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. Consolidated adjusted EBITDA1 growth of 1.1% better than Q1 plan, delivering 0.8 percentage-point increase in adjusted EBITDA margin2 to 42.7% on 2.0% lower operating costs Net earnings of $457 million, down 42.0%, with net earnings attributable to common shareholders of $402 million, down 44.6% or $0.44 per common share; adjusted net earnings1 of $654 million yielded adjusted EPS1 of $0.72, down 15.3% Cash flows from operating activities down 9.2% to $1,132 million; free cash flow1 stable at $85 million Wireless operating momentum continues: highest Q1 mobile phone postpaid net activations3 since 2018, up 4.5% to 45,247; blended average revenue per user (ARPU)4 remains essentially stable in a competitive market Best Q1 retail Internet net subscriber activations3 since 2007, up 13.9% to 31,078; IPTV net activations increased 30.0% to 14,174 Bell Media digital revenue5 up 33% as digital platforms and advertising technology drove strong growth; total media revenue and adjusted EBITDA down year over year, reflecting one-time retroactive subscriber revenue adjustment in Q1 2023 First quarter of year-over-year advertising revenue growth since Q4 2022 Reconfirming all 2024 financial guidance targets MONTRÉAL, May 2, 2024 /CNW/ - BCE Inc. (TSX:BCE) (NYSE:BCE) today reported results for the first quarter (Q1) of 2024. "Today's results reflect the Bell team's continued ability to successfully navigate a heightened competitive environment and achieve operational results in line with our expectations for the quarter," said Mirko Bibic, President and CEO of BCE and Bell Canada. "Bell is off to a solid start with adjusted EBITDA and margin that were ahead of plan, demonstrating the team's focus on operational efficiencies and our continued efforts to address near-term economic pressures, while effectively balancing growth with profitability. Bell's award-winning networks and our leading services continue to resonate with Canadians. We had our best Q1 retail Internet net additions in 17 years, up 13.9% to 31,078, demonstrating customers' continued preference for fibre. We are also deftly navigating an actively competitive wireless landscape with our highest Q1 postpaid net activations since 2018, up 4.5% to 45,247. Our pivot to digital at Bell Media helped drive digital revenue up 33% as digital platforms and advertising technology drove strong growth. I'm pleased to report that this is the first quarter of year-over-year advertising revenue growth since Q4 2022. We have been putting the right building blocks in place over the past few quarters as we transition to a company focused on providing our customers with the communications, tech services and digital media they need now and in the future." ________________ 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 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. 3 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on subscriber (or customer) units. 4 ARPU is defined as Bell CTS wireless external services revenues, divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on blended ARPU. In Q1 2024, we adjusted our mobile phone postpaid subscriber base to remove very low to non-revenue generating business market subscribers of 105,802. 5 Digital revenues are comprised of advertising revenue from digital platforms including web sites, mobile apps, connected TV apps and out-of-home (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. KEY BUSINESS DEVELOPMENTS Innovative partnerships to deliver for our customersBell announced a partnership with Google Cloud to introduce Google Cloud Contact Centre AI (CCAI) from Bell for Canadian businesses that will enable intelligent customer and agent experiences through generative AI-infused technology. Google CCAI from Bell is supported by Bell's Professional and Managed services teams and can be added to existing contact centre environments and to cloud contact centres of any size. Bell entered into a retail partnership with Loblaw to launch no name mobile, providing Canadians new affordable wireless options and prepaid plans, powered by PC Mobile and running on Bell's leading 4G network. no name prepaid plans will be available in all 278 No Frills grocery store locations across Canada. Champion customer experienceBell MTS received an Innovation Award at the 2023 Manitoba Excellence in Customer Contact Achievement (MECCA) awards6 and Bell MTS team members were additionally recognized at the awards for their customer experience excellence.7 Delivering the most compelling contentBell Media's Crave streaming service became available on Amazon Prime Video in Canada. Crave's premium, ad-free plan can be purchased by Amazon Prime Members directly through their Prime Video account, expanding its reach and giving subscribers easier access to Crave's bilingual offering. Expanding the reach and discoverability of its platforms and content, Bell Media also launched 10 English and French-language free, ad-supported streaming television (FAST) Channels, available now on LG Channels and slated to roll out on Samsung TV Plus later this spring. Super Bowl LVIII was the most-watched Super Bowl on record with an average audience of 10 million viewers on CTV, TSN and RDS, up 16% compared to last year and reaching 19 million Canadians – nearly 50% of Canada's population. Additional sports highlights included the 2024 NCAA March Madness tournament and the 2024 IIHF Women's World Championship both on TSN and RDS, and the 2024 Masters Tournament on CTV, TSN and RDS. Bell for BetterBell has been named one of Canada's Greenest Employers8 for the eighth consecutive year by Mediacorp. Bell was also named a Top Employer for Young People9 for the seventh consecutive year, a Top Family-Friendly Employer10 for the fifth consecutive year, and a Montréal Top Employer11 for the 12th year in a row by the organization. Bell took the top spot among telecom providers and 51st overall in the Corporate Knights Global 10012 most sustainable corporations for 2024, and ranked 127th in the 2024 Clean200 list13 of global companies that earn the most from sustainable sources. Bell was also named the top telecom and ranked 3rd overall in the Globe and Mail's Road to Net Zero report14. As part of a $10M partnership with the Graham Boeckh Foundation to support and scale Integrated Youth Services (IYS) initiatives across the country, Bell supported the launch of a new provincial IYS initiative in Nova Scotia which will bring free mental health services to young people in seven communities around the province. ________________ 6 In March 2024, the Manitoba Customer Contact Association, an industry association in the customer contact service sector, awarded Bell MTS the 2023 Manitoba Excellence in Customer Contact Achievement (MECCA) Innovation Award for making process advancements through technology to improve customer and employee experience. 7 In March 2024, the Manitoba Customer Contact Association awarded several Bell MTS team members with the 2023 MECCA Representative of the Year Award to recognize their positive contributions to customer service, their workplace and community. 8 In March 2024, Bell was recognized as one of "Canada's Greenest Employers" in the years 2017-2024 by Canada's Top 100 Employers, an editorial competition organized by Mediacorp Canada Inc., a publisher of employment periodicals. Winners are evaluated and selected based on the development of sustainability initiatives and environmental leadership, when compared to other employers in the same field. 9 In January 2024, Bell was recognized as one of "Canada's Top Employers for Young People" in the years 2018-2024 by Canada's Top 100 Employers, an editorial competition organized by Mediacorp Canada Inc. Winners are evaluated and selected based on the programs offers to attract and retain young employees, when compared to other employers in the same field. 10 In March 2024, Bell was recognized as one of "Canada's Top Family-Friendly Employers" in the years 2020-2024 by Canada's Top 100 Employers, an editorial competition organized by Mediacorp Canada Inc. Winners are evaluated and selected based on the programs and initiatives offered to help employees balance work and family commitments, when compared to other employers in the same field. 11 In March 2024, Bell was recognized as one of "Montréal's Top Employers" in the years 2013-2024 by Canada's Top 100 Employers, an editorial competition organized by Mediacorp Canada Inc. Winners are evaluated and selected based on progressive and forward-thinking programs offered in a variety of areas, when compared to other organizations in the same field. 12 In January 2024, Corporate Knights Inc., a sustainable-economy media and research company, ranked BCE Inc. #51 overall and #1 in our sector and industry, in its 2024 ranking of the world's 100 most sustainable corporations. The ranking is based on an assessment of more than 6,000 public companies with revenue over US $1 billion. All companies are scored on applicable metrics relative to their peers, with 50% of the weight assigned to sustainable revenue and sustainable investment. 13 In February 2024, Corporate Knights and As You Sow ranked Bell 127th on their 2024 annual Clean200 list, ahead of our Canadian telecom competitors. The ranking is based on their clean revenues and screened against social and environmental criteria. The Clean200 list highlights companies that are leading the energy transition and place sustainability at the core of their business. 14 In February 2024, the Globe and Mail ranked Bell 3rd in their ranking of Canadian companies with strong management leading them on the Road to Net Zero. The ranking is based on Sustainalytics' analysis of thousands of data points to calculate the Low-Carbon Transition Rating (LCTR) score. To date, it has rated 8,000 companies globally, including 260 publicly-traded corporations in Canada. BCE RESULTS Financial Highlights ($ millions except per share amounts) (unaudited) Q1 2024 Q1 2023 % change BCE Operating revenues 6,011 6,054 (0.7 %) Net earnings 457 788 (42.0 %) Net earnings attributable to common shareholders 402 725 (44.6 %) Adjusted net earnings 654 772 (15.3 %) Adjusted EBITDA 2,565 2,538 1.1 % Net earnings per common share (EPS) 0.44 0.79 (44.3 %) Adjusted EPS 0.72 0.85 (15.3 %) Cash flows from operating activities 1,132 1,247 (9.2 %) Capital expenditures (1,002) (1,086) 7.7 % Free cash flow 85 85 0.0 % "BCE's Q1 results demonstrate that we're on the right path forward as we head further into 2024," said Curtis Millen, Chief Financial Officer of BCE and Bell Canada. "Adjusted EBITDA was up 1.1%, better than plan, driving an 80-point improvement in margin. Wireless and residential Internet revenue both grew 3%, fuelled by our best Q1 wireless postpaid net activations since 2018 and our highest Q1 retail Internet net subscriber activations since 2007. We said at the beginning of the year that 2024 will be a transformational year for Bell as we pivot our business to capture growth opportunities and focus on revenue generation. Our financial position remains healthy, and we remain confident in our agility and operational excellence in a period of heightened competitive intensity. With Q1 consolidated results that met our internal plan, together with stronger projected quarterly revenue, EBITDA growth and higher free cash flow generation as the year progresses, I am pleased to reconfirm our financial guidance targets for 2024." BCE operating revenues were $6,011 million in Q1, down 0.7% compared to Q1 2023. This result reflected 0.6% lower service revenue of $5,192 million, due to a year-over-year decline at Bell Media, partly offset by growth at Bell Communication and Technology Services (Bell CTS), as well as a 1.6% decrease in product revenue to $819 million. Net earnings decreased 42.0% to $457 million and net earnings attributable to common shareholders totalled $402 million, or $0.44 per share, down 44.6% and 44.3% respectively. The year-over-year declines were due to higher severance, acquisition and other costs related mainly to workforce reduction initiatives, higher other expense reflecting net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation as well as gains from the sale of land recognized in Q1 2023 related to our real estate optimization strategy, higher interest expense, as well as increased depreciation and amortization expense. These factors were partly offset by lower income taxes, higher adjusted EBITDA and lower asset impairment charges related to office spaces we ceased using as part of our real estate optimization strategy due to Bell's hybrid work policy. Adjusted net earnings were down 15.3% to $654 million, resulting in a 15.3% decrease in adjusted EPS to $0.72. Adjusted EBITDA grew 1.1% to $2,565 million, reflecting a 1.7% increase at Bell CTS, partly offset by an 11.4% decrease at Bell Media. BCE's consolidated adjusted EBITDA margin increased 0.8 percentage points to 42.7% from ...