Quarterly Unaudited Results: Supplementary Information

Transcription

1 April 26, 2000 First Quarter 2000 Quarterly Unaudited Results: Supplementary Information This supplement to the press release announcing BCE's quarterly results is intended to provide, on a timely basis, information of interest to the investment community. For further information, please contact either Howard Hendrick at (514) or Maarika Paul at (514) The Unaudited Quarterly Results: Supplementary Information are also available on BCE s web site at This material is presented for information only, and should not be construed as a solicitation to invest in any securities of BCE Inc.

2 Results by Operating Group Three months ended March % change Revenues $M $M (unfavourable) Bell Canada 1 3,628 3, CGI and BCE Emergis BCE Media Bell Canada International Corporate and other Intercompany eliminations (168) (73) (130.1) Total Revenues 4,100 3, $M BCE Revenues 4,500 4, ,759 4,100 3,874 4,148 4,229 3,500 Q1 Q2 Q3 Q % change EBITDA $M $M (unfavourable) Bell Canada 1 1,556 1, CGI and BCE Emergis BCE Media 2 (11) N.M. Bell Canada International (9) 32 N.M. Corporate and other (25) (16) (56.3) Total EBITDA 1,553 1, $M BCE EBITDA 1, ,700 1,600 1,500 1,477 1,553 1,517 1,631 1,508 1,400 Q1 Q2 Q3 Q4 (1) Represents the consolidation of Bell Canada Holdings with Bell Canada and its consolidated subsidiaries. For improved comparability Aliant has been consolidated for all of 1999 and (2) CGI is consolidated on a proportionate basis. 1

3 Baseline Results by Operating Group Excluding Goodwill and Nortel Three months ended March % change Baseline earnings excl. goodwill charges and Nortel $M $M (unfavourable) Bell Canada (18.4) CGI and BCE Emergis 8 11 N.M. BCE Media (23) (17) (35.3) Corporate and other 48 (25) N.M. Intercompany eliminations 2 (1) N.M. Baseline earnings Dividends on preferred shares (23) (23) 0.0 Baseline earnings applicable to common shares % change Baseline earnings per share excl. goodwill charges and Nortel $/sh $/sh (unfavourable) Bell Canada (19.6) CGI and BCE Emergis N.M. BCE Media (0.03) (0.03) 0.0 Corporate and other 0.08 (0.04) N.M. Intercompany eliminations - - N.M. Baseline earnings Dividends on preferred shares (0.04) (0.04) 0.0 Baseline earnings applicable to common shares Avg. number of common shares outstanding (millions) Baseline EPS excl. Goodwill and Nortel $/Share Q1 Q2 Q3 Q4 (1) Represents BCE's 80% interest since June 1, 1999, also see note 1 on page 1. 2

4 - Contribution to Reported Earnings Special Items and Goodwill Charges Three months ended March 31 Baseline earnings applicable to common shares excluding $M $M goodwill charges and Nortel Bell Canada - Goodwill charges (21) (3) BCE Emergis and CGI - BCE Emergis write-off of assets and IPR&D (5) (23) Goodwill charges (24) (18) BCE Media - Goodwill charges (3) (2) Nortel Networks 4,055 (304) Bell Canada International (131) (54) Corporate - Gain on sale of Sun Media shares - 18 Net special items (loss) 3,871 (386) Reported earnings applicable to common shares 4,149 (115) Baseline earnings applicable to common shares excluding $/sh $/sh goodwill charges and Nortel Bell Canada - Goodwill charges (0.03) (0.01) BCE Emergis and CGI - BCE Emergis write-off of assets and IPR&D (0.01) (0.04) Goodwill charges (0.04) (0.03) BCE Media - Goodwill charges (0.01) - Nortel Networks 6.30 (0.47) Bell Canada International (0.20) (0.08) Corporate - Gain on sale of Sun Media shares Net special items (loss) 6.01 (0.60) Reported earnings applicable to common shares 6.44 (0.18) Avg. number of common shares outstanding (millions)

5 Bell Canada 1 Baseline Income Statement Excluding Goodwill and Operating Statistics Three months ended March % change $M $M (unfavourable) Local and access services 1,617 1, Long distance and network services 1,104 1, Wireless services (Bell Mobility) Terminal, directory advertising and other Total operating revenues 3,628 3, Cash operating expenses 2,072 1,908 (8.6) EBITDA 1,556 1, Depreciation and amortization (644) (682) 5.6 Pension credit (42.0) Interest payments to third parties (191) (179) (6.7) Interest payments to BCE (60) (3) N.M. Equity income and other (including non-controlling interest) (28) (21) (33.3) Baseline earnings before income taxes Income taxes (306) (280) (9.3) Baseline Earnings Interest on equity settled notes (15) - N.M. Preferred dividends (9) (8) (12.5) Baseline earnings applicable to common shares excl. goodwill charges Baseline contribution to BCE excl. goodwill charges (18.4) Wireline statistics 2 Network access service (K, at Mar. 31) - Residential 8,581 8, Business 4,609 4, LD conversation minutes (M, 3 months ended Mar. 31) 4,428 3, Estimated LD market share in minutes 3 (%, at Mar. 31) (1.9) Consolidated statistics End of period employees (at Mar. 31) 53,598 52,833 (1.4) Total salaries and wages ($M, includes capitalized amounts) (2.8) Free cash flow ($M, 3 months ended Mar. 31) (431) (1,314) N.M. Net capital expenditures ($M, 3 months ended Mar. 31) Bell Canada Holdings Net Debt and Preferred Shares 4 ($M) Cash and cash equivalents (2) (191) N.M. Debt, equity notes and preferred shares outstanding 5 12,313 12,088 (1.9) Debt and equity notes due from Bell (3,677) (3,993) 7.9 Debt and equity notes due to BCE 5,063 5, Equity notes due to SBC Total 14,011 13,597 (3.0) (1) Represents the consolidation of Bell Canada Holdings with Bell Canada and its consolidated subsidiaries. For improved comparability Aliant has been consolidated for all of 1999 and (2) Reflects Bell Canada Holdings excluding Bell Mobility. (3) Reflects Bell Canada excluding Aliant, Telebec, Northern Telephone and NorthwesTel. (4) Excludes Aliant and 1999 data is at Dec. 31. (5) Represents the debt, equity notes and preferred shares at the Bell Canada operating level. 4

6 Bell Mobility Financial and Operating Statistics Three months ended March % change $M $M (unfavourable) Revenues Cellular and PCS service Paging service Other (17.6) Total operating revenues Operating statistics Cellular and PCS Paging Net activations 1 (K, 3 months ended Mar. 31) Churn (%, 3 months ended Mar. 31) (42.9) Usage per subscriber (min/month, 3 months ended Mar. 31) (6.0) ARPU ($/Month, 3 months ended Mar. 31) (12.0) Subscribers (K, at Mar. 31) 1,880 1, End of period subscribers - % pre-paid % post-paid Subscribers (K, at Mar. 31) ARPU ($/month, 3 months ended Mar. 31) (1) As of Jan. 1, 2000, includes SimplyOne subscribers of which there are now 48k. (2) Includes 69K paging subscribers purchased from PageMart during Q1/00 5

7 Selected Balance Sheet Information ($M) Mar. 31 Net Dec Change 1999 Corporate liquidity and debt investments net of debt and preferred shares outstanding Cash Equivalents 2, ,203 Nortel common shares being held for monetization 1 5,463 5,463 - Bell Canada Holdings debt due to BCE 2 5,063 (316) 5,379 Short and long term debt outstanding (1,421) (841) (580) Preferred shares outstanding 3 (1,700) - (1,700) Total 9,799 4,497 5,302 Proportionate EBITDA, Net Debt and Preferred Shares At March 31 Company BCE Ownership % 12 Mth Trailing EBITDA Net Debt and Preferreds Proportionate 12 Mth Trailing Proportionate Net EBITDA Debt and Preferreds ($M) ($M) ($M) ($M) Bell Canada Holdings Bell Canada 80% 5,420 14,011 4,336 11,209 Aliant 4 45% 804 1, Total BCH 6,224 15,423 4,698 11,844 BCE Emergis 67% 9 (55) 6 (37) CGI 5 45% BCE Media 100% Corporate 100% (137) (9,799) (137) (9,799) Total 6,204 6,282 4,675 2,722 Assets Excluded Above at Market Value: At March 31 Common Shares (or equivalents) Closing Price Market Value (M) ($) ($M) BCI ,376 Teleglobe ,855 MTS Total 4,515 Other Information Three months ended March Shares outstanding (M) Shares issued (M) Shares purchased for cancellation (M) - - Book value ($/sh) (1) Valued at market (2) Includes $1.3B of equity settled notes. (3) At March 31, 2000 includes series P Retractable preferred shares. (4) Represents 80% of Bell Canada's 41.1% interest and 100% of BCE's 12.4% interest. (5) CGI is currently proportionately consolidated into BCE's results, therefore no adjustments are required. (6) Market value represents BCE's 80% ownership interest in these investments through Bell Canada. 6

8 Investment: Equity Ownership Percentages At March Bell Canada Bell ActiMedia Bell Mobility Aliant Bruncor Manitoba Telecom Services (fully diluted) Maritime Telegraph & Telephone NewTel Enterprises Northern Telephone NorthwesTel Telebec Teleglobe Aliant CGI and BCE Emergis BCE Emergis CGI Group BCE Media Bell ExpressVu Telesat TMI Communications Nortel Networks Bell Canada International Corporate and other Jones Intercable (Class A shares) (fully diluted ownership) Spar Aerospace

9 Investment: Common Share Ownership in Public Companies At March 31, 2000 (M) Common Shares (or equivalents) Bell Canada Aliant 52.5 Manitoba Telecom Services 14.0 Teleglobe 58.7 Aliant 15.8 CGI and BCE Emergis BCE Emergis 62.0 CGI Group Nortel Networks Bell Canada International 58.1 Corporate and other Spar Aerospace 0.8 8

10 Growth Trends k Bell Digital Access Lines 1,3 $M Bell Data Revenues 2,3 1,800 1,600 1,400 1,299 1,522 1, ,200 1,136 1, , k Bell Dial-up Internet Subscribers 3 k Bell High Speed Internet Subscribers k Bell Mobility Cellular & PCS Subscribers 4 k Bell ExpressVu Subscribers 2,000 1,900 1,800 1,700 1,600 1,541 1,605 1,687 1,797 1, , (1) Digital access lines are derived by converting high capacity data lines to the estimated capacity of one NAS line. The conversion multiples used are as follows: Basic ISDN=2, Primary ISDN=23, DEA=24, DS0=1, DS1=24, DS3=672 (2) Data revenue includes competitive network services, national and regional IP data, network access for ISDN and data, inter-networking equipment and cabling, Sympatico, E-Commerce and ADSL data revenue has been restated to better reflect external revenue. (3) See note 3 on page 4 (4) See note 1 on page 5. 9