Q3 2024 BCE Inc Earnings Call Transcript
Key Points
- BCE Inc (BCE) reported a 2.1% growth in consolidated EBITDA and a 1.7 point margin increase to 45.6%, marking the best quarterly margin performance in over 30 years.
- Free cash flow increased by 10.3% in Q3, aligning with the company's financial plan.
- Digital revenues grew by 19%, driven by products like Crave with ads and connected TV, contributing to offsetting pressures in traditional media.
- BCE Inc (BCE) is making significant progress in modernizing operations, leveraging technology for cost efficiencies, and is ahead of plan in reducing CapEx by over $1 billion for 2024-2025.
- The acquisition of Ziply Fiber is expected to be immediately accretive to cash flow from operations, enhancing BCE's financial growth profile and expanding its footprint in the US fiber market.
- Total revenue declined by 1.8% due to a 14.3% decrease in low margin wireless and wireline product sales, including the loss of revenue from The Source store closures.
- Wireless ARPU was down 3.4%, reflecting excessive rate plan discounting and promotional offer intensity over the past year.
- Net earnings and statutory EPS declined in Q3 due to approximately $2.1 billion in non-cash asset impairment charges for Bell Media's TV and radio properties.
- BCE Inc (BCE) revised its revenue guidance for 2024, now expecting a decline of approximately 1.5% due to near-term top-line pressures.
- Postpaid churn increased against the backdrop of elevated competitive activity, although there was a deceleration in the year-over-year rate of increase.
Good morning, ladies and gentlemen. Welcome to the BCE Q3 2024 results conference call.
I would now like to turn the meeting over to Mr. Thane Fotopoulos. Please go ahead, Mr. Fotopoulos.
(-)--
Thank you, Matthew. Good moring, everyone and thank you for joining our call.
With me here today as usual are Mirko Bibic, President and CEO of BCE; and our CFO, Curtis Millen.
You can find all of our Q3 disclosure documents on the Investor Relations page of the bce.ca website, which we posted earlier this morning.
Before we begin, I want to draw your attention to the Safe Harbor on slide 2, reminding you that today's slide presentation and remarks made during the call will include forward-looking statements and information and therefore are subject to risks and uncertainties. Results could differ materially. We disclaim any obligation to update forward-looking
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