BCE reports 2016 Q4 and full-year results, announces 2017 financial targets - Common share dividend increased 5.1% to $2.87 per year

MONTRÉAL, Feb. 2, 2017

• Net earnings increased 29.0% to $699 million; net earnings attributable to common shareholders up 32.5% to $657 million, or $0.75 per common share; adjusted net earnings increased 8.5% to $667 million, driving 5.6% higher adjusted EPS of $0.76
• Cash flow from operating activities of $1,520 million and free cash flow of $923 million contributed to growth in full-year cash flow from operating activities and free cash flow of 5.9% and 7.6%, respectively
• Operating revenue up 1.8% on stronger service revenue growth of 2.3% – best top-line performance since Q3 2015 – driving 2.3% higher BCE adjusted EBITDA and margin expansion in an intensely competitive quarter
• Exceptional wireless results: 112,393 postpaid net additions, up 23.1%; service revenue grew 7.2% on 4.7% higher ARPU; adjusted EBITDA up 5.1%
• Steady broadband customer gain in Q4 with 54,307 IPTV and Internet net additions
• Wireline adjusted EBITDA up 0.9% on 1.8% lower operating costs, generating a 0.6-point margin increase to 40.1%; second consecutive full year of positive adjusted EBITDA growth for Bell Wireline
• Strong Bell Media contribution with revenue growth of 3.6% driving 2.2% higher adjusted EBITDA; Crave TV subscriber growth accelerates in the quarter

MONTRÉAL, Feb. 2, 2017 /PRNewswire/ - BCE Inc. (TSX: BCE) (NYSE: BCE), Canada's largest communications company, today reported results for the fourth quarter (Q4) and full-year 2016, provided financial guidance targets for 2017, and announced a $0.14 per share, or 5.1%, increase in the BCE annual common share dividend to $2.87.

FINANCIAL HIGHLIGHTS
($ millions except per share amounts) (unaudited)	Q4 2016	Q4 2015 ARIVA.DE Börsen-Geflüster Werbung Weiter aufwärts? Kurzfristig positionieren in BCE ME1Z6Z Ask: 0,41 Hebel: 4,01 mit moderatem Hebel Zum Produkt Morgan Stanley Den Basisprospekt sowie die Endgültigen Bedingungen und die Basisinformationsblätter erhalten Sie hier: ME1Z6Z,. Beachten Sie auch die weiteren Hinweise zu dieser Werbung. Der Emittent ist berechtigt, Wertpapiere mit open end-Laufzeit zu kündigen. Kurse BCE 30,80 € +0,65%	% change	2016	2015	% change
BCE
Operating revenues	5,702	5,603	1.8%	21,719	21,514	1.0%
Net earnings	699	542	29.0%	3,087	2,730	13.1%
Net earnings attributable to common shareholders	657	496	32.5%	2,894	2,526	14.6%
Adjusted net earnings(1)	667	615	8.5%	3,009	2,845	5.8%
Adjusted EBITDA(2)	2,121	2,073	2.3%	8,788	8,551	2.8%
EPS	0.75	0.58	29.3%	3.33	2.98	11.7%
Adjusted EPS(1)	0.76	0.72	5.6%	3.46	3.36	3.0%
Cash flows from operating activities	1,520	1,510	0.7%	6,643	6,274	5.9%
Free cash flow(3)	923	916	0.8%	3,226	2,999	7.6%

"Our Q4 performance was a strong finish to a year in which the Bell team consistently executed our broadband leadership strategy, delivering value for our customers, communities and shareholders alike. Bell is a company with momentum, rolling out new fibre and wireless networks that rank with the best in the world and the exclusive innovations in communications and media that Canadians clearly want the most," said George Cope, President and CEO of BCE and Bell Canada. "Unceasing network and service innovation is key to Bell's growing leadership in broadband communications, reflected in Q4 with a gain of more than 54,000 Fibe TV and Internet net customer additions, and approximately 240,000 in 2016; more than 112,000 new postpaid wireless customers in the quarter and 315,000 in 2016, increases of 23% and 19% respectively; and the accelerating growth of Bell Media's CraveTV streaming service."

"Marketplace success and fast-growing customer usage of Bell's superior services – including an increase of 41% in total wireless data usage and 31% in broadband Internet compared to Q4 last year – is delivering solid revenue growth. Combined with our team's disciplined focus on cost efficiency in a competitive marketplace, Bell is delivering ongoing increases in operating profitability, especially in our wireless business which grew service revenue 7.2%, ARPU 4.7%, and adjusted EBITDA 5.1%. Increased free cash flow enables our industry leading investment in Bell's award-winning LTE wireless and fibre networks and product R&D; our focus on returning value to shareholders with another increase to the BCE common share dividend, the 13^th since the end of 2008; and our support for the national community with another record Bell donation for mental health in 2017 thanks to the unprecedented engagement by Canadians in Bell Let's Talk Day last week."

Bell is focused on achieving a clear goal – to be recognized by customers as Canada's leading communications company – through the execution of 6 Strategic Imperatives: Invest in Broadband Networks & Services, Accelerate Wireless, Leverage Wireline Momentum, Expand Media Leadership, Improve Customer Service, and Achieve a Competitive Cost Structure. This broadband leadership strategy has delivered world-class fibre and wireless LTE networks; continued strong performance across Wireless, TV, Internet and Media growth services; 45 consecutive quarters of uninterrupted year-over-year adjusted EBITDA growth; and 13 increases to the BCE common share dividend since the end of 2008 – a total increase of 97%.

"Again in 2016, BCE achieved all of our financial guidance targets. This consistent performance year after year shows the strength of the business model Bell has built around our 6 Strategic Imperatives, and our unwavering focus on profitable subscriber growth and cost discipline in a highly competitive and dynamic marketplace," said Glen LeBlanc, Chief Financial Officer of BCE and Bell Canada. "Going into 2017, BCE's operations and financial foundation are strong. Our healthy balance sheet is underpinned by investment-grade credit metrics and good liquidity, together with a defined benefit pension plan that is very well funded and attractively positioned to benefit from a rising interest rate environment."

"BCE's 2017 guidance targets reflect a favourable financial profile for all 3 Bell operating segments, with free cash flow providing a strong and stable foundation for the 5.1% increase in BCE's common share dividend for 2017 as well as continued significant capital investment that will enable future growth of the business and support our objective to deliver sustainable shareholder returns."

CRTC approves Bell MTS broadcast distribution licence
In December, the CRTC approved the transfer to Bell of the terrestrial broadcasting licence held by Manitoba Telecom Services Inc., another step in the process to complete BCE's acquisition of MTS. Expected to close by the end of Q1 2017, the transaction has also been approved by MTS shareholders and the Manitoba courts, and remains subject to approvals by the Competition Bureau and Innovation, Science and Economic Development (ISED).

BCE common share dividend increased
Today's dividend announcement is BCE's 13^th increase to its annual common share dividend since Q4 2008, representing a 97% increase. The BCE annualized common share dividend will increase 5.1%, or 14 cents per share, from $2.73 to $2.87 effective with BCE's Q1 2017 dividend payable on April 15, 2017 to shareholders of record at the close of business on March 15, 2017. This is BCE's 9^th consecutive year of 5% or better dividend growth, while maintaining the dividend payout ratio⁽³⁾ within the target policy range of 65% to 75% of free cash flow. The higher dividend for 2017 is fully supported by projected growth in free cash flow.

Voluntary pension plan contribution
BCE made a $400 million voluntary pension plan contribution in December 2016, further reinforcing the strong solvency position of its defined benefit (DB) pension plans, reducing the amount of future pension obligations, and effectively positioning BCE to assume the MTS DB pension plan post acquisition. The voluntary contribution to pre-fund future obligations was an efficient use of cash on hand at the end of 2016, favourably impacting BCE's free cash flow generation in 2017 due to the contribution's tax deductibility and accelerating the move to a surplus position should interest rates rise.

Bell Let's Talk Day 2017 sets new records
With new ways for Canadians to engage including Instagram and Snapchat, Bell Let's Talk Day 2017 was the biggest mental health conversation ever, generating 131,705,010 total texts, calls and social media messages of support on January 25. #BellLetsTalk was again the top Twitter trend in Canada and worldwide, and overall social media engagement on Twitter, Facebook, Snapchat and Instagram more than tripled this year. With Bell donating 5 cents per interaction, participants drove $6,585,250.50 in new Bell funding for mental health programs. Bell's total commitment to mental health now stands at $86,504,429.05 and will reach at least $100 million in 2020. Bell Let's Talk has supported more than 700 organizations delivering anti-stigma, care, research and workplace mental health initiatives in every region of the country.

BCE RESULTS
BCE operating revenue was up 1.8% in Q4 to $5,702 million, reflecting a 2.3% year-over-year increase in service revenue to $5,169 million driven by solid wireless, residential services and media top-line growth. Product revenue decreased 3.2% to $533 million, the result of aggressive competitor discounting and promotions for mobile handsets and lower wireline product sales to business customers. For full-year 2016, BCE operating revenue increased in line with our guidance target to $21,719 million, or 1.0%, from $21,514 million in 2015 on service revenue growth of 1.7%, while total product revenue decreased 7.2%.

Net earnings increased 29.0% to $699 million from $542 million in Q4 2015, while net earnings attributable to common shareholders totalled $657 million this quarter, or $0.75 per share, up 32.5% and 29.3%, respectively, from $496 million, or $0.58 per share, last year. These year-over-year increases were due to growth in operating revenue that drove higher adjusted EBITDA, as well as decreased severance, acquisition and other costs and lower other expense, partly offset by increased amortization expense and higher income taxes.

Severance, acquisition and other costs were lower this quarter due mainly to higher wireline and media workforce restructuring costs in Q4 2015. Other expense improved as a result of lower year-over-year asset impairment charges related to Bell Media properties. Excluding the impact of severance, acquisition and other costs, net losses on investments, and early debt redemption costs, adjusted net earnings increased 8.5% to $667 million or $0.76 per common share, compared to $615 million or $0.72 per common share in Q4 2015.

For the full year 2016, net earnings grew 13.1% to $3,087 million from $2,730 million in the previous year, while net earnings attributable to common shareholders were $2,894 million, or $3.33 per share, up 14.6% and 11.7%, respectively, compared to $2,526 million or $2.98 per share in 2015. The increases were the result of solid operating revenue growth and tight cost control that drove higher adjusted EBITDA, lower severance, acquisition and other costs, reduced finance costs that reflected lower interest expense on various Bell Canada debt instruments and lower interest on post-employment benefit obligations, as well as higher other income. This was partly offset by higher amortization expense and higher income taxes. Adjusted net earnings of $3,009 million and adjusted net earnings per share (EPS) of $3.46 in 2016 were up 5.8% and 3.0%, respectively, compared to 2015, reflecting higher adjusted EBITDA across all three Bell operating segments.

BCE's adjusted EBITDA increased 2.3% to $2,121 million in Q4, driven by year-over-year increases of 5.1% at Bell Wireless, 0.9% at Bell Wireline and 2.2% at Bell Media. BCE's consolidated Adjusted EBITDA margin⁽²⁾ was up modestly, increasing to 37.2% this quarter from 37.0% last year, reflecting the flow-through of higher wireless average revenue per user (ARPU)⁽⁴⁾, increasing broadband Internet and IPTV scale and lower wireline operating costs. Consistent with our 2016 guidance target range of 2% to 4% growth for the year, BCE's adjusted EBITDA increased 2.8% to $8,788 million from $8,551 million in 2015.

BCE invested $993 million in new capital in Q4, bringing total capital expenditures for 2016 to $3,771 million, an increase of 4.0% over 2015. This result was consistent with higher planned spending on advanced broadband wireline and wireless infrastructure, and represented a capital intensity⁽⁴⁾ ratio (capital expenditures as a percentage of total revenue) for 2016 of 17.4%, in line with our guidance assumption of approximately 17%.

Capital investment was focused on expanding broadband fibre directly to more homes and businesses, including the build-out of Gigabit Fibe infrastructure in Toronto and other urban locations; continued investment in Bell's leading 4G LTE and LTE Advanced (LTE-A) networks, including the deployment of small-cell technology to optimize coverage, signal quality and data capacity; and increased wireless and Internet network capacity to support subscriber growth and accelerating data usage.

BCE cash flows from operating activities in Q4 were $1,520 million, up from $1,510 million the year before, the result of higher adjusted EBITDA, lower income taxes paid, and higher acquisition and other costs paid in Q4 2015 due mainly to the payment in full satisfaction of the judgment rendered in a litigation claim for satellite TV signal piracy as well as severance and integration costs relating to the privatization of Bell Aliant. This was largely offset by a higher voluntary contribution of $400 million made to post-employment benefit plans at the end of 2016 compared to $250 million at the end of 2015, and a decrease in working capital. BCE generated free cash flow of $923 million this quarter, a 0.8% increase from $916 million the year before, reflecting higher cash flows from operating activities and lower cash dividends paid on preferred shares as a result of the timing of payment, partly offset by higher capital expenditures. For full-year 2016, BCE's cash flows from operating activities increased 5.9% to $6,643 million from $6,274 million in 2015, while free cash flow grew 7.6% to $3,226 million from $2,999 million.

In Q4 2016, BCE gained 112,393 net new wireless postpaid customers and reported a net loss of 24,470 prepaid subscribers; 35,905 net new Fibe TV customers and a net loss of 36,869 satellite TV customers; and the addition of 18,402 net new high-speed Internet customers. NAS line net losses totalled 100,630. At the end of 2016, BCE served a total of 8,468,872 wireless customers, up 2.7% from Q4 2015 (including 7,690,727 postpaid customers, an increase of 4.3%); total TV subscribers of 2,744,909, up 0.2% (including 1,337,944 Fibe TV customers, an increase of 13.1%); total high-speed Internet subscribers of 3,476,562, up 1.9%; and total NAS lines of 6,257,732, a decrease of 6.4%.

BCE OPERATING RESULTS BY SEGMENT

Bell Wireless
Wireless operating revenue growth accelerated this quarter, increasing 6.4% over Q4 2015 to $1,883 million on a 7.2% increase in service revenue to $1,702 million driven by a higher mix of postpaid subscribers in our customer base and strong year-over-year blended ARPU growth. Product revenue of $170 million was essentially unchanged compared to Q4 2015. For the full 2016 year, Bell Wireless operating revenue increased 4.1% to $7,159 million with service revenue growing 5.7% to $6,602 million. However, total product revenue in 2016 declined 12.7% to $515 million, despite a higher number of subscriber gross additions compared to 2015, due to lower average handset pricing reflecting the sustained high level of competitive promotional market activity throughout the year and fewer year-over-year customer upgrades.

Wireless adjusted EBITDA was up 5.1% to $674 million in Q4 on strong service revenue growth from an increased mix of higher-value postpaid subscribers in our overall customer base and price discipline. Service revenue margin decreased to 39.6% from 40.4% in Q4 2015, due to a $67 million year-over-year increase in total combined retention spending and subscriber acquisition costs, which drove operating cost growth of 7.1% in the quarter. For full-year 2016, adjusted EBITDA increased 6.2% to $3,003 million. Higher blended ARPU more than offset higher retention and subscriber acquisition costs, driving a 0.2 percentage-point increase in service margin to 45.5%.

• Postpaid gross additions totalled 434,008, up 11.9% over Q4 2015, reflecting increased market activity driven by richer promotions throughout the holiday period compared to last year; Bell's continued leadership in mobile network speeds; and overall strong sales execution across all our channels. For full-year 2016, postpaid gross additions increased 5.2% to 1,408,030 from 1,338,141 in 2015.
  
  
• Postpaid net additions grew 23.1% to 112,393, from 91,308 in Q4 2015, the result of higher gross additions. For the full year 2016, postpaid net additions were up 18.8% to 315,311 from 265,369 in 2015, driven by higher gross additions and lower customer churn⁽⁴⁾.
  
  
• Postpaid subscriber churn increased 0.07 percentage points to 1.45% this quarter, due to the seasonally higher level of aggressive promotional activity and the deactivation of low-ARPU customers resulting from the loss of a corporate contract. Postpaid churn in full-year 2016 improved 0.03 percentage points to 1.25%, reflecting greater overall market activity in 2015 due to the double cohort as well as the operational benefits stemming from continued investments in network speed and quality, customer retention, and service excellence.
  
  
• Bell Wireless postpaid customers totalled 7,690,727 at the end of 2016, a 4.3% increase over 2015. Total wireless customers grew 2.7% to 8,468,872. The percentage of postpaid subscribers with smartphones increased to 83% from 78% at the end of 2015, while the proportion of postpaid subscribers on LTE reached 81%, up from 68% a year earlier.
  
  
• Blended ARPU increased 4.7% to $66.69 in Q4, driven by a higher postpaid subscriber mix, a greater percentage of subscribers on higher-rate 2-year plans, increased data usage on our 4G LTE and LTE-A mobile networks, and pricing discipline. For full-year 2016, blended ARPU increased 3.8% to $65.46.
  
  
• Cost of acquisition (COA)⁽⁴⁾ was up 3.0% to $541 per subscriber in Q4, due to richer handset promotions in line with competitor offers, a higher sales mix of premium smartphones, more postpaid gross additions compared to last year, and higher handset costs due to the weak Canadian dollar. For full-year 2016, COA increased 5.8% to $494.
  
  
• Retention spending increased to 16.4% of wireless service revenue from 14.3% in Q4 2015, reflecting a higher mix of premium handset upgrades and more aggressive promotional market activity. Retention spending for full-year 2016 was 13.2% of total wireless service revenue.
  
  
• Bell's LTE-A wireless network provided service to 73% of the Canadian population at the end of 2016 with data download speeds up to 260 megabits per second (Mbps) (expected average 18 to 74 Mbps). In addition, our Tri-band LTE-A service delivered download speeds of up to 335 Mbps (expected average 25 to 100 Mbps). This is complemented by a national 4G LTE mobile network that reached 97% of Canadians at the end of 2016 with download speeds ranging from 75 Mbps to 150 Mbps (expected average 12 to 40 Mbps).

Bell Wireline
Wireline operating revenue was down 0.8% to $3,137 million in Q4, impacted by lower wholesale revenue as a result of downward revisions to wholesale Internet tariffs by the CRTC and lower sales of international long distance minutes, as well as by a year-over-year decline in business customer spending on core connectivity services and data products reflecting slow economic growth and competitive pricing pressures.

E-Mail-Adresse

Bitte überprüfe deine die E-Mail-Adresse.

Benachrichtigungen von ARIVA.DE
(Mit der Bestellung akzeptierst du die Datenschutzhinweise)

-1

Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink.

Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.

Andere Nutzer interessierten sich auch für folgende News

02:44 - PR Newswire

Tellworth Investments LLP - Form 8.3 - Accrol Group Holdings Plc

02:00 - PR Newswire

Kasei Digital Assets Plc - Half-Year Results

02:00 - PR Newswire

International Business Machines Corp - Doc re: Form 8-K