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6-K 1 d873884d6k.htm FORM 6-K FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934


For the month of:			February 2024			Commission File Number:			1-8481

BCE Inc.

(Translation of Registrant’s name into English)

1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada H3E 3B3,

(514) 870-8777

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F

or Form 40-F.

Form 20-F ☐ Form 40-F ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ☐ No ☒

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.

Notwithstanding any reference to BCE Inc.’s Web site on the World Wide Web in the documents attached hereto, the information contained in BCE Inc.’s site or any other site on the World Wide Web referred to in BCE Inc.’s site is not a part of this Form 6-K and, therefore, is not furnished to the Securities and Exchange Commission.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


BCE Inc.
By:			(signed) Curtis Millen
			Curtis Millen Executive Vice-President and Chief Financial Officer
Date:			February 8, 2024

EXHIBIT INDEX

99.1 News Release

99.2 Supplementary Financial Information – Fourth Quarter 2023

EX-99.1 2 d873884dex991.htm NEWS RELEASE NEWS RELEASE

Exhibit 99.1

This news release contains forward-looking statements. For a description of the related risk factors and assumptions, please see the section entitled “Caution Regarding Forward-Looking Statements” later in this news release. The information contained in this news release is unaudited.

BCE reports 2023 Q4 and full-year results, announces 2024 financial targets and

3.1% annual dividend increase to $3.99 per share

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All 2023 financial guidance targets achieved

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5.3% consolidated adjusted EBITDA1 growth in Q4 yielded 1.9 percentage-point increase in adjusted EBITDA margin2 to 39.7% — best quarterly result since Q1 2022

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Q4 net earnings of $435 million, down 23.3%, with net earnings attributable to common shareholders of $382 million, down 27.7% or $0.42 per common share; 5.7% increase in adjusted net earnings1 of $691 million delivered adjusted EPS1 of $0.76, up 7.0%

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Cash flows from operating activities up 15.4% in Q4 to $2,373 million; free cash flow1 increased $913 million in Q4 to $1,289 million on lower capital expenditures, timing of cash tax instalments and higher working capital

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170,831 total mobile phone and connected device net subscriber activations3 in Q4 drove 3.9% wireless service revenue growth and 0.4% higher blended ARPU4

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55,591 retail Internet net subscriber activations3 in Q4 — second best Q4 result in nearly two decades – contributed to 5.4% residential Internet revenue growth

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Bell Media adjusted EBITDA up 14.7% in Q4 on lower operating costs including restructuring initiatives as total revenue declined 7.5% due to challenging advertising market conditions; digital revenue5 up 27% as digital platforms and advertising technology drove strong growth

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Planned minimum $500 million reduction in capital expenditures in 2024 and rollback of fibre network expansion reflect federal government policies and CRTC decisions that discourage investment

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Undertaking largest workforce restructuring initiative in nearly 30 years, reducing approximately 4,800 positions, or 9% of all BCE employees in 2024, and driving in-year cost savings of $150 million to $200 million; $250 million annualized

MONTRÉAL, February 8, 2024 – BCE Inc. (TSX, NYSE: BCE) today reported results for the fourth quarter (Q4) and full-year 2023, provided financial guidance for 2024, including a 3.1%, or $0.12 per share, increase in the BCE annual common share dividend to $3.99, and announced a workforce restructuring initiative, our largest in nearly 30 years, reducing approximately 4,800 positions, including 750 contractors, or 9% of all BCE employees.

1 Adjusted EBITDA is a total of segments measure, adjusted net earnings and free cash flow are non-GAAP financial measures and adjusted EPS is a non-GAAP ratio. Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on these measures.

2 Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on adjusted EBITDA margin.

3 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on subscriber (or customer) units.

4 Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues), divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on blended ARPU.

5 Digital revenues are comprised of advertising revenue from digital platforms including web sites, mobile apps, connected TV apps and out-of-home (OOH) digital assets/platforms, as well as advertising procured through Bell digital buying platforms and subscription revenue from direct-to-consumer services and video-on-demand services.

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“The Bell team has demonstrated strong executional discipline and cost containment this quarter, enabling Bell to deliver solid results in Q4 and throughout 2023,” said Mirko Bibic, President and CEO of BCE and Bell Canada.

We continue to see a preference by customers for fibre, contributing to continued strong fibre Internet net subscriber activations and 7.1% residential Internet revenue growth in 2023. Bell’s mobile phone customer base at the end of 2023 was up 3.4% over 2022. And I’m very pleased that we’ve reduced our share of industry complaints for an eighth consecutive year in the Commission for Complaints for Telecom-television Services (CCTS) 2022-2023 annual report.

As we close out 2023, our results demonstrate the critical importance of balancing near term and long term priorities to deliver for our customers and our shareholders. We took necessary action earlier this year to drive costs out of the business and to align costs to the revenue potential of each business segment. At the same time, we started putting the building blocks in place for our transformation from a traditional telco to a tech services and digital media leader, making some key investments to accelerate this transformation.

While it’s clear that we are continuing to execute with discipline in a competitive marketplace, we need to take additional measures in response to increasingly unsupportive federal government and regulatory decisions, legacy business declines and a macroeconomic environment with higher interest rates and continued inflation. As our business is hampered by regulatory decisions that discourage investment, we are slowing the pace of our network expansion and capping fibre speeds. We intend to reduce capital expenditures by over $1 billion over the next two years, including a minimum $500 million year-over-year decrease in 2024 alone. In addition, we are undertaking a significant workforce restructuring initiative – our largest in nearly 30 years – reducing approximately 4,800 positions, or 9% of all BCE employees. I recognize that this decision is difficult for the team members impacted, and I thank each of them for their contributions.

Today’s changes are difficult, but necessary to respond to evolving external drivers, accelerate our transformation and ensure Bell’s future health and longevity so that we can continue to advance our purpose to advance how Canadians connect with each other and the world.”

KEY BUSINESS DEVELOPMENTS

Workforce restructuring

To position Bell for future success, Bell is taking action to lower its cost structure and align costs to the revenue potential of each business segment. This includes Bell’s largest workforce restructuring initiative in nearly 30 years, reducing approximately 4,800 positions, or 9% of all BCE employees in 2024, and driving in-year cost savings of $150 million to $200 million; $250 million annualized.

Reducing capital expenditures and fibre expansion

Bell announced its intention to reduce capital expenditures by over $1 billion in 2024-25, including a minimum of $500 million in 2024, and roll back fibre network expansion as a result of federal government policies and the CRTC’s wholesale access rate decision that discourages network investment. Bell will also cap fibre speeds at three-gigabits per second. In Q4 2023, Bell reduced its capital investment by $105 million more than originally planned as a direct result of this decision.

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Channel transformation

Bell announced a partnership with Best Buy Canada to operate 165 The Source consumer electronics stores, re-branded Best Buy Express. Bell will be the exclusive telecommunications provider, selling wireless and wireline (in footprint) services from its Bell, Virgin Plus and Lucky Mobile brands, as well as remain responsible for store operations and labour. Best Buy will assume responsibility for the consumer electronics assortment and procurement, as well as branding, marketing and e-commerce. With the strengths of Best Buy’s buying power and supply chain, Bell will wind down The Source head office and back office operations, as well as close 107 The Source stores.

Innovative partnerships to deliver for our customers

Bell announced a partnership with global endpoint security leader SentinelOne to provide extensive data protection services for Bell’s enterprise customers, SentinelOne’s first partnership with a major telecommunications company in Canada. Bell also entered into a collaboration with ServiceNow, a digital workflow company, to launch Service Bridge capabilities on the ServiceNow platform, leveraging FX Innovation’s deep industry expertise to elevate the end-to-end experience for Bell customers with customized solutions and automation capabilities. In collaboration with Microsoft, Bell expanded its hybrid work solutions for Canadian enterprises with the launch of Bell Operator Connect, pairing Bell’s high-quality voice network and Microsoft Teams. Bell is also rolling out Microsoft 365 within its own enterprise IT environment. Bell announced a collaboration with Mila institute in Montréal to study and apply deep learning and AI capabilities on Bell systems to improve business performance, customer experience and accelerate AI innovations with cloud computing.

Champion customer experience

Bell continued to lead national telecom service providers in reducing its share of consumer complaints, according to the 2022-2023 Annual Report from the Commission for Complaints for Telecom-television Services (CCTS)6. Bell reduced its share of total industry complaints for an eighth consecutive year7, decreasing its share of complaints by 6% over the previous year. Bell Fibe TV customers in the Atlantic can now enjoy next generation capabilities and features including access to the Google Play app catalogue, Cloud PVR, and unlimited simultaneous streams with the Fibe TV app. Bell reached one million digital repair sessions on its self-serve Virtual Repair tool, and enhanced the tool with new features such as Wi-Fi check-up to help customers simplify the repair process.

5G leadership and the fastest Internet speeds

Bell secured the most 5G+ spectrum nationwide in the federal government’s 3500 and 3800 MHz spectrum auctions, recently securing the acquisition of 939 licenses for 3800 MHz spectrum to enhance customers’ digital experience nationwide. Bell 5G wireless was ranked Canada’s fastest and best 5G network by Global Wireless Solutions for the third consecutive year8. GWS also confirmed that Bell 5G+ wireless on 3500 MHz spectrum is the fastest and best in the country8. Additionally, Bell pure fibre was ranked Canada’s fastest Internet and Wi-Fi for a second time in a row by Ookla in its Q3-Q4 2023 Speedtest Awards9, and remains Canada’s most awarded Internet service provider10.

Delivering the most compelling content

Bell Media announced its intent to divest 45 of its 103 radio stations to seven buyers, subject to CRTC review and other closing conditions. Once these transactions close, it’s our intention that the divested stations will remain part of iHeartRadio Canada, helping to transform Bell Media’s radio operation to an innovative audio business. To reach more audiences, Crave will soon be available on Amazon Prime Video channels in Canada. 2023 was the most watched year in Crave’s streaming history; streams on Crave in Q4 2023 were up 8% year-over-year, and in Québec up 18% year-over-year.

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Bell Media’s share of Canadian English entertainment specialty channels among A25-54 was its highest on record, increasing 7% over 2022. CTV Comedy Channel is the number one Canadian English entertainment specialty channel with A25-54. The 110th Grey Cup was one of the year’s biggest television events in Canada for TSN and RDS, attracting an average audience of 3.7 million viewers. TSN and RDS also announced broadcast and media rights agreements for the Professional Women’s Hockey League’s inaugural season as well as CONMEBOL Copa America 2024. Bell Media launched its newest campaign, Streets-to-Screens, a multiplatform program that leverages Bell Media’s exclusive ad-synching Radio-to-Road program where select roadside digital boards synchronize with advertisements on specific radio stations using Bell First Party Data.

Bell Let’s Talk Day

Bell Let’s Talk launched its “Let’s create real change” campaign, inviting Canadians to take meaningful action in mental health on Bell Let’s Talk Day and throughout the year, while spotlighting mental health organizations across the country that provide supports and services for Canadians experiencing mental health issues.

As part of its ongoing commitment to improve access to mental health supports and services in communities across Canada, Bell Let’s Talk announced 10 recipients of the Bell Let’s Talk Diversity Fund. The Bell Let’s Talk Post-Secondary Fund awarded $1 million in grants to 11 Canadian colleges, universities and CEGEPs to support mental health initiatives, and the 2024 Bell Let’s Talk Community Fund is now open for applications.

Bell for Better

Bell and the Toronto Raptors teamed up to support newcomers to Canada, through Bell Inbound Assist, a new program that recognizes and supports community organizations that welcome newcomers to Canada through basketball programming. Three organizations will be selected to receive grants of up to $100,000 in partnership with MLSE Foundation. BCE was ranked the most sustainable communications company in the world in Corporate Knights’ Global 100 most sustainable corporations for 202411. Bell Technical Solutions was honoured with an Outstanding Commitment to Employment Equity award in the 2023 Employment Equity Achievement Awards by Employment and Social Development Canada, a department of the Government of Canada12.

6 2022-2023 Annual Report from the Commission for Complaints for Telecom-television Services.

7 Bell reduced its share of industry complaints for an 8th consecutive year based on data from the 2015-2016 Annual Report through to the 2022-2023 Annual Reports from the Commission for Complaints for Telecom-television Services.

8 Based on a third-party score (Global Wireless Solutions OneScore) calculated using Bell wireless 5G network and 5G+ testing in Canada against other national wireless networks from March to October 2023.

9 Based on analysis by Ookla, a web testing and network diagnostics company, of Speedtest Intelligence data of fixed and Wi-Fi nationally aggregated Speed Score results for Q3-Q4 2023.

10 Most awarded Internet based on Bell competitive analysis. Bell awards include Ookla Q3-Q4 2023 Speedtest Awards; PCMag Best ISPs 2023: Canada, based on speed, price, coverage and customer satisfaction, comparing major and overall Canadian ISPs from June 1, 2022 to June 27, 2023; and BrandSpark Most Trusted ISP 2023 and 2024. BrandSpark is a research and consulting firm. Winners were determined by a national survey of 15,878 Canadian shoppers who gave their top-of-mind, unaided answers to which brands they trust most and why in categories they have recently shopped.

11 According to Corporate Knights Inc.’s global rankings released on January 17, 2024. BCE was ranked #51 overall and #1 in our sector and industry, in its 2024 ranking of the world’s 100 most sustainable corporations. The ranking is based on an assessment of more than 6,000 public companies with revenue over US $1 billion. All companies are scored on applicable metrics relative to their peers, with 50% of the weight assigned to sustainable revenue and sustainable investment.

12 Employment and Social Development Canada recognized Bell Technical Solutions for its diversity and inclusion training and the launch of the rope clamp, a new tool that helped remove an employment barrier regarding a specific work requirement to becoming a technician, which is extending the large and heavy ladders.

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BCE RESULTS

Financial Highlights



($ millions except per share amounts) (unaudited)	Q4 2023		Q4 2022		% change		2023		2022		% change

BCE

Operating revenues		6,473		6,439		0.5%		24,673		24,174		2.1%

Net earnings		435		567		(23.3%)		2,327		2,926		(20.5%)

Net earnings attributable to common shareholders		382		528		(27.7%)		2,076		2,716		(23.6%)

Adjusted net earnings		691		654		5.7%		2,926		3,057		(4.3%)

Adjusted EBITDA		2,567		2,437		5.3%		10,417		10,199		2.1%

Net earnings per common share (EPS)		0.42		0.58		(27.6%)		2.28		2.98		(23.5%)

Adjusted EPS		0.76		0.71		7.0%		3.21		3.35		(4.2%)

Cash flows from operating activities		2,373		2,056		15.4%		7,946		8,365		(5.0%)

Capital expenditures		(1,029)		(1,638)		37.2%		(4,581)		(5,133)		10.8%

Free cash flow		1,289		376		242.8%		3,144		3,067		2.5%

“We had a solid quarter to cap 2023 with 5.3% higher adjusted EBITDA that drove a 1.9-point increase in margin to 39.7%. Residential Internet revenue was up 5.4%, total consumer wireless revenue up 5.5%, and digital media revenues up 27% over last year, reflecting continued focused execution on our key priorities and cost discipline on the part of the Bell team,” said Curtis Millen, Chief Financial Officer of BCE and Bell Canada.

“BCE is in a good position, having achieved our financial targets for 2023 while having weathered increasing macroeconomic headwinds and an unsupportive public policy environment this past year. Looking ahead, we are increasing BCE’s common share dividend by 3.1% for 2024. This will be a transformational year for Bell as we balance growth with financial performance, continue to adapt in the face of external pressures, and focus on revenue-generation on our transformation journey to a tech services and digital media leader.”

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BCE operating revenue in Q4 increased 0.5% over Q4 2022 to $6,473 million, due to 3.6% higher product revenue of $1,125 million, driven by a greater sales mix of higher-value mobile phones and lower year-over-year device discounting during the Black Friday and December holiday sales periods. Service revenue was down 0.1% to $5,348 million, as a year-over-year decline at Bell Media was mostly offset by growth at Bell Communication and Technology Services (Bell CTS). For full-year 2023, BCE operating revenue grew 2.1% to $24,673 million with year-over-year increases of 0.9% in service revenue and 9.4% in product revenue.

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Net earnings in Q4 decreased 23.3% to $435 million and net earnings attributable to common shareholders totalled $382 million, or $0.42 per share, down 27.7% and 27.6% respectively. The year-over-year declines were due to higher other expense, which included a $204 million non-cash loss on BCE’s share of an obligation to repurchase at fair value the minority interest in one of its joint venture equity investments, higher interest expense,

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increased depreciation and amortization expense, and higher severance, acquisition and other costs. These factors were partly offset by higher adjusted EBITDA, lower asset impairment charges mainly related to Bell Media’s French-language TV properties and broadcast licenses, a higher net return on post-employment benefit plans and lower income taxes. For full-year 2023, net earnings decreased 20.5% to $2,327 million and net earnings attributable to common shareholders were $2,076 million, or $2.28 per share, down 23.6% and 23.5% respectively.

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Adjusted net earnings were up 5.7% in Q4 to $691 million, delivering a 7.0% increase in adjusted EPS to $0.76. For full-year 2023, adjusted net earnings were down 4.3% to $2,926 million, resulting in a 4.2% decrease in adjusted EPS to $3.21.

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Adjusted EBITDA was up 5.3% in Q4 to $2,567 million, reflecting increases of 4.8% at Bell CTS and 14.7% at Bell Media. Due to better promotional offer discipline and the flow-through of high-margin service revenue at Bell CTS and a 2.4% year-over-year improvement in operating costs, driven mainly by lower programming costs at Bell Media, lower storm recovery costs as well as the favourable impact of various cost reduction initiatives and other operating efficiencies across the organization, BCE’s consolidated adjusted EBITDA margin increased 1.9 percentage points to 39.7% from 37.8% in Q4 2022. For full-year 2023, adjusted EBITDA grew 2.1% to $10,417 million, while BCE’s adjusted EBITDA margin remained stable at 42.2% despite 2.0% higher operating costs.

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BCE capital expenditures in Q4 were $1,029 million, down 37.2% from $1,638 million in Q4 last year, corresponding to a capital intensity13 of 15.9%, compared to 25.4% in Q4 2022. This brought total 2023 capital expenditures to $4,581 million, down from $5,133 million the year before, for a capital intensity of 18.6% compared to 21.2% in 2022. The year-over-year decrease was due to an unplanned additional $105 million decrease in Q4 as a direct result of the CRTC’s decision in November 2023 to mandate wholesale access to Bell’s all fibre network, in addition to a planned reduction in capital spending on our wireless 5G and pure fibre networks consistent with our more modest buildout targets for 2023 compared to 2022.

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BCE cash flows from operating activities in Q4 were $2,373 million, up 15.4% from Q4 2022, reflecting lower cash taxes, due mainly to the timing of tax instalment payments, increased cash from working capital and higher adjusted EBITDA, partly offset by higher interest paid and higher severance, acquisition and other costs paid. For full-year 2023, despite higher adjusted EBITDA, BCE cash flows from operating activities totalled $7,946 million, down 5.0% from 2022, due mainly to higher interest paid and lower cash from working capital.

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Free cash flow increased $913 million, or 242.8%, in Q4 to $1,289 million from $376 million in Q4 2022, driven by lower capital expenditures and higher cash flows from operating activities excluding acquisition and other costs paid. For full-year 2023, BCE free cash flow grew 2.5% to $3,144 million, up from $3,067 million in 2022.

13 Capital intensity is defined as capital expenditures divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on capital intensity.

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OPERATING RESULTS BY SEGMENT

Bell Communication and Technology Services (Bell CTS)

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Total Bell CTS operating revenue increased 1.7% in Q4 to $5,744 million, and by 2.9% to $21,926 million for 2023, driven by both higher service and product revenue.

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Service revenue grew 1.2% in Q4 to $4,619 million, driven mainly by ongoing expansion of our mobile phone, mobile connected device and retail Internet subscribers, higher mobile phone blended ARPU, increased sales of business service solutions to large enterprise customers, as well as the financial contribution from acquisitions made over the past year including Distributel and FX Innovation. This was partly offset by ongoing declines in legacy voice, data and satellite TV services as well as greater acquisition, retention and bundle discounts on residential home services compared to Q4 2022. For full-year 2023, service revenue increased 1.8% to $18,407 million.

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Product revenue was up 3.6% in Q4 to $1,125 million, driven by a greater sales mix of higher-value mobile phones and lower year-over-year device discounting during the Black Friday and December holiday periods. For full-year 2023, product revenue increased 9.4% to $3,519 million, driven by a greater sales mix of higher-value mobile phones and higher telecom data equipment sales to large enterprise customers reflecting improved availability compared to more significant global supply chain disruptions experienced in 2022.

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Bell CTS adjusted EBITDA grew 4.8% in Q4 to $2,419 million, yielding a 1.2 percentage-point margin increase to 42.1% from 40.9% in Q4 2022. This was driven by better promotional offer discipline particularly compared to the Black Friday sales period in 2022, the flow-through of higher year-over-year service revenue and a 0.5% reduction in operating costs reflecting lower storm recovery costs and the favourable impact of various cost reduction initiatives and other operating efficiencies. For full-year 2023, Bell CTS adjusted EBITDA was up 2.8% to $9,720 million while margin was essentially unchanged at 44.3% compared to 44.4% in 2022.

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Postpaid mobile phone net subscriber14 activations totaled 128,715 in Q4, down 16.8% from 154,617 in Q4 2022. The decrease was due to higher mobile phone postpaid customer churn14, which increased to 1.63% from 1.22% in Q4 2022, reflecting greater overall competitive market activity and promotional offer intensity compared to last year as well as increased business customer deactivations attributable to cost rationalization initiatives. This was partly offset by 20.9% higher gross subscriber activations, driven by immigration growth, continued 5G and multi-product bundling momentum, effective promotions and stronger Virgin Plus performance. For full-year 2023, postpaid mobile phone net activations were 426,172, down 3.1%, reflecting higher mobile phone postpaid customer churn of 1.15% compared to 0.92% in 2022, as gross subscriber activations increased 18.6%.

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Bell’s prepaid mobile phone customer base declined by 36,630 net subscribers14 in Q4, compared to a net loss of 31,996 in Q4 2022. Despite a 7.1% increase in gross activations, the year-over-year decrease was the result of greater customer migrations to postpaid service and higher customer churn, which increased to 6.15% from 5.74% last year, reflecting more customer deactivations due to attractive promotional offers and availability of mobile 5G service on postpaid discount brands. For full-year 2023, we posted a net loss of 14,983 prepaid mobile phone customers, compared to a net gain of 50,059 in 2022, reflecting an increased churn rate of 5.31%, partly offset by 3.0% higher gross activations.

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Bell’s mobile phone customer base totalled 10,287,046 at the end of 2023, a 3.4% increase over 2022, comprised of 9,422,830 postpaid subscribers, up 3.9%, and 864,216 prepaid customers, down 1.7%.

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Mobile phone blended ARPU15 was up 0.4% to $58.71 in Q4, reflecting higher outbound roaming revenue and our ongoing focus on premium subscriber acquisition. This was moderated by lower overage revenue from customers subscribing to unlimited and larger capacity data rate plans and competitive pressures on base rate plan pricing. For full-year 2023, mobile phone blended ARPU increased 0.3%.

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Mobile connected device net activations were down 24.6% in Q4 to 78,746, despite fewer data device deactivations, due mainly to lower business IoT activations driven by one customer. For full-year 2023, mobile connected device net activations increased 45.2% to 293,307, driven by strong customer demand for Bell IoT services, including business solutions and connected car subscriptions, and fewer data device deactivations. At the end of 2023, mobile connected device subscribers14 totalled 2,732,548, an increase of 11.4% over 2022.

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Bell added 55,591 net new retail Internet subscribers14 in Q4, representing our second-best Q4 result in nearly two decades. This was down 12.4% from 63,466 in Q4 2022, reflecting higher customer deactivations, particularly in our copper service areas, attributable to aggressive promotional offers by competitors offering cable, fixed wireless and satellite Internet services. This was partly offset by higher customer gross activations driven by the superiority of Bell’s fibre services, increased customer penetration of tenured fibre footprint, and a focus on bundled offerings with mobile service. For full-year 2023, total retail Internet net activations were 187,126, compared to 201,762 in 2022. Retail Internet subscribers totalled 4,473,429 at the end of 2023, a 5.0% increase from 2022.

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Bell TV added 23,537 net new retail IPTV subscribers14 in Q4, down from 40,209 in Q4 2022. Despite higher gross activations, the year-over-year decrease was due mainly to higher customer deactivations, primarily on our app streaming service, attributable to more customers with expired promotional offers. For full-year 2023, retail IPTV net activations totalled 81,918, down from 94,400 in 2022. At the end of 2023, Bell served 2,070,342 retail IPTV subscribers, a 4.1% increase over 2022.

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Retail satellite TV net subscriber14 losses were 25,855 in Q4, compared to 26,026 in Q4 2022. For full-year 2023, retail satellite TV net losses were 108,367, up from 89,252 in 2022, due to fewer gross activations and higher customer churn driven by increased competitor promotional offer intensity. Bell’s retail satellite TV customer base totalled 654,950 at the end of 2023, down 14.2% from 2022.

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Retail residential NAS14 net losses were 38,347 in Q4, compared to 37,878 in Q4 2022. For full-year 2023, retail residential NAS losses were 176,612, compared to 175,788 in 2022. Bell’s retail residential NAS customer base totalled 2,021,617 at the end of 2023, representing a 7.7% decline compared to 2022.

14 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on churn and subscriber (or customer) units.

15 Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on blended ARPU.

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Bell Media

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Media operating revenue decreased 7.5% in Q4 to $822 million, and 4.2% in 2023 to $3,117 million, as a result of lower year-over-year advertising revenue, partly offset by higher subscriber revenue.

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Advertising revenue was down 13.7% in Q4, as advertiser demand and spending, particularly for TV, continued to be impacted by ongoing unfavourable economic conditions as well as the Hollywood actors’ and writers’ strikes. Additionally, advertising revenue generated in Q4 2022 from the FIFA World Cup Qatar 2022 did not recur this year. This was moderated by growth in digital advertising as we combine our content and digital platforms with targeted advertising capabilities and technology to grow digital market share. For full-year 2023, advertising revenue decreased 8.6%.

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Total digital revenues grew 27% in Q4 and 19% in 2023, the result of ongoing Crave direct-to-consumer streaming growth and increased advertising bookings from Bell Media’s strategic audience management (SAM) TV media sales tool. Digital revenues represented 35% of total Bell Media revenue in 2023, up from 29% in 2022. Crave subscriptions totalled approximately 3.1 million customers at the end of 2023, including direct-to-consumer streaming subscribers which grew 14% over last year.

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Subscriber revenue increased 1.0% in Q4, due to a one-time retroactive adjustment related to a contract with a Canadian TV distributor and continued Crave direct-to-consumer streaming growth. For full-year 2023, subscriber revenue increased 0.7%.

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Notwithstanding lower year-over-year revenue, adjusted EBITDA in Q4 was up 14.7% to $148 million, delivering a 3.5 percentage-point increase in margin to 18.0%. This was driven by a 11.3% decrease in operating costs reflecting lower TV programming costs, despite contractual increases for premium content, due to the Hollywood strikes and FIFA World Cup Qatar 2022 last year, restructuring initiatives undertaken in Q2 2023 as a result of the unfavourable economic and broadcasting regulatory environments, and the cessation of CRTC Part II fees in April 2023. For full-year 2023, Bell Media adjusted EBITDA was down 6.4% to $697 million, yielding a margin of 22.4% compared to 22.9% in 2022.

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TSN remained Canada’s number one sports network and was the top specialty channel overall in Q4; RDS was the top-ranked French-language non-news specialty channel overall.

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For Q4 2023, Bell Media was ranked number one in full-day viewership in the French-language entertainment and pay specialty market.

COMMON SHARE DIVIDEND

BCE’s Board of Directors has declared a quarterly dividend of $0.9975 per common share, payable on April 15, 2024 to shareholders of record at the close of business on March 15, 2024.

9/20

OUTLOOK FOR 2024

The table below provides our 2024 financial guidance targets that reflect potential recessionary and competitive pricing pressures as well as the financial impact of our strategic distribution partnership with Best Buy Canada. Directly as a result of federal government policies, we plan a significant reduction in 2024 capital expenditures that will lead to a slowdown in our pure fibre build and lower spending in highly-regulated businesses. We expect increased interest expense, higher depreciation and amortization expense, and lower gains on sale of real estate to drive lower adjusted EPS in 2024. For 2024, also we expect higher severance payments related to workforce restructuring initiatives, higher interest paid and lower cash from working capital to drive lower free cash flow.



	2023 Results	2024 Guidance

Revenue growth	2.1%	0% to 4%

Adjusted EBITDA growth	2.1%	1.5% to 4.5%

Capital intensity	18.6%	Below 16.5%

Adjusted EPS growth	(4.2%)	(7%) to (2%)

Free cash flow growth	2.5%	(11%) to (3%)

Annualized common dividend per share	$3.87	$3.99

Please see the section entitled “Caution Regarding Forward-Looking Statements” later in this news release for a description of the principal assumptions on which BCE’s 2024 financial guidance targets are based, as well as the principal related risk factors.

CALL WITH FINANCIAL ANALYSTS

BCE will hold a conference call with the financial community to discuss Q4 2023 results and 2024 financial guidance on Thursday, February 8 at 8:00 am eastern. Media are welcome to participate on a listen-only basis. To participate, please dial toll-free 1-844-933-2401 or 647-724-5455. A replay will be available until midnight on March 5, 2024 by dialing 1-877-454-9859 or 647-483-1416 and entering passcode 2327436#. A live audio webcast of the conference call will be available on BCE’s website at BCE Q4-2023 conference call.

NON-GAAP AND OTHER FINANCIAL MEASURES

BCE uses various financial measures to assess its business performance. Certain of these measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP) while certain other measures do not have a standardized meaning under GAAP. We believe that our GAAP financial measures, read together with adjusted non-GAAP and other financial measures, provide readers with a better understanding of how management assesses BCE’s performance.

10/20

National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure (NI 52-112), prescribes disclosure requirements that apply to the following specified financial measures:

●

Non-GAAP financial measures;

●

Non-GAAP ratios;

●

Total of segments measures;

●

Capital management measures; and

●

Supplementary financial measures.

This section provides a description and classification of the specified financial measures contemplated by NI 52-112 that we use in this news release to explain our financial results except that, for supplementary financial measures, an explanation of such measures is provided where they are first referred to in this news release if the supplementary financial measures’ labelling is not sufficiently descriptive.

Non-GAAP Financial Measures

A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in BCE’s consolidated primary financial statements. We believe that non-GAAP financial measures are reflective of our on-going operating results and provide readers with an understanding of management’s perspective on and analysis of our performance.

Below are descriptions of the non-GAAP financial measures that we use in this news release to explain our results as well as reconciliations to the most directly comparable IFRS financial measures.

Adjusted net earnings – Adjusted net earnings is a non-GAAP financial measure and it does not have any standardized meaning under IFRS. Therefore, it is 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI.

We use adjusted net earnings and we believe that certain investors and analysts use this measure, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, 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.

11/20

The most directly comparable IFRS financial measure is net earnings attributable to common shareholders.

The following table is a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.


($ millions)

	Q4 2023		Q4 2022		2023		2022

Net earnings attributable to common shareholders		382		528		2,076		2,716

Reconciling items:
Severance, acquisition and other costs		41		19		200		94
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(6)		(27)		103		53
Net equity losses on investments in associates and joint ventures		204		-		581		42
Net (gains) losses on investments		(2)		29		(80)		(24)
Early debt redemption costs		-		-		1		18
Impairment of assets		109		150		143		279
Income taxes for above reconciling items		(39)		(37)		(100)		(117)
NCI for the above reconciling items		2		(8)		2		(4)


Adjusted net earnings		691		654		2,926		3,057

Free cash flow – Free cash flow is a non-GAAP financial measure and it does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define free cash flow as cash flows from operating activities, excluding cash from discontinued operations, 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 cash from discontinued operations, 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. Free cash flow shows how much cash is available to pay dividends on common shares, 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 directly comparable IFRS financial measure is cash flows from operating activities.

12/20

The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.


($ millions)

	Q4 2023		Q4 2022		2023		2022

Cash flows from operating activities		2,373		2,056		7,946		8,365

Capital expenditures		(1,029)		(1,638)		(4,581)		(5,133)

Cash dividends paid on preferred shares		(46)		(42)		(182)		(136)

Cash dividends paid by subsidiaries to NCI		(12)		(3)		(47)		(39)

Acquisition and other costs paid		3		3		8		10

Free cash flow		1,289		376		3,144		3,067

Non-GAAP Ratios

A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components.

Below is a description of the non-GAAP ratio that we use in this news release to explain our results.

Adjusted EPS – Adjusted EPS is a non-GAAP ratio and it does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define adjusted EPS as adjusted net earnings per BCE common share. Adjusted net earnings is a non-GAAP financial measure. For further details on adjusted net earnings, refer to Non-GAAP Financial Measures above.

We use adjusted EPS, and we believe that certain investors and analysts use this measure, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, 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.

Total of Segments Measures

A total of segments measure is a financial measure that is a subtotal or total of two or more reportable segments and is disclosed within the Notes to BCE’s consolidated primary financial statements.

Below is a description of the total of segments measure that we use in this news release to explain our results as well as a reconciliation to the most directly comparable IFRS financial measure.

13/20

Adjusted EBITDA – Adjusted EBITDA is a total of segments measure. We define adjusted EBITDA as operating revenues less operating costs as shown in BCE’s consolidated income statements.

The most directly comparable IFRS financial measure is net earnings. The following table is a reconciliation of net earnings to adjusted EBITDA on a consolidated basis.


($ millions)

	Q4 2023		Q4 2022		2023		2022

Net earnings		435		567		2,327		2,926
Severance, acquisition and other costs		41		19		200		94
Depreciation		954		922		3,745		3,660
Amortization		299		270		1,173		1,063
Finance costs
Interest expense		399		319		1,475		1,146
Net return on post-employment benefit plans		(27)		(13)		(108)		(51)
Impairment of assets		109		150		143		279
Other expense (income)		147		(19)		466		115
Income taxes		210		222		996		967

Adjusted EBITDA		2,567		2,437		10,417		10,199

Supplementary Financial Measures

A supplementary financial measure is a financial measure that is not reported in BCE’s consolidated financial statements, and is, or is intended to be, reported periodically to represent historical or expected future financial performance, financial position, or cash flows.

An explanation of such measures is provided where they are first referred to in this news release if the supplementary financial measures’ labelling is not sufficiently descriptive.

KEY PERFORMANCE INDICATORS (KPIs)

We use adjusted EBITDA margin, blended ARPU, capital intensity, churn and subscriber (or customer or NAS) units 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.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to BCE’s financial guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE’s 2024 annualized common share dividend, the expected rollback of BCE’s fibre network expansion and reductions in capital expenditures over 2024 and 2025, the cost savings and other benefits expected to result from workforce reductions, BCE’s 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, commitment 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.

14/20

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. These statements are not guarantees of future performance or events, 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 February 8, 2024 and, accordingly, are subject to change after such date. Except as may be required by applicable 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. We regularly consider potential acquisitions, dispositions, mergers, business combinations, investments, monetizations, joint ventures and other transactions, some of which may be significant. Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any such transactions or of special items that may be announced or that may occur after February 8, 2024. 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 financial results, as well as our objectives, strategic priorities and business outlook, 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 the following:

Canadian Economic Assumptions

Our forward-looking statements are based on certain assumptions concerning the Canadian economy. In particular, we have assumed:

●

Slowing economic growth, given the Bank of Canada’s most recent estimated growth in Canadian gross domestic product of 0.8% in 2024, down from 1.0% in 2023

●

Easing, but still elevated, consumer price index (CPI) inflation as the effects of past interest rate increases work through the economy

●

Easing labour market conditions

●

Muted growth in household spending due to slow labour income growth, high debt-servicing costs and weak consumer confidence

●

Soft business investment growth due to slow demand and still-elevated borrowing costs

●

Prevailing high interest rates expected to remain at or near current levels

●

Population growth resulting from strong immigration

●

Canadian dollar expected to remain 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

15/20

Canadian Market Assumptions

Our forward-looking statements also reflect various Canadian market assumptions. In particular, we have made the following market assumptions:

●

A higher level of wireline and wireless competition in consumer, business and wholesale markets

●

Higher, but slowing, wireless industry penetration

●

A shrinking data and voice connectivity market as business customers migrate to lower-priced telecommunications solutions or alternative over-the-top (OTT) competitors

●

The Canadian advertising market is experiencing a slowdown consistent with trends in the global advertising market, with improvement expected in the medium term, although visibility to the specific timing and pace of recovery remains limited

●

Declines in broadcasting distribution undertaking (BDU) subscribers driven by increasing competition from the continued rollout of subscription video-on-demand (SVOD) streaming services together with further scaling of OTT aggregators

Assumptions Concerning our Bell CTS Segment

Our forward-looking statements are also based on the following internal operational assumptions with respect to our Bell CTS segment:

●

Increase our market share of national operators’ wireless mobile phone net additions

●

Increased competitive intensity and promotional activity across all regions and market segments

●

Ongoing expansion and deployment of Fifth Generation (5G) and 5G+ wireless networks, offering competitive coverage and quality

●

Continued diversification of our distribution strategy with a focus on expanding direct-to-consumer (DTC) and online transactions

●

Moderating growth in mobile phone blended average revenue per user (ARPU), driven by growth in 5G subscriptions, and increased roaming revenue from the easing of travel restrictions implemented as a result of the COVID-19 pandemic, partly offset by reduced data overage revenue due, among others, to the continued adoption of unlimited plans

●

Accelerating business customer adoption of advanced 5G, 5G+ and Internet of Things (IoT) solutions

●

Improving wireless handset device availability in addition to stable device pricing and margins

●

Further deployment of direct fibre to more homes and businesses within our wireline footprint, but at a slower pace than during any of 2020 to 2023

●

Continued growth in retail Internet and Internet protocol television (IPTV) subscribers

●

Increasing wireless and Internet-based technological substitution

●

Continued focus on the consumer household and bundled service offers for mobility and Internet customers

●

Continued large business customer migration to Internet protocol (IP)-based systems

●

Ongoing competitive repricing pressures in our business and wholesale markets

●

Continued competitive intensity in our small and medium-sized business markets as cable operators and other telecommunications competitors continue to intensify their focus on business customers

●

Traditional high-margin product categories challenged by large global cloud and OTT providers of business voice and data solutions expanding into Canada with on-demand services

●

Increasing customer adoption of OTT services resulting in downsizing of TV packages

16/20

●

Growing consumption of OTT TV services and on-demand video streaming, as well as the proliferation of devices, such as tablets, that consume large quantities of bandwidth, will require ongoing capital investment

●

Realization of cost savings related to operating efficiencies enabled by our direct fibre footprint, changes in consumer behaviour and product innovation, digital adoption, product and service enhancements, expanding self-serve capabilities, new call centre and digital investments, other improvements to the customer service experience, management workforce reductions including attrition and retirements, and lower contracted rates from our suppliers

●

No adverse material financial, operational or competitive consequences of changes in or implementation of regulations affecting our communication and technology services business

Assumptions Concerning our Bell Media Segment

Our forward-looking statements are also based on the following internal operational assumptions with respect to our Bell Media segment:

●

Overall digital revenue expected to reflect continued scaling of our strategic audience management (SAM) TV and demand-side platform (DSP) buying platforms, expansion of Addressable TV (ATV), as well as DTC subscriber growth contributing towards the advancement of our digital-first media strategy

●

Leveraging of first-party data to improve targeting, advertisement delivery including personalized viewing experience and attribution

●

Continued escalation of media content costs to secure quality programming

●

Continued scaling of Crave through optimized content offering, user experience improvements and expanded distribution

●

Continued support in original French programming with a focus on digital platforms such as Crave, Noovo.ca and iHeartRadio, to better serve our French-language customers through a personalized digital experience

●

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

●

No adverse material financial, operational or competitive consequences of changes in or implementation of regulations affecting our media business

Financial Assumptions Concerning BCE

Our forward-looking statements are also based on the following internal financial assumptions with respect to BCE for 2024:

●

An estimated post-employment benefit plans service cost of approximately $215 million

●

An estimated net return on post-employment benefit plans of approximately $70 million

●

Depreciation and amortization expense of approximately $5,000 million to $5,050 million

●

Interest expense of approximately $1,650 million to $1,700 million

●

Interest paid of approximately $1,750 million to $1,800 million

●

An average effective tax rate of approximately 25%

●

Non-controlling interest of approximately $60 million

●

Contributions to post-employment benefit plans of approximately $55 million

●

Payments under other post-employment benefit plans of approximately $60 million

●

Income taxes paid (net of refunds) of approximately $700 million to $800 million

●

Weighted average number of BCE common shares outstanding of approximately 912 million

●

An annual common share dividend of $3.99 per share

17/20

Assumptions underlying expected continuing contribution holiday in 2024 in the majority of our pension plans

We have made the following principal assumptions underlying the expected continuing contribution holiday in 2024 in the majority of our pension plans:

●

At the relevant time, our defined benefit (DB) pension plans will remain in funded positions with going concern surpluses and maintain solvency ratios that exceed the minimum legal requirements for a contribution holiday to be taken for applicable DB and defined contribution (DC) components

●

No significant declines in our DB pension plans’ financial position due to declines in investment returns or interest rates

●

No material experience losses from other events such as through litigation or changes in laws, regulations or actuarial standards

The foregoing assumptions, although considered reasonable by BCE on February 8, 2024, may prove to be inaccurate. Accordingly, our actual results could differ materially from our expectations as set forth in this news release.

Material Risks

Important 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 2024 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2024 financial guidance targets, 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.

18/20

These risks include, but are not limited to: the negative effect of adverse economic conditions, including a potential recession, elevated inflation, high interest rates and financial and capital market volatility, and the resulting negative impact on business and customer spending and the demand for our products and services; the negative effect of adverse conditions associated with geopolitical events; regulatory initiatives, proceedings and decisions, government consultations and government positions that negatively affect us and influence our business including, without limitation, concerning mandatory access to networks, spectrum auctions, the imposition of consumer-related codes of conduct, approval of acquisitions, broadcast and spectrum licensing, foreign ownership requirements, privacy and cybersecurity obligations and control of copyright piracy; the inability to implement enhanced compliance frameworks and to comply with legal and regulatory obligations; unfavourable resolution of legal proceedings; the intensity of competitive activity and the failure to effectively respond to evolving competitive dynamics; the level of technological substitution and the presence of alternative service providers contributing to disruptions and disintermediation in each of our business segments; changing customer behaviour and the expansion of cloud-based, OTT and other alternative solutions; advertising market pressures from economic conditions, fragmentation and non-traditional/global digital services; rising content costs and challenges in our ability to acquire or develop key content; high Canadian Internet and smartphone penetration; the failure to evolve and transform our networks, systems and operations using next-generation technologies while lowering our cost structure, including the failure to transition from a traditional telecommunications company to a tech services and digital media company and meet customer expectations of product and service experience; the inability to drive a positive customer experience; the inability to protect our physical and non-physical assets from events such as information security attacks, unauthorized access or entry, fire and natural disasters; the failure to implement an effective data governance framework; the failure to attract, develop and retain a diverse and talented team capable of furthering our strategic imperatives and high-tech transformation; the potential deterioration in employee morale and engagement resulting from staff reductions, cost reductions or reorganizations and the de-prioritization of transformation initiatives due to staff reductions, cost reductions or reorganizations; the failure to adequately manage health and safety concerns; labour disruptions and shortages; the risk that we may need to incur significant capital expenditures to provide additional capacity and reduce network congestion; service interruptions or outages due to network failures or slowdowns; events affecting the functionality of, and our ability to protect, test, maintain, replace and upgrade, our networks, information technology (IT) systems, equipment and other facilities; the failure by other telecommunications carriers on which we rely to provide services to complete planned and sufficient testing, maintenance, replacement or upgrade of their networks, equipment and other facilities, which could disrupt our operations including through network or other infrastructure failures; the complexity of our operations and IT systems and the failure to implement or maintain highly effective processes and IT systems; in-orbit and other operational risks to which the satellites used to provide our satellite TV services are subject; the inability to access adequate sources of capital and generate sufficient cash flows from operating activities to meet our cash requirements, fund capital expenditures and provide for planned growth; uncertainty as to whether dividends will be declared or the dividend on common shares will be increased by BCE’s board of directors; the failure to reduce costs and adequately assess investment priorities, as well as unexpected increases in costs; the inability to manage various credit, liquidity and market risks; the failure to evolve practices to effectively monitor and control fraudulent activities; new or 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 impact on our financial statements and estimates from a number of factors; pension obligation volatility and increased contributions to post-employment benefit plans; our dependence on third-party suppliers, outsourcers and consultants to provide an uninterrupted supply of the products and services we need; the failure of our vendor selection, governance and oversight processes, including our management of supplier risk in the areas of security, data governance and responsible procurement; the quality of our products and services and the extent to which they may be subject to defects or fail to comply with applicable government regulations and standards; reputational risks and the inability to meaningfully integrate environmental, social and governance (ESG) considerations into our business strategy and operations; the failure to take appropriate actions to adapt to current and emerging environmental impacts, including climate change; pandemics, epidemics and other health risks, including health concerns about radio frequency emissions from wireless communications devices and equipment; the inability to adequately manage social issues; the failure to develop and implement sufficient corporate governance practices; the adverse impact of various internal and external factors on our ability to achieve our ESG targets including, without limitation, those related to greenhouse gas (GHG) emissions reduction and diversity, equity, inclusion and belonging.

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 Safe Harbour Notice Concerning Forward-Looking Statements dated February 8, 2024, 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 Sedarplus.ca) and with the U.S. Securities and Exchange Commission (available at SEC.gov). This document is also available at BCE.ca.

19/20

About BCE

BCE is Canada’s largest communications company16, providing advanced Bell broadband wireless, Internet, TV, media and business communications services. To learn more, please visit Bell.ca or BCE.ca.

Through Bell for Better, we are investing to create a better today and a better tomorrow by supporting the social and economic prosperity of our communities. This includes the Bell Let’s Talk initiative, which 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 throughout the country. To learn more, please visit Bell.ca/LetsTalk.

16 Based on total revenue and total combined customer connections.

Media inquiries:

Ellen Murphy

media@bell.ca

Investor inquiries:

Thane Fotopoulos

514-870-4619

thane.fotopoulos@bell.ca

20/20

EX-99.2 3 d873884dex992.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2023 SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2023

Exhibit 99.2




Q4		Supplementary Financial Information Fourth Quarter 2023

BCE Investor Relations Thane Fotopoulos 514-870-4619 thane.fotopoulos@bell.ca

BCE (1)

Consolidated Operational Data


(In millions of Canadian dollars, except share amounts) (unaudited)	Q4 2023			Q4 2022			$ change			% change		Total 2023			Total 2022			$ change			% change
Operating revenues
Service		5,348			5,353			(5	)		(0.1%)		21,154			20,956			198			0.9%
Product		1,125			1,086			39			3.6%		3,519			3,218			301			9.4%
Total operating revenues		6,473			6,439			34			0.5%		24,673			24,174			499			2.1%
Operating costs		(3,906	)		(4,002	)		96			2.4%		(14,256	)		(13,975	)		(281	)		(2.0%)
Adjusted EBITDA (A)		2,567			2,437			130			5.3%		10,417			10,199			218			2.1%
Adjusted EBITDA margin (B)(3)		39.7%			37.8%						1.9 pts		42.2%			42.2%						-
Severance, acquisition and other costs		(41	)		(19	)		(22	)		n.m.		(200	)		(94	)		(106	)		n.m.
Depreciation		(954	)		(922	)		(32	)		(3.5%)		(3,745	)		(3,660	)		(85	)		(2.3%)
Amortization		(299	)		(270	)		(29	)		(10.7%)		(1,173	)		(1,063	)		(110	)		(10.3%)
Finance costs
Interest expense		(399	)		(319	)		(80	)		(25.1%)		(1,475	)		(1,146	)		(329	)		(28.7%)
Net return on post-employment benefit plans		27			13			14			n.m.		108			51			57			n.m.
Impairment of assets		(109	)		(150	)		41			27.3%		(143	)		(279	)		136			48.7%
Other (expense) income		(147	)		19			(166	)		n.m.		(466	)		(115	)		(351	)		n.m.
Income taxes		(210	)		(222	)		12			5.4%		(996	)		(967	)		(29	)		(3.0%)
Net earnings		435			567			(132	)		(23.3%)		2,327			2,926			(599	)		(20.5%)

Net earnings attributable to:
Common shareholders		382			528			(146	)		(27.7%)		2,076			2,716			(640	)		(23.6%)
Preferred shareholders		48			44			4			9.1%		187			152			35			23.0%
Non-controlling interest		5			(5	)		10			n.m.		64			58			6			10.3%
Net earnings		435			567			(132	)		(23.3%)		2,327			2,926			(599	)		(20.5%)

Net earnings per common share - basic and diluted	$	0.42		$	0.58		$	(0.16	)		(27.6%)	$	2.28		$	2.98		$	(0.70	)		(23.5%)

Dividends per common share	$	0.9675		$	0.9200		$	0.0475			5.2%	$	3.8700		$	3.6800		$	0.1900			5.2%

Weighted average number of common shares outstanding - basic (millions)		912.3			912.0								912.2			911.5
Weighted average number of common shares outstanding - diluted (millions)		912.3			912.2								912.2			912.0
Number of common shares outstanding (millions)		912.3			912.0								912.3			912.0

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		382			528			(146	)		(27.7%)		2,076			2,716			(640	)		(23.6%)
Reconciling items:
Severance, acquisition and other costs		41			19			22			n.m.		200			94			106			n.m.
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(6	)		(27	)		21			77.8%		103			53			50			94.3%
Net equity losses on investment in associates and joint ventures		204			-			204			-		581			42			539			n.m.
Net (gains) losses on investments		(2	)		29			(31	)		n.m.		(80	)		(24	)		(56	)		n.m.
Early debt redemption costs		-			-			-			-		1			18			(17	)		(94.4%)
Impairment of assets		109			150			(41	)		(27.3%)		143			279			(136	)		(48.7%)
Income taxes for the above reconciling items		(39	)		(37	)		(2	)		(5.4%)		(100	)		(117	)		17			14.5%
Non-controlling interest (NCI) for the above reconciling items		2			(8	)		10			n.m.		2			(4	)		6			n.m.
Adjusted net earnings (A)		691			654			37			5.7%		2,926			3,057			(131	)		(4.3%)
Adjusted EPS (A)	$	0.76		$	0.71		$	0.05			7.0%	$	3.21		$	3.35		$	(0.14	)		(4.2%)

n.m. : not meaningful

(A)

Adjusted EBITDA is a total of segments measure, adjusted net earnings is a non-GAAP financial measure and adjusted EPS is a non-GAAP ratio. Refer to note 2.3, Total of segments measures, note 2.1, Non-GAAP financial measures and note 2.2, Non-GAAP ratios in the Accompanying Notes to this report for more information on these measures.

(B)	Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 2

BCE

Consolidated Operational Data - Historical Trend


(In millions of Canadian dollars, except share amounts) (unaudited)		TOTAL 2023		Q4 23		Q3 23		Q2 23		Q1 23		TOTAL 2022		Q4 22		Q3 22		Q2 22		Q1 22
Operating revenues
Service		21,154		5,348		5,281		5,303		5,222		20,956		5,353		5,193		5,233		5,177
Product		3,519		1,125		799		763		832		3,218		1,086		831		628		673
Total operating revenues		24,673		6,473		6,080		6,066		6,054		24,174		6,439		6,024		5,861		5,850
Operating costs		(14,256)		(3,906)		(3,413)		(3,421)		(3,516)		(13,975)		(4,002)		(3,436)		(3,271)		(3,266)
Adjusted EBITDA		10,417		2,567		2,667		2,645		2,538		10,199		2,437		2,588		2,590		2,584
Adjusted EBITDA margin		42.2%		39.7%		43.9%		43.6%		41.9%		42.2%		37.8%		43.0%		44.2%		44.2%
Severance, acquisition and other costs		(200)		(41)		(10)		(100)		(49)		(94)		(19)		(22)		(40)		(13)
Depreciation		(3,745)		(954)		(937)		(936)		(918)		(3,660)		(922)		(914)		(933)		(891)
Amortization		(1,173)		(299)		(295)		(296)		(283)		(1,063)		(270)		(267)		(266)		(260)
Finance costs
Interest expense		(1,475)		(399)		(373)		(359)		(344)		(1,146)		(319)		(298)		(269)		(260)
Net return on post-employment benefit plans		108		27		27		27		27		51		13		13		7		18
Impairment of assets		(143)		(109)		-		-		(34)		(279)		(150)		(21)		(106)		(2)
Other (expense) income		(466)		(147)		(129)		(311)		121		(115)		19		(130)		(97)		93
Income taxes		(996)		(210)		(243)		(273)		(270)		(967)		(222)		(178)		(232)		(335)
Net earnings		2,327		435		707		397		788		2,926		567		771		654		934

Net earnings attributable to:
Common shareholders		2,076		382		640		329		725		2,716		528		715		596		877
Preferred shareholders		187		48		47		46		46		152		44		39		35		34
Non-controlling interest		64		5		20		22		17		58		(5)		17		23		23
Net earnings		2,327		435		707		397		788		2,926		567		771		654		934

Net earnings per common share - basic and diluted	$	2.28	$	0.42	$	0.70	$	0.37	$	0.79	$	2.98	$	0.58	$	0.78	$	0.66	$	0.96

Dividends per common share	$	3.8700	$	0.9675	$	0.9675	$	0.9675	$	0.9675	$	3.6800	$	0.9200	$	0.9200	$	0.9200	$	0.9200

Weighted average number of common shares outstanding - basic (millions)		912.2		912.3		912.3		912.2		912.1		911.5		912.0		911.9		911.9		910.1
Weighted average number of common shares outstanding - diluted (millions)		912.2		912.3		912.3		912.5		912.3		912.0		912.2		912.3		912.8		910.8
Number of common shares outstanding (millions)		912.3		912.3		912.3		912.3		912.2		912.0		912.0		911.9		911.9		911.8

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		2,076		382		640		329		725		2,716		528		715		596		877
Reconciling items:
Severance, acquisition and other costs		200		41		10		100		49		94		19		22		40		13
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		103		(6)		128		(1)		(18)		53		(27)		74		81		(75)
Net equity losses on investments in associates and joint ventures		581		204		-		377		-		42		-		-		42		-
Net (gains) losses on investments		(80)		(2)		1		(79)		-		(24)		29		-		(16)		(37)
Early debt redemption costs		1		-		-		1		-		18		-		-		-		18
Impairment of assets		143		109		-		-		34		279		150		21		106		2
Income taxes for the above reconciling items		(100)		(39)		(38)		(5)		(18)		(117)		(37)		(31)		(62)		13
NCI for the above reconciling items		2		2		-		-		-		(4)		(8)		-		4		-
Adjusted net earnings		2,926		691		741		722		772		3,057		654		801		791		811
Adjusted EPS	$	3.21	$	0.76	$	0.81	$	0.79	$	0.85	$	3.35	$	0.71	$	0.88	$	0.87	$	0.89

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 3

BCE (1)

Segmented Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2023			Q4 2022			$ change			% change		TOTAL 2023			TOTAL 2022			$ change			% change

Operating revenues
Bell Communication and Technology Services (Bell CTS)		5,744			5,649			95			1.7%		21,926			21,301			625			2.9%
Bell Media		822			889			(67	)		(7.5%)		3,117			3,254			(137	)		(4.2%)
Inter-segment eliminations		(93	)		(99	)		6			6.1%		(370	)		(381	)		11			2.9%
Total		6,473			6,439			34			0.5%		24,673			24,174			499			2.1%

Operating costs
Bell CTS		(3,325	)		(3,341	)		16			0.5%		(12,206	)		(11,847	)		(359	)		(3.0%)
Bell Media		(674	)		(760	)		86			11.3%		(2,420	)		(2,509	)		89			3.5%
Inter-segment eliminations		93			99			(6	)		(6.1%)		370			381			(11	)		(2.9%)
Total		(3,906	)		(4,002	)		96			2.4%		(14,256	)		(13,975	)		(281	)		(2.0%)

Adjusted EBITDA
Bell CTS		2,419			2,308			111			4.8%		9,720			9,454			266			2.8%
Margin		42.1%			40.9%						1.2 pts		44.3%			44.4%						(0.1) pts
Bell Media		148			129			19			14.7%		697			745			(48	)		(6.4%)
Margin		18.0%			14.5%						3.5 pts		22.4%			22.9%						(0.5) pts
Total		2,567			2,437			130			5.3%		10,417			10,199			218			2.1%
Margin		39.7%			37.8%						1.9 pts		42.2%			42.2%						-

Capital expenditures
Bell CTS		975			1,559			584			37.5%		4,421			4,971			550			11.1%
Capital intensity (A)(3)		17.0%			27.6%						10.6 pts		20.2%			23.3%						3.1 pts
Bell Media		54			79			25			31.6%		160			162			2			1.2%
Capital intensity		6.6%			8.9%						2.3 pts		5.1%			5.0%						(0.1) pts
Total		1,029			1,638			609			37.2%		4,581			5,133			552			10.8%
Capital intensity		15.9%			25.4%						9.5 pts		18.6%			21.2%						2.6 pts

(A)	Capital intensity is defined as capital expenditures divided by operating revenues.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 4

BCE

Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2023			Q4 23			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22

Operating revenues
Bell CTS		21,926			5,744			5,461			5,354			5,367			21,301			5,649			5,401			5,135			5,116
Bell Media		3,117			822			710			805			780			3,254			889			719			821			825
Inter-segment eliminations		(370	)		(93	)		(91	)		(93	)		(93	)		(381	)		(99	)		(96	)		(95	)		(91	)
Total		24,673			6,473			6,080			6,066			6,054			24,174			6,439			6,024			5,861			5,850

Operating costs
Bell CTS		(12,206	)		(3,325	)		(2,997	)		(2,923	)		(2,961	)		(11,847	)		(3,341	)		(2,995	)		(2,771	)		(2,740	)
Bell Media		(2,420	)		(674	)		(507	)		(591	)		(648	)		(2,509	)		(760	)		(537	)		(595	)		(617	)
Inter-segment eliminations		370			93			91			93			93			381			99			96			95			91
Total		(14,256	)		(3,906	)		(3,413	)		(3,421	)		(3,516	)		(13,975	)		(4,002	)		(3,436	)		(3,271	)		(3,266	)

Adjusted EBITDA
Bell CTS		9,720			2,419			2,464			2,431			2,406			9,454			2,308			2,406			2,364			2,376
Margin		44.3%			42.1%			45.1%			45.4%			44.8%			44.4%			40.9%			44.5%			46.0%			46.4%
Bell Media		697			148			203			214			132			745			129			182			226			208
Margin		22.4%			18.0%			28.6%			26.6%			16.9%			22.9%			14.5%			25.3%			27.5%			25.2%
Total		10,417			2,567			2,667			2,645			2,538			10,199			2,437			2,588			2,590			2,584
Margin		42.2%			39.7%			43.9%			43.6%			41.9%			42.2%			37.8%			43.0%			44.2%			44.2%

Capital expenditures
Bell CTS		4,421			975			1,123			1,271			1,052			4,971			1,559			1,286			1,190			936
Capital intensity		20.2%			17.0%			20.6%			23.7%			19.6%			23.3%			27.6%			23.8%			23.2%			18.3%
Bell Media		160			54			36			36			34			162			79			31			29			23
Capital intensity		5.1%			6.6%			5.1%			4.5%			4.4%			5.0%			8.9%			4.3%			3.5%			2.8%
Total		4,581			1,029			1,159			1,307			1,086			5,133			1,638			1,317			1,219			959
Capital intensity		18.6%			15.9%			19.1%			21.5%			17.9%			21.2%			25.4%			21.9%			20.8%			16.4%

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 5

Bell CTS (1)


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2023	Q4 2022	% change	TOTAL 2023	TOTAL 2022	% change
Bell CTS
Operating revenues
Wireless	1,803	1,735	3.9%	7,120	6,821	4.4%
Wireline data	2,030	2,006	1.2%	8,084	7,920	2.1%
Wireline voice	697	736	(5.3%)	2,862	3,002	(4.7%)
Other wireline services	81	77	5.2%	312	309	1.0%
External service revenues	4,611	4,554	1.3%	18,378	18,052	1.8%
Inter-segment service revenues	8	9	(11.1%)	29	31	(6.5%)
Operating service revenues	4,619	4,563	1.2%	18,407	18,083	1.8%
Wireless	961	917	4.8%	2,885	2,714	6.3%
Wireline	164	169	(3.0%)	634	504	25.8%
External/Operating product revenues	1,125	1,086	3.6%	3,519	3,218	9.4%

Total external revenues	5,736	5,640	1.7%	21,897	21,270	2.9%
Total operating revenues	5,744	5,649	1.7%	21,926	21,301	2.9%

Operating costs	(3,325)	(3,341)	0.5%	(12,206)	(11,847)	(3.0%)

Adjusted EBITDA	2,419	2,308	4.8%	9,720	9,454	2.8%

Adjusted EBITDA margin	42.1%	40.9%	1.2 pts	44.3%	44.4%	(0.1) pts

Capital expenditures	975	1,559	37.5%	4,421	4,971	11.1%

Capital intensity	17.0%	27.6%	10.6 pts	20.2%	23.3%	3.1 pts

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 6

Bell CTS - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2023			Q4 23			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22
Bell CTS
Operating revenues

Wireless		7,120			1,803			1,828			1,766			1,723			6,821			1,735			1,759			1,692			1,635

Wireline data		8,084			2,030			2,032			2,021			2,001			7,920			2,006			1,987			1,974			1,953

Wireline voice		2,862			697			717			722			726			3,002			736			739			756			771

Other wireline services		312			81			78			75			78			309			77			77			78			77

External service revenues		18,378			4,611			4,655			4,584			4,528			18,052			4,554			4,562			4,500			4,436

Inter-segment service revenues		29			8			7			7			7			31			9			8			7			7
Operating service revenues		18,407			4,619			4,662			4,591			4,535			18,083			4,563			4,570			4,507			4,443

Wireless		2,885			961			672			626			626			2,714			917			692			542			563

Wireline		634			164			127			137			206			504			169			139			86			110
External/Operating product revenues		3,519			1,125			799			763			832			3,218			1,086			831			628			673

Total external revenues		21,897			5,736			5,454			5,347			5,360			21,270			5,640			5,393			5,128			5,109
Total operating revenues		21,926			5,744			5,461			5,354			5,367			21,301			5,649			5,401			5,135			5,116

Operating costs		(12,206	)		(3,325	)		(2,997	)		(2,923	)		(2,961	)		(11,847	)		(3,341	)		(2,995	)		(2,771	)		(2,740	)

Adjusted EBITDA		9,720			2,419			2,464			2,431			2,406			9,454			2,308			2,406			2,364			2,376
Adjusted EBITDA margin		44.3%			42.1%			45.1%			45.4%			44.8%			44.4%			40.9%			44.5%			46.0%			46.4%

Capital expenditures		4,421			975			1,123			1,271			1,052			4,971			1,559			1,286			1,190			936

Capital intensity		20.2%			17.0%			20.6%			23.7%			19.6%			23.3%			27.6%			23.8%			23.2%			18.3%

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 7

Bell CTS Metrics (1)


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2023			Q4 2022			% change		TOTAL 2023			TOTAL 2022			% change
Mobile phone subscribers(3)
Gross subscriber activations		712,310			605,034			17.7%		2,224,555			1,953,912			13.9%

Postpaid		564,784			467,294			20.9%		1,608,503			1,355,772			18.6%

Prepaid		147,526			137,740			7.1%		616,052			598,140			3.0%
Net subscriber activations (losses)		92,085			122,621			(24.9%)		411,189			489,901			(16.1%)

Postpaid		128,715			154,617			(16.8%)		426,172			439,842			(3.1%)

Prepaid		(36,630	)		(31,996	)		(14.5%)		(14,983	)		50,059			n.m.
Subscribers end of period (EOP)(C)		10,287,046			9,949,086			3.4%		10,287,046			9,949,086			3.4%

Postpaid(C)		9,422,830			9,069,887			3.9%		9,422,830			9,069,887			3.9%

Prepaid		864,216			879,199			(1.7%)		864,216			879,199			(1.7%)
Blended average revenue per user (ARPU) ($/month)(B)(3)		58.71			58.49			0.4%		59.08			58.92			0.3%
Blended churn (%) (average per month)(3)		2.03%			1.63%			(0.40) pts		1.51%			1.27%			(0.24) pts

Postpaid		1.63%			1.22%			(0.41) pts		1.15%			0.92%			(0.23) pts

Prepaid		6.15%			5.74%			(0.41) pts		5.31%			4.85%			(0.46) pts
Mobile connected device subscribers(3)
Net subscriber activations		78,746			104,447			(24.6%)		293,307			202,024			45.2%

Subscribers EOP(C)		2,732,548			2,451,818			11.4%		2,732,548			2,451,818			11.4%
Retail high-speed Internet subscribers(3)
Retail net subscriber activations		55,591			63,466			(12.4%)		187,126			201,762			(7.3%)

Retail subscribers EOP(A)(D)(E)		4,473,429			4,258,570			5.0%		4,473,429			4,258,570			5.0%
Retail TV subscribers(3)
Retail net subscriber (losses) activations		(2,318	)		14,183			n.m.		(26,449	)		5,148			n.m.

Internet protocol television (IPTV)		23,537			40,209			(41.5%)		81,918			94,400			(13.2%)

Satellite		(25,855	)		(26,026	)		0.7%		(108,367	)		(89,252	)		(21.4%)

Total retail subscribers EOP(A)(E)		2,725,292			2,751,498			(1.0%)		2,725,292			2,751,498			(1.0%)

IPTV(A)(E)		2,070,342			1,988,181			4.1%		2,070,342			1,988,181			4.1%

Satellite		654,950			763,317			(14.2%)		654,950			763,317			(14.2%)
Retail residential network access services (NAS)(3)

Retail residential NAS lines net losses		(38,347	)		(37,878	)		(1.2%)		(176,612	)		(175,788	)		(0.5%)

Retail residential NAS lines(A)(E)		2,021,617			2,190,771			(7.7%)		2,021,617			2,190,771			(7.7%)

n.m. : not meaningful

(A)	In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.

(B)

Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

(C)	In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively.

(D)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

(E)	In Q4 2022, as a result of the acquisition of Distributel Communications Limited (Distributel), our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 8

Bell CTS Metrics - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2023			Q4 23			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22
Mobile phone subscribers
Gross subscriber activations		2,224,555			712,310			603,770			502,940			405,535			1,953,912			605,034			583,700			415,270			349,908

Postpaid		1,608,503			564,784			423,364			347,746			272,609			1,355,772			467,294			391,165			266,600			230,713

Prepaid		616,052			147,526			180,406			155,194			132,926			598,140			137,740			192,535			148,670			119,195
Net subscriber activations (losses)		411,189			92,085			166,930			125,539			26,635			489,901			122,621			224,343			110,761			32,176

Postpaid		426,172			128,715			142,886			111,282			43,289			439,842			154,617			167,798			83,197			34,230

Prepaid		(14,983	)		(36,630	)		24,044			14,257			(16,654	)		50,059			(31,996	)		56,545			27,564			(2,054	)
Subscribers end of period (EOP)(C)		10,287,046			10,287,046			10,194,961			10,028,031			9,902,492			9,949,086			9,949,086			9,826,465			9,602,122			9,491,361

Postpaid(C)		9,422,830			9,422,830			9,294,115			9,151,229			9,039,947			9,069,887			9,069,887			8,915,270			8,747,472			8,664,275

Prepaid		864,216			864,216			900,846			876,802			862,545			879,199			879,199			911,195			854,650			827,086
Blended ARPU ($/month)(B)		59.08			58.71			60.28			59.16			58.15			58.92			58.49			60.39			59.17			57.61
Blended churn (%) (average per month)		1.51%			2.03%			1.45%			1.27%			1.29%			1.27%			1.63%			1.24%			1.07%			1.12%

Postpaid		1.15%			1.63%			1.10%			0.94%			0.90%			0.92%			1.22%			0.90%			0.75%			0.79%

Prepaid		5.31%			6.15%			5.10%			4.68%			5.28%			4.85%			5.74%			4.58%			4.41%			4.61%
Mobile connected device subscribers
Net subscriber activations (losses)		293,307			78,746			64,282			79,537			70,742			202,024			104,447			49,044			(344	)		48,877

Subscribers EOP(C)		2,732,548			2,732,548			2,653,802			2,589,520			2,509,983			2,451,818			2,451,818			2,347,371			2,298,327			2,298,671
Retail high-speed Internet subscribers
Retail net subscriber activations		187,126			55,591			79,327			24,934			27,274			201,762			63,466			89,652			22,620			26,024

Retail subscribers EOP(A)(D)(E)		4,473,429			4,473,429			4,417,838			4,338,511			4,278,497			4,258,570			4,258,570			4,067,039			3,977,387			3,954,767
Retail TV subscribers
Retail net subscriber (losses) activations		(26,449	)		(2,318	)		4,222			(14,404	)		(13,949	)		5,148			14,183			10,853			(11,527	)		(8,361	)

IPTV		81,918			23,537			35,976			11,506			10,899			94,400			40,209			38,093			3,838			12,260

Satellite		(108,367	)		(25,855	)		(31,754	)		(25,910	)		(24,848	)		(89,252	)		(26,026	)		(27,240	)		(15,365	)		(20,621	)

Total retail subscribers EOP(A)(E)		2,725,292			2,725,292			2,727,610			2,723,388			2,737,549			2,751,498			2,751,498			2,735,000			2,724,147			2,735,674

IPTV(A)(E)		2,070,342			2,070,342			2,046,805			2,010,829			1,999,080			1,988,181			1,988,181			1,945,657			1,907,564			1,903,726

Satellite		654,950			654,950			680,805			712,559			738,469			763,317			763,317			789,343			816,583			831,948
Retail residential NAS
Retail residential NAS lines net losses		(176,612	)		(38,347	)		(41,776	)		(49,608	)		(46,881	)		(175,788	)		(37,878	)		(42,853	)		(52,712	)		(42,345	)

Retail residential NAS lines(A)(E)		2,021,617			2,021,617			2,059,964			2,101,740			2,143,890			2,190,771			2,190,771			2,164,151			2,207,004			2,259,716

(A)	In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.

(B)

(C)	In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively.

(D)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

(E)	In Q4 2022, as a result of the acquisition of Distributel, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 9

BCE

Net debt and other information


BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
											December 31 2023		September 30 2023		June 30 2023		March 31 2023		December 31 2022

Long-term debt												31,135		29,532		28,314		27,456		27,783
Debt due within one year												5,042		5,171		6,039		6,347		4,137
50% of preferred shares												1,834		1,871		1,891		1,914		1,935
Cash												(547)		(569)		(450)		(651)		(99)
Cash equivalents												(225)		(50)		(450)		(90)		(50)
Short-term investments												(1,000)		-		-		-		-
Net debt (A)												36,239		35,955		35,344		34,976		33,706

Net debt leverage ratio (A)												3.48		3.50		3.46		3.44		3.30
Adjusted EBITDA /adjusted net interest expense ratio (A)												6.94		7.12		7.48		7.94		8.50



Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)					Q4 2023		Q4 2022		$ change		% change		TOTAL 2023		TOTAL 2022		$ change		% change
Free cash flow (FCF) (A)
Cash flows from operating activities						2,373		2,056		317		15.4%		7,946		8,365		(419)		(5.0%)
Capital expenditures						(1,029)		(1,638)		609		37.2%		(4,581)		(5,133)		552		10.8%
Cash dividends paid on preferred shares						(46)		(42)		(4)		(9.5%)		(182)		(136)		(46)		(33.8%)
Cash dividends paid by subsidiaries to non-controlling interest						(12)		(3)		(9)		n.m.		(47)		(39)		(8)		(20.5%)
Acquisition and other costs paid						3		3		-		-		8		10		(2)		(20.0%)
FCF						1,289		376		913		n.m.		3,144		3,067		77		2.5%



Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2023		Q4 2023		Q3 2023		Q2 2023		Q1 2023		Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022
FCF
Cash flows from operating activities		7,946		2,373		1,961		2,365		1,247		8,365		2,056		1,996		2,597		1,716
Capital expenditures		(4,581)		(1,029)		(1,159)		(1,307)		(1,086)		(5,133)		(1,638)		(1,317)		(1,219)		(959)
Cash dividends paid on preferred shares		(182)		(46)		(35)		(46)		(55)		(136)		(42)		(27)		(34)		(33)
Cash dividends paid by subsidiaries to non-controlling interest		(47)		(12)		(13)		(1)		(21)		(39)		(3)		(11)		(14)		(11)
Acquisition and other costs paid		8		3		-		5		-		10		3		1		3		3
FCF		3,144		1,289		754		1,016		85		3,067		376		642		1,333		716

n.m. : not meaningful

(A)

Net debt and free cash flow are non-GAAP financial measures and net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio are capital management measures. Refer to note 2.1, Non-GAAP financial measures and note 2.4, Capital management measures in the Accompanying Notes to this report for more information on these measures.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 10

Consolidated Statements of Financial Position


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	December 31 2023			September 30 2023			June 30 2023			March 31 2023			December 31 2022
ASSETS
Current assets
Cash		547			569			450			651			99
Cash equivalents		225			50			450			90			50
Short-term investments		1,000			-			-			-			-
Trade and other receivables		4,031			3,838			3,771			3,828			4,138
Inventory		465			636			656			673			656
Contract assets		443			404			403			419			436
Contract costs		633			590			559			538			540
Prepaid expenses		230			338			395			378			244
Other current assets		264			312			282			330			324
Assets held for sale		60			-			-			260			-
Total current assets		7,898			6,737			6,966			7,167			6,487
Non-current assets
Contract assets		292			251			243			260			288
Contract costs		779			732			683			633			603
Property, plant and equipment		30,352			30,158			29,909			29,233			29,256
Intangible assets		16,609			16,491			16,395			16,338			16,183
Deferred tax assets		96			114			108			102			84
Investments in associates and joint ventures		323			326			322			664			608
Post-employment benefit assets		2,935			3,299			3,207			3,407			3,559
Other non-current assets		1,714			1,241			1,194			1,341			1,355
Goodwill		10,942			11,023			11,022			10,830			10,906
Total non-current assets		64,042			63,635			63,083			62,808			62,842
Total assets		71,940			70,372			70,049			69,975			69,329
LIABILITIES
Current liabilities
Trade payables and other liabilities		4,729			4,354			4,347			4,080			5,221
Contract liabilities		811			798			793			851			857
Interest payable		332			258			305			208			281
Dividends payable		910			910			900			900			867
Current tax liabilities		268			279			207			164			106
Debt due within one year		5,042			5,171			6,039			6,347			4,137
Liabilities held for sale		15			-			-			109			-
Total current liabilities		12,107			11,770			12,591			12,659			11,469
Non-current liabilities
Contract liabilities		277			271			257			244			228
Long-term debt		31,135			29,532			28,314			27,456			27,783
Deferred tax liabilities		4,869			4,954			4,898			4,969			4,953
Post-employment benefit obligations		1,278			1,225			1,339			1,348			1,311
Other non-current liabilities		1,717			1,313			1,201			1,032			1,070
Total non-current liabilities		39,276			37,295			36,009			35,049			35,345
Total liabilities		51,383			49,065			48,600			47,708			46,814
EQUITY
Equity attributable to BCE shareholders
Preferred shares		3,667			3,742			3,781			3,827			3,870
Common shares		20,859			20,859			20,859			20,851			20,840
Contributed surplus		1,258			1,230			1,204			1,179			1,172
Accumulated other comprehensive (loss) income		(42	)		(145	)		(105	)		3			(55	)
Deficit		(5,513	)		(4,716	)		(4,618	)		(3,926	)		(3,649	)
Total equity attributable to BCE shareholders		20,229			20,970			21,121			21,934			22,178
Non-controlling interest		328			337			328			333			337
Total equity		20,557			21,307			21,449			22,267			22,515
Total liabilities and equity		71,940			70,372			70,049			69,975			69,329
Number of common shares outstanding (millions)		912.3			912.3			912.3			912.2			912.0

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 11

BCE

Consolidated Cash Flow Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2023		Q4 2022		$ change		TOTAL 2023		TOTAL 2022		$ change

Net earnings		435		567		(132)		2,327		2,926		(599)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		41		19		22		200		94		106
Depreciation and amortization		1,253		1,192		61		4,918		4,723		195
Post-employment benefit plans cost		23		47		(24)		98		198		(100)
Net interest expense		374		319		55		1,408		1,124		284
Impairment of assets		109		150		(41)		143		279		(136)
(Gains) losses on investments		(2)		29		(31)		(80)		(24)		(56)
Net equity losses on investments in associates and joint ventures		204		-		204		581		42		539
Income taxes		210		222		(12)		996		967		29
Contributions to post-employment benefit plans		(12)		(12)		-		(52)		(140)		88
Payments under other post-employment benefit plans		(16)		(17)		1		(64)		(64)		-
Severance and other costs paid		(59)		(27)		(32)		(178)		(129)		(49)
Interest paid		(326)		(243)		(83)		(1,486)		(1,197)		(289)
Income taxes paid (net of refunds)		(169)		(340)		171		(700)		(749)		49
Acquisition and other costs paid		(3)		(3)		-		(8)		(10)		2
Change in contract assets		(81)		(94)		13		(11)		(59)		48
Change in wireless device financing plan receivables		(127)		(99)		(28)		(46)		22		(68)
Net change in operating assets and liabilities		519		346		173		(100)		362		(462)
Cash flows from operating activities		2,373		2,056		317		7,946		8,365		(419)
Capital expenditures		(1,029)		(1,638)		609		(4,581)		(5,133)		552
Cash dividends paid on preferred shares		(46)		(42)		(4)		(182)		(136)		(46)
Cash dividends paid by subsidiaries to non-controlling interest		(12)		(3)		(9)		(47)		(39)		(8)
Acquisition and other costs paid		3		3		-		8		10		(2)
Free cash flow		1,289		376		913		3,144		3,067		77
Business acquisitions		(2)		(287)		285		(222)		(429)		207
Business dispositions		-		(1)		1		209		52		157
Acquisition and other costs paid		(3)		(3)		-		(8)		(10)		2
Short-term investments		(1,000)		-		(1,000)		(1,000)		-		(1,000)
Spectrum licences		(24)		-		(24)		(183)		(3)		(180)
Other investing activities		(3)		(13)		10		(4)		(4)		-
(Decrease) increase in notes payable		(162)		(511)		349		(646)		111		(757)
Increase in securitized receivables		-		-		-		-		700		(700)
Issue of long-term debt		1,331		1,006		325		5,195		1,951		3,244
Repayment of long-term debt		(293)		(250)		(43)		(1,858)		(2,023)		165
Repurchase of a financial liability		-		-		-		(149)		-		(149)
Issue of common shares		-		2		(2)		18		171		(153)
Purchase of shares for settlement of share-based payments		(44)		(49)		5		(223)		(255)		32
Repurchase of preferred shares		(50)		(10)		(40)		(140)		(125)		(15)
Cash dividends paid on common shares		(882)		(839)		(43)		(3,486)		(3,312)		(174)
Other financing activities		(4)		(5)		1		(24)		(31)		7
		(1,136)		(960)		(176)		(2,521)		(3,207)		686
Net (decrease) increase in cash		(22)		(484)		462		448		(190)		638
Cash at beginning of period		569		583		(14)		99		289		(190)
Cash at end of period		547		99		448		547		99		448
Net increase (decrease) in cash equivalents		175		(100)		275		175		50		125
Cash equivalents at beginning of period		50		150		(100)		50		-		50
Cash equivalents at end of period		225		50		175		225		50		175

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2023			Q4 23			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22

Net earnings		2,327			435			707			397			788			2,926			567			771			654			934
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		200			41			10			100			49			94			19			22			40			13
Depreciation and amortization		4,918			1,253			1,232			1,232			1,201			4,723			1,192			1,181			1,199			1,151
Post-employment benefit plans cost		98			23			23			21			31			198			47			48			52			51
Net interest expense		1,408			374			358			346			330			1,124			319			282			265			258
Impairment of assets		143			109			-			-			34			279			150			21			106			2
(Gains) losses on investments		(80	)		(2	)		1			(79	)		-			(24	)		29			-			(16	)		(37	)
Net equity losses on investments in associates and joint ventures		581			204			-			377			-			42			-			-			42			-
Income taxes		996			210			243			273			270			967			222			178			232			335
Contributions to post-employment benefit plans		(52	)		(12	)		(12	)		(13	)		(15	)		(140	)		(12	)		(14	)		(35	)		(79	)
Payments under other post-employment benefit plans		(64	)		(16	)		(16	)		(17	)		(15	)		(64	)		(17	)		(17	)		(15	)		(15	)
Severance and other costs paid		(178	)		(59	)		(55	)		(39	)		(25	)		(129	)		(27	)		(44	)		(30	)		(28	)
Interest paid		(1,486	)		(326	)		(451	)		(270	)		(439	)		(1,197	)		(243	)		(385	)		(196	)		(373	)
Income taxes paid (net of refunds)		(700	)		(169	)		(167	)		(200	)		(164	)		(749	)		(340	)		(150	)		(143	)		(116	)
Acquisition and other costs paid		(8	)		(3	)		-			(5	)		-			(10	)		(3	)		(1	)		(3	)		(3	)
Change in contract assets		(11	)		(81	)		(8	)		33			45			(59	)		(94	)		(20	)		23			32
Change in wireless device financing plan receivables		(46	)		(127	)		16			24			41			22			(99	)		(6	)		68			59
Net change in operating assets and liabilities		(100	)		519			80			185			(884	)		362			346			130			354			(468	)
Cash flows from operating activities		7,946			2,373			1,961			2,365			1,247			8,365			2,056			1,996			2,597			1,716
Capital expenditures		(4,581	)		(1,029	)		(1,159	)		(1,307	)		(1,086	)		(5,133	)		(1,638	)		(1,317	)		(1,219	)		(959	)
Cash dividends paid on preferred shares		(182	)		(46	)		(35	)		(46	)		(55	)		(136	)		(42	)		(27	)		(34	)		(33	)
Cash dividends paid by subsidiaries to non-controlling interest		(47	)		(12	)		(13	)		(1	)		(21	)		(39	)		(3	)		(11	)		(14	)		(11	)
Acquisition and other costs paid		8			3			-			5			-			10			3			1			3			3
Free cash flow		3,144			1,289			754			1,016			85			3,067			376			642			1,333			716
Business acquisitions		(222	)		(2	)		1			(196	)		(25	)		(429	)		(287	)		(3	)		-			(139	)
Business dispositions		209			-			1			208			-			52			(1	)		(1	)		2			52
Acquisition and other costs paid		(8	)		(3	)		-			(5	)		-			(10	)		(3	)		(1	)		(3	)		(3	)
Short-term investments		(1,000	)		(1,000	)		-			-			-			-			-			-			-			-
Spectrum licences		(183	)		(24	)		(3	)		(145	)		(11	)		(3	)		-			(3	)		-			-
Other investing activities		(4	)		(3	)		(16	)		(16	)		31			(4	)		(13	)		(8	)		27			(10	)
(Decrease) increase in notes payable		(646	)		(162	)		(300	)		(101	)		(83	)		111			(511	)		(34	)		187			469
(Decrease) increase in securitized receivables		-			-			-			(500	)		500			700			-			700			-			-
Issue of long-term debt		5,195			1,331			1,161			1,199			1,504			1,951			1,006			-			-			945
Repayment of long-term debt		(1,858	)		(293	)		(920	)		(346	)		(299	)		(2,023	)		(250	)		(270	)		(245	)		(1,258	)
Repurchase of a financial liability		(149	)		-			-			-			(149	)		-			-			-			-			-
Issue of common shares		18			-			-			8			10			171			2			1			7			161
Purchase of shares for settlement of share-based payments		(223	)		(44	)		(44	)		(42	)		(93	)		(255	)		(49	)		(49	)		(51	)		(106	)
Repurchase of preferred shares		(140	)		(50	)		(27	)		(32	)		(31	)		(125	)		(10	)		-			-			(115	)
Cash dividends paid on common shares		(3,486	)		(882	)		(883	)		(882	)		(839	)		(3,312	)		(839	)		(839	)		(839	)		(795	)
Other financing activities		(24	)		(4	)		(5	)		(7	)		(8	)		(31	)		(5	)		2			-			(28	)
		(2,521	)		(1,136	)		(1,035	)		(857	)		507			(3,207	)		(960	)		(505	)		(915	)		(827	)
Net increase (decrease) in cash		448			(22	)		119			(201	)		552			(190	)		(484	)		(13	)		418			(111	)
Cash at beginning of period		99			569			450			651			99			289			583			596			178			289
Cash at end of period		547			547			569			450			651			99			99			583			596			178
Net increase (decrease) in cash equivalents		175			175			(400	)		360			40			50			(100	)		150			-			-
Cash equivalents at beginning of period		50			50			450			90			50			-			150			-			-			-
Cash equivalents at end of period		225			225			50			450			90			50			50			150			-			-

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 13

Accompanying Notes

(1)	Effective Q1 2023, our results are now reported in two segments: Bell CTS and Bell Media.

In 2022, we began modifying our internal and external reporting processes to align with organizational changes that were made to reflect an increasing strategic focus on multiproduct sales, the continually increasing technological convergence of our wireless and wireline telecommunications infrastructure and operations driven by the deployment of our Fifth Generation (5G) and fibre networks, and our digital transformation. These factors have made it increasingly difficult to distinguish between our wireless and wireline operations and resulted in changes in Q1 2023 to the financial information that is regularly provided to our chief operating decision maker to measure performance and allocate resources.

Effective with our Q1 2023 results, our previous Bell Wireless and Bell Wireline operating segments were combined to form a single reporting segment called Bell Communication and Technology Services (Bell CTS). Bell Media remains a distinct reportable segment and is unaffected. Our results are therefore reported in two segments: Bell CTS and Bell Media. As a result of our reporting changes, prior periods have been restated for comparative purposes.

Our Bell CTS segment provides a wide range of communication products and services to consumers, businesses and government customers across Canada. Wireless products and services include mobile data and voice plans and devices and are available nationally. Wireline products and services comprise data (including Internet access, IPTV, cloud-based services and business solutions), voice, and other communication services and products, which are available to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers, as well as the results of operations of our national consumer electronics retailer, The Source (Bell) Electronics Inc. (The Source).

Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home and advanced advertising services to customers nationally across Canada.

Furthermore, effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

Throughout this report, we, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates.

(2)	Non-GAAP and other financial measures

National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure (NI 52-112), prescribes disclosure requirements that apply to the following specified financial measures:

●

Non-GAAP financial measures;

●

Non-GAAP ratios;

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 14

●

Total of segments measures;

●

Capital management measures; and

●

Supplementary financial measures.

This section provides a description and classification of the specified financial measures contemplated by NI 52-112 that we use in this report to explain our financial results except that, for supplementary financial measures, an explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.

(2.1)

Non-GAAP financial measures

Below are descriptions of the non-GAAP financial measures that we use in this report to explain our results. Except for adjusted net interest expense, for which a reconciliation is provided below, reconciliations to the most directly comparable IFRS financial measures on a consolidated basis are set out earlier in this report.

Adjusted net earnings

The term adjusted net earnings does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

The most directly comparable IFRS financial measure is net earnings attributable to common shareholders. Refer to pages 2 and 3 of this report for a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.

Adjusted net interest expense

The term adjusted net interest expense does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 15

We define adjusted net interest expense as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements.

We use adjusted net interest expense as a component in the calculation of the adjusted EBITDA to adjusted net interest expense ratio, which is a capital management measure. For further details on the adjusted EBITDA to adjusted net interest expense ratio, see note 2.4, Capital management measures below. We use and believe that certain investors and analysts use the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.

The most directly comparable IFRS financial measure is net interest expense. The following tables provide reconciliations of net interest expense to adjusted net interest expense on a consolidated basis.



	Q4 2023	Q4 2022

Net interest expense (twelve months ended December 31, 2023 and 2022, respectively)	1,408		1,124

50% of net earnings attributable to preferred shareholders (twelve months ended December 31, 2023 and 2022, respectively)	94		76

Adjusted net interest expense for the twelve months ended December 31, 2023 and 2022, respectively	1,502		1,200





					Q3 2023

Net interest expense (nine months ended September 30, 2023)					1,034

Net interest expense (year ended December 31, 2022)					1,124

Net interest expense (nine months ended September 30, 2022)					(805)

12-month trailing net interest expense (ended September 30, 2023)					1,353

50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2023)					70

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)					76

50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2022)					(54)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended September 30, 2023)					92

Adjusted net interest expense for the twelve months ended September 30, 2023					1,445

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 16



			Q2 2023

Net interest expense (six months ended June 30, 2023)			676

Net interest expense (year ended December 31, 2022)			1,124

Net interest expense (six months ended June 30, 2022)			(523)

12-month trailing net interest expense (ended June 30, 2023)			1,277

50% of net earnings attributable to preferred shareholders (six months ended June 30, 2023)			46

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)			76

50% of net earnings attributable to preferred shareholders (six months ended June 30, 2022)			(35)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended June 30, 2023)			87

Adjusted net interest expense for the twelve months ended June 30, 2023			1,364



			Q1 2023

Net interest expense (three months ended March 31, 2023)			330

Net interest expense (year ended December 31, 2022)			1,124

Net interest expense (three months ended March 31, 2022)			(258)

12-month trailing net interest expense (ended March 31, 2023)			1,196

50% of net earnings attributable to preferred shareholders (three months ended March 31, 2023)			23

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)			76

50% of net earnings attributable to preferred shareholders (three months ended March 31, 2022)			(17)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended March 31, 2023)			82

Adjusted net interest expense for the twelve months ended March 31, 2023			1,278

Free cash flow

The term free cash flow does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 17

cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most directly comparable IFRS financial measure is cash flows from operating activities. Refer to pages 10, 12 and 13 of this report for a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

Net debt

The term net debt does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define net debt as debt due within one year plus long-term debt and 50% of preferred shares, less cash, cash equivalents and short-term investments, as shown in BCE’s consolidated statements of financial position. We include 50% of outstanding preferred shares in our net debt as it is consistent with the treatment by certain credit rating agencies. In Q4 2023, we updated our definition of net debt to account for short-term investments as these funds are liquid and may be used to repay the debt due within one year. This change does not impact the net debt amounts previously presented.

We consider net debt to be an important indicator of the company’s financial leverage because it represents the amount of debt that is not covered by available cash, cash equivalents and short-term investments. We believe that certain investors and analysts use net debt to determine a company’s financial leverage.

Net debt is calculated using several asset and liability categories from the statements of financial position. The most directly comparable IFRS financial measure is long-term debt. Refer to page 10 of this report for a reconciliation of long-term debt to net debt on a consolidated basis.

(2.2)

Non-GAAP ratios

A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components.

Adjusted EPS

The term adjusted EPS does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define adjusted EPS as adjusted net earnings per BCE common share. Adjusted net earnings is a non-GAAP financial measure. For further details on adjusted net earnings, see note 2.1 – Non-GAAP financial measures above.

(2.3)

Total of segments measures

A total of segments measure is a financial measure that is a subtotal or total of 2 or more reportable segments and is disclosed within the Notes to BCE’s consolidated primary financial statements.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 18

Adjusted EBITDA

We define adjusted EBITDA as operating revenues less operating costs as shown in BCE’s consolidated income statements.

The most directly comparable IFRS financial measure is net earnings. The following tables provide reconciliations of net earnings to adjusted EBITDA on a consolidated basis.



	Total 2023		Q4 2023		Q3 2023		Q2 2023		Q1 2023

Net earnings		2,327		435		707		397		788

Severance, acquisition and other costs		200		41		10		100		49

Depreciation		3,745		954		937		936		918

Amortization		1,173		299		295		296		283

Finance costs

Interest expense		1,475		399		373		359		344

Net return on post-employment benefit plans		(108)		(27)		(27)		(27)		(27)

Impairment of assets		143		109		-		-		34

Other expense (income)		466		147		129		311		(121)

Income taxes		996		210		243		273		270

Adjusted EBITDA		10,417		2,567		2,667		2,645		2,538



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

Net earnings		2,926		567		771		654		934

Severance, acquisition and other costs		94		19		22		40		13

Depreciation		3,660		922		914		933		891

Amortization		1,063		270		267		266		260

Finance costs

Interest expense		1,146		319		298		269		260

Net return on post-employment benefit plans		(51)		(13)		(13)		(7)		(18)

Impairment of assets		279		150		21		106		2

Other expense (income)		115		(19)		130		97		(93)

Income taxes		967		222		178		232		335

Adjusted EBITDA		10,199		2,437		2,588		2,590		2,584

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 19

(2.4)

Capital management measures

A capital management measure is a financial measure that is intended to enable a reader to evaluate our objectives, policies and processes for managing our capital and is disclosed within the Notes to BCE’s consolidated financial statements.

The financial reporting framework used to prepare the financial statements requires disclosure that helps readers assess the company’s capital management objectives, policies, and processes, as set out in IFRS in IAS 1 – Presentation of Financial Statements. BCE has its own methods for managing capital and liquidity, and IFRS does not prescribe any particular calculation method.

Adjusted EBITDA to adjusted net interest expense ratio

The adjusted EBITDA to adjusted net interest expense ratio represents adjusted EBITDA divided by adjusted net interest expense. For the purposes of calculating our adjusted EBITDA to adjusted net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Adjusted net interest expense used in the calculation of the adjusted EBITDA to adjusted net interest expense ratio is a non-GAAP financial measure defined as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements. For further details on adjusted net interest expense, see note 2.1, Non-GAAP financial measures above.

We use, and believe that certain investors and analysts use, the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.

Net debt leverage ratio

The net debt leverage ratio represents net debt divided by adjusted EBITDA. Net debt used in the calculation of the net debt leverage ratio is a non-GAAP financial measure. For further details on net debt, see note 2.1, Non-GAAP financial measures above. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.

We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage.

(2.5)

Supplementary financial measures

An explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.

(3)	Key performance indicators (KPIs)

In addition to the non-GAAP financial measures and other financial measures described previously, we use the following KPIs to measure the success of our strategic imperatives. These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers.

Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.

Capital intensity is defined as capital expenditures divided by operating revenues.

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 20

Mobile phone blended ARPU is defined as Bell CTS wireless external services revenues divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

Mobile phone churn is the rate at which existing mobile phone subscribers cancel their services. It is a measure of our ability to retain our customers. Mobile phone churn is calculated by dividing the number of mobile phone deactivations during a given period by the average number of mobile phone subscribers in the base for the specified period and is expressed as a percentage per month.

Mobile phone subscriber unit is comprised of a recurring revenue generating portable unit (e.g. smartphones and feature phones) on an active service plan, that has access to our wireless networks and includes voice, text and/or data connectivity. We report mobile phone subscriber units in two categories: postpaid and prepaid. Prepaid mobile phone subscriber units are considered active for a period of 90 days following the expiry of the subscriber’s prepaid balance.

Mobile connected device subscriber unit is comprised of a recurring revenue generating portable unit (e.g. tablets, wearables, mobile Internet devices and Internet of Things) on an active service plan, that has access to our wireless networks and is intended for limited or no cellular voice capability.

Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail Internet, satellite TV, IPTV, and/or residential NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established.

●

Retail Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit

●

Retail residential NAS subscribers are based on a line count and are represented by a unique telephone number

BCE Supplementary Financial Information - Fourth Quarter 2023 Page 21