BCE Inc. Revenues Rise In Fourth Quarter

Q4 Results

CANADA's BCE INC. fourth quarter 2021 operating revenue rose 1.8% to $6.209 billion, with wireless, Internet, and media operations all getting credited for the increase but product revenue lagging with a 4.5% decrease. Net earnings fell 29.4% to C$658 million and net earnings attributable to common shareholders dropped 29.7% to C$625 million (69 cents/share), reflecting a one-time gain of C$211 million in 2020. Adjusted EBITDA grew 1.1% to C$2.430 billion despite a 19% decrease for the media division; Free cash flow increased 156.5% to C$236 million.

BELL MEDIA, the division that encompasses radio as well as TV and digital, saw revenues rise 7.3% to C$849 million, credited to increases in TV advertising (11.8%) and subscriber revenue (1.9%). Digital revenue jumped 36%, but Adjusted EBITDA decreased 19% to C$153 million, blamed on higher programming costs and sports rights. The company's earnings release did not mention radio except for predicting a "gradual recovery" for radio in its assumptions for the media segment.

Pres./CEO MIRKO BIBIC said, "At BELL, we have been singularly focused on our purpose to advance how Canadians connect with each other and the world, and our strong execution and operational discipline to deliver on this purpose is paying off. Bell's solid performance in Q4 and throughout 2021 reflect the steady demand for fast, reliable and innovative services to keep residents and businesses connected, informed and productive with net new mobile phone and mobile connected device, retail Internet and IPTV subscriber additions of 225,533 in Q4, and our best annual retail residential net subscriber performance in 10 years.

"A key part of our strategy has been to champion the customer experience. I'm proud of the gains we made this past year, leading the industry in reducing customer complaints, and enhancing our digital tools and self-serve apps so that our customers have a choice in how they interact with us.  It's clear that our historic network capital expenditure acceleration program to connect more Canadians faster and continue delivering on our purpose is the right path forward as CANADA builds back from the impacts of COVID-19. We surpassed our 2021 network expansion targets reaching 1 million households with Wireless Home Internet one year ahead of schedule. We expanded our direct fibre footprint to communities across the country, and our 5G network now covers over 70% of the Canadian population.

"As we look ahead to 2022, we plan to reach up to 900,000 more homes and businesses with direct fibre connections and expand the reach of our 5G network to meet our growing customer needs. And in every interaction, we will continue to build on the gains we made in making it easier for our customers to do business with us, and keep them at the centre of everything we do."  

CFO GLEN LEBLANC added, "The fourth quarter capped off a successful year of financial performance, reflecting excellent operational execution led by continued strong residential Internet results and our best wireless service revenue growth in 4 years, as we nearly recovered from the impacts of COVID, reaching approximately 99% of 2019 consolidated revenue and adjusted EBITDA in 2021

"Looking ahead to 2022, our financial guidance is underpinned by a positive financial profile for all three Bell operating segments that reflects sound industry fundamentals and our consistent execution in a competitive marketplace as we build on the favourable financial performance, significant broadband investments and operating momentum we delivered in 2021. Moreover, given the strong valuation position of our major defined benefit pension plans, we anticipate taking contribution holidays starting this year that will effectively reduce our annual cash funding, supporting ongoing fibre and 5G acceleration and a 5.1% increase in BCE's common share dividend for 2022."

The company's Board of Directors has declared a quarterly dividend of C$0.92/share, payable on APRIL 15th to shareholders of record on MARCH 15th.

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