Q1 2024 Supplementary information

Supplementary

Financial Information

First Quarter 2024

BCE Investor Relations

Thane Fotopoulos

[e-mail]

							BCE (1)
			Consolidated Operational Data
		Q1		Q1
(In millions of Canadian dollars, except share amounts) (unaudited)		2024		2023	$	change	% change
Operating revenues
Service		5,192		5,222		(30)	(0.6%)
Product		819		832		(13)	(1.6%)
Total operating revenues		6,011		6,054		(43)	(0.7%)
Operating costs		(3,446)		(3,516)		70	2.0%
Adjusted EBITDA (A)		2,565		2,538		27	1.1%
Adjusted EBITDA margin (B)(3)		42.7%		41.9%			0.8 pts
Severance, acquisition and other costs		(229)		(49)		(180)	n.m.
Depreciation		(946)		(918)		(28)	(3.1%)
Amortization		(316)		(283)		(33)	(11.7%)
Finance costs
Interest expense		(416)		(344)		(72)	(20.9%)
Net return on post-employment benefit plans		16		27		(11)	(40.7%)
Impairment of assets		(13)		(34)		21	61.8%
Other (expense) income		(38)		121		(159)	n.m.
Income taxes		(166)		(270)		104	38.5%
Net earnings		457		788		(331)	(42.0%)
Net earnings attributable to:
Common shareholders		402		725		(323)	(44.6%)
Preferred shareholders		47		46		1	2.2%
Non-controlling interest		8		17		(9)	(52.9%)
Net earnings		457		788		(331)	(42.0%)
Net earnings per common share - basic and diluted	$	0.44	$	0.79	$	(0.35)	(44.3%)
Dividends per common share	$	0.9975	$	0.9675	$	0.0300	3.1%
Weighted average number of common shares outstanding - basic (millions)		912.3		912.1
Weighted average number of common shares outstanding - diluted (millions)		912.3		912.3
Number of common shares outstanding (millions)		912.3		912.2
Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		402		725		(323)	(44.6%)
Reconciling items:
Severance, acquisition and other costs		229		49		180	n.m.
Net mark-to-market losses (gains) on derivatives used to economically hedge equity
settled share-based compensation plans		90		(18)		108	n.m.
Net losses on investments		6		-		6	-
Impairment of assets		13		34		(21)	(61.8%)
Income taxes for the above reconciling items		(85)		(18)		(67)	n.m.
Non-controlling interest (NCI) for the above reconciling items		(1)		-		(1)	-
Adjusted net earnings (A)		654		772		(118)	(15.3%)
Adjusted EPS (A)	$	0.72	$	0.85	$	(0.13)	(15.3%)

n.m. : not meaningful

(A) Adjusted EBITDA is a total of segments measure, adjusted net earnings is a non-GAAP financial measure and adjusted EPS is a non-GAAP ratio. Refer to note 2.3, Total of segments measures, note 2.1, Non- GAAP financial measures and note 2.2, Non-GAAP ratios in the Accompanying Notes to this report for more information on these measures.

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

BCE Supplementary Financial Information - First Quarter 2024 Page 2

BCE

Consolidated Operational Data - Historical Trend

				TOTAL
(In millions of Canadian dollars, except share amounts) (unaudited)		Q1 24		2023		Q4 23		Q3 23		Q2 23		Q1 23
Operating revenues
Service		5,192		21,154		5,348		5,281		5,303		5,222
Product		819		3,519		1,125		799		763		832
Total operating revenues		6,011		24,673		6,473		6,080		6,066		6,054
Operating costs		(3,446)		(14,256)		(3,906)		(3,413)		(3,421)		(3,516)
Adjusted EBITDA		2,565		10,417		2,567		2,667		2,645		2,538
Adjusted EBITDA margin		42.7%		42.2%		39.7%		43.9%		43.6%		41.9%
Severance, acquisition and other costs		(229)		(200)		(41)		(10)		(100)		(49)
Depreciation		(946)		(3,745)		(954)		(937)		(936)		(918)
Amortization		(316)		(1,173)		(299)		(295)		(296)		(283)
Finance costs
Interest expense		(416)		(1,475)		(399)		(373)		(359)		(344)
Net return on post-employment benefit plans		16		108		27		27		27		27
Impairment of assets		(13)		(143)		(109)		-		-		(34)
Other (expense) income		(38)		(466)		(147)		(129)		(311)		121
Income taxes		(166)		(996)		(210)		(243)		(273)		(270)
Net earnings		457		2,327		435		707		397		788
Net earnings attributable to:
Common shareholders		402		2,076		382		640		329		725
Preferred shareholders		47		187		48		47		46		46
Non-controlling interest		8		64		5		20		22		17
Net earnings		457		2,327		435		707		397		788
Net earnings per common share - basic and diluted	$	0.44	$	2.28	$	0.42	$	0.70	$	0.37	$	0.79
Dividends per common share	$	0.9975	$	3.8700	$	0.9675	$	0.9675	$	0.9675	$	0.9675
Weighted average number of common shares outstanding - basic (millions)		912.3		912.2		912.3		912.3		912.2		912.1
Weighted average number of common shares outstanding - diluted (millions)		912.3		912.2		912.3		912.3		912.5		912.3
Number of common shares outstanding (millions)		912.3		912.3		912.3		912.3		912.3		912.2
Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		402		2,076		382		640		329		725
Reconciling items:
Severance, acquisition and other costs		229		200		41		10		100		49
Net mark-to-market losses (gains) on derivatives used to economically hedge
equity settled share-based compensation plans		90		103		(6)		128		(1)		(18)
Net equity losses on investments in associates and joint ventures		-		581		204		-		377		-
Net losses (gains) on investments		6		(80)		(2)		1		(79)		-
Early debt redemption costs		-		1		-		-		1		-
Impairment of assets		13		143		109		-		-		34
Income taxes for the above reconciling items		(85)		(100)		(39)		(38)		(5)		(18)
NCI for the above reconciling items		(1)		2		2		-		-		-
Adjusted net earnings		654		2,926		691		741		722		772
Adjusted EPS	$	0.72	$	3.21	$	0.76	$	0.81	$	0.79	$	0.85

BCE Supplementary Financial Information - First Quarter 2024 Page 3

BCE (1)

Segmented Data

	Q1	Q1
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	2024	2023	$ change	% change
Operating revenues
Bell Communication and Technology Services (Bell CTS)	5,375	5,367	8	0.1%
Bell Media	725	780	(55)	(7.1%)
Inter-segment eliminations	(89)	(93)	4	4.3%
Total	6,011	6,054	(43)	(0.7%)
Operating costs
Bell CTS	(2,927)	(2,961)	34	1.1%
Bell Media	(608)	(648)	40	6.2%
Inter-segment eliminations	89	93	(4)	(4.3%)
Total	(3,446)	(3,516)	70	2.0%
Adjusted EBITDA
Bell CTS	2,448	2,406	42	1.7%
Margin	45.5%	44.8%		0.7 pts
Bell Media	117	132	(15)	(11.4%)
Margin	16.1%	16.9%		(0.8) pts
Total	2,565	2,538	27	1.1%
Margin	42.7%	41.9%		0.8 pts
Capital expenditures
Bell CTS	975	1,052	77	7.3%
Capital intensity (A)(3)	18.1%	19.6%		1.5 pts
Bell Media	27	34	7	20.6%
Capital intensity	3.7%	4.4%		0.7 pts
Total	1,002	1,086	84	7.7%
Capital intensity	16.7%	17.9%		1.2 pts

1. Capital intensity is defined as capital expenditures divided by operating revenues.

BCE Supplementary Financial Information - First Quarter 2024 Page 4

BCE

Segmented Data - Historical Trend

		TOTAL
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 24	2023	Q4 23	Q3 23	Q2 23	Q1 23
Operating revenues
Bell CTS	5,375	21,926	5,744	5,461	5,354	5,367
Bell Media	725	3,117	822	710	805	780
Inter-segment eliminations	(89)	(370)	(93)	(91)	(93)	(93)
Total	6,011	24,673	6,473	6,080	6,066	6,054
Operating costs
Bell CTS	(2,927)	(12,206)	(3,325)	(2,997)	(2,923)	(2,961)
Bell Media	(608)	(2,420)	(674)	(507)	(591)	(648)
Inter-segment eliminations	89	370	93	91	93	93
Total	(3,446)	(14,256)	(3,906)	(3,413)	(3,421)	(3,516)
Adjusted EBITDA
Bell CTS	2,448	9,720	2,419	2,464	2,431	2,406
Margin	45.5%	44.3%	42.1%	45.1%	45.4%	44.8%
Bell Media	117	697	148	203	214	132
Margin	16.1%	22.4%	18.0%	28.6%	26.6%	16.9%
Total	2,565	10,417	2,567	2,667	2,645	2,538
Margin	42.7%	42.2%	39.7%	43.9%	43.6%	41.9%
Capital expenditures
Bell CTS	975	4,421	975	1,123	1,271	1,052
Capital intensity	18.1%	20.2%	17.0%	20.6%	23.7%	19.6%
Bell Media	27	160	54	36	36	34
Capital intensity	3.7%	5.1%	6.6%	5.1%	4.5%	4.4%
Total	1,002	4,581	1,029	1,159	1,307	1,086
Capital intensity	16.7%	18.6%	15.9%	19.1%	21.5%	17.9%

BCE Supplementary Financial Information - First Quarter 2024 Page 5

			Bell CTS (1)
	Q1	Q1
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	2024	2023	% change
Bell CTS
Operating revenues
Wireless	1,774	1,723	3.0%
Wireline data	2,012	2,001	0.5%
Wireline voice	683	726	(5.9%)
Other wireline services	81	78	3.8%
External service revenues	4,550	4,528	0.5%
Inter-segment service revenues	6	7	(14.3%)
Operating service revenues	4,556	4,535	0.5%
Wireless	684	626	9.3%
Wireline	135	206	(34.5%)
External/Operating product revenues	819	832	(1.6%)
Total external revenues	5,369	5,360	0.2%
Total operating revenues	5,375	5,367	0.1%
Operating costs	(2,927)	(2,961)	1.1%
Adjusted EBITDA	2,448	2,406	1.7%
Adjusted EBITDA margin	45.5%	44.8%	0.7 pts
Capital expenditures	975	1,052	7.3%
Capital intensity	18.1%	19.6%	1.5 pts

BCE Supplementary Financial Information - First Quarter 2024 Page 6

Bell CTS - Historical Trend

		TOTAL
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 24	2023	Q4 23	Q3 23	Q2 23	Q1 23
Bell CTS
Operating revenues
Wireless	1,774	7,120	1,803	1,828	1,766	1,723
Wireline data	2,012	8,084	2,030	2,032	2,021	2,001
Wireline voice	683	2,862	697	717	722	726
Other wireline services	81	312	81	78	75	78
External service revenues	4,550	18,378	4,611	4,655	4,584	4,528
Inter-segment service revenues	6	29	8	7	7	7
Operating service revenues	4,556	18,407	4,619	4,662	4,591	4,535
Wireless	684	2,885	961	672	626	626
Wireline	135	634	164	127	137	206
External/Operating product revenues	819	3,519	1,125	799	763	832
Total external revenues	5,369	21,897	5,736	5,454	5,347	5,360
Total operating revenues	5,375	21,926	5,744	5,461	5,354	5,367
Operating costs	(2,927)	(12,206)	(3,325)	(2,997)	(2,923)	(2,961)
Adjusted EBITDA	2,448	9,720	2,419	2,464	2,431	2,406
Adjusted EBITDA margin	45.5%	44.3%	42.1%	45.1%	45.4%	44.8%
Capital expenditures	975	4,421	975	1,123	1,271	1,052
Capital intensity	18.1%	20.2%	17.0%	20.6%	23.7%	19.6%

BCE Supplementary Financial Information - First Quarter 2024 Page 7

		Bell CTS Metrics (1)
	Q1	Q1
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	2024	2023	% change
Mobile phone subscribers(3)
Gross subscriber activations	507,439	405,535	25.1%
Postpaid	366,874	272,609	34.6%
Prepaid	140,565	132,926	5.7%
Net subscriber activations (losses)	25,208	26,635	(5.4%)
Postpaid	45,247	43,289	4.5%
Prepaid	(20,039)	(16,654)	(20.3%)
Subscribers end of period(A)	10,206,452	9,902,492	3.1%
Postpaid(A)	9,362,275	9,039,947	3.6%
Prepaid	844,177	862,545	(2.1%)
Blended average revenue per user (ARPU) ($/month)(3)(A)	58.14	58.15	-
Blended churn (%) (average per month)(3)	1.59%	1.29%	(0.30) pts
Postpaid	1.21%	0.90%	(0.31) pts
Prepaid	5.74%	5.28%	(0.46) pts
Mobile connected device subscribers(3)
Net subscriber activations	66,406	70,742	(6.1%)
Subscribers EOP	2,798,954	2,509,983	11.5%
Retail high-speed Internet subscribers(3)
Retail net subscriber activations	31,078	27,274	13.9%
Retail subscribers EOP(B)(C)(D)	4,496,712	4,278,497	5.1%
Retail internet protocol television (IPTV) subscribers(3)(E)
Retail IPTV net subscriber activations	14,174	10,899	30.0%
Retail IPTV subscribers EOP(D)	2,084,516	1,999,080	4.3%
Retail residential network access services (NAS)(3)
Retail residential NAS lines net losses	(43,911)	(46,881)	6.3%
Retail residential NAS lines(D)	1,977,706	2,143,890	(7.8%)

1. 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.
2. In Q1 2024, we removed 11,645 turbo hubs subscribers from our retail high-speed Internet subscriber base as we are no longer actively marketing this product in our wireless-to-the-home footprint.
3. In Q1 2024, our retail high-speed Internet subscriber base increased by 3,850 business subscribers as a result of a small acquisition.
4. In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.
5. As of Q1 2024, we are no longer reporting retail satellite TV subscribers as this no longer represents a significant proportion of our revenues. As a result, satellite TV subscribers have been removed from our retail TV subscriber base, and we now report exclusively retail IPTV subscribers.

BCE Supplementary Financial Information - First Quarter 2024 Page 8

Bell CTS Metrics - Historical Trend

		TOTAL
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 24	2023	Q4 23	Q3 23	Q2 23	Q1 23
Mobile phone subscribers
Gross subscriber activations	507,439	2,224,555	712,310	603,770	502,940	405,535
Postpaid	366,874	1,608,503	564,784	423,364	347,746	272,609
Prepaid	140,565	616,052	147,526	180,406	155,194	132,926
Net subscriber activations (losses)	25,208	411,189	92,085	166,930	125,539	26,635
Postpaid	45,247	426,172	128,715	142,886	111,282	43,289
Prepaid	(20,039)	(14,983)	(36,630)	24,044	14,257	(16,654)
Subscribers end of period(A)	10,206,452	10,287,046	10,287,046	10,194,961	10,028,031	9,902,492
Postpaid(A)	9,362,275	9,422,830	9,422,830	9,294,115	9,151,229	9,039,947
Prepaid	844,177	864,216	864,216	900,846	876,802	862,545
Blended ARPU ($/month)(A)	58.14	59.08	58.71	60.28	59.16	58.15
Blended churn (%) (average per month)	1.59%	1.51%	2.03%	1.45%	1.27%	1.29%
Postpaid	1.21%	1.15%	1.63%	1.10%	0.94%	0.90%
Prepaid	5.74%	5.31%	6.15%	5.10%	4.68%	5.28%
Mobile connected device subscribers
Net subscriber activations	66,406	293,307	78,746	64,282	79,537	70,742
Subscribers EOP	2,798,954	2,732,548	2,732,548	2,653,802	2,589,520	2,509,983
Retail high-speed Internet subscribers
Retail net subscriber activations	31,078	187,126	55,591	79,327	24,934	27,274
Retail subscribers EOP(B)(C)(D)	4,496,712	4,473,429	4,473,429	4,417,838	4,338,511	4,278,497
Retail IPTV subscribers(E)
Retail IPTV net subscriber activations	14,174	81,918	23,537	35,976	11,506	10,899
Retail IPTV subscribers EOP(D)	2,084,516	2,070,342	2,070,342	2,046,805	2,010,829	1,999,080
Retail residential NAS
Retail residential NAS lines net losses	(43,911)	(176,612)	(38,347)	(41,776)	(49,608)	(46,881)
Retail residential NAS lines(D)	1,977,706	2,021,617	2,021,617	2,059,964	2,101,740	2,143,890

1. 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.
2. In Q1 2024, we removed 11,645 turbo hubs subscribers from our retail high-speed Internet subscriber base as we are no longer actively marketing this product in our wireless-to-the-home footprint.
3. In Q1 2024, our retail high-speed Internet subscriber base increased by 3,850 business subscribers as a result of a small acquisition.
4. In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.
5. As of Q1 2024, we are no longer reporting retail satellite TV subscribers as this no longer represents a significant proportion of our revenues. As a result, satellite TV subscribers have been removed from our retail TV subscriber base, and we now report exclusively retail IPTV subscribers.

BCE Supplementary Financial Information - First Quarter 2024 Page 9

BCE

Net debt and other information

BCE - Net debt and preferred shares

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

					March 31	December 31
					2024	2023
Long-term debt					31,283	31,135
Debt due within one year					6,386	5,042
50% of preferred shares					1,807	1,834
Cash					(789)	(547)
Cash equivalents					(171)	(225)
Short-term investments					(700)	(1,000)
Net debt (A)					37,816	36,239
Net debt leverage ratio (A)					3.62	3.48
Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)			Q1	Q1
			2024	2023	$ change	% change
Free cash flow (FCF) (A)
Cash flows from operating activities			1,132	1,247	(115)	(9.2%)
Capital expenditures			(1,002)	(1,086)	84	7.7%
Cash dividends paid on preferred shares			(46)	(55)	9	16.4%
Cash dividends paid by subsidiaries to non-controlling interest			(14)	(21)	7	33.3%
Acquisition and other costs paid			15	-	15	n.m.
FCF			85	85	-	-
Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1	TOTAL	Q4	Q3	Q2	Q1
	2024	2023	2023	2023	2023	2023
FCF
Cash flows from operating activities	1,132	7,946	2,373	1,961	2,365	1,247
Capital expenditures	(1,002)	(4,581)	(1,029)	(1,159)	(1,307)	(1,086)
Cash dividends paid on preferred shares	(46)	(182)	(46)	(35)	(46)	(55)
Cash dividends paid by subsidiaries to non-controlling interest	(14)	(47)	(12)	(13)	(1)	(21)
Acquisition and other costs paid	15	8	3	-	5	-
FCF	85	3,144	1,289	754	1,016	85

n.m. : not meaningful

1. Net debt and free cash flow are non-GAAP financial measures and net debt leverage ratio is a capital management measure. Refer to note 2.1, Non-GAAP financial measures and note 2.4, Capital management measures in the Accompanying Notes to this report for more information on these measures.

BCE Supplementary Financial Information - First Quarter 2024 Page 10