Q2 2024 BCE Inc Earnings Call

Please go ahead Mr Fotopoulos. Thank.

Mr Fotopoulos: Thank you Matthew good morning, everyone and thank you for joining our call with me here today are Merkel Vivek, President and CEO of <unk> and our CFO Curtis Mill and you can find our Q2 disclosure documents on the Investor Relations page of the BCE Dot CA website, which we posted earlier. This morning before we begin I want to draw your attention to our safe Harbor.

Mr Fotopoulos: On slide two of the analyst presentation, reminding you that today's presentation and remarks made during the call will include forward looking information and therefore are subject to risks and uncertainties results could differ materially we disclaim any obligation to update forward looking statements, except as required by law. Please refer to Bce's publicly filed.

Mr Fotopoulos: Documents for more details on our assumptions and risks with that I'll turn it over to Marco.

Marco: Thank you thanks, and good morning, everyone. So looking at our overall second quarter operating results. The Bell team managed well and we executed with financial discipline against the backdrop of a highly competitive marketplace. We have a clear vision for how we are competing now and into the future combined with our proven trademark consistent execution.

Marco: While consolidated topline growth continued to be impacted by sustained competitive pricing pressures and expected revenue loss from the source.

Marco: We remain laser focused on profitable margin accretive subscriber growth and driving cost out of the organization as you can see by 2% EBITDA growth in Q2, and a one three point increase in Bce's margin to 44, 9%. Both of these results were higher than forecasted demonstrates.

Marco: Our success in driving efficiencies and reducing costs to offset near term competitive and economic pressures.

Marco: This contributed to a $1 $1 billion of free cash flow being delivered in Q2, which represents an increase of 8% over last year and aligns with the expectations. We shared with you on our Q1 conference call in May for higher free cash flow generation as profiled in our quarterly budget at the start of the year.

Thane Fotopoulos: In the meeting over to Mr. Thane Fotopoulos.

Unknown Executive: We've go ahead, Mr. Fotopoulos.

Mirko Bibic: Thank you, Matthew.

by 2% EBITDA growth in Q2 and a 1.3 point increase in Bce's margin to 44.9%.

Unknown Executive: margin to 44.9%. This contributed to $1.1 billion of free cash flow being delivered in Q2, which represents an increase of 8% over last year and aligns with the expectations we shared with you on our Q1 conference call in May for higher free cash flow generation as profiled in our quarterly budget at the start of the year. As for operating results, our CTS segment subscriber metrics continue to be underpinned by a leading broadband fiber network that is consistently recognized by third parties for its best-in-class performance and customer experience, by mobile 5G speeds that are being further enhanced with the deployment of 3,800 MHz spectrum, as well as increased customer bundling of mobility and internet that serves as an important turn management and value driver tool.

Mirko Bibic: Good morning, everyone, and thank you for joining our call with me here today, our Mirko Bibic. President and CEO of BC and our CFO, Curtis Millen. You can find our Q2 disclosure documents on the investor relations page of the BCE.ca website, which we posted earlier this morning.

Speaker Change: As for operating results, our Cts segment subscriber metrics continue to be underpinned by leading broadband fiber network that is consistently recognized by third parties for its best in class performance and customer experience by mobile <unk> speeds that are being further enhanced with deployment of 3800 megahertz spectrum as well.

Both of these results were higher than forecasted, demonstrating our success in driving efficiencies and reducing costs to offset near-term competitive and economic pressures.

Mirko Bibic: Before we begin, I want to draw your attention to our safe harbor statement on slide two of the analyst presentation, reminding you that today's presentation and remarks made during the call will include forward-looking information. And therefore, our subject to risks and uncertainties results could differ materially. We display many obligations to update forward-looking statements, except as required by law. Please refer to BCE's publicly filed documents for more details on our assumptions and risks.

This contributed to $1.1 billion of free cash flow being delivered in Q2.

Which represents an increase of 8% over last year and aligns with the expectations we shared with you on our Q1 conference call in May for higher free cash flow generation as profiled in our quarterly budget at the start of the year.

Speaker Change: As increased customer bundling of mobility and Internet that serves as an important churn management and value driver tool.

In wireless we were arguably the most disciplined and striking the right balance between volume growth and economics, and a heightened competitive pricing environment.

As for operating results, our CTS segment subscriber metrics continue to be underpinned by leading broadband fiber network that is consistently recognized by third parties for its best-in-class performance and customer experience.

Mirko Bibic: With that, I'll turn it over to Mirko.

Mirko Bibic: Thank you, Thane, and good morning, everyone. So looking at our overall second quarter operating results, the Bell team managed well, and we executed with financial discipline against the backdrop of a highly competitive marketplace. We have a clear vision for how we're competing now and into the future, combined with our proven trademark consistent execution. While consolidated top line growth continue to be impacted by sustained competitive pricing pressures and expected revenue loss from the source. We remain laser focused on profitable margin, a creative subscriber growth, and driving costs out of the organization. As you can see by 2% IBA. Grove growth in Q2 and a 1.3 point increase in BCE's margin to 44.9%.

Speaker Change: We managed our promotional offers prudently to deliver a healthy step up in new subscriber activations that focused on higher quality main brand loadings. In fact bell has led the charge on more rational pricing behavior, increasing the rates on a number of bell mobility and Virgin plus plans at the beginning of July while continuing to do.

by mobile 5G speeds that are being further enhanced with deployment of 3,800 MHz spectrum, as well as increased customer bundling of mobility and Internet that serves as an important turn management and value driver tool.

Unknown Executive: In wireless, we were arguably the most disciplined in striking the right balance between volume growth and economics in a heightened competitive pricing environment. We managed our promotional offers prudently to deliver a healthy step up in new subscriber activations that focused on higher quality, main brand loading. In fact, Bell has led the charge on more rational pricing behavior, increasing the rates on a number of Bell Mobility and Virgin Plus plans at the beginning of July while continuing to deliver exceptional value to our customers. Collectively, total postpaid and prepaid mobile phone net ads in Q2 were up 4.4% to 131,043.

Speaker Change: <unk> exceptional value to our customers.

In wireless, we were arguably the most disciplined in striking the right balance between volume growth and economics in a heightened competitive pricing environment.

Speaker Change: Collectively total postpaid and prepaid mobile phone net adds in Q2 were up four 4% to 131043 and.

We managed our promotional offers prudently to deliver a healthy step up in new subscriber activations that focused on higher quality main brand loadings.

Speaker Change: And with robust Canadian population growth projections, and even greater focus on bundling wireless and consumer Internet service, we see good runway for continued growth.

In fact, Bell has led the charge on more rational pricing behavior, increasing the rates on a number of Bell Mobility and Virgin Plus plans at the beginning of July , while continuing to deliver exceptional value to our customers.

Speaker Change: Mobile subscriber growth also included connected device net adds of approximately 88000, that's up 10, 5% over the prior year and reflects continued strong momentum for our <unk> and Iot B to B solutions in.

Mirko Bibic: Both of these results were higher than forecasted, demonstrating our success in driving efficiency and reducing costs to offset near-term competitive and economic pressures. This contributed to 1.1 billion dollars of free cash flow being delivered in Q2, which represents an increase of 8% over last year and aligns with the expectations we shared with you on our Q1 conference call in May for higher free cash flow generation as profile in our quarterly budget at the start of the year. As for operating results, our CTS segments subscriber metrics continue to be underpinned by leading broadband fiber network that is consistently recognized by third parties for its best in class performance and customer experience by mobile 5G speed that are being further enhanced with deployment of 3,800 megahertz spectrum, as well as increased customer bundling of mobility.

Collectively, total postpaid and prepaid mobile phone net ads in Q2 were up 4.4 percent.

Speaker Change: In residential wireline, we continue to gain a significant share of new internet subscriber growth and thats fueled by hour by hour fiber network superior symmetrical speeds and overall customer experience, which drove our highest Q2 consumer retail internet net adds in 17 years and an 18%.

Unknown Executive: And with robust Canadian population growth projections and an even greater focus on bundling wireless and consumer internet service, we see good runway for continued growth. Mobile subscriber growth also included connected device net ads of approximately 88,000. That's up 10.5% over the prior year and reflects continued strong momentum for our 5G and IoT B2B solutions. In residential wireline, we continue to gain a significant share of new internet subscriber growth, and that's fueled by our fiber network's superior symmetrical speeds and overall customer experience, which drove our highest Q2 consumer retail internet net ads in 17 years and an 18% increase in households subscribing to mobility and Notably, 41% of our new internet customers this quarter subscribe to a service bundle with wireless, which should help drive better subscriber lifetime value and improve retention in the longer term. Turning now to media.

to 131,043 and with robust Canadian population growth projections and even greater focus on bundling wireless and consumer internet service we see good runway for continued growth.

Mobile subscriber growth also included connected device net ads of approximately 88,000. That's up 10.5% over the prior year and reflects continued strong momentum for our 5G and IoT B2B solutions.

Speaker Change: Rent increase in households, subscribing to mobility and Internet service bundles, and that's where we have fiber.

Speaker Change: Notably, 41% of our new Internet customers this quarter subscribe to a service bundled with wireless which should help drive better subscriber lifetime value and improve retention longer term.

In Residential Wireline, we continue to gain a significant share of new internet subscriber growth, and that's fueled by our fiber network's superior symmetrical speeds.

Mirko Bibic: And internet that serves as an important term management and value driver tool. In wireless, we were arguably the most disciplined and striking the right balance between volume growth and economics in a heightened competitive pricing environment. We managed our promotional offers prudently to deliver a healthy step up and new subscriber activations that focused on higher quality main brand loadings. In fact, Bell has led the charge on more rational pricing behavior, increasing the rates on a number of Bell Mobility and Virgin Plus plans at the beginning of July, while continuing to deliver exceptional value to our customers.

Speaker Change: Turning now to media.

and overall customer experience, which drove our highest Q2 consumer retail internet net ads in 17 years and an 18% increase in households subscribing to mobility and internet service bundles and that's where we have Fiverr.

Speaker Change: Bell media continues to transform from a traditional broadcaster to a digital media and content leader and a Prime example of that is the advanced advertising solutions for clients powered by Bell first party data, including Bell analytics, Sam television sales tool Bell DSP addressable TV.

Notably, 41% of our new internet customers this quarter subscribe to a service bundle with wireless, which should help drive better subscriber lifetime value and improve retention longer term.

Speaker Change: Crave with ads, which together, which collectively drove a 35% increase in digital advertising revenues this quarter.

Unknown Executive: Bell Media continues to transform from a traditional broadcaster to a digital media and content leader, and a prime example of that is the advanced advertising solutions for clients powered by Bell first-party data, including Bell Analytics, the SAM TV sales tool, Bell DSP, Addressable TV, and Crave with Ads, which collectively drove a 35% increase in digital advertising revenues this quarter. And investments to sustain the strategic shift to digital will continue.

Speaker Change: And investments to sustain the strategic shift to digital will continue we announced a number of new partnerships and additions to our AD offerings at our upfront presentation. In June. These included a new self serve buying platform for advertisers looking to reach local audiences strategic sales partnerships with tic Toc premium adverse.

Turning now to media.

Bell Media continues to transform from a traditional broadcaster to a digital media and content leader.

Mirko Bibic: Collectively, total post paid and prepaid mobile phone that adds in Q2 were up 4.4% to 131,043. And with robust Canadian population growth projections and even greater focus on bundling wireless and consumer internet service, we see good runway for continued. Roblox. Mobile subscriber growth also included connected device net ads of approximately 88,000. That's up 10.5% over the prior year and reflects continued strong momentum for our 5G and IoT B2B solutions. In residential wireline, we continue to gain a significant share of new internet subscriber growth, and that's fueled by our fiber network's superior symmetrical speeds and overall customer experience, which drove our highest Q2 consumer retail internet net ads in 17 years and an 18% increase in households subscribing to mobility and internet service bundles, and that's where we have fiber.

And a prime example of that is the advanced advertising solutions for clients powered by Bell first-party data, including Bell Analytics.

The Sam TV sales tool

Bell DSP, Addressable TV, and Crave with Ads, which collectively drove a 35% increase in digital advertising revenues this quarter.

Speaker Change: <unk> product pulse premier as well as dot dash Meredith the largest digital and print publisher in the U S and expanded distribution for our 10, new fast channels, which we launched in April.

And investments to sustain the strategic shift to digital will continue. We announced a number of new partnerships and additions to our ad offerings at our upfront presentation in June . These included a new self-serve buying platform for advertisers looking to reach local audiences.

Unknown Executive: We announced a number of new partnerships and additions to our ad offerings at our upfront presentation in June. These included a new self-serve buying platform for advertisers looking to reach local audiences. Strategic Sales Partnerships with TikTok's premium advertising product, Pulse Premier, as well as Dot Dash Meredith, the largest digital and print publisher in the U.S., and expanded distribution for our 10 new fast channels, which we launched in April.

Speaker Change: Our momentum also continues to build in the business enterprise space as our expanding capabilities and codification security and managed automation have led to increasing customer wins and the expansion of existing relationships all of which drove strong business solution services revenue growth of 22% this quarter.

Strategic Sales Partnerships with TikTok's premium advertising product, Pulse Premier, as well as Dot Dash Meredith, the largest digital and print publisher in the U.S., and expanded distribution for our 10 new fast channels, which we launched in April .

Building on this growth strategy, we recently acquired leading technical services companies stratagem and cloud cattle.

Unknown Executive: Our momentum also continues to build in the business enterprise space, as our expanding capabilities in codification, security, and managed automation have led to increasing customer wins and the expansion of existing relationships, all of which drove strong business solutions services revenue growth of 22% this quarter. Building on this growth strategy, we recently acquired leading technical services companies Stratagem and Cloud Kettle. These acquisitions complement our acquisition of FX Innovation last year by immediately strengthening Bell's cybersecurity and Salesforce workflow automation know-how for enterprises and enriching the range of capabilities available to manage customers' public and hybrid cloud environments with the world's leading cloud providers.

Speaker Change: These acquisitions complement our acquisition of FX innovation last year by immediately strengthening bell cyber security and Salesforce workflow automation Knowhow for enterprises.

Our momentum also continues to build in the business enterprise space.

Mirko Bibic: Notably, 41% of our new internet customers discord or subscribe to a service bundle with wireless, which should help drive better subscriber lifetime value and improve retention longer term.

as our expanding capabilities in codification, security, and managed automation.

Speaker Change: And enriching the range of capabilities available to manage customers public and hybrid cloud environments with the world's leading cloud providers.

have led to increasing customer wins and the expansion of existing relationships, all of which drove strong business solutions services revenue growth of 22% this quarter.

Speaker Change: We can now deliver customer solutions across the two leading platform software companies service now in Salesforce.

Mirko Bibic: Turning that in media, Bell Media continues to transform from a traditional broadcaster to a digital media and content leader. And a prime example of that is the advanced advertising solutions for clients powered by Bell first-party data, including Bell Analytics, the SAM TV sales tool, Bell DSP, addressable TV, and Crave with ads, which collectively drove a 35% increase in digital advertising revenues this quarter. And investments to sustain the strategic shift to digital will continue. We announced a number of new partnerships and additions to our ad offerings at our upfront presentation in June. These included a new self-served buying platform for advertisers looking to reach local audiences.

Building on this growth strategy, we recently acquired leading technical services companies Stratagem and CloudKettle.

Speaker Change: In addition to our new advanced managed security solution and.

These acquisitions complement our acquisition of FX Innovation last year by immediately strengthening Bell's cybersecurity and Salesforce workflow automation know-how for enterprises

Speaker Change: And regarding service now.

Speaker Change: We recently entered into an expanded partnership with them to accelerate bells digital transformation and importantly, the digital transformation of our enterprise customers service now as applications will streamline several areas of our business, including network customer and field service operations, resulting in a more in.

and enriching the range of capabilities available to manage customers' public and hybrid cloud environments with the world's leading cloud providers.

Unknown Executive: We can now deliver customer solutions across the two leading platform software companies, ServiceNow and Salesforce, in addition to our new advanced managed security solution. And regarding ServiceNow, ServiceNow's applications will streamline several areas of our business, including network, customer, and field service operations, resulting in a more efficient experience for technicians, leveraging AI-driven insights to automate scheduling, improve customer service, and reduce drive time. Also, to enhance customer support with powerful automation capabilities to streamline case handling and drive faster service delivery using solutions that ensure customers get the services they want and require in a matter of hours or days.

We can now deliver customer solutions across the two leading platform software companies, ServiceNow and Salesforce, in addition to our new advanced managed security solution. And regarding ServiceNow,

Speaker Change: <unk> experienced particularly missions leveraging AI driven insights to automate scheduling improve customer service and reduce drive time also to enhance customer support with powerful automation capabilities to streamline case handling and drive faster service deliveries using solutions that ensure customers get the services they want and require.

We recently entered into an expanded partnership with them to accelerate Bell's digital transformation and, importantly, the digital transformation of our enterprise customers.

Mirko Bibic: Strategic sales partnerships with TikTok's premium advertising product, False Premiere, as well as Dot Dash Meridus, the largest digital and print publisher in the US, and expanded distribution for our 10 new fast channels which we launched in April. Our momentum also continues to build in the business enterprise space as our expanding capabilities and codification, security, and managed automation have led to increasing customer wins, and the expansion of existing relationships, all of which drove strong business solution services revenue growth of 22% this quarter. Building on this growth strategy, we recently acquired leading technical services companies Strategy and Cloud Cattle.

Speaker Change: And in a matter of hours or days.

ServiceNow's applications will streamline several areas of our business, including network, customer, and field service operations.

Speaker Change: While these investments and partnerships in technology and automation will enable us to unlock even greater operational efficiencies going forward, we're already benefiting from advanced AI and machine learning capabilities to improve the bell customer experience and importantly take costs out of our business, which contributed to 20.

Resulting in a more efficient experience for technicians, leveraging AI-driven insights to automate scheduling, improve customer service, and reduce drive time.

Also, to enhance customer support with powerful automation capabilities to streamline case handling and drive faster service deliveries using solutions that ensure customers get the services they want and require in a matter of hours or days.

Speaker Change: And the labor cost savings across our customer operations. This quarter, here's some examples of how our AI leadership is setting us apart.

Speaker Change: We pioneered a self serve virtual repair tool for technical troubleshooting of Internet and TV issues and that eliminated call wait times and technician visits we launched the first Google AI powered info bought in Canada, offering instant answers to customer questions and directing them to self serve options and links.

While these investments in partnerships in technology and automation will enable us to unlock even greater operation efficiencies going forward, we're already benefiting from advanced AI and machine learning capabilities to improve the Bell customer experience.

Mirko Bibic: These acquisitions complement our acquisition of effects innovation last year by immediately strengthening Bell cyber security and sales force workflow automation know how for enterprises, and enriching the range of capabilities available to manage customers' public and hybrid cloud environments with the world leading cloud providers. We can now deliver customer solutions across the two leading platform software companies, ServiceNow and Salesforce, in addition to our new advanced managed security solution. And regarding ServiceNow, we recently entered into an expanded partnership with them to accelerate Bell's digital transformation and, importantly, the digital transformation of our enterprise customers. ServiceNow's applications will streamline several areas of our business, including network customer and field service operations, resulting in a more efficient experience for technicians leveraging AI-driven insights to automate scheduling, improve customer service, and reduce drive time.

And, importantly, take costs out of our business, which contributed to $20 million in labor cost savings across our customer operations this quarter. Here are some examples of how our AI leadership is setting us apart.

Speaker Change: Our implementation of the full Google Call Center AI platform is a world first for a contact center of this scale.

Unknown Executive: Pioneering a self-serve virtual repair tool for technical troubleshooting of internet and TV issues, that eliminated call wait times and technician visits. We launched the first Google AI-powered InfoBot in Canada, offering instant answers to customer questions and directing them to self-serve options and links. Our implementation of the full Google Call Center AI platform is a world first for a contact center of this scale. The virtual assistant we've implemented first for Lucky Mobile Chat and now for our Bell and Virgin brands has resulted in over 1.1 million virtual assistant interactions year to date across the three brands.

Speaker Change: The virtual assistant we've implemented first for Lucky mobile chat and now for our Berlin Virgin brands has resulted in over $1 1 million virtual assistant interactions year to date across the three brands.

We pioneered a self-serve virtual repair tool for technical troubleshooting of internet and TV issues, and that eliminated call wait times and technician visits.

We launched the first Google AI-powered InfoBot in Canada, offering instant answers to customer questions and directing them to self-serve options and links.

Speaker Change: We have also implemented AI powered agent support models that leverage real time transcription, we analyzed calls in our contact centers through our speech AI solution and that enables us to identify cross sell opportunities where appropriate.

Our implementation of the full Google Call Center AI platform is a world first for a contact center of this scale.

Speaker Change: We also use AI enabled dynamic call routing.

The virtual assistant we've implemented, first for Lucky Mobile Chat and now for our Bell and Virgin brands, has resulted in over 1.1 million virtual assistant interactions year-to-date across the three brands.

Speaker Change: Two pair in customer.

Speaker Change: Coming customer calls with the agent who has the right skill set to optimize that customers experience and we're also using generative AI for call quality assurance monitoring aspects like time on hold and manager Escalations and to automatically generate retention offers in real time.

Mirko Bibic: Also to enhance customer support with powerful automation capabilities to streamline case handling and drive faster service deliveries using solutions and ensure customers get the services they want and require. In a matter of hours or days. While these investments in partnerships and technology and automation will enable us to unlock even greater operation efficiencies going forward, we're already benefiting from advanced AI and machine learning capabilities to improve the Bell customer experience and, importantly, take costs out of our business, which contributed to $20 million in labor cost savings across our customer operations this quarter. Here are some examples of how our AI leadership is setting us apart.

We've also implemented AI-powered agent support models that leverage real-time transcription. We analyze calls in our contact centers through our Speech AI solution, and that enables us to identify cross-cell opportunities where appropriate.

Speaker Change: All of which is designed to vastly improve the customer experience drive operating efficiencies lower churn and generate higher customer lifetime value.

We also use AI-enabled dynamic call routing to pair incoming customer calls with the agent who has the right skill set to optimize that customer's experience.

Speaker Change: And against the backdrop of these accelerating investments in key growth areas, we entered into a transaction to sell northwest tell to a consortium of indigenous communities for up to $1 billion in cash.

Unknown Executive: And we're also using generative AI for call quality assurance, monitoring aspects like time on hold and manager escalations, and to automatically generate retention offers in real time, all of which is designed to vastly improve the customer experience, drive operating efficiencies, lower churn, and generate higher customer lifetime value. Against the backdrop of these accelerating investments in key growth areas, we entered into a transaction to sell Northwestel to a consortium of indigenous communities for up to $1 billion in cash.

And we're also using generative AI for call quality assurance, monitoring aspects like time on hold and manager escalations, and to automatically generate retention offers in real time.

Speaker Change: This was a unique opportunity that emerged to surface. Some good value for a standalone BCE asset at a fair valuation and to use those proceeds to proactively manage our balance sheet and to pay down debt.

All of which is designed to vastly improve the customer experience, drive operating efficiencies, lower churn, and generate higher customer lifetime value.

Mirko Bibic: We pioneered a self-serve virtual repair tool for technical troubleshooting of internet and TV issues, and that eliminated call weight times and technician visits. We launched the first Google AI-powered infobot in Canada, offering instant answers to customer questions and directing them to self-serve options and links. Our implementation of the full Google Call Center AI platform is a world first for a contact center of this scale. The virtual assistant we've implemented first for Lucky Mobile Chat and now for our Bell and Virgin brand has resulted in over 1.1 million virtual assistant interactions year to date across the three brands.

Speaker Change: And consistent with our strategy to reduce focus on noncore businesses. We took the next step in the transition of 167, the sore stores to best buy expressed with the opening of our first store in June.

And against the backdrop of these accelerating investments in key growth areas, we entered into a transaction to sell Northwestel to a consortium of Indigenous communities for up to $1 billion in cash.

Speaker Change: That marks the beginning of a phased rollout with all stores expected to be opened by the end of this year.

Unknown Executive: This was a unique opportunity that emerged to surface good value for a stand-alone BCE asset at a fair valuation and to use those proceeds to proactively manage our balance sheet and to pay down debt. Additionally, consistent with our strategy to reduce focus on non-core businesses, we took the next step in the transition of 167 of the source stores to Best Buy Express with the opening of our first store in June.

This was a unique opportunity that emerged to surface good value for a stand-alone BCE asset at a fair valuation, and to use those proceeds to proactively manage our balance sheet and to pay down debt.

Speaker Change: All remaining 107, the sore stores are now closed and there are no longer in operation.

Speaker Change: I'm going to turn now to slide five for a brief review of some of the operating metrics by segment and I'll start with wireless of course.

And consistent with our strategy to reduce focus on non-core businesses, we took the next step in the transition of 167 of the source stores to Best Buy Express with the opening of our first store in June .

Speaker Change: We added 131043, new net mobile phone subscribers in Q2, that's up four 4% from last year and that was a function of a 14, 4% increase in gross activations, which outpaced peers, who have already reported by a wide margin and our second consecutive quarter of deceleration.

Mirko Bibic: We've also implemented AI-powered agent support models that leverage real-time transcription. We analyze calls in our contact centers through our speech AI solution, and that enables us to identify cross-cell opportunities where appropriate. We also use AI-enabled dynamic call routing to pair incoming customer calls with the agent who has the right skill set to optimize that customer's experience. And we're also using generative AI for call quality assurance, monitoring aspects like time on hold and manager escalations, and to automatically generate retention offers in real time, all of which is designed to vastly improve the customer experience, drive operating efficiencies, lower-churn, and generate higher customer lifetime value.

That marks the beginning of a phased rollout, with all stores expected to be open by the end of this year. All remaining 107 The Source stores are now closed, and they are no longer in operation.

Speaker Change: The year over year rate of churn increase.

I'm going to turn now to slide 5 for a brief review of some of the operating metrics by segment, and I'll start with wireless, of course.

Speaker Change: Now the churn does remain elevated and it's clearly not at a level that I'm satisfied with but it's down sequentially from Q1, both in absolute terms and then the magnitude of increase when compared to the prior year.

We added 131,043 new NetMobile phone subscribers in Q2. That's up 4.4% from last year.

Speaker Change: Although postpaid net adds of 78500 were down versus Q2 of last year on what was a relatively strong prior year importantly, and quite deliberately the vast majority of our new customers continue to be on our main premium brand, which is fundamental to our operating strategy.

And that was a function of a 14.4% increase in gross activations, which outpaced peers who have already reported by a wide margin and a second consecutive quarter of deceleration in the year-over-year rate of churn increase.

Now, the churn does remain elevated and it's clearly not at a level that I'm satisfied with, but it's down sequentially from Q1 both in absolute terms and in the magnitude of increase when compared to the prior year.

Mirko Bibic: And against the backdrop of these accelerating investments in key growth areas, we entered into a transaction to sell Northwest Tell to a consortium of indigenous communities for up to $1 billion in cash. This was a unique opportunity that emerged to surface good value for a standalone BCE asset at a fair valuation and to use those proceeds to proactively manage our balance sheet and to pay down debt. And consistent with our strategy to reduce focus on non-core businesses, we took the next step in the transition of 167 the source stores to Best Buy Express with the opening of our first store in June.

Speaker Change: This result reflects our focus on better quality profitable and margin accretive subscriber acquisition.

Speaker Change: We plan to continue with this consistent and disciplined approach, which balance of subscriber growth with financial performance rather than just buying loads as we progress through the balance of 2024 and beyond.

Unknown Executive: Although post-paid net ads of $78,500 were down versus Q2 of last year on what was a relatively strong prior year, importantly, and quite deliberately, the vast majority of our new customers continue to be on our main premium brand, which is fundamental to our operating strategy. We plan to continue with this consistent and disciplined approach, which balances subscriber growth with financial performance rather than just buying load, as we progress through the balance of 2024 and beyond.

Although post-paid net ads of $78,500 were down versus Q2 of last year on what was a relatively strong prior year, importantly and quite deliberately, the vast majority of our new customers continue to be on our main premium brand.

Speaker Change: Prepaid net additions were up meaningfully over last year growing to 52543 as we benefited from the launch of <unk> mobile and Lucky mobile marketing initiatives. This represents our best quarterly prepaid result in almost two years.

which is fundamental to our operating strategy.

This result reflects our focus on better quality, profitable, and margin accretive subscriber acquisition.

Speaker Change: Having led the market in prepaid growth this quarter. It shows that we've made massive strides in breaking into the Canadian Nu Mark newcomer market in a relatively short period of time.

Mirko Bibic: That marks the beginning of a phase rule out, with all stores expected to be opened by the end of this year. All remaining 107 the source stores are now closed and they're no longer in operation.

We plan to continue with this consistent and disciplined approach, which balances subscriber growth with financial performance rather than just buying loads, as we progress through the balance of 2024 and beyond.

Speaker Change: To close off on wireless <unk> was down one 9% year over year.

Mirko Bibic: I'm going to turn out a slide five for a brief review of some of the operating metrics by segment, and I'll start with wireless, of course. We added 131,043 new net mobile phone subscribers in Q2; that's up 4.4% from last year. And that was a function of a 14.4% increase in gross activations, which outpaced peers who have already reported by a wide margin and a second consecutive quarter of deceleration in the year-over-year rate of turn increase. Now, the churn does remain elevated, and it's clearly not at a level that I'm satisfied with, but it stands sequentially from Q1, both in absolute terms and in the magnitude of increase when compared to the prior year.

Speaker Change: Prepaid net additions were up meaningfully over last year, growing to 52,543 as we benefited from the launch of No Name Mobile and Lucky Mobile marketing initiatives. This represents our best quarterly prepaid result in almost two years.

Speaker Change: This result doesn't come as a surprise given that we've been facing the lowest pricing environment in the history of wireless in Canada for much of the past year. However, we did see an improvement in June and although encouraging given the current dynamic pricing environment. That's in flux as we enter the back to school period, it's still too early to make a call on the on the direction of <unk> for the balance of.

Unknown Executive: Having led the market in prepaid growth this quarter, it shows that we've made massive strides in breaking into the Canadian new market newcomer market in a relatively short period of time. I'm going to turn over to wireline now.

Having led the market in prepaid growth this quarter, it shows that we've made the massive strides in breaking into the Canadian newcomer market in a relatively short period of time.

Speaker Change: This year.

Speaker Change: I'm going to turn it over to wireline now.

Speaker Change: We had 23841, new retail Internet Internet additions we.

To close off on wireless, ARPU was down 1.9% year over year.

This result doesn't come as a surprise given that we've been facing the lowest pricing environment in the history of wireless in Canada for much of the past year. However, we did see an improvement in June .

Speaker Change: We delivered our second best Q2 results since 2007, after Q2, 2023, which was an exceptional year.

Speaker Change: Moreover, where we have fiber or bundled sales continue to grow in Q2 alone new customers subscribing to mobility and Internet service bundles increased 23% compared to last year and now comprise 48% of our total residential households, and.

And although encouraging, given the current dynamic pricing environment that's in flux as we enter the back-to-school period, it's still too early to make a call on the direction of ARPU for the balance of this year.

Mirko Bibic: Although post-Payton, that adds a 70,500 were down versus Q2 of last year on what was a relatively strong prior year, importantly and quite deliberately, the vast majority of our new customers continue to be in our main premium brand, which is fundamental to our operating strategy. This result reflects our focus on better quality, profitable and margin of creative subscriber acquisition. We plan to continue with this consistent and disciplined approach, which balances subscriber growth with financial performance rather than just buying loads as we progress through the balance of 2024 and beyond. Prepaid net additions were up meaningfully over last year, growing to 52,543 as we benefited from the launch of known name mobile and Lucky Mobile marketing initiatives.

Speaker Change: I'm going to turn over to Wireline now. We had 23,841 new retail internet additions. We delivered our second-best Q2 results since 2007 after Q2 2023, which was an exceptional year.

Speaker Change: And we had another solid quarter for our for our Bell branded IP TV service, which added 3% more new net subscribers in Q2 2023.

Unknown Executive: We delivered our second best Q2 results since 2007 after Q2 2023, which was an exceptional year. Moreover, where we have fiber, our bundle sales continue to grow. In Q2 alone, new customers subscribing to mobility and internet service bundles increased 23% compared to last year and now comprise 48% of our total residential households. However, gross activations on our 5TV app streaming service were down considerably this quarter, and that was due to a $5 rate increase in May for new subscribers, which resulted in a $12,800 year-over-year decrease in total IPTV net additions.

Speaker Change: However, gross activations on our five TV App streaming service were down considerably this quarter and that was due to a $5 rate increase in may for new subscribers and it resulted in a 12800 year over year decrease in total IP TV net additions.

Speaker Change: Moreover, where we have fiber, our bundle sales continue to grow. In Q2 alone, new customers subscribing to mobility and internet service bundles increased 23% compared to last year, and now comprise 48% of our total residential households.

Speaker Change: Lastly, I'm going to turn it over to media.

Speaker Change: And we had another solid quarter for our Bell-branded IPTV service, which added 3% more new net subscribers than Q2 2023.

Speaker Change: Total advertising revenue was up on the strength of digital and live sports and although this result represents our second consecutive quarter of growth.

Mirko Bibic: This represents our best quarterly prepaid result in almost two years. Having led the market and prepaid growth this quarter, it shows that we've made the massive strides and breaking into the Canadian new market, newcomer market in a relatively short period of time. To close off on wireless, our pool was down 1.9% year over year. This result doesn't come as a surprise given that we've been facing the lowest pricing environment in the history of wireless in Canada for much of the past year. However, we did see an improvement in June, and although encouraging given the current dynamic pricing environment that's in flux as we enter the back of the school period, it's still too early to make a call on the direction of our pool for the balance of this year.

Speaker Change: AD market improvement is expected to be uneven for the balance of this year.

Speaker Change: However, gross activations on our 5TV app streaming service were down considerably this quarter, and that was due to a $5 rate increase in May for new subscribers, and it resulted in a 12,800 year-over-year decrease in total IPTV net additions.

Speaker Change: Digital and direct to consumer continued to grow strongly helping to offset the secular pressures from traditional media platforms digital revenues were up 23% over last year and they now comprise 41% of media revenue compared to 33% last year.

Speaker Change: Lastly, I'm going to turn over to media. Total advertising revenue was up on the strength of digital and live sports, and although this result represents our second consecutive quarter of growth, the ad market improvement is expected to be uneven for the balance of this year.

Speaker Change: Driving this performance was crave, which grew direct streaming subscribers by 21% in Q2 on the back of market, leading content as well as strong growth in usage of our programmatic AD marketplace, including our Sam television advertising tool, which increased sales revenue by 43% this quarter.

Speaker Change: Digital and direct-to-consumer continue to grow strongly, helping to offset the secular pressures from traditional media platforms. Digital revenues were up 23% over last year, and they now comprise 41% of media revenue, compared to 33% last year.

Mirko Bibic: I'm going to turn over to wireline now. We had 23,841 new retail Internet, Internet additions. We delivered our second best Q2 results since 2007 after Q2 2023, which was an exceptional year. Moreover, where we have fiber, our bundle sales continue to grow. In Q2 alone, new customers subscribing to mobility and internet service bundles increased 23% compared to last year. And now comprised 48% of our total residential households. And we had another solid quarter for our Bell branded IPTV service, which added 3% more new net subscribers than Q2 2023. However, gross activations on our five TV app streaming service were down considerably this quarter, and that was due to a $5 rate increase in May for new subscribers, and it resulted in a 12,800 year-over-year decrease in total IPTV net additions.

Speaker Change: <unk> and Rds direct to consumer streaming subscribers more than doubled over last year and that was on the back of Euro Cup soccer and record breaking audiences for the Copa America tournament.

Speaker Change: Driving this performance was Crave, which grew direct streaming subscribers by 21% in Q2 on the back of market-leading content, as well as strong growth and usage of our programmatic ad marketplace, including our SamTV advertising tool, which increased sales revenue by 43% this quarter.

Speaker Change: For the current broadcast season to date CTV remains Canada's most watched network for 23rd consecutive year.

Speaker Change: On the French language side Bell media led all competitors in the entertainment and pay specialty market and new vote was the conventional TV market network excuse me with the largest growth in full day audiences, increasing 8% over Q2 of last year in.

Unknown Executive: TSN and RDS's consumer streaming subscribers more than doubled over last year, and that was on the back of EuroCup soccer and record-breaking audiences for the Copa America tournament. I'll now turn the call over to Curtis, who's going to provide more details on our financial results.

Speaker Change: TSN and RDS, direct-to-consumer streaming subscribers, more than doubled over last year, and that was on the back of EuroCup soccer and record-breaking audiences for the Copa America tournament.

Speaker Change: In summary.

Speaker Change: Our performance for Q2 reflects the teams consistent execution in a highly competitive and evolving marketplace with financial results that demonstrated a prudent balancing of subscriber growth with profitability and a continued sharp focus on cost efficiency and effectiveness.

Speaker Change: For the current broadcast season to date, CTV remains Canada's most-watched network for a 23rd consecutive year.

Speaker Change: On the French-language side, Bell Media led all competitors in the entertainment and pay specialty market and Nouveau was the conventional TV market network with the largest growth in full-day audiences, increasing 8% over Q2 of last year.

Speaker Change: Now I'll turn the call over to Curtis is going to provide more details on our financial results. Thanks, Mark and good morning, everyone.

Mirko Bibic: Lastly, I'm going to turn over to media. Total advertising revenue was up on the strength of digital and live sports, and although this result represents our second consecutive quarter of growth, the ad market improvement is expected to be uneven for the balance of this year. Digital and direct consumer continued to grow strongly, helping to offset the secular pressures from traditional media platforms. Digital revenues were up 23% over last year, and they now comprise 41% of media revenue compared to 33% last year. Driving this performance was crave, which grew direct streaming subscribers by 21% in Q2 on the back of market leading content, as well as strong growth and usage of our programmatic ad marketplace, including our Sam TV advertising tool, which increased sales revenue by 43% this quarter.

Curtis: As you can see on slide seven our consolidated financial results for Q2 demonstrate the belt is consistent and responsible execution in an intensely competitive marketplace.

Speaker Change: In summary,

Speaker Change: Our performance for Q2 reflects the team's consistent execution in a highly competitive and evolving marketplace with financial results that demonstrated a prudent balancing of subscriber growth with profitability and a continued sharp focus on cost efficiency and effectiveness.

Speaker Change: A return to positive service revenue growth in Q2 following declines in the two previous quarters. This is the direct result of our successful fiber strategy, our ability to attract premium wireless subscribers and drive greater cross sell penetration of mobility, and internet households, or expanded business tax services capabilities and.

Speaker Change: I'll now turn the call over to Curtis, who's going to provide more details on our financial results.

Curtis Millen: As you can see on slide seven, our consolidated financial results for Q2 demonstrate the Bell team's consistent and responsible execution in an intensely competitive marketplace, adjusted EBITDA rose 2%. Net earnings were up 52% in Q2. While helped by IVCA, the increase was due mainly to a large non-cash loss recorded in Q2 of 2023 when BC's share of an obligation repurchased the minority interest in a joint venture equity investment at share value.

Curtis: Thanks, Marko, and good morning, everyone.

Curtis: As you can see on slide 7, our consolidated financial results for Q2 demonstrate the Bell team's consistent and responsible execution in an intensely competitive marketplace.

Speaker Change: <unk> strong digital media growth.

Speaker Change: Total revenue was down 1%. This can be attributed to an eight 7% decrease in low margin wireless and wireline product sales, which included the loss of revenue from the source store closures.

Curtis: We return to positive service revenue growth in Q2 following declines in the two previous quarters.

Speaker Change: <unk>.

Speaker Change: Adjusted EBITDA rose, 2% delay.

Curtis: This is the direct result of our successful fiber strategy, our ability to attract premium wireless subscribers, and drive greater cross-sell penetration of mobility and internet households, our expanded business tech services capabilities, and continued strong digital media growth.

Speaker Change: Delivering a notable margin improvement of $1 three points on the back of a $3, 3% reduction in operating costs.

Net earnings were up 52% in Q2, while helped by EBITDA increase was due mainly to a large noncash loss recorded in Q2 of 2023 and <unk> share of an obligation to repurchase the minority interest in a joint venture equity investment at fair value.

Mirko Bibic: For the Colpa America Tournament, for the current broadcast season today, CTV remains Canada's most watch network for 23rd consecutive year. On the French language side, Belmedia led all competitors in the entertainment and pay specialty market, and New Vote was the conventional TV market network, excuse me, with the largest growth in full day audiences, increasing 8% over Q2 last year.

Speaker Change: Nothing notable on adjusted EPS, consistent with our 2024 guidance assumptions for interest and depreciation expense was down one seven compared to last year.

Speaker Change: Adjusted EBITDA growth 2%.

Speaker Change: Delivering a notable margin improvement of 1.3 points on the back of a 3.3% reduction in operating costs.

Mirko Bibic: In summary, our performance for Q2 reflects the team's consistent execution and a highly competitive and evolving marketplace, with financial results that demonstrated a prudent balancing of subscriber growth with profitability and a continued sharp focus on cost efficiency and effectiveness.

Speaker Change: As for free cash flow grew a strong 8% this quarter benefiting from the flow through of higher EBITDA and lower capex.

Curtis: Net earnings were up 52% in Q2. While helped by EBITDA, the increase was due mainly to a large non-cash loss recorded in Q2 of 2023 when BC's share of an obligation repurchased the minority interest in a joint venture equity investment at fair value.

Speaker Change: In line with our plans to reduce capital spending by at least $500 million in 2020 for Capex was down $329 million in Q2.

Speaker Change: This brought year to date Capex savings to $413 million, so well on track to achieve our planned reduction for the year.

Curtis Millen: I'll not turn the call over to Curtis; he's going to provide more details on our financial results.

Speaker Change: Nothing notable on adjusted EPS, consistent with our 2024 guidance assumptions for interest and depreciation expense, it was down one cent compared to last year.

Curtis Millen: Thanks, Marco.

Curtis Millen: Good morning, everyone. As you can see on slide 7, our consolidated financial results for Q2 demonstrate the Bell team's consistent and responsible execution in an intensely competitive marketplace. We return to positive service revenue growth in Q2 following the crimes in the two previous quarters. This is the direct result of our successful fiber strategy, our ability to attract premium wireless subscribers, and drive greater cross-elf penetration of ability and internet households. Our expanded business tech services capabilities and continued strong digital media growth. Total revenue was down 1%. This can be attributed to an 8.7% decrease in low margin wireless and waterline products sales, which included the loss of revenue from the source store closures.

Speaker Change: Turning to Bell Cts financial results on slide eight.

Curtis Millen: As for free cash flow, it grew a strong 8% this quarter, benefiting from the flow-through of higher EBITDA and lower CAPEX. In line with our plan to reduce capital spending by at least $500 million in 2024, CapEx was down $329 million in Q2.

Speaker Change: As for free cash flow, it grew a strong 8% this quarter, benefiting from the flow-through of higher EBITDA and lower CAPEX.

Speaker Change: Topline story here is all about a low margin product revenue, which was down $66 million in Q2.

Speaker Change: Accounting for 93% of the one 3% decline in total revenue.

Speaker Change: In line with our plan to reduce capital spending by at least $500 million in 2024, CapEx was down $329 million in Q2.

Speaker Change: The decrease was the result of lower mobile phone sales at 7% of new customer Activations in Q2 were <unk> subs.

Unknown Executive: This brought year-to-date CapEx savings to $413 million, so we are well on track to achieve our planned reduction for the year. Turning to Bell CTS financial results on slide eight. The top line story here is all about low margin product revenue, which was down $66 million in Q2, accounting for 93% of the 1.3% decline in total revenue. The source store closures that are referenced earlier and reduced wireline telecom equipment sales as levels normalized following an exceptional year in 2023 due to the global supply chain recovery.

Curtis: This brought year-to-date CAPEX savings to $413 million, so well on track to achieve our planned reduction for the year.

Speaker Change: Four store closures that I referenced earlier and reduce wireline telecom equipment sales as levels normalized following an exceptional year in 2023 due to the global supply chain recovery.

Speaker Change: Turning to Bell CTS financial results on slide 8.

Speaker Change: Top line story here is all about low margin product revenue, which was down $66 million in Q2, accounting for 93% of the 1.3% decline in total revenue.

Speaker Change: Importantly, the EBITDA impact was negligible as these product revenues are very low margin.

Speaker Change: Okay.

Speaker Change: Internet revenue was up approximately 3%.

Curtis Millen: I just said EBITDAG wrote 2%. Delivering a notable margin improvement of 1.3 points on the back of a 3.3% reduction in operating costs. Net earnings were up 52% in Q2. While health by income, the increase was due mainly to a large non-cash loss recorded in Q2 of 2023 when BC's share of an obligation to repurchase the minority interest in a joint venture equity investment at fair value. Nothing notable on adjusted EPS consistent with our 2024 guidance assumptions for interest and appreciation. Extends it was down 1% compared to last year. As for free cash flow, it grew a strong 8% this quarter, benefiting from the flow through of higher EBITDAG and lower CAPEX.

Speaker Change: The decrease was the result of lower mobile phone sales, as 70% of new customer activations in Q2 were BYOD subs.

Speaker Change: Wireless service revenue grew by one 2%.

Speaker Change: Although both are solid results that continue to be impacted by overly aggressive rate plan pricing and bundle discounting, reflecting a more intense competitive market environment compared to last year.

Speaker Change: The source store closures that are referenced earlier and reduced wireline telecom equipment sales as levels normalized following an exceptional year in 2023 due to the global supply chain recovery.

Speaker Change: This together with ongoing legacy erosion moderated service revenue growth this quarter.

Unknown Executive: Importantly, the EBITDA impact was negligible as these product revenues are very low margin. Internet revenue is up approximately 3%, while wireless service revenue grew by 1.2%. This, together with ongoing legacy erosion, moderated service revenue growth this quarter. This was driven by higher sales of cloud-based computing, managed automation, and security services, as well as our acquisition of FX Innovation that we closed in June. However, the financial highlight of the quarter was EBITDA, which strengthened over Q1, growing by 2% to yield a strong margin of 46.9%.

Speaker Change: Importantly, the EBITDA impact was negligible as these product revenues are very low margin.

Speaker Change: We also continue to see good business solutions trends, a key growth factor going forward, where revenue grew 22% over last year.

Speaker Change: Internet revenue is up approximately 3%.

Speaker Change: This was driven by higher sales of cloud based computing managed automation and security services as well as our acquisition of FX innovation and we lapped in June.

Speaker Change: Well, wireless service revenue grew by 1.2%.

Speaker Change: Although both are solid results, they continue to be impacted by overly aggressive rate plan pricing and bundle discounting, reflecting a more intense competitive market environment compared to last year.

Speaker Change: However, the financial highlight of the quarter was EBITDA, which strengthened over Q1 growing by 2% to yield a strong margin of $46, 9% up 150 point increase over last year and a direct result of our focus on cost management as evidenced by $4, 1% reduction in Q2.

Speaker Change: This, together with ongoing legacy erosion, moderated service revenue growth this quarter.

Curtis Millen: In line with our plan to reduce capital spending by at least $500 million in 2024, CAPEX was down $329 million in Q2. This brought year-to-date CAPEX savings to 413 million, so well on track to achieve our plan reduction for the year.

Speaker Change: We also continue to see good business solutions strength, a key growth factor going forward, where revenue grew 22% over last year.

Speaker Change: <unk> operating cost and margin accretive subscriber growth.

Speaker Change: This was driven by higher sales of cloud-based computing, managed automation and security services, as well as our acquisition of FX Innovation that we lapped in June .

Curtis Millen: Turning to Bell CCS finance results on slide 8. Topline's story here is all about low-margin product revenue, which was down $66 million in Q2, accounting for 93% of the 1.3% decline in total revenue. The decrease was the result of lower mobile phone sales, as 70% of new customer activations in Q2 were BYOD subs. The source store closures that are referenced earlier and reduced waterline telecom equipment sales as levels normalized following an exceptional year in 2023 due to the global supply chain recovery. Importantly, the EBITDA impact was negligible, as these product revenues are very low margin.

Speaker Change: Turn it over to Bell media on slide nine.

Speaker Change: Good overall financial performance in Q2.

Speaker Change: However, the financial highlight of the quarter was EBITDA, which strengthened over Q1, growing by 2% to yield a strong margin of 46.9%.

Speaker Change: In fact, this marks bell Media's first quarter of revenue and EBITDA growth in two years.

Unknown Executive: That's a 150-point increase over last year and the direct result of our focus on cost management, as evidenced by a 4.1% reduction in Q2 operating costs and margin-accretive subscriber growth. Turn it over to Bell Media on slide 9.

Speaker Change: A positive result on the circumstances, which is a testament to the team's strong execution, our diversified asset mix premium content and success of our digital media strategy.

Speaker Change: That's a 150 point increase over last year and the direct result of our focus on cost management as evidenced by a 4.1% reduction in Q2 operating costs and margin accretive subscriber growth.

Speaker Change: Total Q2 revenue was up approximately 1%.

Speaker Change: This result was driven by one 9% increase in advertising revenue on the back of our strong TV sports specialty performance continued robust digital advertising growth and the acquisition of outrun media that was completed in June.

Speaker Change: Turn it over to Bell Media on slide 9.

Speaker Change: Good overall financial performance in Q2. In fact, this marks Bell Media's first quarter of revenue and EBITDA growth in two years.

Speaker Change: A positive result under circumstances, which is a testament to the team's strong execution, our diversified asset mix, premium content, and success of our digital-first media strategy.

Speaker Change: The F. One Canadian graph free and higher international sales of Bell media programming also contributed to higher revenue this quarter.

Curtis Millen: Internet revenue was up approximately 3%, while wireless service revenue grew by 1.2%. Although both are solid results, they continue to be impacted by overly aggressive rate fine pricing and bundle discounting, reflecting a more intense competitive market environment compared to last year. This, together with ongoing legacy erosion, moderated service revenue growth this quarter. We also continue to see good business solutions price, a key growth factor going forward, where revenue grew 22% over last year. This was driven by higher sales of cloud-based computing, managed automation and security services, as well as our acquisition of ethics innovation that we laughed in June.

Speaker Change: Immediate team also did a great job managing costs.

Unknown Executive: This result was driven by a 1.9% increase in advertising revenue on the back of our strong TV sports specialty performance, continued robust digital advertising growth, and the acquisition of OutRun Media that was completed in June. This is a recurring theme, which increased only marginally despite higher TV programming costs, as much of this pressure was effectively offset by cost-saving initiatives. Our debt maturity schedule is also prudently structured with an average term to maturity of approximately 13 years and an after-tax cost of debt below prevailing interest rates of 3.2%.

Speaker Change: Recurring theme, which increased only marginally despite higher television programming costs as much of this pressure was effectively offset by cost saving initiatives.

Speaker Change: Total Q2 revenue was up approximately 1%. This result was driven by a 1.9% increase in advertising revenue on the back of our strong TV sports specialty performance, continued robust digital advertising growth, and the acquisition of out front media that was completed in June .

Speaker Change: This together with the benefit of higher revenue enabled us to deliver EBITDA growth of nearly 2% this quarter.

Speaker Change: Turning to the balance sheet on slide 10, we ended Q2 with $5 billion of available liquidity, which includes the proceeds of a $1 5 billion public debt issuance, we completed in May.

Speaker Change: The F1 Canadian Grand Prix and higher international sales of Bell Media Programming also contributed to higher revenue this quarter.

Speaker Change: The media team also did a great job managing costs, which is a recurring theme, which increased only marginally despite higher TV programming costs, as much of this pressure was effectively offset by cost-saving initiatives.

Speaker Change: Our debt maturity schedule is also prudently structured with an average term to maturity of approximately 13 years and an after tax cost of debt below prevailing interest rates at three 2%.

Curtis Millen: However, the financial highlight of the quarter was EBITDA, which strengthened over Q1, growing by 2% to yield a strong margin of 46.9%. At 150 point increase over last year, and the direct result of our focus on cost management, as evidenced by 4.1% reduction in Q2 operating costs and margin and Credo's subscriber growth.

Speaker Change: This, together with the benefit of higher revenue, enabled us to deliver EBITDA growth of nearly 2% this quarter.

Speaker Change: This together with notwithstanding refinancing requirements for the balance of the year maturities in 2025 totaling $2 $1 billion that have already been largely pre funded using interest rates and a sizeable pension solvency surplus we remain in a good financial position.

Speaker Change: Turning to the balance sheet on slide 10, we ended Q2 with $5 billion of available liquidity, which includes the proceeds of a $1.5 billion public debt issuance we completed in May.

Curtis Millen: Turning over to Valmedia on slide 9. Good overall financial performance in Q2. In fact, this marks Valmedia's first quarter of revenue and EBITDA growth in two years. A positive result under circumstances, which is a testament to the team's strong execution, our diversified asset mix, premium content, and success of our digital first media strategy. Total Q2 revenue is up approximately 1%. This was all was driven by 1.9% increase in advertising revenue, on the back of our strong TV sports specialty performance, continued robust digital advertising growth, and the acquisition of Outfront Media that was completed in June.

Speaker Change: We made a final payment of $414 million in Q2 for 3800 megahertz spectrum that we won an auction late last year.

Speaker Change: Our debt maturity schedule is also prudently structured with an average term to maturity of approximately 13 years and an after-tax cost of debt below prevailing interest rates at 3.2%.

Speaker Change: This led to a slight increase in our leverage ratio from Q1 to $3 seven times adjusted EBITDA.

Speaker Change: This, together with no outstanding refinancing requirements for the balance of the year, maturities in 2025 totaling $2.1 billion that have already been largely pre-funded, easing interest rates, and a sizable pension solvency surplus, we remain in a good financial position.

Speaker Change: We're mindful of our elevated debt position and we remain highly focused on reducing our leverage ratio over time.

Speaker Change: This will be achieved through positive free cash flow generation after dividend payments and using the proceeds from asset sales such as northwest Hal to pay down debt.

Unknown Executive: We made a final payment of $414 million in Q2 for the 3,800 MHz spectrum that we won in auction late last year. Accordingly, we remain confident in our ability to deliver on all of our financial guidance targets for 2024.

Speaker Change: In fact, the announced $1 billion northwest style transaction is expected to improve our leverage ratio to approximately five basis points.

Speaker Change: We made a final payment of $414 million in Q2 for 3,800 MHz spectrum that we won in auction late last year. This led to a slight increase in our leverage ratio from Q1 to 3.7 times adjusted EBITDA.

Speaker Change: To finish off on slide 11, you can see from our performance in the first half of 2024, and we are effectively navigating a dynamic competitive and economic environment to achieve financial results largely in line with our expectations.

Curtis Millen: The F1 Canadian growl free and higher international sales of Valmedia programming also contributed to higher revenue this quarter. The media team also did a great job managing costs to the recurring theme, which increased only marginally despite higher TV program costs, as much of this pressure was effectively offset by cost saving issues. This, together with the benefit of higher revenue, enabled us to deliver EBITDA growth of nearly 2% this quarter.

Speaker Change: We're mindful of our elevated debt position, and we remain highly focused on reducing our leverage ratio over time.

Speaker Change: This will be achieved through positive free cash flow generation after dividend payments and using the proceeds from asset sales, such as Northwest Tal, to pay down debt. In fact, the announced billion dollar Northwest Tal transaction is expected to improve our leverage ratio by up to approximately five basis points.

Speaker Change: Going forward, we will continue to execute the same consistent and disciplined manner, focusing on cost efficiencies and balanced growth.

Speaker Change: Accordingly, we remain confident in our ability to deliver on all of our financial guidance targets for 2024.

Speaker Change: I'll now hand, the call back to Fame and the operator to begin Q&A. Thanks Curtis are before we start to keep the call as efficient as possible. Please limit yourselves to one question and a brief follow up a few months. So that we can get to as many questions in the queue as possible at the time, we have left.

Speaker Change: To finish off on slide 11, you can see from our performance in the first half of 2024 that we are effectively navigating a dynamic competitive and economic environment to achieve financial results largely in line with our expectations.

Curtis Millen: Turning to the balance sheet on slide 10. We ended Q2 with 5 billion of available liquidity, which includes the proceeds of a 1.5 billion dollar public debt issuance we completed in May. Our debt maturity schedule was also pretty much structured with an average terms of maturity of approximately 13 years, and an after tax cost of debt, the low prevailing interest rates at 3.2%. This, together with no outstanding refinancing requirements for the balance of the year, the securities in 2025, totaling $201 billion that have already been largely pre-funded. Easing interest rates and a sizable pension solvency surplus, we remain in a good financial position.

Speaker Change: Going forward, we'll continue to execute in the same consistent and disciplined manner, focusing on cost efficiencies and balanced growth.

Speaker Change: With that Matthew we're ready to take our first question.

Matthew: Thank you.

Speaker Change: Question is from Mayer Yaghi from Scotiabank. Please go ahead.

Speaker Change: Accordingly, we remain confident in our ability to deliver on all of our financial guidance targets for 2024.

Mayer Yaghi: Great. Thank you for taking my question and good morning, everyone. So I wanted to ask you.

Speaker Change: I'll now hand the call back to Thane and the operator to begin Q&A. Thanks, Curtis. So before we start, to keep the call as efficient as possible, please limit yourselves to one question and a brief follow-up if you must, so that we can get to as many questions in the queue as possible with the time we have left. With that, Matthew, we're ready to take our first question.

Mayer Yaghi: I'll ask about wireless I'll add scale, both wireline actually.

Speaker Change: So we are seeing significant promotional and retention activities in the market.

Curtis Millen: We made a final payment of $414 million in Q2 for $3,800 million herred specs, and though we won an auction late last year. This led to a slight increase in our leverage ratio from Q1 to 3.7 times adjusted EBITDA. We're mindful of our elevated debt position, and we remain highly focused on reducing our leverage ratio over time. This will be achieved through positive free cash flow generation, after dividend payments, and using proceeds from asset sales, such as Northwest Health, to pay down debt. In fact, the announced billion-dollar Northwest Health Transaction is expected to improve our leverage ratio by up to approximately five basis points.

Speaker Change: Like lifetime price locks guarantees like videotron glitches.

Speaker Change: Canadian market Hasnt seen before but also aggressive signings promotions by.

Speaker Change: Thank you. The first question is from Maher Yaghi from Scotiabank. Please go ahead.

Unknown Executive: Great. Thank you for taking my question. Good morning, everyone.

Speaker Change: Now with prices as low as $5 415 gig.

Mayor Jaggi: Great. Thank you for taking my question. Good morning, everyone. So I wanted to ask you – I won't ask you about wireless. I'll ask you about wireline actually.

Speaker Change: We are waiting for the decision by the ITC, but I would say the market is quite competitive but thats. Just me, we'll see what they have in mind, but my question on this topic is the following.

Unknown Executive: So I wanted to ask you, I won't ask you about wireless. I'll ask you about wired, actually. So we are seeing significant promotional and retention activities in the market with, you know, some like lifetime price locks, guarantees by Videotron, which is something the Canadian market hasn't seen before, but also aggressive signing promotions by Bell with prices as low as $55 for 1.5 gigabytes. We are waiting for the decision by the CRTC, but I would say the market is quite competitive, but that's just me.

Speaker Change: So we are seeing significant promotional and retention activities in the market with, you know, some like lifetime price locks, guarantees by Videotron, which is, you know, the Canadian market hasn't seen before, but also aggressive signing promotions by

Speaker Change: When first.

Speaker Change: When BC first embarked on on its fiber to the home deployment I remember quite clearly.

Speaker Change: Right.

Speaker Change: Go.

Speaker Change: The expectation was that broadband <unk> was going to be in the 90 to $100 range and now we're sitting at $55 $60 range.

Curtis Millen: To finish off on slide 11, you can see from our performance in the first half of 2024 that we are effectively navigating a dynamic competitive and economic environment to achieve financial results largely in line with our expectations. Going forward, we'll continue to execute in the same consistent and disciplined manner, focusing on cost efficiencies and balance growth. Accordingly, we remain confident in our ability to deliver on all of our financial guidance targets for 2024.

Mayor Jaggi: Bell with prices as low as $55 for 1.5 gigs.

Speaker Change: You know, we are waiting for the decision by the CRTC, but I would say the market is quite competitive. But that's just me. We'll see what they have in mind. But my question on this topic is the following.

Being positive NPV is on fiber to the home.

Unknown Executive: We'll see what they have in mind. But my question on this topic is the following. When BCE first embarked on its fiber-to-the-home deployment, I remember quite clearly, you know, quite, like, 10 years ago, the expectation was that broadband ARPU was going to be in the $90 to $100 range, and now we're sitting at $55, $60 range. Are we still?

Speaker Change: When you look at your models and you look at the pricing currently in the marketplace.

Speaker Change: Whats your view on that investment.

Speaker Change: That went first.

Speaker Change: When BC first embarked on its fiber-to-the-home deployment, I remember quite clearly, you know, quite like 10 years ago,

Speaker Change: Potential positive return.

Speaker Change: Shareholders. Thank you.

Thank you Meredith.

Speaker Change: The expectation was that broadband ARPU was going to be in the $90 to $100 range, and now we're sitting at $55, $60 range. Are we still?

Speaker Change: Question <unk>.

Speaker Change: Fiber continues to be a growth engine.

Thane Fotopoulos: I'll now hand the call back to Fane, and the operator to begin to make.

Unknown Executive: Thanks, Curtis. Before we start to keep the calls, the patient is possible. Please win with yourself to one question and a brief follow-up a few months so that we can get as many questions in the queue as possible with the time we have left.

Unknown Executive: Being positive NPVs on fiber to the home when you look at your models, and you look at the pricing currently in the marketplace.

Speaker Change: Sure.

Speaker Change: Bell on the wireline side and frankly, if you look at the communications segments pretty much everywhere.

Speaker Change: Being positive NPVs on fiber-to-the-home, when you look at your models and you look at the pricing currently in the marketplace,

Speaker Change: The area of growth in wireline is actually fiber so still quite positive on.

Unknown Executive: If that Matthew, we're ready to take our first question.

Speaker Change: What's your view on that investment and its potential positive return for shareholders? Thank you.

Maher Yaghi: The first question is from Mayor Yagi from Scotia Bank. Please go ahead. Great. Thank you for taking my question. Good morning, everyone. So I wanted to ask you. I won't ask you about wireless. I'll ask you about fire line, actually. So we are seeing significant promotional and retention activities in the market with, you know, some like lifetime price locks guarantees by Videotron, which is, you know, the Canadian market hasn't seen before. But also aggressive signing promotions by Bell with prices as low as $55 for 1.5 gigs. You know, we are waiting for the decision by the CRTC, but I would say the market is quite competitive, but that's just me.

Speaker Change: On the fiber strategy, obviously, it remains the bedrock of our wireline strategy and the investments were.

Unknown Executive: Thank you, Mayor. That's for the question. Look, fiber continues to be the growth engine of In some markets, though, I'd say we've seen promotional intensity stabilize as bill credits have lowered. You're giving an example of a particular offer that's maybe in the market in particular areas, but they really cater to higher-value customers, which remains part of our overall strategy. Look, we're in an intense pricing environment in wireless and wireline. Everybody knows this, but we're going to continue to focus on generating lifetime value for customers who choose the very best and who want a premium product, and that's Bell 5.

Speaker Change: Thank you, Mayor. That's for the question. Look, fiber continues to be the growth engine of

Speaker Change: Much needed critical and will serve us well for years and years to come I'm quite pleased with our net performance overtime, but including Q2 of this year. It was our second best Q2 since 2007 after last year, which was a standout quarter a year ago.

Speaker Change: of Bell on the wireline side, and frankly, if you look at the communication segments, pretty much everywhere.

Speaker Change: The area of growth in wireline is actually fiber, so I'm still quite positive on the fiber strategy. Obviously, it remains the bedrock of our wireline strategy, and the investments were.

Speaker Change: I already said that in my opening remarks.

Speaker Change: Seeing very good very good bundling success, and that's adding to.

Speaker Change: The lifetime value of customers manner now there is room for <unk> growth.

Speaker Change: Much needed, critical, and will serve us well for years and years to come. I'm quite pleased with...

Speaker Change: In some markets, though I'd cite we've seen promotional intensity stabilize as bill credits lowered year, giving an example of a particular offer that.

Maher Yaghi: We'll see what they have in mind, but my question on this topic is the following. When first, you know, when BC first embarked on its fiber to the home deployment, I remember quite clearly, you know, quite like 10 years ago. The expectation was that broadband ARP who was going to be in the 90 to $100 range. And now we're sitting at $55, $60 range. Are we still seeing positive NPVs on fiber to the home when you look at your models and you look at the pricing currently in the marketplace? What's your view on that investment and its potential positive return for shareholders?

Speaker Change: Our Internet performance over time, but including Q2 of this year, it was our second best Q2 since 2007 after last year, which was a standout quarter a year ago.

Speaker Change: <unk> may be in market in particular areas, but that really cater to higher value customers, which remains part of our overall strategy, but we are in an intense pricing environment in wireless and wireline everybody knows this but we're going to continue to focus on generating.

Speaker Change: So, I already said that in my opening remarks, we're seeing very good, very good bundling success and that's adding to, you know, the lifetime value of customers, Maher. Now, there is room for our co-growth.

Speaker Change: Lifetime value for customers, who choose the very best and who want a premium product and that spelled five.

Speaker Change: In some markets, though, I'd say we've seen promotional intensity stabilize as bill credits lowered. You're giving an example of...

Speaker Change: And we're doing a very good job standing out in the marketplace I would say go to end to end the answer to your question.

Speaker Change: of a particular offer that that's

Speaker Change: [inaudible]

Mirko Bibic: Thank you.

Mirko Bibic: Thank you, Mayor, for the question. Fiber continues to be the growth engine of Bell on the wireline side. Frankly, if you look at the communication segments, pretty much everywhere, the area of growth in wireline is actually fiber, so still quite positive on the fiber strategy. Obviously, it remains the bedrock of our wireline strategy, and the investments were much needed, critical, and will serve us well for years and years to come. I'm quite pleased with our Internet performance over time, but including Q2 of this year, it was our second best Q2 since 2007 after last year, which was a standout quarter a year ago.

Speaker Change: As you see where we're going to adjust to circumstances as they arise right, whether it's pricing environments macroeconomic pressures.

Speaker Change: Regulatory pressures, we're just going to adjust and you've seen a major adjustment over the last 12 months in terms of the pace of our fiber build as we get closer and closer to reaching our near term build out targets and we will continue to adjust very quickly in the face of.

Speaker Change: You know, lifetime value for customers who choose the very best and who want premium product. And that's Bell 5.

Unknown Executive: And we're doing a very good job standing out in the marketplace. I would say, though, to end the answer to your question, as you see, we're going to adjust to circumstances as they arise, whether it's the pricing environment, or macroeconomic pressures.

Speaker Change: And we're doing a very good job standing out in the marketplace. I would say, though, to end the answer to your question, as you see, we're going to adjust to circumstances as they arise.

Speaker Change: In the face of pressures and Thats one of the hallmarks of how Bel operates.

Speaker Change: Thank you.

Speaker Change: Thank you. Our next question is from Stephanie price from CIBC World markets. Please go ahead.

Speaker Change: Regulatory pressures, we're just going to adjust and you've seen a major adjustment over the last 12 months in terms of the pace of our fiber build as we get closer and closer to reaching our near-term build-out targets.

Mirko Bibic: So I already said that in my opening remarks. We're seeing very good, very good bundling success, and that's adding to the lifetime value of customers, Mayor. Now, there is room for our co-growth. In some markets, though, we've seen promotional intensities stabilized as a bill of credits. Lowered, you're giving an example of a particular offer that's maybe in market in particular areas, but they're really catered to higher value customers, which remains part of our overall strategy. According to an intense pricing environment in wireline, everybody knows this, but we're going to continue to focus on generating lifetime value for customers who choose the very best and who want premium product, and that's Bell Five. We're doing a very good job standing out in a marketplace.

Stephanie Price: Good morning.

Stephanie Price: Hoping to understand more on the opportunity with service now in AI and automation are these initiatives kind of included in your original cost saving initiatives, how should we think about that.

Speaker Change: And we'll continue to adjust very quickly in the face of pressures, and that's one of the hallmarks of how Bell operates.

Speaker Change: Okay.

Speaker Change: How do we think about the magnitude and timing around data automation separation.

Stephanie Doris Price: Thank you. Our next question is from Stephanie Price from CIBC World Markets. Please go ahead.

Speaker Change: Thank you.

Speaker Change: Thanks for the question so on.

Speaker Change: On service now.

Speaker Change: Thank you. Our next question is from Stephanie Price from CIBC World Markets. Please go ahead.

Speaker Change: We are kind of embedding service now into our own environment in order to increase efficiency.

Stephanie Price: Good morning.

Speaker Change: Both in how we operate of course driving costs out of the business, but im particularly.

Stephanie Price: I was hoping to understand more around the opportunities with ServiceNow and AI and automation. Are these initiatives kind of included in your original cost-saving initiatives, or should we think about them as additive? And if so, how do we think about the magnitude and timing around automation and digitization?

Speaker Change: I am, particularly energized in terms of that partnership with our ability to go to market with some of the in conjunction with service now and to serve our enterprise customers in their own.

Unknown Executive: Thanks for the questions. So on...

Speaker Change: Digital transformation journeys and Thats across cloud security and managed automation and integrating our service now into the environments of our customers and.

Speaker Change: Thanks for the question. So on.

Speaker Change: On ServiceNow, we are kind of embedding ServiceNow into our own environment in order to increase efficiency, both in how we operate, of course, driving costs out of the business, but I'm particularly

Mirko Bibic: I would say not to end the answer to your question. As you see, we're going to adjust to circumstances as they arise, whether it's pricing environment, macroeconomic pressures, or regulatory pressures. We're just going to adjust, and you've seen a major adjustment over the last 12 months in terms of the pace of our fiber-build as we get closer and closer to reaching our near-term build-out targets, and we'll continue to adjust very quickly in the face of pressures, and that's one of the hallmarks of how Bell operates. Thank you.

Speaker Change: And co creating with with service now so that we can jointly go to market. So that's where for me it's equally positive.

Speaker Change: I'm particularly energized in terms of that partnership with our ability to go to market with some of the

Stephanie: Initiative is on the go to market side, including kind of embedding it into our own environment. So that's going to continue to drive costs out of our business combined with more robotic process automation and more use of AI Stephanie.

Speaker Change: I gave a list of examples.

Stephanie Price: In my opening remarks of how we're going to use AI to improve the customer experience attract more customers and importantly drive costs out of the business and I shared that $20 million figure. So I can't give you a.

Speaker Change: co-creating with ServiceNow so that we can jointly go to market. So that's where, for me, it's equally

Speaker Change: The GoToMarket side, including kind of embedding it into our own environment. So that's going to continue to drive costs out of our business, combined with

Speaker Change: A.

Speaker Change: Precise figure as to how we're going to continue or the quantum of cost efficiencies quarter by quarter that are going to come from deploying AI in service now, but we're going to continue to.

Stephanie Price: Our next question is from Stephanie Price, from CIBC World Markets. Please go ahead.

Speaker Change: More robotic process automation and more use of AI, Stephanie. I gave a list of examples in my opening remarks of how we're going to use AI to improve the customer.

Stephanie Price: Good morning. I was hoping to understand more around the opportunities with ServiceNow and AI and automation. Are these initiatives kind of included in your original cost-saving initiatives? Or should we think about them as additive? And so how do we think about the magnitude and timing around automation and automation?

Speaker Change: Two.

Speaker Change: Should do that in the business.

Speaker Change: And you can count on us to do it.

Speaker Change: And Stephanie the only thing I'll add just the second part of your question.

Speaker Change: experience attract more customers and importantly drive costs out of the business and I share the 20 million figure so I can't give you a

Speaker Change: Been looking at those types of opportunities for years and.

Speaker Change: And we do see the results to India. These are part of them.

Speaker Change: Answer the other part of your question. We look at this is incremental to the workforce restructuring benefits that we talked about in February and just on that we do remain on track in terms of hitting those targets. We continue to see a way through to $150 million to $200 million of in year savings.

Speaker Change: a precise figure as to you know how we're going to continue or the quantum of cost efficiencies quarter by quarter that are going to come from deploying AI and service now but but we're going to continue to to

Mirko Bibic: Thanks for the question. So on ServiceNow, we are embedding ServiceNow into our own environment in order to increase efficiency, both in how we operate and, of course, driving costs out of the business. But I'm particularly energized in terms of that partnership with our ability to go to market with some of the in conjunction with ServiceNow and to serve our enterprise customers and their own digital transformation journeys, and that's across cloud security and managed automation and integrating ServiceNow into the environments of our customers and co-creating with ServiceNow so that we can jointly go to market. So that's where for me it's equally positive initiative is on the go to market side, including kind of embedding it into our own environment. So that's going to continue to drive costs out of our business combined with more robotic process automation and more use of of AI Stephanie.

Speaker Change: to do that in the business and you can count on us to do it.

Speaker Change: As you can appreciate it's a pretty big workforce restructuring.

Speaker Change: And, Stephanie, the only thing I'll add, just the second part of your question, you know, we've been looking at those types of opportunities for years.

Speaker Change: We will continue to scale throughout the year, but we see those as two different opportunities.

Speaker Change: And we do see the results day in, day out. These are part of them. But to answer the other part of your question, we would look at this as incremental.

Speaker Change: Great. Thank you very much.

Speaker Change: Thank you. Our next question is from Sebastiano Petti from J P. J P. Morgan. Please go ahead.

Speaker Change: to the Workforce for Structuring Benefits that we talked about in February. And just on that, we do remain on track in terms of hitting those targets.

Speaker Change: Scott.

Sebastiano Petti: Thank you and just a quick follow up there on the $150 million to $200 million of cost savings can you maybe tell us where we're at in terms of.

Speaker Change: You continue to see a way through to $150 to $200 million of in-year savings. As you can appreciate, it's a pretty big workforce for structuring, so it will continue to scale throughout the year, but we see those as two different opportunities.

Scott: The run rate exiting in the second quarter, and I think how should we anticipate that perhaps tracking and phasing over the balance of the year.

Speaker Change: Would be helpful. And then I think we talked about.

Speaker Change: Great, thank you very much.

Curtis: To Mercury I guess Curtis as well in terms of just thinking about prepaid in the new to Canada market.

Speaker Change: Thank you. Our next question is from Sebastiano Petti from J.P. Morgan. Please go ahead.

Mirko Bibic: I gave a list of examples in my opening remarks of how we're going to use AI to improve the customer experience, attract more customers and, importantly, drive costs out of the business, and I share the 20 million figures. So I can't give you a precise figure as to how we're going to continue or the quantum of cost efficiencies quarter by quarter that are going to come from deploying AI and ServiceNow, but we're going to continue to do that in the business, and you can count on us to do it. And Stephanie, the only thing I'll add just to the second part of your question, you know we've been looking at those types of opportunities for years, and we do see the results stand in these are part of them.

Speaker Change: Strong results there part of that obviously driven by the no named mobile Lucky initiatives you talked about.

Speaker Change: Ciao!

Sebastiano Petti: Thank you. Just a quick follow-up there, Curtis. On the $150 to $200 million of cost savings, can you maybe tell us where we're at in terms of

Speaker Change: But this has been building for some time can you help us think about.

Speaker Change: How your how the team is evaluating maybe the prepaid versus postpaid mix given the emphasis and the focus on premium loadings on the Bell brand should we should we think about it.

Sebastiano Petti: The run rate exiting the second quarter, and I think, you know, how should we anticipate that perhaps tracking and phasing over the balance of the year would be helpful. And then I think we talked about.

Speaker Change: <unk> beyond perhaps some of your initiatives.

Mirko: To Mirko, I guess, or, you know, to Curtis as well, in terms of just thinking about, you know, prepaid and the new to Canada market, you know, strong results there, part of that obviously driven by, you know, the no name mobile lucky initiatives you talked about, but this has been building for some time. Can you help us think about

Speaker Change: With no name mobile and Lucky.

Speaker Change: New to Canada market continued to be robust should we think about maybe a higher mix towards the prepaid loadings.

Speaker Change: Over the coming quarters, and maybe over the next over the foreseeable future rather as a way to perhaps combat flanker brand competition, just maybe your thoughts on that would be great. Thanks, guys.

Speaker Change: How the team is evaluating maybe the prepaid versus postpaid mix, given the emphasis and the focus on premium loadings on the Bell brand. Should we think about...

Curtis Millen: But to answer the other part of your question, we would look at this as incremental to the workforce for structuring benefits that we talked about in February. And just on that, we do remain on track in terms of hitting those targets. We continue to see a way through to 150 to 200 million dollars of in-year savings. As you can appreciate, it's a pretty big workforce for structuring, so it will continue to scale throughout the year. But we see those as two different opportunities.

Marco: Hi, <unk>. Thanks for the question I'll answer the first question I had and then hand it over to Marco. So we don't we're not going to report that information on a quarterly basis, but I would say as we reiterate our confidence in capturing those savings in Europe we.

Speaker Change: Above and beyond, perhaps, some of your initiatives with No Name Mobile and Lucky, and the new-to-Canada market continuing to be robust, should we think about maybe a higher mix?

Marco: We expect and continue to expect to reach our run rate benefit by the end of Q4. So we will continue to ramp up through the year and we'll hit our target and we will be at full run rate by the end of the calendar year.

Speaker Change: towards the prepaid loadings over the, you know, over the coming quarters and, you know, maybe over the next, or the foreseeable future rather, as a way to perhaps combat, you know, flanker brand competition. Just maybe your thoughts on that would be great. Thanks, guys.

Marco: Thanks, Chris So I'm glad you asked the question on prepaid because.

Stephanie Price: Great, thank you very much.

Speaker Change: Hi, Sebastiano. Thanks for the question. I'll answer the first question you had and then hand it over to Mirko.

Sebastiano Petti: Our next question is from Sebastiano Petty from JP Morgan. We go ahead. John. Thank you, just a quick follow-up there, Curtis, on the 150 to 200 million of cost savings. Can you maybe tell us where we're at in terms of the run rate exiting the second quarter, and I think you know how should we anticipate that perhaps tracking and phasing over the balance of the year would be helpful. And then I think we talked about to Merco, I guess, or you know to Curtis as well in terms of just thinking about, you know, prepaid and the new to Canada market.

Speaker Change: I would love allows me to kind of.

Speaker Change: Besides that the very strong growth you see in prepaid actually.

Mirko: So, we don't, we're not going to report that information on a quarterly basis, but I would say as we reiterate our confidence in capturing those savings in year that we expect and continue to expect

Speaker Change: Is in my mind, very well aligned with the premium loading strategy actually so.

Mirko: to reach our run rate benefit by the end of Q4. So it'll continue to ramp up through the year and we'll hit our in-year target and we'll be at full run rate by end of the calendar year.

Speaker Change: Think through how we are trying to segment customers, we need to better align.

Unknown Executive: So, I'm glad you asked the question on prepaid because... You know, I would love it if you allowed me to kind of emphasize that the very strong growth you see in prepaid actually is, in my mind, very well aligned with the premium loading strategy, actually. So if you compare base pricing with in market pricing or better aligned in market pricing with base pricing. Number one, we need to better align the pricing differential between

Unknown Executive: So, I'm glad...

Speaker Change: Base pricing with in market pricing are better aligned and market pricing with.

Mirko: Thanks, Curtis. So I'm glad you asked the question on prepaid because

Speaker Change: Based pricing.

Speaker Change: Number one we need to better align the pricing differential between.

Speaker Change: I would, allows me to kind of emphasize that the very strong growth you see in prepaid actually is, in my mind, very well aligned with the premium loading strategy, actually. So if you...

Sebastiano Petti: You know strong results there part of that obviously driven by you know the no name mobile lucky initiatives you talked about but this has been building for some time. Can you almost think about you know how you're how the team is evaluating maybe the prepaid verse post paid mix given the emphasis and the focus on premium loadings on the Bell brand. Should we should we think about above and beyond perhaps some of your initiatives with no name mobile lucky do you and the new to Canada market continue to be robust should we think about maybe a higher mix.

Speaker Change: Bring your own device and contract pricing.

Marco: <unk>.

Speaker Change: At the same time, we need to differentiate between prepaid and value based postpaid plans and we did a much better job in Q2.

Speaker Change: Think through how we're trying to segment customers. We need to better align...

Speaker Change: Based Pricing with In-Market Pricing or Better Aligned In-Market Pricing with Base Pricing, number one. We need to better align the pricing differential between

Marco: King prepaid the true entry point for those looking to enter wireless.

Marco: In.

Marco: The lower price point and that includes <unk>.

Sebastiano Petti: Or to the prepaid loadings over the, you know, over the common quarters and maybe over the next year or the foreseeable future rather as a way to perhaps combat, you know, like brand competitions of maybe your thoughts on that would be great thanks.

Speaker Change: Portion of newcomers and other customers and then what you do is you work on on migrating your.

Speaker Change: Bring your own device and contract pricing.

Speaker Change: And, you know, on, at the same time, we need to differentiate between

Marco: Your prepaid customers those who were seeking an entry price point you seek to migrate them up to postpaid plan. So if you do that properly. What you are going to do is you're going to attract.

Speaker Change: Prepaid and Value-Based Postpaid Plans.

Curtis Millen: Hi Sebastiano, thanks for the question. I'll answer the first question I had, and then hand it over to Mirko. So, we're not going to report that information on a quarterly basis, but I would say, as we reiterate our confidence in capturing those savings in year, that we expect and continue to expect to reach our run rate benefit by the end of Q4. So it'll continue to ramp up through the year, and we'll hit our in-year target, and we'll be at full run rate by end of the calendar year.

Marco: A bigger portion of those newcomers in Canada are those newcomers into the segment.

Marco: Into the prepaid rather than into postpaid, which was a problem on on how we were pricing as an industry, let's say a year ago and so I think what we did there is we saw.

Speaker Change: portion of newcomers and and and other customers and and then what you do is you work on on migrating your

Marco: As we better align that pricing and as we better segmented customers. We saw very strong growth in premium postpaid loadings and strong growth in prepaid, particularly.

Mirko Bibic: Thanks, Chris. So I'm glad you asked the question on prepaid because I would, it allows me to kind of emphasize that the very strong growth you see in prepaid actually is, in my mind, very well aligned with the premium loading strategy actually. So if you think through how we're trying to segment customers, we need to better align. Based pricing with in market pricing, a better line in market pricing with with base pricing. Number one, we need to better align the pricing differential between bring your own device and contract pricing. And you know, at the same time, we need to differentiate between prepaid and value-based postpaid plans.

Speaker Change: You know a bigger portion of those newcomers in Canada or those newcomers into the segment

Marco: Adept at attracting newcomers to Canada.

Marco: In that segment. So the success you see there is completely aligned premium postpaid.

Marco: Better growth on newcomers, which is a continual a category that continues to grow and that's because we did a better job at differentiating the pricing across the various brands.

Marco: Thank you.

Marco: Thank you. Our next question is from David Barden from Bank of America. Please go ahead.

David Barden: Hey, guys. Thank you for taking the questions good morning.

David Barden: I guess.

David Barden: My first question would be.

Marco: Marco.

Mirko Bibic: And we did a much better job in Q2 making prepaid the true entry point for those looking to enter wireless at the lower price point, and that includes a portion of newcomers and other customers. And then what you do is you work on migrating your prepaid customers, those who were seeking an entry price point. You seek to migrate them up to postpaid plans. So if you do that properly, what you're going to do is you're going to attract, you know, a bigger portion of those newcomers in Canada or those newcomers into the segment to into the prepaid rather than into post paid, which was a problem on how we were pricing as an industry, let's say a year ago.

Speaker Change: At the very beginning of the year there was a hope that that we might see decelerating ARPA growth last quarter.

Speaker Change: There was a change in the expectations that we would.

Speaker Change: Maybe see declining argue for the year.

Speaker Change: Your comments just now maybe to express some cautious optimism that the.

Speaker Change: Hey guys, thank you for taking the questions. Good morning.

Speaker Change: Second half is yet to be written could you.

Unknown Executive: My first question would be, Mirko, at the very beginning of the year, there was hope that we might see decelerating ARPU growth last quarter. There was a change in expectations that we might maybe see declining ARPU for the year. Your comments just now seem to express some cautious optimism that the second half is yet to be written. Could you maybe map out for us the good, base, and bad case scenarios and how you see those unfolding in the second half of the year for Bell Canada on the wireless ARPU front? And then, as a follow-up...

Speaker Change: Maybe map out for us the good base and bad case scenarios and how you see those unfolding in the back part of the year.

Speaker Change: My first question would be.

Speaker Change: For Bell, Canada in the wireless front.

Speaker Change: And then as a follow up.

Speaker Change: Could you share with us any traction that you think bell Canada has achieved.

Speaker Change: Maybe see declining ARPU for the year. Your comments just now seem maybe to express some cautious optimism that that that the second half is is yet to be written. Could you?

Speaker Change: Through your decisions to cut Capex.

Mirko Bibic: And so I think what we did there is we saw, you know, as we better align that pricing and as we better segmented customers, we saw very strong growth in premium post-paid loadings and strong growth in prepaid, particularly adept at attracting newcomers to Canada in that segment. And so the success you see there is completely aligned. Premium post-paid better growth on newcomers, which is a continual category that continues to grow. And that's because we did a better job at differentiating the pricing across the various brands.

Speaker Change: Cut deployment.

Speaker Change: In response to some of the regulatory decisions that have been made.

Speaker Change: Do you think that that's borne any fruit.

Speaker Change: Or may bear fruit yet thank you.

Speaker Change: Thank you well I would say.

Speaker Change: You know, could you share with us any traction that you think Bell Canada has achieved through your decisions to cut CapEx?

Speaker Change: In wireless and on pricing, we are facing the most intense competitive pressure in the history of our industry in Canada, I said that in my opening in my opening comments, but we wont repeat.

Speaker Change: The lengthy answer I gave to sebastiano, but I'll say that.

Speaker Change: I'll add to that that we did take steps in early July.

Speaker Change: We set pricing.

Unknown Executive: Thank you.

Speaker Change: To what we feel is more sustainable while continuing and this is really important while continuing to deliver exceptional value to our customers. So.

David Barton: Our next question is from David Barton from Bank of America. Please go ahead. Hey guys, thank you for taking the questions. Good morning. I guess my first question would be.

Speaker Change: Thank you. Well, I'd say, and I'm in wireless and I'm pricing, we are facing the most intense competitive pressure in the history of our industry in Canada. I said that in my opening in my opening comments. But we, I won't repeat

Speaker Change: Too early to call what that.

Speaker Change: What that might bring for the balance of the year, but but we did take those steps in early July and it's in keeping with that kind of customer segmentation strategy that I described a few minutes ago on.

Unknown Executive: You know, the lengthy answer I gave to Sebastiano, but I'll say that, you know, I'll add to that, that we did take steps in early July to reset prices to what we feel is more sustainable while continuing, and this is really important, to deliver exceptional value to our customers. So, it's too early to call what that might bring for the balance of the year, but we did take those steps in early July, and it's in keeping with that kind of customer segmentation strategy that I described a few minutes ago.

David Barton: Mercco at the very beginning of the year, there was a hope that we might see decelerating our pro growth last quarter. There was a change in expectations that we would maybe see declining our pro for the year. Your comments just now seem maybe to express some cautious optimism that the second half is yet to be written.

Speaker Change: You know, the lengthy answer I gave to Sebastiano, but I'll say that, you know, I'll add to that that we did take steps in early July to reset pricing.

Speaker Change: On the second part of your question David I, our views on the overall environment are very well known so I won't I won't repeat them, what I will say, though is we're going to continue to focus on the hour.

Speaker Change: to what we feel is more sustainable while continuing and this is really important while continuing to deliver exceptional value to our customers. So too early to call what that what that might bring for the balance of the year.

Mirko Bibic: Could you maybe map out for us, you know, the good base and bad case scenarios and how you see those unfolding in the back part of the year for Belt Canada in the wireless R. And then the follow-up. Could you share with us any traction that you think Bell Canada has achieved through your decisions to cut catbacks, cut employment in response to some of the regulatory decisions that have been made? Do you think that that has borne any fruit or may bear fruit to, you know, yet? Thank you. Thank you. Well, I'd say, and I'm in wire, listen, I'm pricing where we are facing the most intense competitive pressure in the history of our industry in Canada.

Speaker Change: Our strategy, which as I hope is crystal clear, which is continue to capitalize on our fiber momentum. It's the product of choice for customers continue to focus on the premium loadings and wireless continue to focus on mobility and Internet bundles, we're going to use.

Speaker Change: But we did take those steps in early July , and it's in keeping with that kind of customer segmentation strategy that I described a few minutes ago.

Unknown Executive: On the second part of your question, David, our views on the overall environment are very well known, so I won't repeat them. What I will say, though, is we're going to continue to focus on our strategy, which I hope is crystal clear, which is to continue to capitalize on our fiber momentum. It's the product of choice for customers, and to focus on the premium loadings in wireless.

Speaker Change: Our advantage our lead in AI.

Speaker Change: Continue to improve the customer experience and lower costs.

Speaker Change: Maybe a little bit more pertinent to your direct question.

Speaker Change: We're focused on investments in our core business and in growth segments, so whether or not thats things like the acquisition about front. Our service now partnership the acquisitions of stratagem, a shift from the source to best buy.

Speaker Change: <unk> mobile those are those are very important investments in growth areas and so those are the those are the elements of the strategy.

Speaker Change: Continue to focus on mobility and internet bundles. We're going to use...

Speaker Change: Our advantage, our lead in AI to continue to improve the customer experience and lower costs and maybe a little bit more pertinent to your direct question.

Mirko Bibic: I said that in my opening comments, but we don't repeat the lengthy answer I gave to Sebastiano. But I'll say that, you know, I'll add to that, that we did take steps in early July to reset pricing to what we feel is more sustainable while continuing—and this is really important—while continuing to deliver exceptional value to our customers. So, too early to call what that might bring for the balance of the year, but what we did take those steps in early July, and it's in keeping with that kind of customer segmentation strategy that I described a few minutes ago on the second part of your question, David.

Speaker Change: Thanks Mark.

Mark: Thank you.

Mark: Thank you.

Speaker Change: We're focused on investments in our core business and in growth segments, so whether or not that's, you know, things like the acquisition of Outfront, our ServiceNow partnership, the acquisitions of Stratagem, the shift from the source to Best Buy, No Name Mobile, those are

Mark: Our next question is from Vince Valentini from TD Securities. Please go ahead.

Vince Valentini: Hi, Thanks very much.

Vince Valentini: Can I just clarify the 70% B Y O D. Curtis would that be on total activations are just postpaid.

Speaker Change: And then just a follow up question on a different topic.

Speaker Change: A couple of your peers use dividend.

Speaker Change: Sort of drip discount programs to help alleviate the increase in their debt as they.

Speaker Change: Pay their dividends I'm wondering is that not something that <unk> considered it seems to be very eloquently to.

Unknown Executive: Thank you very much. First, can I just clarify the 70% BYOD, Curtis, would that be on total activations or just postpaid? And then just a follow-up question on a different topic. Amy, a couple of your peers use dividend.

Vince Valentini: To match the interest in equity shareholders, plus credit rating agencies and bondholders.

Mirko Bibic: I know our views on the overall environment are very well-known, so I won't repeat them. What I will say, though, is we're going to continue to focus on our strategy, which is, I hope, is crystal clear, which is to continue to capitalize on our fiber of momentum. It's the product of choice for customers. Continue to focus on premium loadings in wireless; continue to focus on mobility and internet bundles. We're going to use our advantage, our lead in AI, to continue to improve the customer experience and lower costs, and maybe a little bit more pertinent to your direct question.

Speaker Change: Yeah, Hi, thanks, Thanks for the questions on the first one just a clarification the 70% <unk> on postpaid.

Vince Valentini: And.

Speaker Change: Gross snip closely growths.

Speaker Change: And in terms of the discounted grip. So we've certainly considered it.

Speaker Change: It's not in our plan at this point, we believe we have a path to getting our payout ratio below 100% driving free cash flow through all of the levers that Mercury has mentioned.

Speaker Change: Obviously going forward. It is a tactic that we would have but its not in the cards right now.

Speaker Change: Thank you.

Unknown Executive: Gross, yeah, Paul Figueroa. And in terms of the discounted grip, so, you know, we've certainly considered it. It's not in our plan at this point, but we believe we have a path to getting our pay ratio below 100% driving free cash flow through all of the levers that Mirko and I have mentioned. Obviously, going forward, it is a tactic that we would have to employ, but it's not on the cards right now.

Mirko Bibic: We're focused on investments in our core business and in growth segments, so whether or not that's things like the acquisition about Front, our ServiceNow partnership, the acquisitions of the strategy, the shift from the source to Best Buy, no name, mobile. Those are very important investments in growth areas, and so those are the elements of the strategy. Thanks, Markus. Thank you.

Speaker Change: Thank you. Our next question is from Simon Flannery from Morgan Stanley. Please go ahead.

Speaker Change: Great.

Simon Flannery: Thank you very much. Thank you for the data on convergence bundles very interesting a number of.

Simon Flannery: The U S companies and also Rogers are looking at fixed wireless to help provide essentially a national bundle.

Speaker Change: How are you thinking about whether you how you address maybe.

Speaker Change: You don't have fiber either in footprint or out of footprint with either a fixed wireless or a resale type bundle.

Simon William Flannery: Thank you. Our next question is from Simon Flannery from Morgan Stanley. Please go ahead.

Vince Valentini: Our next question is from Vince Valentini from TD Securities. Let's go ahead. I thank you very much.

Unknown Executive: Great. Thank you very much. So thank you for the data on convergence and bundles. Very interesting. A number of US companies and also Rogers are looking at fixed wireless to help provide essentially a national bundle. How are you thinking about whether you address maybe areas where you don't have fiber, either in your footprint or out of your footprint with either a fixed wireless or a resale type bundle?

Speaker Change: Our on our strategy.

Speaker Change: <unk> remains.

Vince Valentini: Can I just clarify the 70% BYOD courtesy? Would that be on total activations or just post-paid?

Speaker Change: Primarily focused on generating growth through our fiber superiority and that's where the focus is.

Vince Valentini: And then just a follow-up question on the different topic. In a couple of your peers use dividend sort of grip discount programs to help alleviate the increase in their debt as they pay their dividends. I'm wondering, is that not something that BC is considered? It seems to be a very eloquent way to match the interest of equity shareholders, plus quite a rating of agencies and bondholders.

Speaker Change: In other areas, we have the ability to combine TV product line.

Speaker Change: Our content, rather with with wireless.

Speaker Change: But in the 75% of the country, where we have network overlap between fixed and.

Speaker Change: And wireless really the emphasis is fiber and we're seeing as you as you mentioned, we're seeing very good.

Vince Valentini: Hi Vince. Thanks for the questions. On the first one, just the clarification, the 70% BWID is on post date and gross, yeah, post-regressed. And in terms of the discount of grips, so, you know, we've certainly considered it. It's not in our plan at this point. We believe we have a path to getting our peer ratio below 100%, driving free castle through all of the levers that Mirko and I have mentioned. Obviously, going forward. It is a tactic that we would have, but it's not in the cards right now.

Simon Flannery: Yes.

Soltes: Soltes on bundling wireless and Internet in fibre territory.

Speaker Change: Alright, thank you.

Speaker Change: Thank you.

Speaker Change: Before we take our next question I would just like to remind you that if you are on the phone and wish to ask a question. Please press star one.

Jennifer <unk>: With that our next question is from Jennifer <unk> from Digital Bank Securities. Please go ahead.

Jennifer <unk>: Hey, good morning, Thanks for taking my questions. The first one.

Speaker Change: It seems like.

Speaker Change: We're transitioning a bit higher percentage of subscriber base on the wireless towards.

Simon Flannery: Our next question is from Simon Flannery from Morgan Stanley. Please go ahead. Right. Thank you very much. So thank you for the data on convergence and bundles. Very interesting. A number of the US companies and also Rogers are looking at fixed wireless to help provide. Essentially, a national bundle.

Unknown Executive: Thank you. Before we take our next question, we'd just like to remind you that if you're on the phone and wish to ask a question, please press star one. With that, our next question is from Jerome Dubreuil from Desjardins Securities. Please go ahead.

Speaker Change: Towards prepaid he can discuss what's the margin dollar margin profile on prepaid versus postpaid.

Speaker Change: Postpaid out we're talking about something that is similar across both type of services and second question is on capital allocation.

Jerome Dubreuil: Hey, hey, good morning. Thanks for taking my questions. The first one, you know, seems like we're transitioning a bit higher percentage of subscribers based on wireless towards prepaid. If you can discuss what's the margin dollar margin profile on prepaid versus just post data, we're talking about something that is similar across both types of services. And the second question is on capital allocation on wireless again, you know, where you have a government that makes it more difficult to earn returns on required wireless investments.

Speaker Change: On the wireless again, where you have a government that making it more difficult to earn returns on required wireless investments.

Mirko Bibic: How are you thinking about whether you have your address, maybe areas where you don't have fiber, either in footprint or out of footprint with either a fixed wireless or a resale type bundle. Our strategy remains primarily focused on generating growths through our fiber superiority. And that's where the focus is in other areas. We have the ability to combine a TV product with or content, rather, with wireless. But in 75% of the country where we have network overlap between fixed and wireless, really the emphasis is fiber. And we're seeing, as you mentioned, we're seeing very good results on bundling wireless and internet in fiber territory.

Speaker Change: We've talked a lot about the opex side of the equation, but what about wireless capex, excluding the new generation the new spectrum Onboarding, how do you see wireless capex evolving directionally in the future versus what it has been last decade or so.

Speaker Change: Well on the Capex question, whether or not it's wireless or wireline overall, youre going to and we've already seen a step down in our in our capex year over year and.

Jerome Dubreuil: We've talked a lot about the OPEX side of the equation, but what about wireless CAPEX? You know, it's excluding the new generation, the new spectrum onboarding, how do you see wireless CAPEX evolving directionally in the future versus what it has been the last decade or so? Thanks.

Jennifer <unk>: We're going to continue to.

Jennifer <unk>: Lower the overall capex spend for next year, it'll be lower than this year and.

Jennifer <unk>: I think we can run this company at a capital intensity below 15%, which is a level where bell operated historically for a long time and I think we can do that while continuing to invest in the key strategic areas and that's that's not the long term I'm talking about the short to medium term there.

Unknown Executive: Well, on the CapEx question, whether or not it's wireless or wireline, overall, you're going to, I mean, you've already seen a step down in our CapEx year over year, and we're going to continue to. I'll leave it at that on CapEx.

Unknown Executive: Thank you.

Jennifer <unk>: <unk>.

Speaker Change: I'll leave it at that on Capex, and then hydro most people look to show on the on your first question. So ultimately we manage EBITDA margins on a consolidated basis, and we don't provide prepaid only reporting I'd say ultimately we manage as <unk> seen in our results quarter after quarter, we manage costs Dillard.

Geron Zubre: Before we take our next question, we would just like to remind you that if you're on the phone and wish to ask a question, please press star one. With that, our next question is from Geron Zubre from Desjardins Securities. Please go ahead. Hey, good morning. Thanks for taking my questions. The first one, you know, it seems like we're transitioning a bit higher percentage of the subscriber base on wireless towards prepaid.

Speaker Change: Gently whether it's prepaid or postpaid.

Jennifer <unk>: And we're looking to lower our cost to serve while providing the same great service to customers again, whether they're prepaid customers are postpaid customers.

Unknown Executive: And then, Jerome, thank you for the question. On your first question, so ultimately, we manage EBITDA margins on a consolidated basis, and we don't provide prepaid-only reporting. I'd say ultimately, we manage, as you've seen in our results quarter after quarter, we manage costs diligently, whether it's prepaid or postpaid. And we're looking to lower our costs to serve while providing the same great service to customers, again, whether they're prepaid customers or postpaid customers.

Geron Zubre: If you can discuss what's the margin dollar margin profile on prepaid versus just post beta, we're talking about something that is similar across both types of services. And second question is on capital allocation on wireless again, you know, where you have a government that makes it more difficult to earn returns on required wireless investments. We've talked a lot about the op-ex side of the equation, but what about wireless cat-ex, you know, excluding the new generation, the new spectrum of boarding? How do you see wireless cat-ex evolving directionally in the future versus what it has been the last decade or so?

Speaker Change: Thank you.

<unk> Levi: Thank you. Our next question is from <unk> Levi from UBS. Please go ahead.

Speaker Change: Thank you.

Speaker Change: On the revenue guidance, you're tracking below guidance. So far I think it's mostly due to lower margin equipment revenues, but what are some drivers to get back to growth in the in the backup in the second half of the year.

Speaker Change: Thank you.

Speaker Change: If you could remind us revenue and EBITDA contribution from outcomes that would be helpful. Thank you.

<unk> Levi: Thank you. Our next question is from <unk> Levi from UBS. Please go ahead.

Speaker Change: Yes, Hi, Betsy Thanks for the question so as I said in our prepared remarks, we are reconfirming all of our guidance targets for 2024.

Unknown Executive: On the revenue guidance, you're tracking below your guidance so far. I think it's mostly due to lower margin equipment revenues. But what are some drivers to get back to growth in the back of the second half of the year? And also, if you could remind us revenue and EBITDA contribution from out front media, that'd be helpful. Thank you.

<unk> Levi: Thank you.

<unk> Levi: Yeah on the revenue guidance, you're tracking below your guidance. So far I think it's mostly due to lower margin equipment revenues, but what are some drivers to get back to a growth in the in the backup in the second half of the year and also if you could remind us revenue and EBITDA contribution from Trumpf.

Mirko Bibic: Well, on the CAPEX question, whether or not it's wireless or water line overall, you're going to, you've already seen a step down in our CAPEX year over year, and we're going to continue to lower the overall CAPEX spend. So the next year will be lower than this year, and I think we can run this company at a capital intensity below 15%, which is a level where Bell operated historically for a long time. I think we can do that while continuing to invest in the key strategic areas. And that's, that's not the long term; I'm talking about the short to medium term there.

Speaker Change: I'll go through the laundry list of our revenue generating tactics, but what I would remind everyone that the majority of the revenue declines here have been driven by a decrease in very low margin product sales, which was consistent with our strategy of not chasing low value subscriber loadings.

Speaker Change: Yeah that'd be helpful. Thank you.

Speaker Change: Yes, Hi, Matt Yeah. Thanks for the question. So as we said in our prepared remarks, we are reconfirming all of our guidance targets for 2024.

Speaker Change: Okay, and then on upfront media, yes.

Speaker Change: <unk> immediate closed midway through June so the contribution on revenue is single digits.

Speaker Change: I won't go through the laundry list of our.

Speaker Change: As an immaterial number given the timeline of when that transaction closed.

Speaker Change: Okay. Thank you.

Mirko Bibic: I'll leave it at that on CAPEX. And then I don't want to see people look to show on the, on your first question. So ultimately, we manage either done margins on a consolidated basis, and we don't provide prepaid-only recording. I'd say ultimately we manage, as you've seen in our results quarter after quarter, we manage cost diligently, whether it's prepaid or postpaid. And we're looking to lower our cost to serve while providing the same break service to customers again, whether they're prepaid customers or postpaid customers.

Speaker Change: Thank you.

Mr. Fotopoulos: There are no further questions registered at this time I would now like to turn the meeting over to Mr. Fotopoulos, Okay. Great. Thank you Matthew and thanks again to everybody who participated on the call. This morning I'll give you back you were 15 minutes to enjoy a nice summer day as usual the IR team will be available throughout the day for any follow ups and clarifications on that have a good day.

Speaker Change: Everybody. Thank you and thanks, everyone.

Speaker Change: Thank you.

Speaker Change: The conference has now ended please disconnect your lines at this time and we thank you for your participation.

Unknown Executive: Thank you.

Thane Fotopoulos: There are no further questions registered at this time. I would now like to turn the meeting over to Mr. Fotopoulos.

Batya Levi: Our next question is from Pat Yalevi from UBS. Please go ahead. Thank you. On the revenue guidance, you're tracking below your guidance so far. I think it's mostly due to lower margin equipment revenues.

Batya Levi: But what are some drivers to get back to growth in the, in the back of, in the second half of the year? And also, if you could remind us revenue and need, but that contribution from Out Front Media, that would be helpful. Thank you. Yeah, hi, Basia. Thanks for the question.

Curtis Millen: So, as we said in our prepared remarks, we are reconforming all of our guidance targets for 2024. I won't go through the laundry list of our revenue generating tactics, but what I would remind everyone is that the majority of the revenue declines here have been driven by a decrease in very low margin product sales, which is consistent with our strategy of not chasing low value subscriber loadings.

Curtis Millen: And on out front media? Yeah, an Outfront Media closed midway through June. So the contribution on revenue is, is single digits. I mean, it's an immaterial number given the timeline of when that transaction cost. Okay.

Unknown Executive: There are no further questions registered at this time.

Thane Fotopoulos: I would now like to turn the meeting over to Mr. Photopolis. Okay, great. Thank you, Matthew. And thanks again to everybody who participated on the call this morning. I'll give you back your 15 minutes. You can enjoy the nice summer day. As usual, the IR team will be available throughout the day for me. Follow-ups and clarifications on that. Have a good day, everybody. Thank you.

Unknown Executive: The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.