BCE(US:BCE)2020-08-06 17:44Financial Data and Key Metrics Changes - Consolidated revenues declined by 9.1% year-over-year due to the impact of COVID-19 [24] - Adjusted EBITDA decreased by 9.4%, reflecting the flow-through impact of lower revenue [24] - Net earnings fell by 64% compared to the previous year, influenced by lower EBITDA and a $452 million non-cash impairment charge [25] - Free cash flow increased by 50% year-over-year to $1.6 billion, attributed to a slowdown in capital spending and improved working capital [25][33] - Liquidity position stood at $5.4 billion at the end of Q2, providing financial flexibility [9][34] Business Line Data and Key Metrics Changes - Wireless segment saw a 6.2% decrease in service revenue and a 24.5% decline in product revenue due to reduced retail sales activity and COVID-related impacts [26] - Wireline revenue experienced a 1% decline, with internet and TV revenue up approximately 2% year-over-year [28] - Bell Media's revenue dropped by 31.2%, with a 31.9% decline in EBITDA, primarily due to reduced advertising demand [30] Market Data and Key Metrics Changes - The wireless retail points of sale reopened to 99%, leading to a gradual pickup in demand [18] - The broadband market share continued to grow, with over 50,000 net new wireless retail internet and IPTV customer additions [8] - The company surpassed 10 million wireless subscribers during the quarter [8] Company Strategy and Development Direction - The company aims to maintain investment in critical network infrastructure and customer service improvements to remain competitive [14] - 55% of the broadband footprint is now fiberized, with 5.4 million homes and businesses able to access high-speed internet [9] - The launch of Canada's largest first-generation 5G network is part of the strategy to enhance customer experience and service innovation [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term fundamentals and performance of the company despite the challenges posed by COVID-19 [22] - The company anticipates a marked improvement in Q3, although it does not expect to return to pre-COVID operating performance in the near term [22] - Management emphasized the importance of government support for continued deployment of high-speed fiber networks and wireless home internet [15] Other Important Information - The company declared its common share dividend for Q3, scheduled to be paid on October 15 [9] - A significant transaction involved the sale of most data centers to Equinix for over $1 billion, expected to close by the end of the year [14] Q&A Session Summary Question: Impact of roaming and overage fees on ABPU - Management indicated that roaming decline due to halted travel accounted for approximately $60 million, with additional impacts from COVID-related overage declines and customer accommodations [39][43] Question: Trends in broadband and IPTV - Management noted that IPTV sales were disrupted by COVID, while broadband performance remained resilient due to high-quality connectivity services [45] Question: Business market feedback and free cash flow - Management acknowledged that customer spending slowed down, but there was traction in connectivity and remote collaboration services [49] Question: 5G rollout observations - Management reported successful 5G launch in major cities, with competitive positioning and growth potential in both consumer and enterprise markets [68][70] Question: COVID-related expenses allocation - Management clarified that $85 million in COVID-related expenses included costs for bad debt and operational adjustments across segments [76]