Supplementary Financial Information Fourth Quarter 2008
Supplementary Financial Information Second Quarter 2020
thane.fotopoulos@bell.ca
BCE Inc. IS Summary p2
BCE (1) (2) (3)
Consolidated Operational Data
Q2
Q2
YTD
YTD
(In millions of Canadian dollars, except share amounts) (unaudited)
2020
2019
$ change
% change
2020
2019
$ change
% change
Operating revenues
Service
4,800
5,190
(390)
(7.5%)
9,818
10,190
(372)
(3.7%)
Product
554
699
(145)
(20.7%)
1,176
1,388
(212)
(15.3%)
Total operating revenues
5,354
5,889
(535)
(9.1%)
10,994
11,578
(584)
(5.0%)
Operating costs (A)
(2,959)
(3,259)
300
9.2%
(6,106)
(6,498)
392
6.0%
Post-employment benefit plans service cost
(64)
(58)
(6)
(10.3%)
(139)
(126)
(13)
(10.3%)
Adjusted EBITDA (4)
2,331
2,572
(241)
(9.4%)
4,749
4,954
(205)
(4.1%)
Adjusted EBITDA margin (4)
43.5%
43.7%
(0.2) pts
43.2%
42.8%
0.4 pts
Severance, acquisition and other costs
(22)
(39)
17
43.6%
(38)
(63)
25
39.7%
Depreciation
(869)
(879)
10
1.1%
(1,727)
(1,752)
25
1.4%
Amortization
(234)
(220)
(14)
(6.4%)
(464)
(437)
(27)
(6.2%)
Finance costs
Interest expense
(280)
(279)
(1)
(0.4%)
(557)
(560)
3
0.5%
Interest on post-employment benefit obligations
(11)
(15)
4
26.7%
(23)
(31)
8
25.8%
Impairment of assets
(449)
(1)
(448)
n.m.
(456)
(5)
(451)
n.m.
Other (expense) income
(80)
(54)
(26)
(48.1%)
(127)
51
(178)
n.m.
Income taxes
(96)
(275)
179
65.1%
(339)
(565)
226
40.0%
Net earnings from continuing operations
290
810
(520)
(64.2%)
1,018
1,592
(574)
(36.1%)
Net earnings from discontinued operations
4
7
(3)
(42.9%)
9
16
(7)
(43.8%)
Net earnings
294
817
(523)
(64.0%)
1,027
1,608
(581)
(36.1%)
Net earnings from continuing operations attributable to:
Common shareholders
233
754
(521)
(69.1%)
908
1,485
(577)
(38.9%)
Preferred shareholders
34
38
(4)
(10.5%)
72
76
(4)
(5.3%)
Non-controlling interest
23
18
5
27.8%
38
31
7
22.6%
Net earnings from continuing operations
290
810
(520)
(64.2%)
1,018
1,592
(574)
(36.1%)
Net earnings attributable to:
Common shareholders
237
761
(524)
(68.9%)
917
1,501
(584)
(38.9%)
Preferred shareholders
34
38
(4)
(10.5%)
72
76
(4)
(5.3%)
Non-controlling interest
23
18
5
27.8%
38
31
7
22.6%
Net earnings
294
817
(523)
(64.0%)
1,027
1,608
(581)
(36.1%)
Net earnings per common share - basic and diluted
Continuing operations
$ 0.26
$ 0.84
$ (0.58)
(69.0%)
$ 1.00
$ 1.65
$ (0.65)
(39.4%)
Discontinued operations
$ -
$ 0.01
$ -
$ (0.01)
(100.0%)
$ 0.01
$ 0.01
$ 0.02
$ - 0
$ (0.01)
(50.0%)
Net earnings per common share - basic and diluted
$ 0.26
$ 0.85
-
$ (0.59)
(69.4%)
$ 1.01
$ 1.67
-
$ (0.66)
(39.5%)
Dividends per common share
$ 0.8325
$ 0.7925
$ 0.04
5.0%
$ 1.6650
$ 1.5850
$ 0.08
5.0%
Weighted average number of common shares outstanding - basic (millions)
904.3
899.5
904.2
898.9
Weighted average number of common shares outstanding - diluted (millions)
904.4
900.3
904.4
899.4
Number of common shares outstanding (millions)
904.3
900.1
904.3
900.1
Adjusted net earnings and EPS
Net earnings attributable to common shareholders
237
761
(524)
(68.9%)
917
1,501
(584)
(38.9%)
Severance, acquisition and other costs
16
28
(12)
(42.9%)
28
46
(18)
(39.1%)
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans
7
(9)
16
n.m.
27
(82)
109
n.m.
Net (gains) losses on investments
(11)
53
(64)
n.m.
(21)
57
(78)
n.m.
Early debt redemption costs
-
13
(13)
(100.0%)
12
13
(1)
(7.7%)
Impairment of assets
328
1
327
n.m.
333
4
329
n.m.
Net earnings from discontinued operations
(4)
(7)
3
42.9%
(9)
(16)
7
43.8%
Adjusted net earnings (4)
573
840
(267)
(31.8%)
1,287
1,523
(236)
(15.5%)
Impact on net earnings per share
$ 0.37
$ 0.09
$ 0.28
n.m.
$ 0.42
$ 0.04
$ 0.38
n.m.
Adjusted EPS (4)
$ 0.63
$ 0.93
$ (0.30)
(32.3%)
$ 1.42
$ 1.69
$ (0.27)
(16.0%)
n.m. : not meaningful
(A) Excludes post-employment benefit plans service cost
&R&17BCE Supplementary Financial Information - Second Quarter 2020 Page 2
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BCE Inc. IS HIST p3
BCE
Consolidated Operational Data - Historical Trend
YTD
TOTAL
(In millions of Canadian dollars, except share amounts) (unaudited)
2020
Q2 20
Q1 20
2019
Q4 19
Q3 19
Q2 19
Q1 19
Operating revenues
Service
9,818
4,800
5,018
20,566
5,235
5,141
5,190
5,000
Product
1,176
554
622
3,227
1,040
799
699
689
Total operating revenues
10,994
5,354
5,640
23,793
6,275
5,940
5,889
5,689
Operating costs (A)
(6,106)
(2,959)
(3,147)
(13,541)
(3,731)
(3,312)
(3,259)
(3,239)
Post-employment benefit plans service cost
(139)
(64)
(75)
(246)
(60)
(60)
(58)
(68)
Adjusted EBITDA
4,749
2,331
2,418
10,006
2,484
2,568
2,572
2,382
Adjusted EBITDA margin
43.2%
43.5%
42.9%
42.1%
39.6%
43.2%
43.7%
41.9%
Severance, acquisition and other costs
(38)
(22)
(16)
(114)
(28)
(23)
(39)
(24)
Depreciation
(1,727)
(869)
(858)
(3,458)
(854)
(852)
(879)
(873)
Amortization
(464)
(234)
(230)
(886)
(224)
(225)
(220)
(217)
Finance costs
Interest expense
(557)
(280)
(277)
(1,125)
(285)
(280)
(279)
(281)
Interest on post-employment benefit obligations
(23)
(11)
(12)
(63)
(16)
(16)
(15)
(16)
Impairment of assets
(456)
(449)
(7)
(102)
(96)
(1)
(1)
(4)
Other (expense) income
(127)
(80)
(47)
95
(18)
62
(54)
105
Income taxes
(339)
(96)
(243)
(1,129)
(245)
(319)
(275)
(290)
Net earnings from continuing operations
1,018
290
728
3,224
718
914
810
782
Net earnings from discontinued operations
9
4
5
29
5
8
7
9
Net earnings
1,027
294
733
3,253
723
922
817
791
Net earnings from continuing operations attributable to:
Common shareholders
908
233
675
3,011
667
859
754
731
Preferred shareholders
72
34
38
151
38
37
38
38
Non-controlling interest
38
23
15
62
13
18
18
13
Net earnings from continuing operations
1,018
290
728
3,224
718
914
810
782
Net earnings attributable to:
Common shareholders
917
237
680
3,040
672
867
761
740
Preferred shareholders
72
34
38
151
38
37
38
38
Non-controlling interest
38
23
15
62
13
18
18
13
Net earnings
1,027
294
733
3,253
723
922
817
791
Net earnings per common share - basic and diluted
Continuing operations
$ 1.00
$ 0.26
$ 0.74
$ 3.34
$ 0.73
$ 0.96
$ 0.84
$ 0.81
Discontinued operations
$ 0.01
$ -
$ 0.01
$ 0.03
$ 0.01
$ -
$ 0.01
$ 0.01
Net earnings per common share - basic and diluted
$ 1.01
$ 0.26
$ 0.75
$ 3.37
$ 0.74
$ 0.96
$ 0.85
$ 0.82
Dividends per common share
$ 1.6650
$ 0.8325
$ 0.8325
$ 3.1700
$ 0.7925
$ 0.7925
$ 0.7925
$ 0.7925
Weighted average number of common shares outstanding - basic (millions)
904.2
904.3
904.1
900.8
903.8
901.4
899.5
898.4
Weighted average number of common shares outstanding - diluted (millions)
904.4
904.4
904.5
901.4
904.8
902.2
900.3
898.7
Number of common shares outstanding (millions)
904.3
904.3
904.3
903.9
903.9
903.7
900.1
898.8
Adjusted net earnings and EPS
Net earnings attributable to common shareholders
917
237
680
3,040
672
867
761
740
Severance, acquisition and other costs
28
16
12
83
20
17
28
18
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans
27
7
20
(101)
45
(64)
(9)
(73)
Net (gains) losses on investments
(21)
(11)
(10)
39
(18)
-
53
4
Early debt redemption costs
12
-
12
13
-
-
13
-
Impairment of assets
333
328
5
74
70
-
1
3
Net earnings from discontinued operations
(9)
(4)
(5)
(29)
(5)
(8)
(7)
(9)
Adjusted net earnings
1,287
573
714
3,119
784
812
840
683
Impact on net earnings per share
$ 0.42
$ 0.37
$ 0.05
$ 0.12
$ 0.13
$ (0.05)
$ 0.09
$ (0.05)
Adjusted EPS
$ 1.42
$ 0.63
$ 0.79
$ 3.46
$ 0.86
$ 0.91
$ 0.93
$ 0.76
(A) Excludes post-employment benefit plans service cost
&R&"Helvetica,Regular"&17BCE Supplementary Financial Information - Second Quarter 2020 Page 3
BCE Inc. Seg Info Summary p4
BCE (1) (2) (3)
Segmented Data
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
Q2 2020
Q2 2019
$ change
% change
YTD 2020
YTD 2019
$ change
% change
Operating revenues
Bell Wireless
1,922
2,160
(238)
(11.0%)
3,957
4,237
(280)
(6.6%)
Bell Wireline
3,043
3,073
(30)
(1.0%)
6,079
6,125
(46)
(0.8%)
Bell Media
579
842
(263)
(31.2%)
1,331
1,587
(256)
(16.1%)
Inter-segment eliminations
(190)
(186)
(4)
(2.2%)
(373)
(371)
(2)
(0.5%)
Total
5,354
5,889
(535)
(9.1%)
10,994
11,578
(584)
(5.0%)
Operating costs
Bell Wireless
(1,043)
(1,192)
149
12.5%
(2,150)
(2,377)
227
9.5%
Bell Wireline
(1,764)
(1,723)
(41)
(2.4%)
(3,465)
(3,450)
(15)
(0.4%)
Bell Media
(406)
(588)
182
31.0%
(1,003)
(1,168)
165
14.1%
Inter-segment eliminations
190
186
4
2.2%
373
371
2
0.5%
Total
(3,023)
(3,317)
294
8.9%
(6,245)
(6,624)
379
5.7%
Adjusted EBITDA
Bell Wireless
879
968
(89)
(9.2%)
1,807
1,860
(53)
(2.8%)
Margin
45.7%
44.8%
0.9 pts
45.7%
43.9%
1.8 pts
Bell Wireline
1,279
1,350
(71)
(5.3%)
2,614
2,675
(61)
(2.3%)
Margin
42.0%
43.9%
(1.9) pts
43.0%
43.7%
(0.7) pts
Bell Media
173
254
(81)
(31.9%)
328
419
(91)
(21.7%)
Margin
29.9%
30.2%
(0.3) pts
24.6%
26.4%
(1.8) pts
Total
2,331
2,572
(241)
(9.4%)
4,749
4,954
(205)
(4.1%)
Margin
43.5%
43.7%
(0.2) pts
43.2%
42.8%
0.4 pts
Capital expenditures
Bell Wireless
182
159
(23)
(14.5%)
312
307
(5)
(1.6%)
Capital intensity (5)
9.5%
7.4%
(2.1) pts
7.9%
7.2%
(0.7) pts
Bell Wireline
694
784
90
11.5%
1,316
1,459
143
9.8%
Capital intensity
22.8%
25.5%
2.7 pts
21.6%
23.8%
2.2 pts
Bell Media
24
24
-
-
49
49
-
-
Capital intensity
4.1%
2.9%
(1.2) pts
3.7%
3.1%
(0.6) pts
Total
900
967
67
6.9%
1,677
1,815
138
7.6%
Capital intensity
16.8%
16.4%
(0.4) pts
15.3%
15.7%
0.4 pts
&R&"Helvetica,Regular"&13BCE Supplementary Financial Information - Second Quarter 2020 Page 4
BCE Inc. Seg Info HIST p5
BCE
Segmented Data - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
TOTAL 2020
Q2 20
Q1 20
TOTAL 2019
Q4 19
Q3 19
Q2 19
Q1 19
Operating revenues
Bell Wireless
3,957
1,922
2,035
9,001
2,454
2,310
2,160
2,077
Bell Wireline
6,079
3,043
3,036
12,317
3,135
3,057
3,073
3,052
Bell Media
1,331
579
752
3,217
879
751
842
745
Inter-segment eliminations
(373)
(190)
(183)
(742)
(193)
(178)
(186)
(185)
Total
10,994
5,354
5,640
23,793
6,275
5,940
5,889
5,689
Operating costs
Bell Wireless
(2,150)
(1,043)
(1,107)
(5,210)
(1,523)
(1,310)
(1,192)
(1,185)
Bell Wireline
(3,465)
(1,764)
(1,701)
(6,952)
(1,787)
(1,715)
(1,723)
(1,727)
Bell Media
(1,003)
(406)
(597)
(2,367)
(674)
(525)
(588)
(580)
Inter-segment eliminations
373
190
183
742
193
178
186
185
Total
(6,245)
(3,023)
(3,222)
(13,787)
(3,791)
(3,372)
(3,317)
(3,307)
Adjusted EBITDA
Bell Wireless
1,807
879
928
3,791
931
1,000
968
892
Margin
45.7%
45.7%
45.6%
42.1%
37.9%
43.3%
44.8%
42.9%
Bell Wireline
2,614
1,279
1,335
5,365
1,348
1,342
1,350
1,325
Margin
43.0%
42.0%
44.0%
43.6%
43.0%
43.9%
43.9%
43.4%
Bell Media
328
173
155
850
205
226
254
165
Margin
24.6%
29.9%
20.6%
26.4%
23.3%
30.1%
30.2%
22.1%
Total
4,749
2,331
2,418
10,006
2,484
2,568
2,572
2,382
Margin
43.2%
43.5%
42.9%
42.1%
39.6%
43.2%
43.7%
41.9%
Capital expenditures
Bell Wireless
312
182
130
671
203
161
159
148
Capital intensity
7.9%
9.5%
6.4%
7.5%
8.3%
7.0%
7.4%
7.1%
Bell Wireline
1,316
694
622
3,195
910
826
784
675
Capital intensity
21.6%
22.8%
20.5%
25.9%
29.0%
27.0%
25.5%
22.1%
Bell Media
49
24
25
108
37
22
24
25
Capital intensity
3.7%
4.1%
3.3%
3.4%
4.2%
2.9%
2.9%
3.4%
Total
1,677
900
777
3,974
1,150
1,009
967
848
Capital intensity
15.3%
16.8%
13.8%
16.7%
18.3%
17.0%
16.4%
14.9%
&R&13BCE Supplementary Financial Information - Second Quarter 2020 Page 5
Bell Wireless Summary p6
Bell Wireless (1) (3)
Q2
Q2
YTD
YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
2020
2019
% change
2020
2019
% change
Bell Wireless
Operating revenues
External service revenues
1,481
1,580
(6.3%)
3,016
3,108
(3.0%)
Inter-segment service revenues
12
12
-
24
24
-
Total operating service revenues
1,493
1,592
(6.2%)
3,040
3,132
(2.9%)
External product revenues
428
566
(24.4%)
915
1,102
(17.0%)
Inter-segment product revenues
1
2
(50.0%)
2
3
(33.3%)
Total operating product revenues
429
568
(24.5%)
917
1,105
(17.0%)
Total external revenues
1,909
2,146
(11.0%)
3,931
4,210
(6.6%)
Total operating revenues
1,922
2,160
(11.0%)
3,957
4,237
(6.6%)
Operating costs
(1,043)
(1,192)
12.5%
(2,150)
(2,377)
9.5%
Adjusted EBITDA
879
968
(9.2%)
1,807
1,860
(2.8%)
Adjusted EBITDA margin (Total operating revenues)
45.7%
44.8%
0.9 pts
45.7%
43.9%
1.8 pts
Capital expenditures
182
159
(14.5%)
312
307
(1.6%)
Capital intensity
9.5%
7.4%
(2.1) pts
7.9%
7.2%
(0.7) pts
Wireless subscriber gross activations (5)
372,710
517,650
(28.0%)
779,129
927,951
(16.0%)
Postpaid
243,166
375,094
(35.2%)
525,578
695,652
(24.4%)
Prepaid
129,544
142,556
(9.1%)
253,551
232,299
9.1%
Wireless subscriber net activations
34,702
149,478
(76.8%)
54,297
187,760
(71.1%)
Postpaid
21,632
102,980
(79.0%)
45,282
153,184
(70.4%)
Prepaid
13,070
46,498
(71.9%)
9,015
34,576
(73.9%)
Wireless subscribers end of period (EOP)
10,012,259
9,630,313
4.0%
10,012,259
9,630,313
4.0%
Postpaid
9,205,222
8,911,169
3.3%
9,205,222
8,911,169
3.3%
Prepaid
807,037
719,144
12.2%
807,037
719,144
12.2%
Blended average billing per user (ABPU)($/month) (5) (A)
62.77
68.79
(8.8%)
64.15
68.08
(5.8%)
Churn (%) (average per month) (5)
1.13%
1.29%
0.16 pts
1.21%
1.30%
0.09 pts
Postpaid
0.82%
1.06%
0.24 pts
0.90%
1.06%
0.16 pts
Prepaid
4.63%
4.20%
(0.43) pts
4.83%
4.34%
(0.49) pts
(A)In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.
&R&"Helvetica,Regular"&12BCE Supplementary Financial Information - Second Quarter 2020 Page 6
Bell Wireless HIST p7
Bell Wireless - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
YTD 2020
Q2 20
Q1 20
TOTAL 2019
Q4 19
Q3 19
Q2 19
Q1 19
Bell Wireless
Operating revenues
External service revenues
3,016
1,481
1,535
6,323
1,582
1,633
1,580
1,528
Inter-segment service revenues
24
12
12
49
12
13
12
12
Total operating service revenues
3,040
1,493
1,547
6,372
1,594
1,646
1,592
1,540
External product revenues
915
428
487
2,623
857
664
566
536
Inter-segment product revenues
2
1
1
6
3
-
2
1
Total operating product revenues
917
429
488
- 0
2,629
860
664
568
537
Total external revenues
3,931
1,909
2,022
8,946
2,439
2,297
2,146
2,064
Total operating revenues
3,957
1,922
2,035
9,001
2,454
2,310
2,160
2,077
Operating costs
(2,150)
(1,043)
(1,107)
(5,210)
(1,523)
(1,310)
(1,192)
(1,185)
Adjusted EBITDA
1,807
879
928
3,791
931
1,000
968
892
Adjusted EBITDA margin (Total operating revenues)
45.7%
45.7%
45.6%
42.1%
37.9%
43.3%
44.8%
42.9%
Capital expenditures
312
182
130
671
203
161
159
148
Capital intensity
7.9%
9.5%
6.4%
7.5%
8.3%
7.0%
7.4%
7.1%
Wireless subscriber gross activations
779,129
372,710
406,419
2,117,517
596,019
593,547
517,650
410,301
Postpaid
525,578
243,166
282,412
1,568,729
455,111
417,966
375,094
320,558
Prepaid
253,551
129,544
124,007
548,788
140,908
175,581
142,556
89,743
Wireless subscriber net activations (losses)
54,297
34,702
19,595
515,409
123,582
204,067
149,478
38,282
Postpaid
45,282
21,632
23,650
401,955
121,599
127,172
102,980
50,204
Prepaid
9,015
13,070
(4,055)
113,454
1,983
76,895
46,498
(11,922)
Wireless subscribers EOP
10,012,259
10,012,259
9,977,557
9,957,962
9,957,962
9,834,380
9,630,313
9,480,835
Postpaid
9,205,222
9,205,222
9,183,590
9,159,940
9,159,940
9,038,341
8,911,169
8,808,189
Prepaid
807,037
807,037
793,967
798,022
798,022
796,039
719,144
672,646
Blended ABPU ($/month)(A)
64.15
62.77
65.53
68.36
67.35
69.94
68.79
67.35
Churn (%)(average per month)
1.21%
1.13%
1.30%
1.39%
1.60%
1.34%
1.29%
1.31%
Postpaid
0.90%
0.82%
0.97%
1.13%
1.28%
1.12%
1.06%
1.07%
Prepaid
4.83%
4.63%
5.03%
4.44%
5.14%
3.89%
4.20%
4.49%
(A)In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.
&R&"Helvetica,Regular"&14BCE Supplementary Financial Information - Second Quarter 2020 Page 7
Bell Wireline Summary p8
Bell Wireline (1) (2) (3)
Q2
Q2
YTD
YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
&R&"Helvetica,Regular"&13BCE Supplementary Financial Information - Second Quarter 2020 Page 8
Bell Wireline HIST p9
Bell Wireline - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
YTD 2020
Q2 20
Q1 20
TOTAL 2019
Q4 19
Q3 19
Q2 19
Q1 19
Bell Wireline
Operating revenues
Data
3,807
1,916
1,891
7,617
1,925
1,912
1,914
1,866
Voice
1,735
863
872
3,564
879
881
897
907
Other services
120
58
62
251
69
61
62
59
Total external service revenues
5,662
2,837
2,825
11,432
2,873
2,854
2,873
2,832
Inter-segment service revenues
156
80
76
281
79
68
67
67
Total operating service revenues
5,818
2,917
2,901
11,713
2,952
2,922
2,940
2,899
Data
236
113
123
556
166
125
123
142
Equipment and other
25
13
12
48
17
10
10
11
Total external product revenues
261
126
135
604
183
135
133
153
Inter-segment product revenues
-
-
-
-
-
-
-
-
Total operating product revenues
261
126
135
604
183
135
133
153
Total external revenues
5,923
2,963
2,960
12,036
3,056
2,989
3,006
2,985
Total operating revenues
6,079
3,043
3,036
12,317
3,135
3,057
3,073
3,052
Operating costs
(3,465)
(1,764)
(1,701)
(6,952)
(1,787)
(1,715)
(1,723)
(1,727)
Adjusted EBITDA
2,614
1,279
1,335
5,365
1,348
1,342
1,350
1,325
Adjusted EBITDA margin
43.0%
42.0%
44.0%
43.6%
43.0%
43.9%
43.9%
43.4%
Capital expenditures
1,316
694
622
3,195
910
826
784
675
Capital intensity
21.6%
0.0%
22.8%
20.5%
25.9%
0.0%
29.0%
27.0%
25.5%
22.1%
Retail high-speed Internet subscribers
Retail net activations
41,618
19,023
22,595
135,861
35,639
58,137
19,414
22,671
Retail subscribers EOP
3,597,219
3,597,219
3,578,196
3,555,601
3,555,601
3,519,962
3,461,825
3,442,411
Retail TV subscribers
Retail net subscriber (losses) activations
(34,099)
(15,544)
(18,555)
6,053
421
4,842
2,350
(1,560)
IPTV
(752)
(3,604)
2,852
91,476
22,039
31,746
16,775
20,916
Satellite
(33,347)
(11,940)
(21,407)
(85,423)
(21,618)
(26,904)
(14,425)
(22,476)
Total retail subscribers EOP
2,738,365
2,738,365
2,753,909
2,772,464
2,772,464
2,772,043
2,767,201
2,764,851
IPTV
1,766,430
1,766,430
1,770,034
1,767,182
1,767,182
1,745,143
1,713,397
1,696,622
Satellite
971,935
971,935
983,875
1,005,282
1,005,282
1,026,900
1,053,804
1,068,229
Retail residential network access services (NAS)
Retail residential NAS lines net losses
(110,000)
(48,405)
(61,595)
(263,325)
(58,110)
(65,656)
(72,780)
(66,779)
Retail residential NAS lines
2,587,483
2,587,483
2,635,888
2,697,483
2,697,483
2,755,593
2,821,249
2,894,029
&C
&R&"Helvetica,Regular"&16BCE Supplementary Financial Information - Second Quarter 2020 Page 9
Net Debt & Bell other info p10
BCE(2)
Net debt and other information
BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
June 30
March 31
December 31
2020
2020
2019
Debt due within one year
2,584
4,209
3,881
Long-term debt
25,024
25,513
22,415
50% of preferred shares
2,002
2,002
2,002
Cash and cash equivalents
(1,547)
(2,679)
(145)
Net debt (4)
28,063
29,045
28,153
Net debt leverage ratio (4)
2.86
2.89
2.81
Adjusted EBITDA /net interest expense ratio (4)
8.36
8.58
8.50
Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
Q2
Q2
YTD
YTD
2020
2019
$ change
% change
2020
2019
$ change
% change
Free cash flow (FCF) (4)
Cash flows from operating activities
2,562
2,093
469
22.4%
4,013
3,609
404
11.2%
Capital expenditures
(900)
(967)
67
6.9%
(1,677)
(1,815)
138
7.6%
Cash dividends paid on preferred shares
(33)
(37)
4
10.8%
(69)
(63)
(6)
(9.5%)
Cash dividends paid by subsidiaries to non-controlling interest
(12)
(12)
-
-
(26)
(39)
13
33.3%
Acquisition and other costs paid
11
21
(10)
(47.6%)
20
50
(30)
(60.0%)
Cash from discontinued operations (included in cash flows from operating activities)
(17)
(22)
5
22.7%
(39)
(47)
8
17.0%
FCF
1,611
1,076
535
49.7%
2,222
1,695
527
31.1%
Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
YTD
Q2
Q1
TOTAL
Q4
Q3
Q2
Q1
2020
2020
2020
2019
2019
2019
2019
2019
FCF
Cash flows from operating activities
4,013
2,562
1,451
7,958
2,091
2,258
2,093
1,516
Capital expenditures
(1,677)
(900)
(777)
(3,974)
(1,150)
(1,009)
(967)
(848)
Cash dividends paid on preferred shares
(69)
(33)
(36)
(147)
(37)
(47)
(37)
(26)
Cash dividends paid by subsidiaries to non-controlling interest
(26)
(12)
(14)
(65)
(14)
(12)
(12)
(27)
Acquisition and other costs paid
20
11
9
60
7
3
21
29
Cash from discontinued operations (included in cash flows from operating activities)
(39)
(17)
(22)
(94)
(23)
(24)
(22)
(25)
FCF
2,222
1,611
611
3,738
874
1,169
1,076
619
&R&"Helvetica,Regular"&14BCE Supplementary Financial Information - Second Quarter 2020 Page 10
BCE Inc. BS p11
BCE (2)
Consolidated Statements of Financial Position
June 30
March 31
December 31
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
2020
2020
2019
ASSETS
Current assets
Cash
1,297
943
141
Cash equivalents
250
1,736
4
Trade and other receivables
2,812
2,990
3,038
Inventory
445
487
427
Contract assets
921
1,037
1,111
Contract costs
399
416
415
Prepaid expenses
301
280
194
Other current assets
212
419
190
Assets held for sale
825
- 0
- 0
Total current assets
7,462
8,308
5,520
Non-current assets
Contract assets
328
452
533
Contract costs
341
363
368
Property, plant and equipment
26,840
27,432
27,636
Intangible assets
12,897
13,513
13,352
Deferred tax assets
123
90
98
Investments in associates and joint ventures
718
730
698
Other non-current assets
1,931
3,960
1,274
Goodwill
10,551
10,667
10,667
Total non-current assets
53,729
57,207
54,626
Total assets
61,191
65,515
60,146
LIABILITIES
Current liabilities
Trade payables and other liabilities
3,341
3,335
3,954
Contract liabilities
723
725
683
Interest payable
229
192
227
Dividends payable
766
767
729
Current tax liabilities
287
186
303
Debt due within one year
2,584
4,209
3,881
Liabilities held for sale
205
- 0
- 0
Total current liabilities
8,135
9,414
9,777
Non-current liabilities
Contract liabilities
216
211
207
Long-term debt
25,024
25,513
22,415
Deferred tax liabilities
3,765
4,444
3,561
Post-employment benefit obligations
1,980
1,603
1,907
Other non-current liabilities
934
906
871
Total non-current liabilities
31,919
32,677
28,961
Total liabilities
40,054
42,091
38,738
EQUITY
Equity attributable to BCE shareholders
Preferred shares
4,004
4,004
4,004
Common shares
20,386
20,386
20,363
Contributed surplus
1,155
1,156
1,178
Accumulated other comprehensive income
386
528
161
Deficit
(5,142)
(2,990)
(4,632)
Total equity attributable to BCE shareholders
20,789
23,084
21,074
Non-controlling interest
348
340
334
Total equity
21,137
23,424
21,408
Total liabilities and equity
61,191
65,515
60,146
Number of common shares outstanding (millions)
904.3
904.3
903.9
&R&"Helvetica,Regular"&7BCE Supplementary Financial Information - Second Quarter 2020 Page 11
BCE Inc. CF Summary p12
BCE (2)
Consolidated Cash Flow Data
Q2
Q2
YTD
YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
2020
2019
$ change
2020
2019
$ change
Net earnings from continuing operations
290
810
(520)
1,018
1,592
(574)
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs
22
39
(17)
38
63
(25)
Depreciation and amortization
1,103
1,099
4
2,191
2,189
2
Post-employment benefit plans cost
75
73
2
162
157
5
Net interest expense
275
271
4
545
547
(2)
Impairment of assets
449
1
448
456
5
451
Losses on investments
-
-
-
-
4
(4)
Income taxes
96
275
(179)
339
565
(226)
Contributions to post-employment benefit plans
(71)
(70)
(1)
(150)
(151)
1
Payments under other post-employment benefit plans
(12)
(19)
7
(29)
(37)
8
Severance and other costs paid
(13)
(33)
20
(48)
(99)
51
Interest paid
(240)
(269)
29
(556)
(534)
(22)
Income taxes paid (net of refunds)
6
(127)
133
(227)
(416)
189
Acquisition and other costs paid
(11)
(21)
10
(20)
(50)
30
Net change in operating assets and liabilities
576
42
534
255
(273)
528
Cash from discontinued operations
17
22
(5)
39
47
(8)
Cash flows from operating activities
2,562
2,093
469
4,013
3,609
404
Capital expenditures
(900)
(967)
67
(1,677)
(1,815)
138
Cash dividends paid on preferred shares
(33)
(37)
4
(69)
(63)
(6)
Cash dividends paid by subsidiaries to non-controlling interest
(12)
(12)
-
(26)
(39)
13
Acquisition and other costs paid
11
21
(10)
20
50
(30)
Cash from discontinued operations (included in cash flows from operating activities)
(17)
(22)
5
(39)
(47)
8
Free cash flow
1,611
1,076
535
2,222
1,695
527
Cash from discontinued operations (included in cash flows from operating activities)
17
22
(5)
39
47
(8)
Business acquisitions
(23)
(50)
27
(23)
(50)
27
Acquisition and other costs paid
(11)
(21)
10
(20)
(50)
30
Other investing activities
(13)
32
(45)
(19)
8
(27)
Cash used in discontinued operations (included in cash flows from investing activities)
(8)
(5)
(3)
(15)
(7)
(8)
(Decrease) increase in notes payable
(1,204)
277
(1,481)
(1,434)
844
(2,278)
(Decrease) increase in securitized trade receivables
(400)
-
(400)
-
31
(31)
Issue of long-term debt
1,975
1,405
570
5,256
1,405
3,851
Repayment of long-term debt
(2,221)
(1,597)
(624)
(2,930)
(1,800)
(1,130)
Issue of common shares
-
44
(44)
22
64
(42)
Purchase of shares for settlement of share-based payments
(75)
(10)
(65)
(169)
(86)
(83)
Cash dividends paid on common shares
(753)
(712)
(41)
(1,469)
(1,390)
(79)
Other financing activities
(25)
(33)
8
(55)
(39)
(16)
Cash used in discontinued operations (included in cash flows from financing activities)
(2)
(2)
-
(3)
(3)
-
(2,743)
(650)
(2,093)
(820)
(1,026)
206
Net (decrease) increase in cash and cash equivalents
(1,132)
426
(1,558)
1,402
669
733
Cash and cash equivalents at beginning of period
2,679
668
2,011
145
425
(280)
Cash and cash equivalents at end of period
1,547
1,094
453
1,547
1,094
453
&R&"Helvetica,Regular"&12BCE Supplementary Financial Information - Second Quarter 2020 Page 12
BCE Inc. CF HIST p13
BCE
Consolidated Cash Flow Data - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
YTD 2020
Q2 20
Q1 20
TOTAL 2019
Q4 19
Q3 19
Q2 19
Q1 19
Net earnings from continuing operations
1,018
290
728
3,224
718
914
810
782
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs
38
22
16
114
28
23
39
24
Depreciation and amortization
2,191
1,103
1,088
4,344
1,078
1,077
1,099
1,090
Post-employment benefit plans cost
162
75
87
309
76
76
73
84
Net interest expense
545
275
270
1,101
280
274
271
276
Impairment of assets
456
449
7
102
96
1
1
4
Losses on investments
-
-
-
(18)
(22)
-
-
4
Income taxes
339
96
243
1,129
245
319
275
290
Contributions to post-employment benefit plans
(150)
(71)
(79)
(290)
(77)
(62)
(70)
(81)
Payments under other post-employment benefit plans
(29)
(12)
(17)
(72)
(18)
(17)
(19)
(18)
Severance and other costs paid
(48)
(13)
(35)
(167)
(23)
(45)
(33)
(66)
Interest paid
(556)
(240)
(316)
(1,079)
(261)
(284)
(269)
(265)
Income taxes paid (net of refunds)
(227)
6
(233)
(725)
(221)
(88)
(127)
(289)
Acquisition and other costs paid
(20)
(11)
(9)
(60)
(7)
(3)
(21)
(29)
Net change in operating assets and liabilities
255
576
(321)
(48)
176
49
42
(315)
Cash from discontinued operations
39
17
22
94
23
24
22
25
Cash flows from operating activities
4,013
2,562
1,451
7,958
2,091
2,258
2,093
1,516
Capital expenditures
(1,677)
(900)
(777)
(3,974)
(1,150)
(1,009)
(967)
(848)
Cash dividends paid on preferred shares
(69)
(33)
(36)
(147)
(37)
(47)
(37)
(26)
Cash dividends paid by subsidiaries to non-controlling interest
(26)
(12)
(14)
(65)
(14)
(12)
(12)
(27)
Acquisition and other costs paid
20
11
9
60
7
3
21
29
Cash from discontinued operations (included in cash flows from operating activities)
(39)
(17)
(22)
(94)
(23)
(24)
(22)
(25)
Free cash flow
2,222
1,611
611
3,738
874
1,169
1,076
619
Cash from discontinued operations (included in cash flows from operating activities)
39
17
22
94
23
24
22
25
Business acquisitions
(23)
(23)
-
(51)
-
(1)
(50)
-
Acquisition and other costs paid
(20)
(11)
(9)
(60)
(7)
(3)
(21)
(29)
Other investing activities
(19)
(13)
(6)
7
(5)
4
32
(24)
Cash used in discontinued operations (included in cash flows from investing activities)
(15)
(8)
(7)
(18)
(7)
(4)
(5)
(2)
(Decrease) increase in notes payable
(1,434)
(1,204)
(230)
(1,073)
(851)
(1,066)
277
567
(Decrease) increase in securitized trade receivables
-
(400)
400
131
100
-
-
31
Issue of long-term debt
5,256
1,975
3,281
1,954
-
549
1,405
-
Repayment of long-term debt
(2,930)
(2,221)
(709)
(2,221)
(196)
(225)
(1,597)
(203)
Issue of common shares
22
-
22
240
15
161
44
20
Purchase of shares for settlement of share-based payments
(169)
(75)
(94)
(142)
(42)
(14)
(10)
(76)
Cash dividends paid on common shares
(1,469)
(753)
(716)
(2,819)
(716)
(713)
(712)
(678)
Other financing activities
(55)
(25)
(30)
(54)
(7)
(8)
(33)
(6)
Cash used in discontinued operations (included in cash flows from financing activities)
(3)
(2)
(1)
(6)
(2)
(1)
(2)
(1)
(820)
(2,743)
1,923
(4,018)
(1,695)
(1,297)
(650)
(376)
Net increase (decrease) in cash and cash equivalents
1,402
(1,132)
2,534
(280)
(821)
(128)
426
243
Cash and cash equivalents at beginning of period
145
2,679
145
425
966
1,094
668
425
Cash and cash equivalents at end of period
1,547
1,547
2,679
145
145
966
1,094
668
&R&13BCE Supplementary Financial Information - Second Quarter 2020 Page 13
Accomp Notes p14
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 14
Accomp Notes p15
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 15
Accomp Notes p16
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 16
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BCE Inc. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 09:03:22 UTC
BCE Inc. is a Canada-based communications company. The Company provides wireless and fiber networks. The Company operates through one segment: Bell Communication and Technology Services (Bell CTS). Bell CTS segment provides a range of communication products and services to consumers, businesses and government customers across Canada. Its wireless products and services include mobile data and voice plans and devices and are available nationally. Its wireline products and services comprise data (including Internet access, Internet protocol television (IPTV), cloud-based services and business solutions), voice, and other communication services and products, which are available to its residential, small and medium-sized businesses and large enterprises customers primarily in Ontario, Quebec, the Atlantic provinces and Manitoba. This segment includes its wholesale business, which buys and sells local telephone, long-distance, data, and other services from or to resellers and other carriers.