BCE(US:BCE)2024-11-07 15:01Financial Performance - BCE Inc. reported financial results for Q3 2024, with total revenue of CAD 6,000 million, representing a 5% increase compared to Q3 2023[6]. - BCE's adjusted EBITDA for Q3 2024 was CAD 2,500 million, reflecting a 4% increase from the same period last year[6]. - BCE's operating revenues in Q3 2024 decreased by 1.8% year-over-year to $5,971 million, primarily due to a 14.3% decline in product revenues[22]. - The net loss attributable to common shareholders was $1,237 million in Q3 2024, a significant increase of $1,877 million compared to a net income of $640 million in Q3 2023[22]. - Adjusted EBITDA grew by 2.1% year-over-year to $2,722 million, with an adjusted EBITDA margin of 45.6%, up 1.7 percentage points from Q3 2023[23]. - BCE's total operating revenues for Q3 2024 were $5,971 million, a decrease of 1.8% compared to Q3 2023[42]. - Net loss for Q3 2024 was $1,191 million, a significant decline compared to net earnings of $707 million in Q3 2023[42]. - Cash flows from operating activities decreased by $119 million to $1,842 million in Q3 2024, attributed to lower cash from working capital and higher interest paid[26]. - BCE's adjusted net earnings for Q3 2024 were $688 million, or $0.75 per common share, down from $741 million, or $0.81 per common share, in Q3 2023[26]. Subscriber Growth and Market Position - The company added 150,000 new wireless subscribers in Q3 2024, bringing the total wireless subscriber base to 10 million, a year-over-year growth of 6%[6]. - BCE added 162,350 net retail subscriber activations in Q3 2024, down 46.7% year-over-year[45]. - Mobile phone net subscriber activations were 102,196 in Q3 2024, a decrease of 38.8% compared to Q3 2023[45]. - Retail residential NAS lines experienced net losses of 47,674 in Q3 2024[45]. - BCE's retail subscriber connections totaled 21,771,695 as of September 30, 2024, up 1.9% year-over-year[45]. - Retail high-speed Internet net subscriber activations decreased by 46.5% in Q3 2024, attributed to competitive pressures and market growth slowdown[114]. - Retail IPTV net subscriber activations decreased by 74.4% in Q3 2024, driven by reduced gross activations and competitive intensity[116]. Capital Expenditures and Investments - BCE's capital expenditures for 2024 are projected to be CAD 3,000 million, aimed at network enhancements and capacity expansion[12]. - BCE plans to maintain its annual common share dividend at CAD 3.00 per share during 2025, with potential future growth in dividends anticipated[8]. - BCE plans to dispose of its 37.5% stake in MLSE for $4.7 billion, with proceeds directed towards the acquisition of Ziply Fiber[30]. - BCE announced a definitive agreement to acquire Ziply Fiber for approximately $5.0 billion in cash and $2.0 billion in net debt, enhancing its fiber footprint in North America[29]. - The company is investing in new technologies and services to transition from a traditional telecommunications provider to a tech services and digital media company[12]. Financial Risks and Challenges - The company faces risks including economic conditions, regulatory changes, and competitive pressures that could impact future performance[12]. - Interest expense increased by 18.0% in Q3 2024, amounting to $440 million compared to $373 million in Q3 2023[42]. - The company experienced a significant impairment of assets of $2,113 million in Q3 2024, primarily in the Bell Media segment due to declining advertising demand[22]. - Operating costs decreased by 4.8% in Q3 2024, totaling $3,249 million[55]. - The company is currently assessing the impact of new regulatory decisions on its business operations and financial results[192]. Media and Advertising Performance - Bell Media operating revenues increased by 10.1% in Q3 2024, driven by higher subscriber and advertising revenues[50]. - Digital revenues rose by 19% in Q3 2024 and 24.9% year-to-date, contributing significantly to the growth in operating revenues[129]. - Bell Media's advertising revenues increased by 7.9% in Q3 2024, driven by digital advertising growth and higher out-of-home revenues[129]. - Adjusted EBITDA for Bell Media grew by 25.1% in Q3 2024 to $254 million, with a margin increase of 3.9 percentage points to 32.5%[130]. Debt and Liquidity - Long-term debt increased by $1,471 million (4.7%) to $32,606 million, while debt due within one year rose by $2,433 million (48.3%) to $7,475 million[138]. - Net debt increased by $3,012 million (8.3%) to $39,251 million, primarily due to cash flows from operating activities of $5,111 million and long-term debt issuance of $3,818 million[138]. - Total available liquidity as of September 30, 2024, was CAD 4.4 billion, consisting of CAD 1,860 million in cash, CAD 750 million in short-term investments, and CAD 1.2 billion available under credit facilities[177]. - The company expects to meet its 2024 cash requirements through cash flows from operations and available liquidity[178].