) (4)			2,059,964				2,164,151				(4.8%	)
Total services subscribers			22,054,175				21,140,026				4.3%

 

(1)	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.

 

(2)	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.

 

(3)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

 

(4)	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 added 272,985 net retail subscriber activations in Q3 2023, down 17.5% compared to the same period last year. The net retail subscriber activations in Q3 2023 consisted of:

 

•	166,930 mobile phone net subscriber activations, along with 64,282 mobile connected device net subscriber activations

 

•	79,327 retail high-speed Internet net subscriber activations

 

•	4,222 retail TV net subscriber activations comprised of 35,976 retail IPTV net subscriber activations, partly offset by 31,754 retail satellite TV net subscriber losses

 

•	41,776 retail residential NAS lines net losses

In the first nine months of the year, BCE added 502,804 net retail subscriber activations, up 10.2% compared to the same period in 2022. The net retail subscriber activations in the first nine months of 2023 consisted of:

 

•	319,104 mobile phone net subscriber activations, along with 214,561 mobile connected device net subscriber activations

 

•	131,535 retail high-speed Internet net subscriber activations

 

•	24,131 retail TV net subscriber losses comprised of 82,512 retail satellite TV net subscriber losses, partly offset by 58,381 retail IPTV net subscriber activations

 

•	138,265 retail residential NAS lines net losses

At September 30, 2023, BCE’s retail subscriber connections totaled 22,054,175, up 4.3% year over year, and consisted of:

 

•	10,194,961 mobile phone subscribers, up 3.8% year over year, and 2,653,802 mobile connected device subscribers, up 13.1% year over year

 

•	4,417,838 retail high-speed Internet subscribers, 8.6% higher year over year

 

•	2,727,610 total retail TV subscribers, comprised of 2,046,805 retail IPTV subscribers, up 5.2% year over year, and 680,805 retail satellite TV subscribers, down 13.8% year over year

 

•	2,059,964 retail residential NAS lines, down 4.8% year over year

 

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2 MD&A Consolidated financial analysis

 

 

 

2.3	Operating revenues

 

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Bell CTS			5,461				5,401				60				1.1%				16,182				15,652				530				3.4%
Bell Media			710				719				(9	)			(1.3%	)			2,295				2,365				(70	)			(3.0%	)
Inter-segment eliminations			(91	)			(96	)			5				5.2%				(277	)			(282	)			5				1.8%
Total BCE operating revenues			6,080				6,024				56				0.9%				18,200				17,735				465				2.6%

BCE

BCE operating revenues increased by 0.9% in Q3 2023 compared to Q3 2022, due to higher service revenues, moderated by a decline in product revenues. During the first nine months of the year, operating revenues increased by 2.6% year over year, driven by both higher service and product revenues. Service revenues of $5,281 million in Q3 2023 and $15,806 million year to date, increased 1.7% and 1.3%, respectively. Product revenues of $799 million in Q3 2023, decreased by 3.9% year over year, while year-to-date product revenues of $2,394 million, increased by 12.3% year over year. The growth in operating revenues in Q3 2023 and in the first nine months of the year, reflected higher revenues from our Bell CTS segment, partly offset by a decline in our Bell Media segment. Bell CTS operating revenues grew by 1.1% year over year in Q3 2023, due to higher service revenues of 2.0%, partly offset by lower product revenues of 3.9%, while year-to date revenues increased by 3.4% year over year, attributable to both higher service and product revenues of 2.0% and 12.3%, respectively. The higher service revenues resulted from continued growth in wireless and wireline data revenues, moderated by ongoing erosion in wireline voice revenues. Bell Media operating revenues declined by 1.3% in Q3 2023 and by 3.0% during the first nine months of the year, compared to the same periods last year, due to lower advertising revenues, partly offset by subscriber revenue growth.

 

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2.4	Operating costs

 

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Bell CTS			(2,997	)			(2,995	)			(2	)			(0.1%	)			(8,881	)			(8,506	)			(375	)			(4.4%	)
Bell Media			(507	)			(537	)			30				5.6%				(1,746	)			(1,749	)			3				0.2%
Inter-segment eliminations			91				96				(5	)			(5.2%	)			277				282				(5	)			(1.8%	)
Total BCE operating costs			(3,413	)			(3,436	)			23				0.7%				(10,350	)			(9,973	)			(377	)			(3.8%	)

 

(1)	Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

 

(2)	Labour costs (net of capitalized costs) include wages, salaries and related taxes and benefits, post-employment benefit plans service cost, and other labour costs, including contractor and outsourcing costs.

 

(3)	Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, IT costs, professional service fees and rent.

BCE

BCE operating costs decreased by 0.7% in Q3 2023, compared to Q3 2022, due to lower expenses in Bell Media of 5.6%, whereas Bell CTS operating expenses remained essentially stable year over year, increasing by 0.1%. During the first nine months of the year, BCE operating costs increased by 3.8% driven by higher expenses in Bell CTS of 4.4%, while Bell Media expenses were relatively stable, decreasing by 0.2%.

 

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2 MD&A Consolidated financial analysis

 

 

 

2.5	Net earnings

 

Net earnings in the third quarter of 2023 decreased by $64 million, compared to the same period last year, mainly due to higher interest expense, higher income taxes and higher depreciation and amortization, partly offset by higher adjusted EBITDA.

Net earnings on a year-to-date basis in 2023 decreased by $467 million, compared to the same period last year, mainly due to higher interest expense, higher other expense, higher depreciation and amortization and higher severance, acquisition and other costs, partly offset by higher adjusted EBITDA, lower impairment of assets and higher net return on post-employment benefit plans.

 

 

 

2.6	Adjusted EBITDA

 

 

 

		Q3 2023				Q3 2022				$ change				% change				YTD 2023				YTD 2022				$ change				% change
Bell CTS			2,464				2,406				58				2.4%				7,301				7,146				155				2.2%
Adjusted EBITDA margin			45.1%				44.5%								0.6 pts				45.1%				45.7%								(0.6) pts
Bell Media			203				182				21				11.5%				549				616				(67	)			(10.9%	)
Adjusted EBITDA margin			28.6%				25.3%								3.3 pts				23.9%				26.0%								(2.1) pts
Total BCE adjusted EBITDA			2,667				2,588				79				3.1%				7,850				7,762				88				1.1%
Adjusted EBITDA margin			43.9%				43.0%								0.9 pts				43.1%				43.8%								(0.7) pts

BCE

BCE’s adjusted EBITDA grew by 3.1% in Q3 2023, compared to Q3 2022, driven by higher year-over-year contribution from both Bell CTS of 2.4% and Bell Media of 11.5%. During the first nine months of the year, adjusted EBITDA increased by 1.1% year over year, due to growth in Bell CTS of 2.2%, moderated by a decline in Bell Media of 10.9%. The increase in BCE’s adjusted EBITDA in Q3 2023 was driven by higher operating revenues and lower operating expenses, while the year-to-date increase in adjusted EBITDA was due to greater operating revenues, partly offset by higher operating expenses. Adjusted EBITDA margin of 43.9% in Q3 2023, increased by 0.9 pts over the same period last year, mainly due to a reduced proportion of low-margin product sales in our total revenue base, lower operating costs and higher service revenue flow-through. During the first nine months of the year, adjusted EBITDA margin of 43.1% decreased by 0.7 pts compared to the same period in 2022, attributable to a greater proportion of low-margin product sales in our total revenue base, coupled with higher operating costs, partly offset by service revenue flow-through.

 

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2.7	Severance, acquisition and other costs

2023

Severance, acquisition and other costs of $10 million in the third quarter of 2023 and $159 million on a year-to-date basis included:

 

•	Severance costs of $12 million in Q3 2023 and $121 million on a year-to-date basis related to involuntary and voluntary employee terminations

 

•	Acquisition and other costs recovery of $2 million in Q3 2023 and acquisition and other costs of $38 million on a year-to-date basis

2022

Severance, acquisition and other costs of $22 million in the third quarter of 2022 and $75 million on a year-to-date basis included:

 

•	Severance costs of $9 million in Q3 2022 and $65 million on a year-to-date basis related to involuntary and voluntary employee terminations

 

•	Acquisition and other costs of $13 million in Q3 2022 and $10 million on a year-to-date basis

 

 

 

2.8	Depreciation and amortization

Depreciation

Depreciation in the third quarter and on a year-to-date basis in 2023 increased by $23 million and $53 million, respectively, compared to the same periods in 2022, mainly due to a higher asset base as we continued to invest in our broadband and wireless networks.

Amortization

Amortization in the third quarter and on a year-to-date basis in 2023 increased by $28 million and $81 million, respectively, compared to the same periods in 2022, mainly due to a higher asset base.

 

 

 

2.9	Finance costs

Interest expense

Interest expense in the third quarter of 2023 and on a year-to-date basis in 2023 increased by $75 million and $249 million, respectively, compared to the same periods last year, mainly due to higher average debt balances and higher interest rates.

Net return on post-employment benefit plans

Net return on our post-employment benefit plans is based on market conditions that existed at the beginning of the year as well as the net post-employment benefit plan asset (liability). On January 1, 2023, the discount rate was 5.3% compared to 3.2% on January 1, 2022.

In the third quarter and on a year-to-date basis in 2023, net return on post-employment benefit increased by $14 million and $43 million, respectively, compared to the same periods last year, as a result of a higher discount rate in 2023 and a higher net asset position.

The impacts of changes in market conditions during the year are recognized in other comprehensive income (loss) (OCI).

 

 

 

2.10	Impairment of assets

Impairment charges for the third quarter and on a year-to-date basis in 2023 decreased by $21 million and $95 million, respectively, compared to the same periods last year, and relate mainly to lower right-of-use asset impairments for certain office spaces we ceased using as part of our real estate optimization strategy as a result of our hybrid work policy.

 

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2.11	Other expense

2023

Other expense of $129 million in the third quarter of 2023 mainly included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans.

Other expense of $319 million on a year-to-date basis in 2023 related mainly to losses on our equity investments in associates and joint ventures, which included a loss on BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, and net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans, partly offset by gains on our investments as a result of the sale of our 63% ownership in certain production studios and higher interest income.

2022

Other expense of $130 million in the third quarter of 2022 mainly included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans and losses on operations from our equity investments.

Other expense of $134 million on a year-to-date basis in 2022 mainly included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans, losses on our equity investments which included a loss on BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, and early debt redemption costs, partly offset by gains on investments mainly related to the sale of our wholly-owned subsidiary, 6362222 Canada Inc. (Createch), and an obligation to repurchase at fair value the minority interest in one of our subsidiaries.

 

 

 

2.12	Income taxes

Income taxes in the third quarter of 2023 and on a year-to-date basis in 2023 increased by $65 million and $41 million, respectively, compared to the same periods in 2022, mainly due to a higher value of uncertain tax positions favourably resolved in 2022 compared to 2023, partly offset by lower taxable income.

 

 

 

2.13	Net earnings attributable to common shareholders and EPS

Net earnings attributable to common shareholders in the third quarter of 2023 of $640 million, decreased by $75 million, compared to the same period last year, mainly due to higher interest expense, higher income taxes and higher depreciation and amortization, partly offset by higher adjusted EBITDA.

Net earnings attributable to common shareholders on a year-to-date basis in 2023 of $1,694 million, decreased by $494 million, compared to the same period last year, mainly due to higher interest expense, higher other expense, higher depreciation and amortization and higher severance, acquisition and other costs, partly offset by higher adjusted EBITDA, lower impairment of assets and higher net return on post-employment benefit plans.

BCE’s EPS of $0.70 in Q3 2023 decreased by $0.08 compared to the same period last year. BCE’s EPS of $1.86 on a year-to-date basis in 2023 decreased by $0.54 compared to the same period last year.

In the third quarter of 2023, adjusted net earnings, which excludes the impact of severance, acquisition and other costs, net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans, net equity gains (losses) on investments in associates and joint ventures, net gains (losses) on investments, early debt redemption costs and impairment of assets, net of tax and NCI, was $741 million, or $0.81 per common share, compared to $801 million, or $0.88 per common share, for the same period last year. Adjusted net earnings in the first nine months of 2023 was $2,235 million, or $2.45 per common share, compared to $2,403 million, or $2.64 per common share, for the first nine months of 2022.

 

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