Earnings Details
3rd Quarter September 2017
Thursday, November 02, 2017 7:00:00 AM
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BCE Reaffirms

BCE (BCE) reported 3rd Quarter September 2017 earnings of $0.70 per share on revenue of $4.5 billion. The consensus earnings estimate was $0.67 per share on revenue of $4.6 billion. Revenue grew 9.2% on a year-over-year basis.

The company said it continues to expect 2017 non-GAAP earnings of $3.30 to $3.40 per share. The current consensus earnings estimate is $3.36 per share for the year ending December 31, 2017.

BCE Inc is a communications company, providing residential, business and wholesale customers with a solutions for all their communications needs. It has four business segments: Bell Wireline, Bell Wireless, Bell Media and Bell Aliant.

Reported Earnings
Earnings Whisper
Consensus Estimate
Reported Revenue
$4.53 Bil
Revenue Estimate
$4.57 Bil
Earnings Growth
Revenue Growth
Power Rating
Earnings Release

BCE reports third quarter 2017 results

This news release contains forward-looking statements. For a description of the related risk factors and assumptions please see the section entitled "Caution Concerning Forward-Looking Statements" later in this release.

Net earnings increased 2.1% to $817 million; net earnings
attributable to common shareholders up 2.4% to $770 million, or
$0.86 per common share; adjusted net earnings of $799 million
1.9% higher, generating adjusted EPS of $0.88
Cash flows from operating activities of $2,233 million, up
14.9%, drove free cash flow growth of 24.4%, supporting capital
spending and common share dividend
Service revenue and adjusted EBITDA up 5.9% and 5.8%
respectively, yielding higher margin of 41.7%, on continued
strong wireless growth, improved wireline subscriber results,
and Bell MTS synergies
198,005 total wireless postpaid, Internet, and IPTV net
additions, up 8.3%
Strong wireless operating performance with 9.2% higher postpaid
net additions of 117,182, 11.2% increase in service revenue,
and adjusted EBITDA growth of 9.4%
80,823 new Internet and IPTV customer additions, up 6.9% year
over year, on rapidly expanding broadband fibre footprint and
IPTV product innovation
Wireline service revenue growth of 4.1% drove 4.4% higher
adjusted EBITDA and 0.6-point increase in industry-leading
margin of 42.3%, fully supporting continuing significant
broadband fibre investments going forward
Media revenue up 1.0% with stable year-over-year adjusted
EBITDA; proposed acquisition of French-language specialty
channels S?ries+ and Historia enhances Bell Media’s competitive
positioning in Qu?bec marketplace

BCE Inc. (TSX: BCE) (BCE), Canada's largest communications company, today reported results for the third quarter (Q3) of 2017.

($ millions except per share
amounts) (unaudited)
Q3 2017
Q3 2016
% change
Operating revenues
Net earnings
Net earnings attributable to
common shareholders
Adjusted net earnings(1)
Adjusted EBITDA(2)
Adjusted EPS(1)
Cash flows from operating
Free cash flow(3)

"The competitive advantages enabled by Bell's advanced fibre and wireless networks, coupled with strong execution of our broadband innovation strategy by the Bell team throughout Canada, delivered almost 200,000 net new broadband postpaid wireless, Internet, and IPTV customers in Q3 - up more than 8% compared to last year - and significant increases in network usage, revenue, and customer satisfaction," said George Cope, President and Chief Executive Officer of BCE Inc. and Bell Canada. "The rapid pace of Bell's broadband Fibe and mobile LTE-A network deployments and service innovation supported a record number of Q3 postpaid wireless gross activations and our best Q3 postpaid net additions since 2012, as well as our first quarter of year-over-year combined Internet and IPTV customer increases since Q1 2015 - including net positive growth in our overall national TV business."

"With Bell LTE coverage reaching 99% of Canadians in Q3, and 86% of our mobile customers now using Canada's best national network, strong growth in mobile data usage continued to support industry-leading wireless revenue and adjusted EBITDA growth. Strong Fibe TV and Internet customer increases drove wireline adjusted EBITDA growth of 4.4% and enhanced customer satisfaction as the Fibe footprint continues to grow, while also improving our results in home phone and business NAS. Bell Media continued to build on its leadership in multimedia, including the most-watched programs in both conventional, specialty and pay TV, resulting in revenue growth and steady adjusted EBITDA performance in a fast-changing media marketplace."

Bell is focused on achieving a clear goal - to be recognized by customers as Canada's leading communications company - through the execution of 6 Strategic Imperatives: Invest in Broadband Networks & Services, Accelerate Wireless, Leverage Wireline Momentum, Expand Media Leadership, Improve Customer Service, and Achieve a Competitive Cost Structure. This broadband leadership strategy has delivered world-class fibre and wireless LTE networks; continued strong performance across wireless, TV, Internet, and media growth services; 48 consecutive quarters of uninterrupted year-over-year adjusted EBITDA growth; and 13 increases to the BCE common share dividend since the end of 2008 - a total increase of 97%.

CORPORATE DEVELOPMENTSFor full details of BCE corporate developments in the quarter, please refer to the BCE Q3 2017 Shareholder Report at BCE.ca.

Bell LTE mobile network reaches 99% Canadian coverage milestone

Bell’s LTE network now reaches 99% of Canadians, the first time
a wireless technology has provided near-ubiquitous broadband
coverage across the national population.
Bell continues to expand coverage to keep pace with population
growth in centres large and small - including a plan announced
September 18 to expand broadband wireless service to all 25
communities in Nunavut. At the same time, Bell subsidiary
Northwestel announced 15 Megabits per second (Mbps) Internet
service for these same communities in partnership with the
federal government’s Connect to Innovate program.
As the nation’s wireless innovation leader, Bell also continues
to drive mobile data speeds in Canada to world-leading levels.
LTE offers theoretical data download speeds up to 150 Mbps to
99% of the national population, and 82% are now covered by Bell
LTE Advanced (LTE-A) with speeds up to 260 Mbps. Bell now
reaches 33% of Canadians with Tri-band LTE-A service offering
theoretical speeds up to 335 Mbps, and up to 750 Mbps with the
leading-edge Bell Quad Band LTE-A service available to 21% of
the population.
Bell is now conducting further trials of Fifth Generation (5G)
mobile technology in the 28 GHz and 3.5 GHz ranges with
technology partner Huawei. Bell previously successfully
demonstrated 5G capability in the 73 GHz range in collaboration
with Nokia in 2016. 5G technology will enable significantly
faster data speeds, lower latency, and increased capacity to
meet demands for mobile video, virtual reality, and Internet of
Things (IoT) applications. Bell is a member of the Next
Generation Mobile Networks consortium, the global body defining
requirements for the international 5G ecosystem.

Bell MTS moving forward in Manitoba

Bell MTS continues to roll out new broadband fibre and wireless
service in Manitoba as part of Bell’s 5-year, $1-billion
capital investment plan for the province.
Bell Fibe Internet, offering download speeds up to 940 Mbps, is
now available in parts of Beausejour, Blumenort, Brandon,
Carberry, Dauphin, Dugald, Gimli, Killarney, La Salle, Lorette,
Minnedosa, Mitchell, Morden, Neepawa, Niverville, Oakbank,
Oakbluff, Selkirk, Steinbach, Stonewall, The Pas, Thompson, and
Winkler, in addition to Fibe service already available in some
Winnipeg locations.
Approximately 85% of the Bell MTS wireless network has been
upgraded to LTE-A capability, including in Winnipeg, Brandon,
Portage La Prairie, Selkirk, Steinbach, Gimli, Morden, Winkler,
Churchill, Thompson, Flin Flon, Falcon Lake, East St. Paul, and
Grand Beach. Next week, Bell will also complete continuous
wireless coverage along the critical Highway 75 corridor
linking Winnipeg to the US border at Emerson.
Bell will become the only carrier to offer cellular service for
Apple Watch Series 3 in Manitoba beginning in early December.
This month, Bell MTS will introduce Fibe TV service in selected
areas of the province, including exclusive television
innovations like Restart, which lets you watch a show already
in progress, or up to 30 hours after it started, from the

Federal wireless and WAN contracts

On October 3, Shared Services Canada (SSC) announced Bell
Mobility as the primary supplier of the Government of Canada’s
mobile network services and devices for the next 6 years, with
options to renew. Bell Mobility will supply voice, text, and
data services and approximately 230,000 mobile devices to
federal employees in more than 100 departments and agencies.
On October 20, SSC awarded Bell Business Markets a 7-year
contract for GCNet WAN International Services - Stream 3,
providing international WAN services for federal departments,
including Global Affairs, National Defence, and Veterans
Affairs, in more than 140 countries. Enabled by Bell’s MPLS and
IP-based network capabilities, GCNet Stream 3 will support new
video, data and voice applications.

Only Bell offers all of Apple's newest mobile products in Canada

Bell announced the availability of the new generation iPhone 8,
iPhone 8 Plus, and Apple TV 4K on September 22, and became the
only carrier in Canada (and 1 of just 13 worldwide) to offer
cellular service for Apple Watch Series 3.
In addition to enhancing network capability with Voice over LTE
(VoLTE) technology to enable the GPS and cellular functions of
the Apple Watch, Bell also introduced NumberShare, a service
that enables customers to pair the Apple Watch with their
iPhone using the same phone number.
With the availability of the iPhone X in Bell and The Source
stores tomorrow, Bell becomes the only carrier in Canada to
offer the complete line-up of the latest generation of Apple
Bell further expanded its leading mobile device lineup in Q3
with Google’s Pixel 2 smartphone, with the larger-screen Pixel
2 XL scheduled to arrive in stores November 15.

Bell Business Markets service and innovation centre in New Brunswick

On October 6, Bell and the Government of New Brunswick
announced a National Service Centre in Fredericton that will
create up to 150 full-time jobs over the next 5 years,
including technical, business and security analysts, quality
assurance, developers, and project management positions. The
centre will provide enhanced delivery of technology solutions
to large business customers in the Atlantic region and across
Canada while supporting the development of new cybersecurity
Bell also announced a $100,000 investment in the Canadian
Institute for Cybersecurity at the University of New Brunswick
to support collaboration in one of the fastest-growing
technology sectors in the world.

Bell Media grows French-language channel offering, enhances NHL coverage

Bell Media announced on October 17 that it had entered into an
agreement with Corus Entertainment Inc. to acquire
French-language specialty channels S?ries+ and Historia. The
addition of these premier channels will further strengthen Bell
Media’s French-language TV offerings in the Qu?bec marketplace.
Valued at approximately $200 million, the transaction is
subject to federal regulatory approvals and expected to close
in 2018.
Bell Media’s English and French-language sports networks TSN
and RDS have significantly expanded regional NHL coverage this
hockey season, with TSN set to deliver more than 190
regular-season games in 4 markets, and RDS to broadcast 119
Montr?al Canadiens and Ottawa Senators games. TSN will also
bring a total of 60 Winnipeg Jets regular season games to
viewers in Manitoba.

Bell Let's Talk the most-used Twitter hashtag ever in Canada

With August 23 marking the 10(th) anniversary of the Twitter
#hashtag, the social media network announced the all-time Top 5
most-used hashtags in Canada- and #BellLetsTalk was #1. Twitter
support has been part of Bell Let’s Talk Day since 2013, and
since then almost 27 million tweets have used #BellLetsTalk and
the French-language #BellCause to share the mental health
The Bell Let’s Talk Community Fund is supporting 70 more local
and grassroots mental health organizations throughout Canada
this year. Since 2011, 414 front-line community groups in every
region of the country have received grants from annual
Community Fund. Applications for the 2018 fund open in January
Bell Let’s Talk continues to be recognized for its
ground-breaking work to eliminate the stigma of mental illness
and drive action in mental health care, research, and workplace
leadership. In October, the 2017 Global Carrier Awards
recognized Bell Let’s Talk with its Best Workplace Initiative
Award, and the Academy of Canadian Cinema & Television
announced Bell Let’s Talk as the recipient of its 2018
Humanitarian Award.

BCE RESULTS"We performed well across the business in Q3, posting a very solid quarter of service revenue, adjusted EBITDA and margin growth, driven by continued excellent wireless postpaid subscriber and financial metrics, stronger residential Internet and IPTV net customer additions, another quarter of stable media financial performance, and the favourable impact of Bell MTS," said Glen LeBlanc, Chief Financial Officer for BCE and Bell. "Our year-to-date free cash flow growth of 20.1% and balance sheet strength fully support higher planned spending on the advanced broadband networks and services that are essential to driving the long-term growth of our business as well as the successful execution of our capital markets objectives. As well, with the recent rise in interest rates and our robust asset returns, the solvency ratio of the Bell Canada defined benefit pension plan now exceeds 97%, its strongest position in more than a decade."

BCE operating revenue grew 5.0% in Q3 to $5,678 million. This was driven by 5.9% higher service revenue, reflecting increases at both Bell Wireless and Bell Wireline, which included a favourable financial contribution from the acquisition of Manitoba Telecom Services Inc. (MTS), completed on March 17, as well as top-line growth at Bell Media. Product revenue decreased 6.8% to $356 million due to lower wireline data product sales to business customers.

Net earnings increased 2.1% to $817 million while net earnings attributable to common shareholders grew 2.4% to $770 million, or $0.86 per share, compared to $0.87 per share in Q3 2016. Higher net earnings were due to growth in operating revenue that drove higher adjusted EBITDA as well as lower income taxes, partly offset by increased net depreciation and amortization expense and higher interest and other expense. Excluding severance, acquisition and other costs, net losses or gains on investments, impairment charges and early debt redemption costs, adjusted net earnings were up 1.9% in Q3 to $799 million, or $0.88 per common share, down from $0.91 per share last year. The increase in BCE's average number of common shares outstanding, due to the shares issued for the equity component of the MTS acquisition, resulted in earnings per share dilution this quarter.

BCE's adjusted EBITDA increased 5.8% to $2,366 million on year-over-year growth of 9.4% at Bell Wireless and 4.4% at Bell Wireline, supported by the financial contribution of Bell MTS. Bell Media adjusted EBITDA of $187 million was stable compared to last year.

BCE's consolidated adjusted EBITDA margin((2) )expanded to 41.7% from 41.4% last year as the flow-through of strong wireless service revenue growth, increasing broadband Internet scale, Bell MTS integration synergies, and greater fibre-related cost savings more than offset higher year-over-year wireless postpaid subscriber retention and acquisition spending, higher residential wireline acquisition and retention costs required to match aggressive competitor bundle promotions, higher media content costs, and the margin impact from the steady decline in traditional legacy voice services. Consolidated adjusted EBITDA and margin performance in Q3 was also moderated by the adverse impact of CRTC decisions related to wholesale Internet tariffs and customer cancellation refunds, which in aggregate totalled approximately $26 million in the quarter.

BCE continued its industry-leading investment in advanced broadband wireline and wireless infrastructure with total consolidated capital expenditures of $1,040 million, up 6.6% from Q3 2016, representing an increased capital intensity((4)) ratio (capital expenditures as a percentage of total revenue) of 18.3% compared to 18.1% last year. Higher spending mainly reflected ongoing broadband fibre deployment to more homes and businesses, including the build-out of Gigabit Fibe infrastructure in Toronto and other urban centres; increasing wireless LTE-A network speeds through carrier aggregation; deployment of small-cell technology to optimize mobile coverage, signal quality and data backhaul; augmenting wireless and Internet network capacity to support subscriber growth and rapid increases in video and other data usage; the impact of acquisitions and new contract wins at Astral Out of Home (AOOH); and upgrades to Bell Media broadcast studios and TV production equipment. The increase in the quarter also reflected investment in Manitoba to improve network coverage, capacity and speeds, and the ongoing integration of MTS billing and other systems with Bell's.

BCE cash flows from operating activities were up 14.9% to $2,233 million in Q3. The increase was the result of higher adjusted EBITDA, a positive change in working capital and lower income taxes paid, partly offset by higher interest payments, all of which reflected the incremental financial contribution of Bell MTS in the quarter. BCE generated $1,183 million of free cash flow this quarter, 24.4% higher than Q3 of last year, driven by an increase in cash flows from operating activities and partly offset by higher capital expenditures.

BCE reported 117,182 net new wireless postpaid customers in Q3, a net loss of 10,200 wireless prepaid subscribers; 44,424 net new high-speed Internet customers; 36,399 net new IPTV customers, and a net loss of 34,661 satellite TV customers. Residential and business NAS line net losses totalled 84,762. At the end of Q3, BCE customer connections across all services totalled 21,991,681, up 5.0% from last year. The total includes 9,008,273 wireless customers, up 7.5% over last year (including 8,243,446 postpaid customers, an increase of 8.8%); total high-speed Internet subscribers of 3,763,101, up 8.8%; total TV subscribers of 2,825,754, up 2.9% (including 1,517,833 IPTV customers, an increase of 16.6%); and total NAS lines of 6,394,553, an increase of 0.6%.


Bell WirelessContinued sharp operational execution and focus on subscriber profitability drove another quarter of strong financial performance for Bell Wireless. Service revenue increased 11.2% to $1,913 million, reflecting continued postpaid subscriber base growth, higher blended average revenue per user (ARPU)((4)) as customers move to higher-rate plans with accelerating data usage, and the financial contribution from Bell MTS. Product revenue remained unchanged compared to Q3 of 2016 at $127 million despite more customer transactions, due to competitive promotional smartphone pricing. Total operating revenue grew 10.4% to $2,040 million.

Wireless adjusted EBITDA was up 9.4% to $871 million in Q3, driven by the high flow-through of service revenue from a greater mix of higher-value postpaid subscribers in our overall customer base and overall price discipline. Bell Wireless also contributed significantly to consolidated free cash flow generation in Q3 with growth in adjusted EBITDA less capital expenditures of 14.0% to $685 million. However, service revenue margin declined to 45.5% from 46.3% in Q3 2016, due to $74 million in higher year-over-year total combined retention spending and subscriber acquisition costs that reflected more handset upgrades attributable to a higher number of customers with expired contracts and a higher sales mix of premium smartphones. This, together with the incremental expense contribution of Bell MTS, drove operating cost growth of 11.1% in the quarter.

Postpaid net additions in Q3 increased 9.2% to 117,182. This
strong performance was the result of lower customer churn((4))
and record Q3 postpaid gross additions of 390,985, up 2.5% over
last year, driven by Bell’s mobile network speed and technology
leadership, effective sales execution of targeted promotions
across all our retail channels, and the contribution of Bell
Postpaid customer churn improved 0.10 percentage points to
1.16%, reflecting the operational benefits of our investments
in network speed, customer retention, and service quality.
Bell Wireless postpaid customers totalled 8,243,446 at
September 30, 2017, up 8.8% from Q3 2016, which drove a 7.5%
increase in total wireless customers to 9,008,273.
Blended ARPU grew 3.0% to $69.78, the result of a higher
year-over-year postpaid subscriber mix, increased LTE data
usage and growth in subscribers on higher-value rate plans with
larger data thresholds in the overall revenue mix. On average,
Bell’s wireless LTE customers consumed 26% more data per month
in Q3 compared to last year.
The percentage of postpaid subscribers on LTE reached 86% in
Q3, up from 78% in Q3 2016.

Bell WirelineWireline operating revenue increased 2.9% in Q3 to $3,092 million, the result of 4.1% higher service revenue of $2,860 million driven by stronger Internet and IPTV net subscriber gains, 4.5% growth in household ARPU, improved year-over-year business performance reflecting financial contributions from data centre operator Q9 Networks (Q9) acquired in October 2016, and Bell MTS. This was partly offset by approximately $21 million in unfavourable regulatory-related financial impacts, compared to last year, from downward revisions to wholesale Internet tariffs and refunds for cancelled services mandated by the CRTC, as well as a $25 million, or 9.7%, decrease in low-margin product revenue to $232 million.

Wireline adjusted EBITDA growth accelerated this quarter, increasing 4.4% over Q3 2016 to $1,308 million, which yielded a 0.6-point expansion in margin to 42.3%. This was driven by higher year-over-year service revenue, customer service operating efficiencies, fibre-related savings, and Bell MTS integration synergies, despite the adverse financial impact of CRTC-related regulatory decisions and higher operating costs compared to last year. Operating costs were up 1.8% to $1,784 million, due mainly to the acquisitions of MTS and Q9. Excluding regulatory impacts, wireline adjusted EBITDA was up 6.1% in the quarter.

High-speed Internet net subscriber additions totalled 44,424,
up 12.8% compared to 39,375 last year. The increase reflected
effective marketing of student promotions during the
back-to-school period; the pull-through of IPTV customer
activations, including from Bell’s new app-based live TV
streaming service Alt TV; as well as lower customer churn
driven both by the ongoing expansion of Bell’s FTTP footprint
and enhanced competitive speeds in areas where Bell direct
fibre service is not available. Bell’s direct fibre footprint
grew to approximately 3.6 million homes and commercial
locations this quarter, up from 2.8 million at the end of Q3
At September 30, 2017, BCE’s high-speed Internet customer base
totalled 3,763,101, up 8.8% compared to Q3 last year.
Bell TV gained 36,399 net new IPTV subscribers in Q3, up
slightly from the 36,253 added last year, despite sustained
aggressive cable service bundle offers, increasing maturity of
current Fibe TV markets, and over-the-top substitution.
Stronger year-over-year performance reflected the positive
operational benefits from a first full quarter of Alt TV
marketing, an expanded FTTP footprint, and fewer Bell retail
customers with expired pricing promotions in the quarter. At
the end of Q3, BCE served 1,517,833 IPTV subscribers, up 16.6%
over Q3 2016.
Satellite TV net customer losses improved 15.4% over last year
to 34,661 due to fewer customer deactivations.
At the end of Q3, BCE had a total of 2,825,754 TV subscribers,
up 2.9% compared to 2,745,873 at the end of Q3 2016.
Wireline data service revenue increased 6.0% to $1,806 million,
due to the favourable impact of Bell MTS, Internet and TV
subscriber base growth, higher ARPU from customer upgrades to
faster Internet speeds, larger data usage Internet rate plans
and flow-through of price changes in 2017, as well as higher
business service solutions revenue driven by the incremental
financial contribution of Q9.
Wireline product revenue decreased 9.7% to $232 million,
reflecting lower demand for telecommunications equipment by
large enterprise business and wholesale customers due to
competitive pricing and technology substitution, and higher
sales in Q3 2016 from a large customer contract in the
healthcare sector.
Residential NAS net losses improved 28.8% to 57,387 from 80,587
in Q3 2016, due to the strong pull-through of Fibe TV service
bundle activations in the quarter, despite aggressive cable
promotional offers and ongoing wireless and Internet technology
Business NAS net losses were down 27.5% to 27,375 from 37,734
in Q3 last year, due to fewer large business and wholesale
customer deactivations, and improved small business
NAS access lines at the end of Q3 totalled 6,394,553, up 0.6%
from 6,358,362 last year. Local and access revenue increased
3.9% to $796 million due to the incremental financial
contribution of Bell MTS and residential rate increases. Long
distance revenue decreased 17.5% to $156 million as a result of
ongoing NAS access line erosion, technology substitution by
wireless and Internet technologies, and lower sales of
international long distance minutes to wholesale customers.

Bell MediaIn a seasonally low quarter for the media sector, Bell Media operating revenue increased 1.0% in Q3 to $723 million, the result of higher advertising and subscriber revenues.

Advertising revenue was up over Q3 2016 due to continued growth in outdoor advertising at Astral Out of Home (AOOH). Although results this quarter reflected the recapture of advertising dollars following the shift in Q3 last year to the main broadcaster of the Rio Summer Olympics, conventional and overall specialty TV revenues decreased due to continued market softness and a steady decline in audience levels. Subscriber revenue also increased over last year on higher revenues from CraveTV and TV Everywhere GO products.

Media adjusted EBITDA of $187 million in Q3 was unchanged, compared to last year, as higher revenue was offset by a 1.3% increase in operating costs due to higher programming and content costs driven by the ongoing ramp-up of content for our CraveTV and pay TV services, deal renewals for specialty TV programming, and increased costs at AOOH as a result of acquisitions and new outdoor advertising contract wins over the past year.

CTV was the most-watched television network with 10 of the top
20 programs, and 7 of the top 10 programs during fall premiere
week with viewers aged 25 to 54, including the top 2 new fall
series: Young Sheldon and The Good Doctor.
Bell Media reached 82% of Canadian English-language specialty
and pay TV viewers in the average week in Q3, with 5 of the top
10 Canadian English entertainment specialty and pay channels
among viewers aged 25 to 54: Space, Discovery, TMN, Comedy, and
Game of Thrones Season 7 was the most-watched series ever on
Canadian specialty and pay TV and the #1 summer show overall,
while the Handmaid’s Tale was the most-watched new program on
Canadian entertainment specialty TV during the 2016/2017
broadcast year. Star Trek: Discovery, airing on Space and also
available on streaming service CraveTV, broke records with the
3 highest-rated series episodes in Canadian specialty TV
Overall viewership for NFL games is up 10% over last year on
TSN and CTV, with average audiences up 53% for Sunday night
games, up 18% on Mondays and up 12% on Thursdays.
Bell Media maintained its position in the Qu?bec market with
Bell Media French specialty and pay TV reaching 70% of all
French-language TV viewers in the average week in Q3.
Canada’s top radio broadcaster again in summer 2017, Bell Media
on average reached 17.8 million listeners. On August 9, Bell
Media agreed to acquire 4 Ontario FM radio stations from Larche
Communications Inc. Pending CRTC approval, the addition of
these stations to Bell Media’s 105 iHeartRadio Canada
properties will broaden the network’s industry-leading reach
across the country.
Bell Media continued to lead in digital media among Canadian
broadcast and video network competitors, reaching 67% of the
digital audience in Q3 with 21 million unique monthly visitors,
average monthly time of 1.1 billion minutes spent on the sites,
and 358 million videos viewed.
The exclusive outdoor advertising provider for Toronto Pearson
International, AOOH introduced 2 new large-format digital
superboards close to Canada’s largest airport in August,
providing airport information and advertising opportunities
reaching a daily circulation of close to 800,000 commuters and
passengers. AOOH now has more than 40 large digital faces in
the Toronto market.

COMMON SHARE DIVIDENDBCE's Board of Directors has declared a quarterly dividend of $0.7175 per common share, payable on January 15, 2018 to shareholders of record at the close of business on December 15, 2017.

OUTLOOK FOR 2017BCE confirmed its financial guidance targets for 2017, as updated on April 26, 2017 to reflect the acquisition of MTS, as follows:

April 26 Guidance
November 2 Guidance
Revenue growth
4% - 6%
On track
EBITDA growth
4% - 6%
On track
approx. 17%
On track
Adjusted EPS
$3.30 - $3.40
On track
Free cash flow
approx. 5% - 10%
On track
dividend per
65% - 75%
On track
of free cash flow

CALL WITH FINANCIAL ANALYSTSBCE will hold a conference call for financial analysts to discuss Q3 2017 results on Thursday, November 2 at 8:00 am (Eastern). Media are welcome to participate on a listen-only basis. Please dial toll-free 1-866-223-7781 or 416-340-2216. A replay will be available for one week by dialing 1-800-408-3053 or 905-694-9451 and entering pass code 1946321#.

A live audio webcast of the conference call will be available on BCE's website at: BCE Q3-2017 conference call. The mp3 file will be available for download on this page later in the day.

NOTESThe information contained in this news release is unaudited.

In Q1 2017, we updated our definition of adjusted net earnings and adjusted EPS to also exclude impairment charges as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance.

(1) The terms adjusted net earnings and adjusted EPS do not have any standardized meaning under IFRS. Therefore, they are 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 losses (gains) on investments, impairment charges, and early debt redemption costs. We define adjusted EPS as adjusted net earnings per BCE common share. We use adjusted net earnings and adjusted EPS, and we believe that certain investors and analysts use these measures, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net losses (gains) on investments, impairment charges, and early debt redemption costs, 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 comparable IFRS financial measures are net earnings attributable to common shareholders and EPS. The following table is a reconciliation of net earnings attributable to common shareholders and EPS to adjusted net earnings on a consolidated basis and per BCE common share (adjusted EPS), respectively.

Q3 2017
Q3 2016

(2) The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE's consolidated income statements. Adjusted EBITDA for BCE's segments is the same as segment profit as reported in Note 4, Segmented Information, in BCE's Q3 2017 Financial Statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues. We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company's ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA is also one component in the determination of short-term incentive compensation for all management employees.

Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.

($ millions)
Q3 2017
Q3 2016
Net earnings
Severance, acquisition and other costs
Finance costs
Interest expense
Interest on post-employment
benefit obligations
Other expense (income)
Income taxes
Adjusted EBITDA
BCE operating revenues
Adjusted EBITDA margin

(3) The terms free cash flow and dividend payout ratio do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define free cash flow as cash flows from operating activities, excluding 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 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 because it shows how much cash is available to pay dividends, 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 comparable IFRS financial measure is cash flows from operating activities. We define dividend payout ratio as dividends paid on common shares divided by free cash flow. We consider dividend payout ratio to be an important indicator of the financial strength and performance of our businesses because it shows the sustainability of the company's dividend payments. The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

($ millions)
Q3 2017
Q3 2016
Cash flows from operating
Capital expenditures
Cash dividends paid on preferred
Cash dividends paid by
subsidiaries to non-
controlling interest
Acquisition and other costs paid
Free cash flow

(4) We use ARPU, churn, and capital intensity 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. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) in BCE's Q3 2017 MD&A for a definition of such KPIs.

CAUTION CONCERNING FORWARD-LOOKING STATEMENTSCertain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to our 2017 financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE's annualized common share dividend and common share dividend payout policy, our network deployment plans and related capital investments, the expected timing and completion of the proposed acquisition of the S?ries+ and Historia French-language specialty channels from Corus Entertainment Inc. (Corus) and certain benefits expected to result from such proposed transaction, our 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. As a result, we cannot guarantee that any forward-looking statement will materialize 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 November 2, 2017 and, accordingly, are subject to change after such date. Except as may be required by Canadian 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. Except as otherwise indicated by BCE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after November 2, 2017. 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 2017 financial results, as well as our objectives, strategic priorities and business outlook for 2017, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

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:

Canadian Economic and Market Assumptions

Gradual improvement in economic growth, given the Bank of
Canada’s most recent estimated growth in Canadian gross
domestic product of 3.1% in 2017, representing a 30 basis point
increase from an earlier estimate of 2.8%
Modest employment growth, as the overall level of business
investment is expected to remain soft
Canadian dollar expected to remain at or around 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.
A higher level of wireline and wireless competition in
consumer, business and wholesale markets
Higher, but slowing, wireless industry penetration and
smartphone adoption
Soft media advertising market expected, due to variable demand,
and escalating costs to secure TV programming

Assumptions Concerning our Bell Wireless Segment

Maintain our market share of incumbent wireless postpaid net
Continued adoption of smartphone devices, tablets and data
applications, as well as the introduction of more 4G LTE
devices and new data services
Higher subscriber acquisition and retention spending, driven by
higher handset costs and more customer device upgrades,
reflecting a higher number of off-contract subscribers due to
earlier expiries under two-year contracts
Higher blended ARPU, driven by a higher postpaid smartphone
mix, increased data consumption on 4G LTE and LTE-A networks,
and higher access rates from 2016 pricing changes
Completion of the LTE network buildout to 99% of the Canadian
population and expansion of the LTE-A network coverage to
approximately 87% of the Canadian population, including
Ability to monetize increasing data usage and customer
subscriptions to new data services
Ongoing technological improvements by handset manufacturers and
from faster data network speeds that allow customers to
optimize the use of our services
No material financial, operational or competitive consequences
of changes in regulations affecting our wireless business

Assumptions Concerning our Bell Wireline Segment

Positive full-year adjusted EBITDA growth
Continued growth in residential IPTV and Internet subscribers
Increasing wireless and Internet-based technological
Residential services household ARPU growth from increased
penetration of multi-product households and price increases
Aggressive residential service bundle offers from cable TV
competitors in our local wireline areas
Continued large business customer migration to IP-based systems
Ongoing competitive repricing pressures in our business and
wholesale markets
Continued competitive intensity in our small and mid-sized
business markets as cable operators and other telecom
competitors continue to intensify their focus on business
Growing consumption of OTT TV services and on-demand streaming
video, as well as the proliferation of devices, such as
tablets, that consume vast quantities of bandwidth, will
require considerable ongoing capital investment
TV unbundling will not materially accelerate the downsizing of
TV packages by customers
Realization of cost savings related to management workforce
attrition and retirements, lower contracted rates from our
suppliers, reduction of traffic that is not on our network and
operating synergies from the integration of MTS
Softer wholesale financial performance due to a CRTC decision
in October 2016 that significantly lowered capacity-based
billing rates for aggregated wholesale high-speed Internet
access services
No other changes in regulations affecting our wireline business
having material financial, operational or competitive

Assumptions Concerning our Bell Media Segment

Higher year-over-year revenue, reflecting further CraveTV
subscriber growth, The Movie Network’s national expansion that
began in March 2016, and growth in outdoor advertising
supported by acquisitions and new contract wins
Operating cost growth driven by higher TV programming and
sports broadcast rights costs, as well as continued investment
in CraveTV content
Continued scaling of CraveTV
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
Increased revenue generation from monetization of content
rights and Bell Media properties across all platforms
TV unbundling and growth in OTT viewing expected to result in
lower subscriber levels for many Bell Media TV properties
No material financial, operational or competitive consequences
of changes in regulations affecting our media business

Financial Assumptions Concerning BCEThe following constitute BCE's principal financial assumptions for 2017:

total post-employment benefit plans cost to be approximately
$320 million to $340 million, based on an estimated accounting
discount rate of 4.0%, comprised of an estimated above adjusted
EBITDA post-employment benefit plans service cost of
approximately $250 million to $260 million and an estimated
below adjusted EBITDA net post-employment benefit plans
financing cost of approximately $70 million to $80 million
depreciation and amortization expense of approximately $3,850
million to $3,900 million
net interest expense of approximately $950 million to $975
tax adjustments (per share) of approximately $0.08, instead of
an effective tax rate of approximately 26%, instead of 27%
non-controlling interest (NCI) of approximately $50 million
total pension plan cash funding of approximately $400 million
to $450 million
cash taxes of approximately $650 million to $700 million
net interest payments of approximately $950 million to $975
other free cash flow items, which include working capital
changes, severance and other costs paid, preferred share
dividends and NCI paid, of approximately ($25) million to
($150) million
average BCE common shares outstanding of approximately 895
an annual common share dividend of $2.87 per share

The foregoing assumptions, although considered reasonable by BCE on November 2, 2017, may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth in this news release.

Material RisksImportant 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 2017 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2017 financial guidance, 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:

regulatory initiatives, proceedings and decisions, government
consultations and government positions that affect us and
influence our business, including, in particular, those
relating to mandatory access to networks, net neutrality,
spectrum auctions, approval of acquisitions, broadcast
licensing and foreign ownership requirements
the intensity of competitive activity, including from new and
emerging competitors, and the resulting impact on the cost of
retaining existing customers and attracting new ones, as well
as on our market shares, service volumes and pricing strategies
the level of technological substitution and the presence of
alternative service providers contributing to reduced
utilization of our traditional wireline services
the adverse effect of the fundamental separation of content and
connectivity, which is changing our TV and media ecosystems and
may accelerate the disconnection of TV services and the
reduction of TV spending, as well as the fragmentation of, and
changes in, the advertising market
competition with global competitors, in addition to traditional
Canadian competitors, for programming content could drive
significant increases in content acquisition costs and
challenge our ability to secure key content
adverse economic and financial market conditions, a declining
level of retail and commercial activity, and the resulting
negative impact on the demand for, and prices of, our products
and services and the level of bad debts
the inability to protect our assets, including networks, IT
systems, offices and sensitive information, from events and
attacks such as cyber threats, and damage from fire and natural
the failure to optimize network and IT deployment and upgrading
timelines, accurately assess the potential of new technologies,
and invest and evolve in the appropriate direction
the failure to continue investment in a disciplined and
strategic manner in next-generation capabilities, including
real-time information-based customer service strategies
the inability to drive a positive customer experience
resulting, in particular, from the failure to embrace new
approaches and challenge operational limitations
the complexity in our operations resulting from multiple
technology platforms, billing systems, marketing databases and
a myriad of rate plans, promotions and product offerings
the failure to maintain optimal network operating performance
in the context of significant increases in capacity demands on
our Internet and wireless networks
the failure to implement or maintain highly effective IT
systems supported by an effective governance and operating
the risk that we may need to incur significant capital
expenditures beyond our capital intensity target in order to
provide additional capacity and reduce network congestion
the failure to generate anticipated benefits from our corporate
restructurings, system replacements and upgrades, process
redesigns and the integration of business acquisitions
events affecting the functionality of, and our ability to
protect, test, maintain and replace, our networks, IT systems,
equipment and other facilities
in-orbit and other operational risks to which the satellites
used to provide our satellite TV services are subject
the failure to attract and retain employees with the
appropriate skill sets and to drive their performance in a safe
and secure environment
labour disruptions
the inability to access adequate sources of capital and
generate sufficient cash flows from operations to meet our cash
requirements, fund capital expenditures and provide for planned
uncertainty as to whether dividends will be declared by BCE’s
board of directors or whether BCE’s dividend payout policy will
be maintained
the inability to manage various credit, liquidity and market
pension obligation volatility and increased contributions to
post-employment benefit plans
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 failure to reduce costs as well as unexpected increases in
the failure to evolve practices to effectively monitor and
control fraudulent activities, including unauthorized use of
our content and the theft of our TV services
events affecting the continuity of supply of products and
services that we need to operate our business from our
third-party suppliers and outsourcers
the failure of our procurement and vendor management practices
to address risk exposures associated with existing and new
supplier models
the quality of our products and services and the extent to
which they may be subject to manufacturing defects or fail to
comply with applicable government regulations and standards
security and data leakage exposure if security control
protocols applicable to our cloud-based solutions are bypassed
unfavourable resolution of legal proceedings and, in
particular, class actions
unfavourable changes in applicable laws and the failure to
proactively address our legal and regulatory obligations
health concerns about radiofrequency emissions from wireless
communications devices
the inability to maintain customer service and our networks
operational in the event of the occurrence of epidemics,
pandemics and other health risks
the failure to recognize and adequately respond to climate
change concerns or public and governmental expectations on
environmental matters
the expected timing and completion of the proposed acquisition
of the S?ries+ and Historia French-language specialty channels
from Corus are subject to closing conditions, termination
rights and other risks and uncertainties, including approval by
the CRTC and the Competition Bureau, and there can be no
certainty that the anticipated benefits will be realized.

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 2016 Annual MD&A dated March 2, 2017 (included in the BCE 2016 Annual Report) and BCE's 2017 First, Second and Third Quarter MD&As dated April 25, 2017, August 2, 2017 and November 1, 2017, respectively, for additional information with respect to certain of these and other assumptions and risks, 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). These documents are also available at BCE.ca.

About BCECanada's largest communications company, BCE provides the broadest range of broadband wireless, TV, Internet and business communication services to consumer and business customers throughout the country. Bell Media is Canada's premier multimedia company with leading assets in television, radio, out of home and digital media. To learn more, please visit BCE.ca.

The Bell Let's Talk initiative 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. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries:

Jean Charles Robillard514-870-4739jean_charles.robillard@bell.ca

Investor inquiries:

Thane Fotopoulos514-870-4619thane.fotopoulos@bell.ca

SOURCE Bell Canada

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SOURCE: Bell Canada