Net earnings in Q4 declined 29.4% to $658 million and net earnings attributable to common shareholders
totalled $625 million, or $0.69 per share, down 29.7% and 29.6% respectively. The year-over-year decreases were due to a one-time gain realized on the sale of Bell data centres to Equinix in Q4 2020
totalling $211 million, higher depreciation and amortization expense and higher income taxes, partly offset by adjusted EBITDA growth and higher other income. For full-year 2021, net earnings increased 7.2% to $2,892 million and net
earnings attributable to common shareholders were $2,709 million, or $2.99 per share, up 8.4% and 8.3% respectively.
Adjusted net earnings in Q4
2021 were $692 million, or $0.76 per common share, down 5.3% and 6.2% respectively, from $731 million, or $0.81 per common share, in Q4 2020. For full-year 2021, adjusted net earnings increased 6.0% to $2,895 million, delivering 5.6%
higher adjusted EPS of $3.19.
Adjusted EBITDA grew 1.1% in Q4 to $2,430 million, reflecting increases of 5.3% in wireless and 1.1% in wireline,
partly offset by a 19.0% decrease in media. BCEs consolidated adjusted EBITDA margin2 decreased 0.3 percentage points to 39.1% from 39.4% in Q4 2020, due to operating cost growth of 2.2%
driven by higher year-over-year service revenue. For full-year 2021, adjusted EBITDA increased 3.0% to $9,893 million, while BCEs adjusted EBITDA margin increased 0.2 percentage points to 42.2% from 42.0% in 2020.
BCE capital expenditures were $1,459 million, compared to $1,494 million in Q4 2020, corresponding to a capital intensity3 of 23.5%, down from 24.5% in Q4 2020. This brought total 2021 capital expenditures to $4,837 million, up from $4,202 million the year before, for a capital intensity of 20.6% compared to
18.4% in 2020. The year-over-year increase in capital spending is consistent with our 2-year program to accelerate the rollout of Bells 5G, fibre and rural Wireless Home Internet networks.
BCE cash flows from operating activities in Q4 were $1,743 million, up 6.9% from Q4 2020, reflecting higher adjusted EBITDA, lower income taxes paid
due to the timing of instalment payments and lower interest paid, partly offset by higher severance and other costs paid. For full-year 2021, BCE cash flows from operating activities totalled $8,008 million, up 3.3% compared to 2020.
Free cash flow increased 156.5% to $236 million, compared to $92 million in Q4 2020, due to higher cash flows from operating activities, excluding
acquisition and other costs paid, and lower capital expenditures. For full-year 2021, BCE free cash flow decreased 10.5% to $2,995 million, mainly as a result of higher capital expenditures.
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 and are unlikely to be comparable to similar measures presented by other issuers. We believe that our GAAP financial measures, read
together with adjusted non-GAAP financial measures, provide readers with a better understanding of how management assesses BCEs performance.
National Instrument 52-112, Non-GAAP and Other Financial Measures
Disclosure, prescribes disclosure requirements that apply to the following specified financial measures:
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Non-GAAP financial measures;
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2
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Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues. Refer to the Key
Performance Indicators (KPIs) section in this prospectus supplement for more information on adjusted EBITDA margin.
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3
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Capital intensity is defined as capital expenditures divided by operating revenues. Refer to the Key
Performance Indicators (KPIs) section in this prospectus supplement for more information on capital intensity.
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