5.2% annual dividend increase to $3.87 per share
This news release contains forward-looking statements. For a
description of the related risk factors and assumptions, please see
the section entitled "Caution Regarding Forward-Looking Statements"
later in this news release. The information
contained in this news release is unaudited.
- Robust Q4 broadband customer growth with 330,743
total net activations — 122,621 postpaid and prepaid mobile phone,
104,447 mobile connected devices, 63,466 retail Internet and 40,209
IPTV — up 46.6%
- 3.7% higher BCE revenue delivered positive adjusted
EBITDA1 growth in Q4 despite $26
million in storm and inflationary cost
pressures2, increased promotional offer intensity and
higher media programming costs
- Q4 net earnings of $567
million, down 13.8%, with net earnings attributable to
common shareholders of $528 million,
or $0.58 per common share, down
15.9%; adjusted net earnings1 of
$654 million generated adjusted
EPS1 of $0.71, down 6.6%
- Cash flows from operating activities up 18.0% in Q4 to
$2,056 million, driving free cash
flow1 growth of 64.2% to $376 million
- Strong Q4 wireless operating results: revenue up 7.7%; 4.1%
adjusted EBITDA growth; 41.2% higher mobile phone postpaid net
activations of 154,617 as 5G coverage expands to 82% of
Canadians
- Record 854,000 new direct fibre connections in 2022 fuelled
highest retail Internet net activations in 16 years of 201,762, up
32.5%, driving 8% higher residential Internet revenue; 80% of
planned broadband Internet buildout program3 now
completed
- Bell Media digital revenue4 up 46% in Q4
contributing to 4.7% higher media revenue as advertising revenue
grew 3.8%
- All 2022 financial guidance targets achieved
MONTRÉAL, Feb. 2, 2023
/CNW/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today reported results for
the fourth quarter (Q4) and full-year 2022, provided financial
guidance for 2023 and announced a 5.2%, or $0.19 per share, increase in the BCE annual
common share dividend to $3.87.
"Bell's accomplishments in Q4 and throughout 2022 reflect
consistently strong execution by the Bell team on our strategic
initiatives and our customer-first approach," said Mirko Bibic, President and CEO of BCE and
Bell Canada.
"In 2020, we unveiled our new corporate purpose to advance how
Canadians connect with each other and the world. Since then, we've
been steadily delivering on our strategic initiatives in support of
our purpose, and I am so proud of the Bell team for their
dedication in serving our customers, communities and shareholders.
The results speak for themselves: we delivered across all operating
segments throughout the year, driving healthy 3.1% consolidated
revenue and adjusted EBITDA growth.
As part of our accelerated capital expenditure program – the
largest ever by a Canadian communications company – we expanded our
fibre network to an additional 854,000 locations this past year,
driving our highest annual retail Internet net activations in 16
years and strong Q4 residential Internet revenue growth of 9%. Our
award-winning 5G network now covers 82% of Canadians, and this
quarter, we saw 41.2% higher mobile phone postpaid net activations,
with wireless revenue up 7.7%. We also continue to deliver on our
strategic imperative to champion the customer experience: Bell
continued to lead the industry in reducing customer
complaints5 and we gained industry recognition for our
digital tools and apps like the MyBell app6.
Looking ahead to 2023, we'll continue to deliver on the
strategic initiatives that we laid out three years ago. We'll
expand our fibre footprint to another 650,000 locations, and we'll
continue investing in and expanding our 5G and 5G+ networks. I am
so pleased with how far we've come in such a short period of time
to competitively position ourselves for future success. Our leading
networks, innovative products and customer-first mindset will
enable us to deliver a stellar experience for our customers as well
as the operating metrics and financial results that investors have
come to expect from us."
_______________________
|
1 Adjusted EBITDA is a total of
segments measure, adjusted net earnings and free cash flow are
non-GAAP financial measures and adjusted EPS is a non-GAAP ratio.
Refer to the Non-GAAP and Other Financial Measures section
in this news release for more information on these
measures.
|
2 Inflationary cost pressures are
defined as a year-over-year increase in operating costs driven by
inflationary pressures related to fuel, utilities and salary
expenses.
|
3 Baseline broadband buildout program
based on planned coverage footprint of approximately 10 million
residential and business locations.
|
4 Digital revenues are comprised of
advertising revenue from digital platforms including web sites,
mobile apps, connected TV apps and OOH digital assets/platforms, as
well as advertising procured through Bell digital buying platforms
and subscription revenue from direct-to-consumer services and Video
on Demand services.
|
5 2021-2022 Annual Report from the
Commission for Complaints for Telecom-television
Services.
|
6 Bell
was awarded Best of Show Mobile Application and Best
Telecommunication Mobile Application for the MyBell app at the 2022
Mobile Web Awards by the Web Marketing Association.
|
KEY BUSINESS DEVELOPMENTS
Champion customer experience
Bell has entered into a
multi-year exclusive agreement to sell its Bell, Virgin Plus and
Lucky Mobile wireless and wireline services through Staples stores
across Canada starting in the first half of 2023. In addition, Bell
and Staples will partner to sell Bell wireless and wireline
services direct to medium businesses through the Staples
Professional sales team.
Bell continued to lead national telecom service
providers in reducing its share of consumer complaints,
according to the 2021-2022 Annual Report from the Commission for
Complaints for Telecom-television Services (CCTS). While complaints
to the CCTS as a whole decreased by 25%, Bell again outpaced
national competitors with a decrease of 38%. Bell's overall share
of complaints decreased to 17.2%, down 3.5 percentage points – the
largest decline among national providers5.
Bell was named the top Internet service provider among major
ISPs for gaming for the second year in a row by PCMag in its Best
Gaming ISPs Canada 2023 report. The MyBell app has been awarded the
Best of Show Mobile Application overall and was also named the Best
Telecommunication Mobile Application by the Web Marketing
Association, an award Bell has won for 5 consecutive years, at the
2022 Mobile Web Awards. Bell has also been ranked the most valuable
communications brand in Canada and
the third most valuable overall in Kantar's annual BrandZ report on
the most valuable Canadian brands of 2022. Finally, Bell was
awarded most trusted communications provider for the second year in
a row in the 2023 BrandSpark Most Trusted Awards.
5G leadership and technology innovation
Bell Ventures
invested in Cohere Technologies, the creator of spectrum multiplier
software for 4G and 5G networks, as part of its goal to invest in
early-stage companies that are creating solutions that will
differentiate Bell's networks. Bell also announced a three-year
strategic relationship with Montréal innovation centre, Centech, to
help emerging Canadian businesses drive innovation and growth. Bell
and Snap Inc. created a unique immersive experience
for Toronto Raptors fans with the first ever 5G multi-user AR
basketball experience on Snapchat.
Connecting Canadians
Bell expanded its fibre network
to a record 854,000 new locations this year, connecting communities
throughout Manitoba, Ontario, Québec and the Atlantic. Northwestel
completed its 2022 fibre expansion program, and now over 80% of
households in land-served communities in Yukon and the Northwest Territories are able to access
high-speed, unlimited Internet. Bell expanded availability of its 3
gigabit-per-second symmetrical Internet service for customers in
Fredericton and Moncton, New Brunswick.
Delivering the most compelling content
The FIFA World
Cup Qatar 2022 final reached more than 10 million Canadians on
TSN, CTV, RDS, and Noovo. TSN acquired exclusive media rights to
PGA Tour Live, featuring more than 4,300 hours of live coverage
from PGA Tour events throughout the season, and TSN launched TSN+,
a new direct-to-consumer streaming product available on TSN.ca and
the TSN app that allows fans to go deeper into TSN's world-leading
roster of live sports. According to Numeris, RDS remained the
favourite for televised sports in Québec with a 76% sports viewing
share in the A25-54 age group. Passengers on board select domestic
flights with Air Canada can now watch live sports on TSN and RDS,
including soccer, hockey, football, golf and basketball, plus
national, world, and business news on CTV News Channel and BNN
Bloomberg. Crave signed an exclusive Pay-One window licensing
agreement for theatrical feature films from Sony Pictures
Entertainment, and Énergie 94.3 remained the number one music radio
station in Montréal for the 10th consecutive survey
according to Numeris7.
Bell Let's Talk Day
The Bell Let's Talk Day campaign
kicked off with a commitment of an additional $10 million for mental health programs, the
largest amount Bell has ever committed on Bell Let's Talk Day. This
year's campaign, "Let's Change This", puts a sharp focus on key
challenges faced by Canadians and encourages Canadians to take
action and support mental health initiatives in their community all
year round.
As part of our ongoing commitment to improve access to mental
health supports and services in communities across Canada, Bell
Let's Talk announced 11 recipients of the Bell Let's Talk Diversity
Fund. The Bell Let's Talk Post-Secondary Fund awarded $1 million in grants to 10 Canadian colleges,
universities and cégeps to support mental health initiatives, and
the 2023 Bell Let's Talk Community Fund is now open for
applications.
Bell for Better: Better World, Better Communities, Better
Workplace
The 2022 Bell for Better Team Giving campaign
raised a total of $4.4 million for
charities all over Canada and employees contributed more than
97,000 volunteer hours to organizations in their communities. Bell
was ranked in the top 50 of Corporate Knights' Global 100 most
sustainable corporations for 20238. Bell was named one
of Canada's Top 100 Employers for the eighth year in a row by
Mediacorp9, and also received the Order of Excellence
certification in Mental Health at Work by Excellence Canada. Bell
continued to underscore its commitment to environmental, social and
governance (ESG) leadership by converting its existing $3.5 billion committed credit facilities to a
sustainability-linked loan. In line with its commitment to the
highest ESG standards, Bell will issue a digital Integrated Annual
Report when it releases its 2022 annual financial statements in
early March 2023.
_______________________
|
7 According to Numeris, Summer
2020 to Fall 2022, Montréal CTRL, Mo-Su 2a-2a,
Adults 25-54, AMA(000).
|
8 According to Corporate Knights
Inc.'s global rankings released on January 18, 2023. For more
information: https://www.corporateknights.com/rankings/global-100-rankings/2023-global-100-rankings/2023-global-100-most-sustainable-companies/.
|
9 Canada's Top 100 Employers report
is issued annually by Medicorp. Results issued November 18,
2022. For more information,
see: https://www.canadastop100.com/national/
|
BCE RESULTS
Financial Highlights
($ millions except per
share amounts) (unaudited)
|
Q4
2022
|
Q4
2021
|
%
change
|
2022
|
2021
|
%
change
|
BCE
|
|
|
|
|
|
|
Operating
revenues
|
6,439
|
6,209
|
3.7 %
|
24,174
|
23,449
|
3.1 %
|
Net earnings
|
567
|
658
|
(13.8 %)
|
2,926
|
2,892
|
1.2 %
|
Net earnings
attributable to common shareholders
|
528
|
625
|
(15.5 %)
|
2,716
|
2,709
|
0.3 %
|
Adjusted net
earnings
|
654
|
692
|
(5.5 %)
|
3,057
|
2,895
|
5.6 %
|
Adjusted
EBITDA
|
2,437
|
2,430
|
0.3 %
|
10,199
|
9,893
|
3.1 %
|
Net earnings per common
share (EPS)
|
0.58
|
0.69
|
(15.9 %)
|
2.98
|
2.99
|
(0.3 %)
|
Adjusted EPS
|
0.71
|
0.76
|
(6.6 %)
|
3.35
|
3.19
|
5.0 %
|
Cash flows from
operating activities
|
2,056
|
1,743
|
18.0 %
|
8,365
|
8,008
|
4.5 %
|
Capital
expenditures10
|
(1,638)
|
(1,466)
|
(11.7 %)
|
(5,133)
|
(4,852)
|
(5.8 %)
|
Free cash
flow10
|
376
|
229
|
64.2 %
|
3,067
|
2,980
|
2.9 %
|
_______________________
|
10 In
Q2 2022, we applied the IFRIC Agenda Decision on Demand Deposits
with Restrictions on Use arising from a Contract with a Third Party
(IAS 7 – Statement of Cash Flows) retrospectively to each prior
period presented. For further details, refer to Note 2, Basis of
presentation and significant accounting policies in our Q3 2022
consolidated interim financial statements.
|
"We capped off 2022 with another quarter of consistent and
disciplined execution that drove a strong 3.7% increase in total
revenue in Q4. We also delivered positive adjusted EBITDA growth,
despite unprecedented cost pressures from inflation and record
storms, an expensive and highly competitive Black Friday, and media
advertising softness, which is a testament to our ability to
execute under any condition," said Glen
LeBlanc, Chief Financial Officer of BCE and Bell Canada.
"BCE's fundamentals and competitive position are as strong as
ever, as evidenced by our 2022 operating results and consistent
financial guidance targets for 2023. With healthy projected free
cash flow growth, supported by declining capital expenditures, a
strong defined benefit pension plan valuation position, as well as
a continued focus on profitable subscriber growth and cost
discipline, we are increasing BCE's common share dividend by 5.2%
for 2023."
- BCE operating revenue in Q4 increased 3.7% over Q4 2021 to
$6,439 million, comprised of 2.1%
higher service revenue of $5,353
million and a 12.4% increase in product revenue to
$1,086 million. This result was
driven by wireless, residential Internet and media growth as well
as higher year-over-year business wireline data equipment sales.
For full-year 2022, BCE operating revenue grew 3.1% to $24,174 million with year-over-year increases of
3.0% in service revenue and 3.8% in product revenue.
- Net earnings in Q4 decreased 13.8% to $567 million and net earnings attributable to
common shareholders totalled $528
million, or $0.58 per share,
down 15.5% and 15.9% respectively. The year-over-year declines were
due to higher asset impairment charges, mainly related to Bell
Media's French-language TV properties to reflect market and
economic-related pressures on advertising demand, as well as
increased interest expense, partly offset by lower severance,
acquisition and other costs, a higher net return on post-employment
benefit plans, lower income taxes and higher adjusted EBITDA. For
full-year 2022, net earnings increased 1.2% to $2,926 million and net earnings attributable to
common shareholders were $2,716
million, or $2.98 per share,
up 0.3% and down 0.3% respectively. Adjusted net earnings declined
5.5% in Q4 to $654 million, resulting
in a 6.6% decrease in adjusted EPS to $0.71. For full-year 2022, adjusted net earnings
increased 5.6% to $3,057 million,
delivering 5.0% higher adjusted EPS of $3.35.
- Adjusted EBITDA was up 0.3% in Q4 to $2,437 million, reflecting a 4.1% increase at
Bell Wireless, partly offset by decreases of 0.6% and 15.7% at Bell
Wireline and Bell Media respectively. This result included an
increase in operating costs from continued inflationary pressures
on fuel and labour costs, as well as storm recovery costs, which,
in aggregate, totaled $26 million
this quarter, higher mobile phone subscriber acquisition costs
reflecting increased promotional offer intensity, and higher media
programming costs. For full-year 2022, adjusted EBITDA grew 3.1% to
$10,199 million, while BCE's adjusted
EBITDA margin11 remained stable at 42.2%.
- BCE capital expenditures in Q4 were $1,638 million, up 11.7% from $1,466 million last year, corresponding to a
capital intensity12 of 25.4%, compared to 23.6% in Q4
2021. This brought total 2022 capital expenditures to $5,133 million, up from $4,852 million the year before, for a capital
intensity of 21.2% compared to 20.7% in 2021. The year-over-year
increase in capital spending was due to the accelerated
construction of Bell's wireline fibre and wireless 5G networks,
which included amounts received upfront from the Québec provincial
government as a subsidy for the buildout of pure fibre connections
in rural communities.
- BCE cash flows from operating activities in Q4 were
$2,056 million, up 18.0% from Q4
2021, reflecting increased cash from working capital, reduced
contributions to post-employment benefit plans due to a
contribution holiday that began in 2022, lower severance,
acquisition and other costs paid, and higher adjusted EBITDA,
partly offset by increased cash taxes and higher interest paid. For
full-year 2022, BCE cash flows from operating activities totalled
$8,365 million, up 4.5% compared to
2021.
- Free cash flow increased 64.2% in Q4 to $376 million from $229
million the year before, as higher cash flows from operating
activities, excluding acquisition and other costs paid, was partly
offset by higher capital expenditures. For full-year 2022, BCE free
cash flow grew 2.9% to $3,067
million, up from $2,980
million in 2021.
____________________
|
11 Adjusted EBITDA margin is defined
as adjusted EBITDA divided by operating revenues. Refer to the
Key Performance Indicators (KPIs) section in this news
release for more information on adjusted EBITDA margin.
|
12 Capital intensity is defined as
capital expenditures divided by operating revenues. Refer to the
Key Performance Indicators (KPIs) section in this news
release for more information on capital intensity.
|
OPERATING RESULTS BY SEGMENT
Bell Wireless
- Total wireless operating revenue increased 7.7% in Q4 to
$2,666 million, and by 6.5% to
$9,588 million for 2022, driven by
both higher service and product revenue.
- Service revenue grew 5.8% in Q4 to $1,747 million, the result of continued strong
mobile phone and connected device subscriber base growth, and
higher mobile phone blended ARPU13. For full-year 2022,
service revenue increased 7.3% to $6,865
million.
- Product revenue was up 11.7% in Q4 to $919 million, due to higher year-over-year
transaction volumes, including more device upgrades by existing
customers. For full-year 2022, product revenue increased 4.8% to
$2,723 million.
- Wireless adjusted EBITDA increased 4.1% in Q4 to $990 million, driven by the flow-through of
strong service revenue growth, as operating costs grew 10.0% due to
higher cost of goods sold from increased product sales in the
quarter, higher year-over-year mobile phone subscriber acquisition
costs reflecting increased promotional offer intensity compared to
last year, higher network operating costs from the ongoing
deployment of our mobile 5G networks and higher payments to other
carriers driven by increased roaming, which resulted in a margin
decrease to 37.1% from 38.4% in Q4 2021. For full-year 2022,
wireless adjusted EBITDA was up 7.4% to $4,137 million with a margin increase to 43.1%
from 42.8% in 2021.
- Total net new postpaid and prepaid mobile phone
subscribers14 were up 11.8% in Q4 to 122,621 from
109,726 in Q4 2021. For full-year 2022, total postpaid and prepaid
mobile phone net activations increased 66.2% to 489,901 from
294,842 the year before.
- Postpaid mobile phone net subscriber activations increased
41.2% in Q4 to 154,617 from 109,527 in Q4 2021. The year-over-year
increase was driven by 25.1% higher gross subscriber activations,
reflecting greater retail foot traffic and shopping activity
compared to the year before, continued 5G momentum, immigration
growth, stronger small and medium business customer demand, and
successful promotions, including the bundling of wireless service
with Internet. This was moderated by a 14 basis-point increase in
mobile phone customer churn15 to 1.22%, reflecting a
seasonally higher level of promotional offer intensity and greater
overall market activity compared to Q4 2021. For full-year 2022,
postpaid mobile phone net activations were 439,842, up 45.8%, while
mobile phone customer churn improved to 0.92% from 0.93% in
2021.
- Bell's prepaid mobile phone customer base decreased by 31,996
net subscribers in Q4, compared to a net gain of 199 in Q4 2021.
The year-over-year decrease was driven by higher customer churn,
which increased to 5.74% from 4.42% in Q4 2021, reflecting more
customer deactivations due to attractive promotional offers on
postpaid discount brands. For full-year 2022, we posted a net gain
of 50,059 prepaid mobile phone customers, compared to a net loss of
6,864 in 2021, reflecting 32.3% higher gross activations, partly
offset by an increased churn rate of 4.85%.
- Bell's mobile phone customer base totalled 9,949,086 at the end
of 2022, a 5.2% increase over 2021, comprised of 9,069,887 postpaid
subscribers, up 5.1%, and 879,199 prepaid customers, up 6.0%.
- Mobile phone blended ARPU grew 0.5% to $58.88 in Q4, driven by higher roaming revenue,
and more customers on premium 5G unlimited monthly rate plans. For
full-year 2022, mobile phone blended ARPU increased 2.8% to
$59.30.
- Mobile connected device net activations increased 168% in Q4 to
104,447 and 4.3% in 2022 to 202,024, driven by strong demand for
Bell IoT services, including business solutions and connected car
subscriptions, and fewer data device deactivations. At the end of
2022, mobile connected device subscribers16 totalled
2,451,818, a 9.0% increase over 2021.
_______________________
|
13 Mobile phone blended ARPU is
calculated by dividing wireless operating service revenues by the
average mobile phone subscriber base for the specified period and
is expressed as a dollar unit per month. Refer to the Key
Performance Indicators (KPIs) section in this news release for
more information on mobile phone blended ARPU.
|
14 Refer to the Key
Performance Indicators (KPIs) section in this news release
for more information on subscriber (or customer) units.
|
15 Refer to the Key
Performance Indicators (KPIs) section in this news release
for more information on churn.
|
16 Refer to the Key
Performance Indicators (KPIs) section in this news release
for more information on subscriber (or customer) units.
|
Bell Wireline
- Total wireline operating revenue increased 0.5% to $3,094 million, compared to Q4 2021, and
decreased 0.2% in full-year 2022 to $12,148
million.
- Wireline service revenue was down 0.3% in Q4 to $2,924 million, due to ongoing declines in legacy
voice, data and satellite TV services, higher customer acquisition
bundling discounts and retention credits that help drive lower
churn and greater customer lifetime value across our wireline and
wireless services, reduced sales of business service
solutions17 related to delayed project spending by large
enterprise customers, and the sale of Createch on March 1, 2022. These factors were partly offset
by strong residential Internet revenue growth of approximately 9%.
For full-year 2022, wireline service revenue was down 0.2% to
$11,643 million.
- Although telecom data equipment sales at Bell Business Markets
continued to be impacted by ongoing global supply chain
disruptions, total product revenue increased 17.2% to $170 million, due mainly to the timing of sales
to a number of large enterprise customers in the government sector
and a favourable year-over-year comparison as shortages began to
intensify in the second half of 2021. For full-year 2022, wireline
product revenue decreased 0.2% to $505
million.
- Wireline adjusted EBITDA declined 0.6% in Q4 to $1,318 million, the result of 1.3% higher
year-over-year operating costs, which drove a 0.5 percentage-point
margin decline to 42.6%. The increase in operating costs was due to
storm recovery costs and ongoing inflationary pressures on fuel and
labour costs, as well as higher cost of goods sold from increased
product sales in the quarter. For full-year 2022, wireline adjusted
EBITDA was $5,317 million, compared
to $5,315 million the year before.
Despite lower revenue, a 0.5% reduction in operating costs drove a
higher full-year 2022 wireline margin of 43.8%, up from 43.6% in
2021.
- Bell added 63,466 net new retail Internet
subscribers18 in Q4, up 33.3% from 47,618 in Q4 2021,
driven by the accelerated expansion of Bell's fibre footprint and
increased customer penetration of bundled service offerings. For
full-year 2022, total retail Internet net activations grew 32.5% to
201,762, representing our best annual performance since 2006.
Retail Internet subscribers totalled 4,258,570 at the end of 2022,
a 10.3% increase from 2021, which includes 128,065 customers gained
from the acquisition of Distributel in Q4.
- Bell TV added 40,209 net new retail IPTV
subscribers18 in Q4, up 37.7% from 29,191 in Q4 2021.
This represents our best quarterly result in nearly 7 years,
reflecting the success of our multi-brand customer segmentation
approach and increased customer demand for our app streaming
services. For full-year 2022, retail IPTV net activations totalled
94,400, up 24.1% compared to 76,068 in 2021. At the end of 2022,
Bell served 1,988,181 retail IPTV subscribers, a 5.6% increase over
2021, which includes 2,315 customers added due to the acquisition
of Distributel in Q4.
- Retail satellite TV net subscriber18 losses were
26,026 in Q4, up from 23,142 in Q4 2021. The year-over-year
increase was due to fewer gross activations and higher customer
churn, reflecting increased promotional offer intensity compared to
last year. For full-year 2022, retail satellite TV net losses
increased 21.4% to 89,252. Bell's retail satellite TV customer base
totalled 763,317 at the end of 2022, down 10.5% from 2021.
- Retail residential NAS18 net losses improved by 5.8%
to 37,878 in Q4 and by 5.1% to 175,788 in full-year 2022, due to
fewer customer deactivations. Bell's retail residential NAS
customer base totalled 2,190,771 at the end of 2022, representing a
4.7% year-over-year decline, which includes 64,498 customers added
due to the acquisition of Distributel in Q4.
_______________________
|
17 Business service solutions
revenues are comprised of managed services, which include network
management, voice management, hosting and security, and
professional services, which include consulting, integration and
resource services.
|
18 Refer to the Key Performance
Indicators (KPIs) section in this news release for more
information on subscriber (or customer) units.
|
Bell Media
- Media operating revenue increased 4.7% in Q4 to $889 million, and by 7.2% to $3,254 million in 2022, driven by both higher
year-over-year advertising and subscriber revenues.
- Advertising revenue was up 3.8% in Q4, due to strong advertiser
demand for the FIFA World Cup Qatar 2022, as well as continued
strong out of home and digital growth. This result was achieved
despite soft overall TV and radio advertiser demand due to
unfavourable economic conditions. For full-year 2022, advertising
revenue grew 3.7%.
- Subscriber revenue increased 5.4% in Q4, driven mainly by
direct-to-consumer streaming growth at Crave and TSN. Total Crave
subscriptions increased 6% in 2022 to more than 3.1 million
subscribers. For full-year 2022, subscriber revenue increased 8.3%,
reflecting a one-time retroactive adjustment related to a contract
with a Canadian TV distributor.
- Digital revenues grew 46% in Q4 and 54% in 2022, due to Crave
streaming direct-to-consumer growth and increased bookings from
Bell Media's strategic audience management (SAM) TV media sales
tool. Digital revenues represented 29% of total Bell Media revenue
in 2022, up from 20% in 2021.
- TSN and RDS were Canada's top-ranked English and
French-language sports networks in Q4 202219 on the
strength of high-demand programming such as the FIFA World Cup
Qatar 2022, IIHF World Junior Championship and CFL and NFL
football.
- For Q4 2022, Bell Media was ranked number one overall and in
primetime viewership in the French-language specialty market among
adults aged 25-5420.
- Adjusted EBITDA was down 15.7% in Q4 to $129 million. This resulted in a 3.5
percentage-point margin decline to 14.5%, driven by a 9.2%
year-over-year increase in operating costs due to higher sports
programming costs, which included sports broadcast rights for the
FIFA World Cup Qatar 2022, and the normalization of entertainment
programming content deliveries in 2022. For full-year 2022, media
adjusted EBITDA increased 2.8%, yielding a margin of 22.9% compared
to 23.9% in 2021, as total operating costs grew 8.6%.
_______________________
|
19 According to Numeris, P2+ (Persons
aged 2 or more) Total Canada, Q4 2022 (10/01/2022 - 12/31/2022) and
Numeris, French Québec, Q4 2022 (10/01/2022 to 12/31/2022) P2+ and
A25-54, French-language sports channels.
|
20 According to Numeris, French
Québec, Q4 2022 (01/10/2022 to 18/12/2022). Rank among all French
Specialty Channels (including news, sports & pay) in French
Québec market, Monday-Sunday 2am – 2am.
|
COMMON SHARE DIVIDEND
BCE's Board of Directors has declared a quarterly dividend of
$0.9675 per common share, payable on
April 17, 2023 to shareholders of
record at the close of business on March 15,
2023.
OUTLOOK FOR 2023
The table below provides our 2023 financial guidance targets.
These ranges are based on our current outlook for 2023, as well as
our 2022 consolidated financial results that reflected the impact
on adjusted EBITDA from inflationary pressures on fuel, utility and
labour costs, as well as storm-related recovery costs, and the
impact on free cash flow from historic capital expenditures to
accelerate the rollout of Bell's wireline fibre and wireless 5G
networks. For 2023, we expect lower tax adjustments, higher
depreciation and amortization expense and increased interest
expense to drive lower adjusted EPS compared to 2022. For 2023, we
expect growth in adjusted EBITDA, a reduction in contributions to
post-employment benefit plans and payments under other
post-employment benefit plans, and lower capital expenditures will
drive higher free cash flow.
|
2022
Results
|
2023
Guidance
|
Revenue
growth
|
3.1 %
|
1% to 5%
|
Adjusted EBITDA
growth
|
3.1 %
|
2% to 5%
|
Capital
intensity21
|
21.2 %
|
19% to 20%
|
Adjusted EPS
growth
|
5.0 %
|
(3%) to (7%)
|
Free cash flow
growth21
|
2.9 %
|
2% to 10%
|
Annualized common
dividend per share
|
$3.68
|
$3.87
|
_______________________
|
21 In
Q2 2022, we applied the IFRIC Agenda Decision on Demand Deposits
with Restrictions on Use arising from a Contract with a Third Party
(IAS 7 – Statement of Cash Flows) retrospectively to each prior
period presented. For further details, refer to Note 2, Basis of
presentation and significant accounting policies in our Q3 2022
consolidated interim financial statements.
|
Please see the section entitled "Caution Regarding
Forward-Looking Statements" later in this news release for a
description of the principal assumptions on which BCE's 2023
financial guidance targets are based, as well as the principal
related risk factors.
CALL WITH FINANCIAL ANALYSTS
BCE will hold a
conference call for financial analysts to discuss Q4 2022 results
and 2023 financial guidance on Thursday,
February 2 at 7:00 am eastern.
Media are welcome to participate on a listen-only basis. To
participate, please dial toll-free 1-800-806-5484 or 416-340-2217
and enter passcode 1475438#. A replay will be available until
midnight on March 2, 2023 by
dialing 1-800-408-3053 or 905-694-9451 and entering passcode
9881822#. A live audio webcast of the conference call will be
available on BCE's website at BCE Q4 2022 conference call.
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;
- 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 news release 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 news
release if the supplementary financial measures' labelling is not
sufficiently descriptive.
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 news release to explain our results as well as
reconciliations to the most comparable IFRS financial measures.
Adjusted net earnings – Adjusted net earnings is a
non-GAAP financial measure and it does not have any standardized
meaning under IFRS. Therefore, it is unlikely to be comparable to
similar measures presented by other 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.
The following table is a reconciliation of net earnings
attributable to common shareholders to adjusted net earnings on a
consolidated basis.
($ millions)
|
Q4 2022
|
Q4 2021
|
2022
|
2021
|
Net earnings
attributable to common shareholders
|
528
|
625
|
2,716
|
2,709
|
Reconciling
items:
|
|
|
|
|
Severance, acquisition
and other costs
|
19
|
63
|
94
|
209
|
Net mark-to-market
(gains) losses on derivatives used to economically hedge equity
settled share-based compensation plans
|
(27)
|
(57)
|
53
|
(278)
|
Net equity losses on
investments in associates and joint ventures
|
-
|
35
|
42
|
49
|
Net losses (gains) on
investments
|
29
|
6
|
(24)
|
6
|
Early debt redemption
costs
|
-
|
-
|
18
|
53
|
Impairment of
assets
|
150
|
30
|
279
|
197
|
Income taxes for above
reconciling items
|
(37)
|
(9)
|
(117)
|
(48)
|
NCI for the above
reconciling items
|
(8)
|
(1)
|
(4)
|
(2)
|
Adjusted net
earnings
|
654
|
692
|
3,057
|
2,895
|
Free cash flow – Free cash flow is a non-GAAP
financial measure and it does not have any standardized meaning
under IFRS. Therefore, it is unlikely to be comparable to similar
measures presented by other 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 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.
The following table is a reconciliation of cash flows from
operating activities to free cash flow on a consolidated basis.
($ millions)
|
Q4 2022
|
Q4 2021
|
2022
|
2021
|
Cash flows from
operating activities
|
2,056
|
1,743
|
8,365
|
8,008
|
Capital
expenditures
|
(1,638)
|
(1,466)
|
(5,133)
|
(4,852)
|
Cash dividends paid on
preferred shares
|
(42)
|
(32)
|
(136)
|
(125)
|
Cash dividends paid by
subsidiaries to NCI
|
(3)
|
(45)
|
(39)
|
(86)
|
Acquisition and other
costs paid
|
3
|
29
|
10
|
35
|
Free cash
flow
|
376
|
229
|
3,067
|
2,980
|
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.
Below is a description of the non-GAAP ratio that we use in this
news release to explain our results.
Adjusted EPS – Adjusted EPS is a non-GAAP ratio and it
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, refer to 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.
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.
Below is a description of the total of segments measure that we
use in this news release to explain our results as well as a
reconciliation to the most comparable IFRS financial measure.
Adjusted EBITDA – Adjusted EBITDA is a total of segments
measure. 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 table is a reconciliation of net earnings
to adjusted EBITDA on a consolidated basis.
($ millions)
|
Q4 2022
|
Q4 2021
|
2022
|
2021
|
Net earnings
|
567
|
658
|
2,926
|
2,892
|
Severance, acquisition
and other costs
|
19
|
63
|
94
|
209
|
Depreciation
|
922
|
925
|
3,660
|
3,627
|
Amortization
|
270
|
251
|
1,063
|
982
|
Finance
costs
|
|
|
|
|
Interest
expense
|
319
|
275
|
1,146
|
1,082
|
Net (return)
interest on post-employment benefit plans
|
(13)
|
5
|
(51)
|
20
|
Impairment of
assets
|
150
|
30
|
279
|
197
|
Other (income)
expense
|
(19)
|
(26)
|
115
|
(160)
|
Income taxes
|
222
|
249
|
967
|
1,044
|
Adjusted EBITDA
|
2,437
|
2,430
|
10,199
|
9,893
|
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 news release if the supplementary financial
measures' labelling is not sufficiently descriptive.
KEY PERFORMANCE INDICATORS (KPIs)
We use adjusted EBITDA margin, blended ARPU, capital intensity,
churn and subscriber (or customers or NAS) units to measure the
success of our strategic imperatives. These key performance
indicators are not accounting measures and may not be comparable to
similar measures presented by other issuers.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Certain statements made in this news release are forward-looking
statements. These statements include, without limitation,
statements relating to BCE's financial guidance (including
revenues, adjusted EBITDA, capital intensity, adjusted EPS and free
cash flow), BCE's 2023 annualized common share dividend, our
network deployment plans and anticipated capital expenditures as
well as the benefits expected to result therefrom, our objectives
for investments in mental health programs, BCE's business outlook,
objectives, plans and strategic priorities, and other statements
that are not historical facts. Forward-looking statements are
typically identified by the words assumption, goal, guidance,
objective, outlook, project, strategy, target 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 Private Securities
Litigation Reform Act of 1995.
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. The forward-looking statements
contained in this news release describe our expectations as of
February 2, 2023 and, accordingly,
are subject to change after such date. Except as may be required by
applicable securities laws, we do not undertake any obligation to
update or revise any forward-looking statements contained in this
news release, whether as a result of new information, future events
or otherwise. From time to time, we 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 February 2,
2023. The financial impact of these transactions and special
items can be complex and depends on the 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. Forward-looking statements are presented in this news
release for the purpose of assisting investors and others in
understanding certain key elements of our expected financial
results, as well as our objectives, strategic priorities and
business outlook, and in obtaining a better understanding of our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes.
Effective with our Q1 2023 results, our previous Bell Wireless
and Bell Wireline operating segments are being combined to form a
single reporting segment called Bell Communication and Technology
Services (Bell CTS). Bell Media remains a distinct operating
segment and is unaffected. As a result of our reporting changes,
the operational assumptions outlined in this section are presented
in accordance with our new reporting segments.
Material Assumptions
A number of economic, market, operational and financial
assumptions were made by BCE in preparing its forward-looking
statements contained in this news release, including, but not
limited to the following:
Canadian Economic Assumptions
Our forward-looking statements are based on 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 1.0% in
2023, down from 3.6% in 2022
- Easing, but still elevated, consumer price index (CPI)
inflation due to lower energy prices, improvements in global supply
chains and the effects of higher interest rates moving through the
economy
- Tight labour market
- Slow growth in household spending as higher interest rates
weigh on disposable income
- Slow growth in business investment due to slowing demand,
elevated borrowing costs and increased uncertainty about future
economic conditions
- Prevailing high interest rates expected to remain at or near
current levels
- Higher 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.
Canadian Market Assumptions
Our forward-looking statements also reflect various Canadian
market assumptions. In particular, we have made the following
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 over-the-top (OTT) competitors
- The advertising market is adversely impacted due to economic
uncertainty resulting from inflationary pressures, increasing risk
of recession and ongoing supply chain challenges with improvement
expected in the second half of 2023
- 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 Concerning our Bell CTS Segment
Our forward-looking statements are also based on the following
internal operational assumptions with respect to our Bell CTS
segment:
- Maintain our market share of national operators' wireless
postpaid mobile phone net additions and growth of our prepaid
subscriber base
- Increased competitive intensity and promotional activity across
all regions and market segments
- Ongoing expansion and deployment of Fifth Generation (5G)
wireless network and 5G+ service, offering competitive coverage and
quality
- Continued diversification of our distribution strategy with a
focus on expanding direct-to-consumer (DTC) and online
transactions
- Moderating growth in mobile phone blended average revenue per
user (ARPU), driven by growth in 5G subscriptions, and increased
roaming revenue from the easing of travel restrictions implemented
as a result of the COVID-19 pandemic, partly offset by reduced data
overage revenue due among others to the continued adoption of
unlimited plans
- Accelerating business customer adoption of advanced 5G, 5G+ and
Internet of Things (IoT) solutions
- Improving wireless handset device availability in addition to
stable device pricing and margins
- Further deployment of direct fibre to more homes and businesses
within our wireline footprint
- Continued growth in retail Internet and Internet protocol
television (IPTV) subscribers
- Increasing wireless and Internet-based technological
substitution
- Continued aggressive residential service bundle offers from
cable TV competitors in our local wireline areas, moderated by
growing our share of competitive residential service bundles
- Continued large business customer migration to Internet
protocol (IP)-based systems
- Ongoing competitive repricing pressures in our business and
wholesale markets
- Continued competitive intensity in our small and medium-sized
business markets as cable operators and other telecommunications
competitors continue to intensify their focus on business
customers
- Traditional high-margin product categories challenged by large
global cloud and OTT providers of business voice and data solutions
expanding into Canada with on-demand services
- Increasing customer adoption of OTT services resulting in
downsizing of TV packages
- Growing consumption of OTT TV services and on-demand streaming
video, as well as the proliferation of devices, such as tablets,
that consume large quantities of bandwidth, will require ongoing
capital investment
- Realization of cost savings related to operating efficiencies
enabled by a growing direct fibre footprint, changes in consumer
behaviour and product innovation, digital adoption, product and
service enhancements, expanding self-serve capabilities, new call
centre and digital investments, other improvements to the customer
service experience, management workforce reductions including
attrition and retirements, and lower contracted rates from our
suppliers
- No adverse material financial, operational or competitive
consequences of changes in or implementation of regulations
affecting our communication and technology services business
Assumptions Concerning our Bell Media Segment
Our forward-looking statements are also based on the following
internal operational assumptions with respect to our Bell Media
segment:
- Overall revenue expected to reflect continued scaling of our
strategic audience management (SAM) TV and Bell
demand-side-platform (DSP) buying platforms, as well as DTC
subscriber growth contributing towards the advancement of our
digital-first media strategy
- Continued escalation of media content costs to secure quality
programming
- Continued scaling of Crave through broader content offering,
user experience improvements and expanded distribution
- Continued investment in Noovo original programming to better
serve our French-language customers with a wider array of content
on their preferred platforms
- Leveraging of first-party data to improve targeting,
advertisement delivery and attribution
- Ability to successfully acquire and produce highly rated
programming and differentiated content
- Building and maintaining strategic supply arrangements for
content across all screens and platforms
- No adverse material financial, operational or competitive
consequences of changes in or implementation of regulations
affecting our media business
Financial Assumptions Concerning BCE
Our forward-looking statements are also based on the
following internal financial assumptions with respect to BCE
for 2023:
- An estimated post-employment benefit plans service cost of
approximately $210 million
- An estimated net return on post-employment benefit plans of
approximately $100 million
- Depreciation and amortization expense of approximately
$4,900 million to $4,950 million
- Interest expense of approximately $1,375
million to $1,425 million
- Interest paid of approximately $1,400
million to $1,450 million
- An average effective tax rate of approximately 26%
- Non-controlling interest of approximately $65 million
- Contributions to post-employment benefit plans of approximately
$60 million
- Payments under other post-employment benefit plans of
approximately $75 million
- Income taxes paid (net of refunds) of approximately
$800 million to $900 million
- Weighted average number of BCE common shares outstanding of
approximately 914 million
- An annual common share dividend of $3.87 per share
Assumptions underlying expected reductions in
contributions to our pension plans
Our forward-looking statements are also based on the following
principal assumptions underlying expected reductions in
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 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 unforeseen events such
as through litigation or changes in laws, regulations or actuarial
standards
The foregoing assumptions, although considered reasonable by BCE
on February 2, 2023, may prove to be
inaccurate. Accordingly, our actual results could differ materially
from our expectations as set forth in this news release.
Material Risks
Important risk factors that could cause our assumptions and
estimates to be inaccurate and actual results or events to differ
materially from those expressed in, or implied by, our
forward-looking statements, including our 2023 financial guidance,
are listed below. The realization of our forward-looking
statements, including our ability to meet our 2023 financial
guidance targets, essentially depends on our business performance,
which, in turn, is subject to many risks. Accordingly, readers are
cautioned that any of the following risks could have a material
adverse effect on our forward-looking statements. These risks
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 the COVID-19 pandemic and 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 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, 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, IT systems, equipment and other
facilities; the complexity of our operations; the failure to
implement or maintain highly effective processes and information
technology (IT) systems; in-orbit and other operational risks to
which the satellites used to provide our satellite 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 environmental,
social and governance (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 greenhouse
gas (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 estimates and our
financial statements from a number of factors; and pension
obligation volatility and increased contributions to
post-employment benefit plans.
We caution that the foregoing list of risk factors is not
exhaustive and other factors could also adversely affect our
results. We encourage investors to also read BCE's Safe Harbour
Notice Concerning Forward-Looking Statements dated February 2, 2023, for additional information with
respect to certain of these and other assumptions and risks, to be
filed by BCE with the Canadian provincial securities regulatory
authorities (available at Sedar.com) and with the U.S. Securities
and Exchange Commission (available at SEC.gov). This document
is available at BCE.ca.
About BCE
BCE is Canada's largest communications company, providing
advanced Bell broadband wireless, Internet, TV, media and business
communications services. To learn more, please visit
Bell.ca or BCE.ca.
Through Bell for Better, we are investing to create a better
today and a better tomorrow by supporting the social and economic
prosperity of our communities. This includes the Bell Let's Talk
initiative, which promotes Canadian mental health with national
awareness and anti-stigma campaigns like Bell Let's Talk Day and
significant Bell funding of community care and access, research and
workplace initiatives throughout the country. To learn more, please
visit Bell.ca/LetsTalk.
Media inquiries:
Ellen Murphy
1-888-482-0809
Ellen.murphy@bell.ca
Investor inquiries:
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca
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content:https://www.prnewswire.com/news-releases/bce-reports-2022-q4-and-full-year-results-announces-2023-financial-targets-301736856.html
SOURCE Bell Canada