PR Newswire
MONTRÉAL, Feb. 2, 2017
This news release contains forward-looking statements. For a description of the related risk factors and assumptions please see the section entitled "Caution Concerning Forward-Looking Statements" later in this release.
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 |
% 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 13th 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 13th 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 9th 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%.
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.
This was moderated by the financial performance of Bell Wireline residential services, which delivered positive revenue growth in the quarter despite richer acquisition and retention discounts offered to match competitor promotional bundle offers, and the contribution of data centre operator Q9 Networks Inc. (Q9), which was acquired on October 3, 2016. Similarly, full-year 2016 wireline operating revenue decreased 1.3% to $12,104 million.
With increasing broadband scale and a 1.8% reduction in total operating costs driven by ongoing spending controls, fibre-related savings as well as customer service improvement and other operating efficiencies, wireline adjusted EBITDA grew 0.9% to $1,259 million in Q4, driving a 60 basis-point increase in margin to 40.1%.
For a second consecutive year in 2016, Bell Wireline delivered positive adjusted EBITDA growth, increasing 0.8% to $5,042 million and yielding a 0.9 percentage-point improvement in Bell's North American-leading margin of 41.7%. This was enabled by a 2.7% year-over-year decline in operating costs, the result of integration synergies with Bell Aliant, cost savings from workforce restructuring initiatives undertaken at the end of 2015 and ongoing service improvement.
Bell Media
Media operating revenue grew 3.6% to $845 million, up from $816 million in Q4 2015. The increase was the result of higher subscriber revenue driven by the national expansion of The Movie Network (TMN) in March 2016 and continued growth in CraveTV and TV Everywhere GO streaming products.
Advertising revenue in Q4 was essentially unchanged compared to last year as declines in conventional TV, mainly reflecting the non-recurrence of revenue generated in Q4 2015 from the federal election and a soft radio advertising market, were offset by growth in outdoor advertising at Astral Out of Home (OOH) from acquisitions and new contract wins in 2016, and higher year-over-year revenues from Bell Media's specialty entertainment and news channel services.
Media adjusted EBITDA increased 2.2% to $188 million, from $184 million in Q4 2015, due to higher year-over-year revenue that more than offset operating cost growth of 4.0% attributable to TMN's national expansion, CraveTV content growth, and increased expenses at Astral OOH related to acquisitions and outdoor advertising contract wins over the past year.
For the full year 2016, operating revenues were up 3.6% to $3,081 million as operating costs increased 3.9%, resulting in adjusted EBITDA growth of 2.8% to $743 million.
COMMON SHARE DIVIDEND
BCE's Board of Directors has declared a quarterly dividend of $0.7175 per common share, payable on April 15, 2017 to shareholders of record at the close of business on March 15, 2017.
OUTLOOK FOR 2017
Our 2017 business plan builds on the positive financial results and operating momentum we delivered in 2016 that reflected strong wireless profitability and postpaid subscriber activations, increasing broadband Internet and TV scale, improved media financial performance, as well as effective operating cost control and price discipline across all our operating segments and products.
BCE's 2017 guidance targets are underpinned by continued progress in the execution of our 6 Strategic Imperatives and a favourable financial profile for all three Bell operating segments, with higher free cash flow generation providing a strong and stable foundation for the 5.1% increase in BCE's annualized common share dividend for 2017 as well as continued significant capital investment in wireline and wireless network infrastructures to support future growth. These targets also reflect the confidence we have in continuing to successfully manage our wireless, wireline and media businesses within the context of a highly competitive and dynamic market.
Our 2016 guidance, 2016 results and financial guidance targets for 2017, which do not currently reflect the pending acquisition of MTS, are as follows:
2016 Guidance |
2016 Results |
2017 Guidance | |
Revenue growth |
1% – 3% |
1.0% |
1% – 2% |
Adjusted EBITDA growth |
2% – 4% |
2.8% |
1.5% – 2.5% |
Capital intensity |
approx. 17% |
17.4% |
approx. 17% |
Adjusted EPS |
$3.45 – $3.55 |
$3.46 |
$3.42 – $3.52 |
Free cash flow growth |
approx. 4% – 12% |
7.6% |
approx. 3% – 7% |
Annualized common dividend per share |
$2.73 |
$2.73 |
$2.87 |
Dividend payout policy |
65% – 75% of free cash flow |
71.5% of free cash flow |
65% – 75% of free cash flow |
CALL WITH FINANCIAL ANALYSTS
BCE will hold a conference call for financial analysts to discuss Q4 2016 results and 2017 financial guidance on Thursday, February 2 at 8:00 am (Eastern). Media are welcome to participate on a listen-only basis. Please dial toll-free 1-866-223-7781 or (416) 340-2216. A replay will be available for one week by dialing 1-800-408-3053 or (905) 694-9451 and entering pass code 2972315#.
A live audio webcast of the conference call will be available on BCE's website at: BCE Q4-2016 conference call. The mp3 file will be available for download on this page later in the day.
NOTES
The information contained in this news release is unaudited.
(1) The terms adjusted net earnings and adjusted EPS do not have any standardized meaning under IFRS. Therefore, they are 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 (gains) losses on investments, and early debt redemption costs. We define adjusted EPS as adjusted net earnings per BCE common share. We use adjusted net earnings and adjusted EPS, and we believe that certain investors and analysts use these measures, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net (gains) losses on investments, and early debt redemption costs, net of tax and non-controlling interest (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. The most comparable IFRS financial measures are net earnings attributable to common shareholders and EPS. The following table is a reconciliation of net earnings attributable to common shareholders and EPS to adjusted net earnings on a consolidated basis and per BCE common share (adjusted EPS), respectively.
($ millions except per share amounts) | ||||||||
Q4 2016 |
Q4 2015 |
2016 |
2015 | |||||
Total |
Per share |
Total |
Per share |
Total |
Per share |
Total |
Per share | |
Net earnings attributable to common shareholders |
657 |
0.75 |
496 |
0.58 |
2,894 |
3.33 |
2,526 |
2.98 |
Severance, acquisition and other costs |
9 |
0.01 |
112 |
0.12 |
104 |
0.12 |
327 |
0.38 |
Net losses (gains) on investments |
1 |
- |
1 |
0.01 |
3 |
- |
(21) |
(0.02) |
Early debt redemption costs |
- |
- |
6 |
0.01 |
8 |
0.01 |
13 |
0.02 |
Adjusted net earnings |
667 |
0.76 |
615 |
0.72 |
3,009 |
3.46 |
2,845 |
3.36 |
(2) The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE's consolidated income statements. Adjusted EBITDA for BCE's segments is the same as segment profit as reported in Note 4 to BCE's 2016 consolidated financial statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues. We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company's ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA is also one component in the determination of short-term incentive compensation for all management employees. Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.
($ millions) | |||||
Q4 2016 |
Q4 2015 |
2016 |
2015 | ||
Net earnings |
699 |
542 |
3,087 |
2,730 | |
Severance, acquisition and other costs |
11 |
152 |
135 |
446 | |
Depreciation |
719 |
731 |
2,877 |
2,890 | |
Amortization |
165 |
136 |
631 |
530 | |
Finance costs |
|||||
Interest expense |
225 |
226 |
888 |
909 | |
Interest on post-employment benefits obligations |
20 |
28 |
81 |
110 | |
Other (expense) income |
30 |
70 |
21 |
12 | |
Income taxes |
252 |
188 |
1,110 |
924 | |
Adjusted EBITDA |
2,121 |
2,073 |
8,788 |
8,551 | |
BCE operating revenues |
5,702 |
5,603 |
21,719 |
21,514 | |
Adjusted EBITDA margin |
37.2% |
37.0% |
40.5% |
39.7% |
(3) The terms free cash flow and dividend payout ratio do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define free cash flow as cash flows from operating activities, excluding 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 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 because it shows how much cash is available to pay dividends, 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 comparable IFRS financial measure is cash flows from operating activities. We define dividend payout ratio as dividends paid on common shares divided by free cash flow. We consider dividend payout ratio to be an important indicator of the financial strength and performance of our businesses because it shows the sustainability of the company's dividend payments. The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.
($ millions except per share amounts) | ||||
Q4 2016 |
Q4 2015 |
2016 |
2015 | |
Cash flows from operating activities |
1,520 |
1,510 |
6,643 |
6,274 |
Capital expenditures |
(993) |
(958) |
(3,771) |
(3,626) |
Cash dividends paid on preferred shares |
(21) |
(37) |
(126) |
(150) |
Cash dividends paid by subsidiaries to non-controlling interest |
(11) |
(8) |
(46) |
(41) |
Acquisition and other costs paid |
28 |
159 |
126 |
292 |
Voluntary defined benefit pension plan contribution |
400 |
250 |
400 |
250 |
Free cash flow |
923 |
916 |
3,226 |
2,999 |
(4) We use ARPU, churn, COA and capital intensity 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 CONCERNING FORWARD-LOOKING STATEMENTS
Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to our 2017 financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow), BCE's 2017 annualized common share dividend and common share dividend payout policy, the expected timing and completion of BCE's proposed acquisition of all of the issued and outstanding shares of MTS, our network deployment plans and related capital investments, our 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 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.
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. As a result, we cannot guarantee that any forward-looking statement will materialize 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 2, 2017 and, accordingly, are subject to change after such date. Except as may be required by Canadian 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. Except as otherwise indicated by BCE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after February 2, 2017. 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 2017 financial results, as well as our objectives, strategic priorities and business outlook for 2017, 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 and operational assumptions were made by BCE in preparing its forward-looking statements contained in this news release, including, but not limited to:
Canadian Economic and Market Assumptions
Assumptions Concerning our Bell Wireless Segment
Assumptions Concerning our Bell Wireline Segment
Assumptions Concerning our Bell Media Segment
The foregoing assumptions, although considered reasonable by BCE on February 2, 2017, 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 2017 financial guidance, are listed below. The realization of our forward-looking statements, including our ability to meet our 2017 financial guidance, 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. These risks include, but are not limited to:
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 2, 2017 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 Sedar.com) and with the U.S. Securities and Exchange Commission (available at SEC.gov). This document is also available at BCE.ca.
BCE's Safe Harbour Notice Concerning Forward-Looking Statements dated February 2, 2017 is incorporated by reference into this news release.
For additional information, please refer to the February 2, 2017 presentation entitled "Q4 2016 Results & 2017 Financial Guidance Call" available on BCE's website.
ABOUT BCE
Canada's largest communications company, BCE provides broadband wireless, TV, Internet and business communication services from Bell Canada and Bell Aliant. Bell Media is Canada's premier multimedia company with leading assets in television, radio, out of home and digital media. To learn more, please visit BCE.ca.
The Bell Let's Talk initiative 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. To learn more, please visit Bell.ca/LetsTalk.
Media inquiries:
Jean Charles Robillard
Bell Communications
(514) 870-4739
[email protected]
Investor inquiries:
Thane Fotopoulos
BCE Investor Relations
(514) 870-4619
[email protected]
SOURCE Bell Canada