Q4 2024 BCE Inc Earnings Call
Okay.
Fotopoulos: Good morning, ladies and gentlemen, welcome to the BCE Q4, 2024 results and 2025 guidance call I would now like to turn the meeting over to Mr. Painful topless. Please go ahead. Mr. Fotopoulos. Thank you Matthew and good morning to everyone on the call and thank you for joining US with me here today are miracle, Vivek, Bce's, President and CEO and our CFO Curtis.
Speaker Change: Melanie you can find all of our Q4 disclosure documents, including the Safe Harbor notice concerning forward looking statements for 2025, and our financial guidance targets for this year on the Investor Relations page of the B C. He got to see a web site, which we posted earlier. This morning, we have a lot of material to get through on this call. However, before we begin.
Speaker Change: I'd like to draw your attention to our safe Harbor statement on slide two reminding you that todays slide presentation and remarks made during the call will include forward looking information.
Speaker Change: 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 our publicly filed documents for more details on assumptions and risks with that out of the way I'll turn the call over to America.
America: Thank you thin and good morning, everyone. Our financial results in Q4 and in 2024 demonstrate our disciplined execution in an ultra competitive market as we took the necessary near term actions to balance growth with profitability and to reduce costs to achieve our target objectives in terms of overall consolidated financial performance.
America: We achieved all of our non revenue targets for 2024, we were also within our revised revenue guidance objective notwithstanding sustained aggressive wireless pricing in Q4 and continued softness in the traditional media advertising market, notably our consolidated EBITDA margin increased one two points to 43, 4%.
America: Our highest annual margin performance in over 30 years.
America: A few other select operating highlights for 2024 and I'll start with wireless we delivered positive wireless service revenue growth. Despite the most pricing intense market. We've ever seen this is a direct reflection of our focus on premium brand customer loadings and managing our promotional offers responsibly in fact, all our new postpaid customer net activations and <unk>.
America: 24 were on the main Bell brand, which should help improve our pool going forward, we grew broadband internet market share and drove higher multi product penetration. This contributed to internet revenue growth of three 3% and a 12% increase in households that subscribe to mobility and Internet service bundles, where we have fiber.
America: We now have 3 million residential internet customers on our FTE Th network and Thats up 10% in 2024, our speed advantage and quality gap over cable shows in these results and that will continue to grow overtime.
America: Turning to media, we grew digital revenue, 19% over last year, helping to offset the secular pressures in traditional media digital now comprises 42% of total media revenue and Thats up from 35% in 2023 and.
America: And this strategic shift to digital will be supported going forward with the investments. We made this past year, including the availability of crave TSN and Rds content on Amazon Prime video channels in Canada, the newly launched Crave, TSN and Rds bundles, our new self serve buying platform for advertisers looking to reach local audiences Bell medias.
America: Multi year extension of <unk> partnership with Warner Brothers Discovery for HBO, Max content and the launch of 10, New fast channels. We also made further progress in advancing our BCE transformation agenda by continuing to leverage technology automation and simplification to drive meaningful capex and meaningful operating.
America: Cost efficiencies these transformation initiatives together with savings realized from our workforce reduction program delivered well over $200 million in cost savings in 2024. We're also seeing the benefit in terms of lowering capex, which declined $684 million in 2024 to approximately $3 9 billion.
America: And our momentum to advance our position as a tech services leader in the business Enterprise space also continued to ramp up in 2024 with strong business solution services revenue growth of 18%.
America: In summary, our performance in 2024 reflects a focused company in the midst of transformation while at the same time driving day to day execution to serve our customers grow subscribers profitably and prudently manage costs now.
America: I'm now going to turn to slide four of our presentation.
America: Bell's an iconic company.
America: That is delivering on its purpose to advance how Canadians connect with each other in the world at the same time, we are operating in an environment with the lowest pricing we've ever seen as I mentioned and with continued macroeconomic and regulatory pressures. This has resulted in revenue declines in this context, it's incumbent on us to develop a business strategy that will generate.
America: Revenue growth and critical to the successful execution of the strategic plan as prudent management of our balance sheet and capital allocation priorities.
America: We've spent considerable time with our shareholders and we've heard their perspectives. So let me outline very clearly our plan of action that will carry us for years to come that focuses on our customers and on creating value for shareholders. It plays to our strengths and its prioritizes the following core elements.
America: Putting the customer first.
America: Offering the best Internet and wireless networks and services.
America: Business Technology services leadership.
America: And fourth building of digital media and content powerhouse.
There is a fifth pillar as well and that is to continue to transform our business by leveraging technology automation and simplification in a way that's more agile lower touch and digital to drive even more meaningful capex and operating cost efficiencies and we've already delivered.
I'll now go through each element of the plan.
America: Let's go to slide five as you can see it begins and ends with the customer.
America: Customers are our top priority theyre looking to access faster easier experiences on their terms, we strive to make it easy for our customers to do business with us whether that's doing what they say what we say, we'll do getting you the right help fast offering bill accuracy and transparency, making right, if we fall short or providing the <unk>.
America: <unk> information, whether you call us visit us or go to a store or go online.
America: This approach drive significant cost savings and a massively improved customer experience, which results in better customer satisfaction, lower churn and ultimately revenue growth and higher customer lifetime value.
America: <unk> is the first Canadian Telecom company to name a dedicated chief customer experience officer with a mandate to create best in class experiences for our customers in every encounter across all channels. The new role is responsible for the entire customer experience from end to end sales installation billing support managing changes to plans in <unk>.
America: <unk> and technology changes.
America: We're prioritizing digital interactions to create smoother and more seamless processes for customers, whether they want to purchase new services changed their plan or simply get support with a technical or billing issue and we will continue to take advantage of the award winning mobile app virtual repair and self install tools, but.
America: But we know that everyone has a different level of comfort with technology. So we'll always provide options to those who prefer to speak to a customer service agent on the phone.
America: Now, let's go to slide six as I said, our plan is to create sustained revenue growth that will benefit customers and investors now and well into the future our broadband Internet and wireless networks are the foundation of our business fiber is the future. It's the winning strategy offering the fastest internet technology and providing a more <unk>.
America: Alternative to copper cable or fixed wireless we have been transforming ourselves into a fiber first company and that is going to continue and our fiber growth will be supercharged with the acquisition of zippy fiber the largest broadband and fiber internet provider in the U S Pacific Northwest This strategic acquisition will grow bce's position.
America: North America's third largest fiber internet provider by year end 2028, we expect to have approximately 12 million fiber passing in North America. This will accelerate subscriber revenue and EBITDA growth for bell generating long term value for our customers and shareholders and as we announced previously we intend to finance the simplified.
America: Deal largely with the net proceeds from the pending sale of MLC.
America: This is a very strategic redeployment of capital into our core business and a clear indication that we will act on compelling opportunities to monetize noncore assets.
America: Next we have wireless it's a tough environment right now in Canada as the industry is going through a period of unprecedented price competition, but as that stabilizes and as we continue to focus on cost and operational simplification wireless will remain a key growth vector we're going to continue to focus on value accretion delivering <unk>.
America: Quality margin accretive subscriber loadings on our main bell brand and an increasing service bundled penetration and multiline sales, while managing pricing and churn the <unk>.
America: Third key area of focus to generate revenue growth as technology solutions leadership in enterprise, we have set an ambitious goal to generate $1 billion in annual revenue by 2030.
America: Our enterprise customers are transforming their businesses and they want our help bellus created a leading it services and cyber security business accelerated by the acquisitions of FX innovation, HTC technologies, Stratagem and cloud Kettle.
America: We're going to deliver among the best technology solutions and end to end cloud.
America: Workflow automation and security leveraging our strong partnerships with AWS.
America: <unk>, Google Cloud Salesforce service now Palo Alto and others that are complementary to those acquisitions and important to our success going forward. This supports our goal to become the it systems integrator and managed services provider of choice to key industry verticals.
America: The fourth big opportunity is continuing bell media's momentum in pivoting from a traditional broadcaster to a digital media and content powerhouse.
America: That journey is well underway with 42% of our media revenue now coming from digital sources, that's up from just 17% in 2020.
And here's something I haven't shared with you before.
America: Half of that $1 $3 billion in annual revenue as new digital revenue from products, including direct to consumer streaming crave with ads connected TV and other AD supported streaming options such as fast channels, notably the other half of our digital revenue comes from advertisers buying ads on our traditional platforms.
America: And who use bell medias digitally enabled sales tools to optimize their ad campaigns.
America: Bell first party data to optimize advertising placement on our traditional channels and best buy analytics to measure the success of that advertising.
America: Accordingly, this allows us to protect a large portion of our traditional revenue because.
America: For instance value out of our digital tools.
America: The fifth key pillars outlined on slide seven sorry of our presentation as I mentioned, our execution will continue to be supported by our ongoing business transformation from a traditional telco to a technical and what I really mean by that is modernizing and simplifying how we do business and how we operate our goal is to generate.
America: $1 billion in cost savings by 2028, if not sooner.
America: We have a number of focused initiatives underway, including consolidating our consumer order and billing systems automate automating manual back office functions deploying cloud based workflow management and CRM platforms deploying our cloud based TV service prioritizing digital interactions, enabling more self install and of course <unk>.
America: Migrating customers from copper to fiber. So we can decommission copper we started this business transformation in 2022 and at the end of 2024, we were halfway towards our stated goal.
America: I'll now turn to slide eight and address our balance sheet management and capital allocation strategy.
America: Our approach to capital allocation is to balance long term investment to generate growth, while strengthening the balance sheet and optimizing our cost of capital.
America: We remain focused on maintaining investment grade credit ratings for our senior debt and lowering our leverage ratio closer to our target policy of three times adjusted EBITDA.
America: Regarding our dividend we recognize that we have an elevated payout ratio that is outside of our policy range. That's reflected in BCE share price and dividend yield, which we are disappointed with <unk>.
America: Bce's dividend and dividend policy will continue to be reviewed by the board taking into consideration the competitive macroeconomic and regulatory environment as well as the progress being made on the initiatives being discussed today.
America: I also want to make clear that the discounted DRP. The drip is in place for now.
America: As opportunities arise to monetize noncore assets access the hybrid debt market and.
America: And establish a more capital efficient ways to fund our U S fiber build.
America: All of which would drive a lower cost of capital then we would look to turn off the drip program.
America: In terms of capital investment, we continue to lower Capex and capital intensity, while continuing to invest significantly in our business just as we said we would back in 2021, when we first announced our accelerated Capex program.
America: Last February we said that our plan was to reduce capex by more than $1 billion over the 2020 for 2025 timeframe. In fact, we're ahead of plan, having achieved nearly 70% of that objective by the end of 2024.
America: However.
America: Because of the CRT cease rejection on Monday of a governor in council request to reconsider. Its November 2023 decision that provided tell us another large carriers temporary wholesale tariffs access to our FTE Th network, we're cutting capex by more than we anticipated would be the case for 2025 and with that our capital.
America: Intensity ratio will be approximately 14% in 2025.
America: This reduction is clearly greater than what we would have done otherwise.
America: Consequently, we will not be delivering our fiber buildout target of $8 3 million homes by the end of this year.
America: So what originally began as a $9 million deployment plan in 2021 will now be less than $8 3 million.
America: This decrease in our fiber Buildout is a direct result of the CRT <unk> refusal to bend tell us and other large carriers from reselling the FTP network we've built.
America: We will revisit our buildup plan if the CRT see reverses its decision.
America: Our position on this issue has been stated many times.
America: The CRT <unk> decision is in our view misguided as it goes against its long standing facilities based competition policies, which have clearly encourage private investment.
America: These policies have enabled our significant network investments that brought fiber to millions of homes and businesses for the benefit of Canadians.
America: Post 2025, bcm capital intensity ratio, including simply fiber is projected to be at most 16, 5%, while bell Standalone capital intensity is projected to drop below 14%.
America: Regarding simply fiber that acquisition allows us to move capital to an asset that will drive significant growth in our core fiber business and the leverage neutral manner.
America: We forecast the very compelling IRR for the targeted $3 3 million homes to be passed by simply fiber by the end of 2028.
America: We would review other potential opportunities to grow that fiber footprint, but only with a build out structure that would bring third party capital to invest alongside bell effectively reducing bce's funding requirements.
America: Turning to debt, we appreciate that many shareholders would like us to focus on deleveraging.
America: We're carefully reviewing our noncore assets and will continue to capitalize on opportunities to monetize them, where it makes financial and strategic sense.
America: This review process has already resulted in the planned divestitures of northwest and MLC.
America: Additional noncore assets have been identified and any proceeds of their sale are expected to be used to strengthen our balance sheet improve our leverage ratio and optimize our cost of capital.
America: Between northwest Hal MLC and potential other noncore asset divestitures, we see up to $7 billion being generated.
America: In addition, there's a significant amount of untapped value that exists in our telecom infrastructure and we're assessing the best ways to surface that value.
America: Financial advisors have been retained to assist in this regard given the importance of such potential transactions.
America: In conclusion.
America: The strategic and operational roadmap I've shared in detail today will guide our actions for 2025 and beyond to quickly recap and to summarize the main elements of that roadmap.
America: Here's what we're going to do.
America: Put the customer first and our decisions.
America: <unk> executed in a disciplined manner in Canada, focusing on margin accretive subscriber growth using our fiber and <unk> wireless network advantages.
America: Work towards building, a $1 billion plus revenue technology services business.
America: Rapid Lee accelerate Bell Media's digital revenue mix.
America: <unk> generate $500 million in further transformation savings to reach $1 billion by 2028.
America: Consider divesting up to $7 billion in noncore assets inclusive of our pending sales of northwest tell an MLC.
America: And optimize our cost of capital as we continue to focus on maintaining investment grade credit ratings for our senior debt.
America: We will share our progress on these various elements with the investment community transparently and regularly.
America: And before I hand, it over to Curtis for a review of our Q4 operating results and financial guidance targets for 2025.
America: Conclude.
Speaker Change: With a couple of thank yous first to the entire bell team for your perseverance dedication resourcefulness and a challenging environment and second to thin as this is his last analyst call. After many years of outstanding service to our company, which we greatly appreciate and with that <unk> over to you.
Speaker Change: Great. Thank you Marco and good morning, everyone.
Speaker Change: I'll begin on slide 10, with Bce's consolidated financial results adjusted.
Speaker Change: Adjusted EBITDA was up one, 5%, which drove a 90 point margin improvement to $40, 6%.
Speaker Change: As expected total revenue was down 8%, reflecting the flow through impact of sustained competitive pricing pressures over the past year and ongoing declines in legacy voice data and satellite television services.
Speaker Change: Both Q4 net earnings and adjusted EPS were up over last year, reflecting higher EBITDA and some noncash mark to market gains on FX hedges and auctions.
Speaker Change: Capex was down $66 million in Q4, bringing total capex savings to $684 million. This year, which was as Merkle commented well ahead of our plan to reduce capital investment by at least $500 million in 2024.
Speaker Change: Lastly, Q4 free cash flow was in line with our quarterly forecast, reflecting higher interest paid as well as the timing of cash tax and install.
Speaker Change: Installment payments and working capital.
Speaker Change: Turning to Bell Cts on slide 11.
Speaker Change: Postpaid net adds of 56550 were down versus a very strong Q4 last year.
Speaker Change: Consistent with our focus on margin accretive subscriber acquisition, all new customers, while on the main Bell brand.
Speaker Change: While postpaid churn was up and remained higher than we'd like it did represent a fourth straight quarter of deceleration in the year over year rate of increase.
Speaker Change: Mobile phone <unk> was down $2, 7%. This is a notable improvement versus the 3% to 4% decline in Q3.
Speaker Change: And Internet, we delivered over 34000 total new net retail subscribers. We continue to capture the majority of new growth in our markets because of fiber even as industry growth is slowing due to high broadband penetration fewer newcomers and less new fiber footprint expansion.
Speaker Change: In TV, we lost 444, net IP TV subscribers in Q4 compared to a net gain of 23537, a year ago due to lower internet volumes and fewer five TV, activations, which can vary quarter to quarter.
Speaker Change: Moving to Bell Cts financials.
Speaker Change: Total revenue decreased one 1% a sequential improvement from the negative three 3% in Q3.
Speaker Change: Wireless service revenue was down one 5%, we expect the rate of decline will improve going forward as RP improves however, the industry will be feeling the effects of the last 18 months have competitive pricing on their service revenue for a while longer.
Internet revenue was up three 4% a solid results showing a striking a balance between market share growth and disciplined pricing.
Speaker Change: We also saw continued business solution strength, where revenue grew 14% over last year. This was driven by higher sales of technology services as well as acquisitions made over the past year on.
Speaker Change: When excluding the impact of those acquisitions business solutions revenue still grew a healthy 6% organically.
Speaker Change: On the product side overall revenue was up in Q4, Mark and a reversal from prior quarters in 2020.
Speaker Change: This was mainly the result of higher sales of land mobile radio systems to large enterprise customers in the government sector.
Speaker Change: Lastly, Bill Cts EBITDA was positive growing 7% to yield a strong $42, 9% Mark that's an increase of 80 points over last year driven by our continued focus on cost management as evidenced by a two 4% decrease in operating costs.
Speaker Change: Over to Bell media on slide 12.
Speaker Change: Continued digital momentum and good overall financial performance marked by a third consecutive quarter of revenue and EBITDA growth digital revenues were up 6%.
Speaker Change: Mainly on the back of strong crude DTC streaming growth, which drove an 18% increase in crave subscribers.
Speaker Change: More to more than $3 6 million subscribers.
Speaker Change: On the strength of our digital strategy and contribution of outage media total advertising revenue increased four fourth consecutive quarter.
Speaker Change: The Bell media team also did a great job managing operating costs, which contributed to EBITDA growth of 14, 2% and a $2 three point increase in margin to 23%.
Speaker Change: That does it for quarterly results.
Speaker Change: Yeah.
Speaker Change: I'll now turn to our 2025 financial outlook, starting with revenue and EBITDA on slide 14.
Speaker Change: Our consolidated revenue and adjusted EBITDA guidance for 2025 reflects the latest economic forecast and industry outlooks there.
Speaker Change: We're also remains continued regulatory uncertainty as a result of this week's CRT fee decision.
Speaker Change: The competitive pricing environment has created flow through revenue pressure in our belt Cts segment for 2025.
Speaker Change: A sustained improvement in wireless and broadband internet pricing will be key in our ability to deliver positive consolidated revenue.
We also expect restrained enterprise customer spending on traditional network products and services and a continued market shift by wireless customers to BYOB mobile phone transactions.
Speaker Change: Additionally, we estimate a revenue loss in the range of $125 million in 2025, following a 260 million elimination last year due to the timing of the <unk> store closures and transition of best buy express in 2024.
Speaker Change: As this revenue is largely consumer electronics related the impact on EBITDA will not be material given low margins for such products.
Speaker Change: While declines in legacy voice and data revenues will continue to weigh on Bell Cts EBITDA, our fiber <unk> wireless and <unk> solutions business continue to present attractive growth opportunities.
Speaker Change: Underpinning. This expectation is our continued focus on premium mobile phone subscribers as we lean on our <unk> network leadership and ongoing market expansion driven by population growth and our progress in the newcomer market multiple device penetration gains and multi product bundling with internet and Bell media content.
Speaker Change: In our wireline <unk> operations, our objective is to build on the momentum from 2024 to be the best systems integrator and managed services provider for our customers. While also leveraging our broadband fiber footprint to grow share in SMB.
Speaker Change: At Bell media, we expect to deliver higher revenue. This reflects continued digital advertising in DTC streaming growth as well as the contribution of the outage media, which are expected to outpace declines in traditional media and favorable retroactive subscriber revenue adjustments in 2024.
Speaker Change: We also anticipate absorbing higher year over year content costs.
Speaker Change: Given these segment outlooks and consistent with 2024 results, we're setting our 2025 guidance growth ranges at minus three to positive one for total revenue and minus two to positive two for adjusted EBITDA.
Speaker Change: We also anticipate a higher year over year margin supported by further cost savings from the transformation initiatives that <unk> outlined earlier.
Speaker Change: And I will qualify that our revenue and adjusted EBITDA guidance ranges are unaffected by the pending divestitures of northwest style and exclude the favorable impact of simply fiber net.
Speaker Change: That acquisition is only expected to close in the second half of this year at which time, we will update our financial guidance targets as required.
Speaker Change: Over to slide 15 for summary of our adjusted EPS outlook, which we project to be 8% to 13% lower compared to 2024. This year over year decline can be attributed mainly to the same factors as last year, namely our year over year step up in interest expense higher depreciation and amortization expense.
Speaker Change: With ongoing but reduced spending in our broadband networks and lower gains on the sale of real estate related to our multi year consolidation and conversion program.
Speaker Change: Additionally for 2025, we're forecasting tax adjustments to be around <unk> <unk> per share less than last year and a higher average number of common shares outstanding because of the discounted rates.
Speaker Change: Turning to slide 16 free.
Speaker Change: Free cash flow is projected to increase by 11% to 19% in 2025. This marks a return to growth driven by lower Capex and improved working capital position.
Speaker Change: We offset by higher interest paid.
Speaker Change: As <unk> stated given this week's CRT C decision. We are now currently budgeting approximately $3 4 billion in Capex for 2025, which is $500 million lower than last year.
Speaker Change: Our free cash flow outlook for 2025 also reflects stable to slightly lower cash taxes compared to last year are relatively unchanged working capital position and cash pension funding that remains essentially unchanged as we continue to benefit from a full contribution holiday given the strong solvency position of our defined benefit clients.
Speaker Change: Severance payments are also anticipated to be relatively the same.
Speaker Change: <unk> 2024 at around 300 million, which remains higher than run rate given.
Given that a portion of employee departures related to the workforce restructuring initiatives, we announced last February we're only computed completed excuse me in Q4 with associated onetime payments to be made in Q1 of this year.
Speaker Change: Turning to slide 17.
Speaker Change: Take a moment to drill down on our expectations for capital intensity over the next several years, both for Standalone Bell and on a combined pro forma basis with deeply fiber included.
Speaker Change: Given that Capex is such a critical free cash flow driver.
Speaker Change: <unk> Capex spending going forward is now on a declining path given the planned slowdown of our fiber build in Canada as well as efficiencies from significant prior investments in digital transformation initiatives.
Speaker Change: As a result, we can operate well in a very efficient capital intensity ratio of approximately 14% this year and below 14% beyond 2025.
Speaker Change: As for simply fiber. They are currently accelerating their fiber buildout like Bell did back in the 'twenty one to 'twenty three timeframe. Therefore, there will be at a peak capex spending over the next few years, which will increase <unk> capital intensity ratio more than on a standalone basis.
Speaker Change: Simply fibers base case in footprint fiber buildout to approximately $3 3 million locations by the end of 2028 can be fully executed at a pro forma combined company capital intensity level of around 16, 5% during which time they are projected to generate double digit EBITDA growth.
Speaker Change: Okay.
Speaker Change: Turning to slide 18, as we begin the year, we have access to $4 5 billion of liquidity, which is enhanced.
Speaker Change: It has been enhanced with a $500 million increase in our committed credit facilities to $4 billion.
Speaker Change: And our balance sheet with a sizeable pension solvency surplus totaling $3 7 billion.
Speaker Change: All of this provides us with the financial flexibility to execute our business plan for 2025.
Speaker Change: Our net debt leverage ratio at the end of 2024 was approximately $3 eight times adjusted EBITDA Importantly, the acquisition funding for simply fiber is leverage neutral and has been structured to maintain our senior debt credit rating investment grade.
Speaker Change: We are keenly focused on reducing our leverage ratio, which is projected to begin decreasing this year as we capitalize on opportunities to monetize noncore assets and use the sale proceeds to strengthen our balance sheet and optimize our cost of capital.
Speaker Change: Furthermore, all of our $2 1 billion of public debt maturities in 2025 have been largely pre financed and that simply fiber transaction is being fully funded with the net sale proceeds from MLC together with cash generated from the discounted drip.
Speaker Change: I'm pleased to report that the initial participation rate has been strong with a 34% enrollment rate for the Q4 common dividend payment in January which resulted in $308 million of cash being unchanged.
Speaker Change: To conclude on slide 11, the financial guidance targets. We are providing today for 2025 are prudent given continued competitive pricing pressures and economic and regulatory uncertainty as we focus on the key strategic priorities that mercury outlined to drive future growth and undertake a proactive review of BCS asset.
Speaker Change: So to unlock value.
Speaker Change: We remain confident in our proven consistent operational execution and cost discipline to deliver under any circumstances.
Speaker Change: I'll now turn the call back over to Fame and the operator to begin Q&A. Thanks, Curtis So given the volume of information. We presented this morning I'm sensitive to the time, we have left so we'd ask you to please limit yourselves to one question and a brief follow up so that we can get to everybody in the queue with that Matthew we're ready to take our first question.
Speaker Change: Thank you.
Speaker Change: The first question is from Eric <unk> from Scotiabank. Please go ahead.
Eric: Great Great. Thank you for taking my question and let.
Eric: Let me join your Merkle was tanking St for his help over the years.
Daniel will be greatly missed.
Speaker Change: A quick question Michael on your prepared remarks, you mentioned in the context of the year.
Speaker Change: U S fiber footprint expansion you mentioned the Buildout structures that could include third party capital can you elaborate a little bit on what that means in terms of additional capex or investments that BCE is expected to deploy in the U S and what could be deployed by third party capital.
Speaker Change: Also refer to non core asset sales does that include Bell media.
Speaker Change: Finally on the on the dividend and Youre in November press release, you indicated that the dividend was set until the end of 'twenty. Five however in todays press release, you indicate that the dividend could.
Speaker Change: Could be reassessed if economic conditions change does this mean the dividend could be changed even before the end of 'twenty five if conditions change. Thank you.
Speaker Change: Okay. Thank you mayor.
Speaker Change: So let me take those on.
Speaker Change: On the reference I think it was your second question on the non core assets and Bell media I think I can I'll go I'll deal with that one first because I can do with it pretty simply so in my prepared remarks, I did outline for core elements of our strategic roadmap to generate revenue growth and you will have noticed that one of them.
Speaker Change: <unk> is to build a digital media and content powerhouse so.
Speaker Change: That kind of answers your question right there at Bell media and particularly the digital pivot is a key strategic growth vector for us and I think that's the best way to answer that question on.
Speaker Change: On the U S fiber build.
Speaker Change: Look I think the best way to answer that right. Now is just to reiterate that our priority now is to close the acquisition of simply fiber.
Speaker Change: As I've mentioned several times that that transaction is going to move capital to an asset that's going to drive significant growth in our core fiber business, which is again.
Speaker Change: The best networks and fiber first companies one of our key strategic growth vectors, and we're going to do that in a leverage neutral manner I want to emphasize that again.
Speaker Change: And beyond I think beyond repeating what I said in my in my remarks, I did say that we'd review other potential opportunities to grow that simply fiber footprint, but with.
Speaker Change: Build out structure that will bring third party capital to invest alongside us to reduce our funding requirements I won't give specifics as to.
As to the extent of.
Speaker Change: What that might look like other than.
Speaker Change: I think what's important to note, which I did not say in the opening remarks is that we have received a number of inbound calls.
Speaker Change: Asking us if we'd be interested in doing that and to me I mean, that's quite interesting right first of all it speaks to the value and the attractiveness of visibly fiber asset and the potential for growth in the U S and it also speaks to the desire of our of.
Speaker Change: Third parties to work with Bell in particular.
Speaker Change: And it speaks to kind of our.
Speaker Change: <unk> and <unk>.
Speaker Change: In fiber so I'll leave it at that on.
Speaker Change: On dividend.
Speaker Change:
Speaker Change: I would say that.
Speaker Change: What we're going to do here on capital allocation is about balanced long term investment to generate growth and you asked me two questions already about that.
Speaker Change: But at the same time, we're going to strengthen the balance sheet and optimize the cost of capital.
Speaker Change: And that's how we're going to return value to our shareholders and as I said in the opening remarks, the dividend payout ratio is elevated right now its outside of our policy range.
Speaker Change: Where the share price is that and so the dividend and the dividend policy will continue to be reviewed by the BCE Board and as we do that we'll take into consideration like I said in.
Speaker Change: The competitive environment, the macroeconomic environment, the regulatory environment and the progress we're making on the various strategic and operational initiatives that I outlined so you wrap those three questions together.
Speaker Change: I'd say that.
Speaker Change: The message to takeaway for me is we're going to continue to execute in the market along the four or five.
Speaker Change: Core vectors that I outlined we're going to focus on our investment grade rating, we're going to de lever and we're going to optimize the cost of capital.
Michael: Thank you Michael.
Michael: Thank you. Our next question is from drew Mcreynolds from RBC capital markets. Please go ahead.
Drew Mcreynolds: Yes, thanks very much good morning.
Drew Mcreynolds: Hey, Bill.
Michael: Also echo <unk>.
<unk> and then we'll definitely Miss you.
Michael: First question just on leverage you ended the year at three eight times.
Speaker Change: And Marco in your prepared remarks, obviously pretty extensive.
Michael: Blueprint that you outlined.
Michael: Just to give you additional financial flexibility.
Michael: Where would you like to see leverage.
Michael: By the end of 2025.
Michael: Beyond 'twenty.
Michael: <unk> 2025 minutes that kind of pace and timeline look like and related to that.
Michael: Can you talk to.
Michael: No expectation of closing additional noncore assets or.
Michael: Infrastructure options you may have in 2025.
Michael: Then I'll have a follow up after that thank you.
Michael: Andrew Thanks for the question, it's Curtis So I'd say, we're focused on maintaining our strong investment grade credit rating and we are focused on reducing our net leverage ratio as you say so <unk>.
Michael: Continued focus on driving free cash flow growth.
Speaker Change: Asset review process as Merkle mentioned, it's resulted as has already been publicly announced our divestitures of MLC and northwest style and there are a number of other incremental initiatives on the go each of which would actually help strengthen our balance sheet and optimize cost of capital and reduce leverage.
Speaker Change: Don't have more details in terms of those initiatives when they're ready to be announced we will do so and of course, we will keep keep everyone informed on a transplant transparent manner as we make progress.
Speaker Change: Okay. Okay.
Speaker Change: So up then on the.
Speaker Change: The revenue growth guidance range, 3% to plus 1% I think I caught Curtis in your remarks, the plus 1% depends on eight constructive competitive environment, but more broadly.
Speaker Change: You've called out macro regulatory and competitive on the macro and regulatory side.
Speaker Change: First on the macro obviously, a fairly garish potential tariff situation for Canada to be determined.
Speaker Change: What is your assumption in and around that and then secondly on the regulatory side is it.
Speaker Change: Really and I don't want to be a little adjust the tpa.
Speaker Change: Ultimate framework with phase III.
Speaker Change: Restrictions or.
Speaker Change: That treatment, that's that's still pending that's really an issue with respect to that revenue growth guidance range. So said it a different way, if we get Keith and outcomes on macro decent outcomes on regulatory decent outcomes on competitive are you comfortable in getting to flat to plus one as opposed to the bottom end of the range. Thank you.
Drew Mcreynolds: Yes. Thanks for the question drew and look I think on the tariff side of the world. It's a little early to know what the actual impact would be as of this date. There are no tariff. So we'll we'll obviously be.
Speaker Change: Looking at that closely.
Speaker Change: It shouldn't be shouldn't be a material impact, but again, let's let's wait for details and see how that plays out in terms of regulatory kind of similar question I mean, it's it's the status quo at this point in.
Speaker Change: Unfortunately, the CRC.
Speaker Change: Kind of push the decision.
Down the line.
Speaker Change: We don't think it's conducive to driving innovation and investment in in Canada, especially in our networks, but again, we will have to wait for a final decision.
And then ultimately as you know and as the market knows I mean revenue growth is dependent on pricing in market and right now, it's a very competitive pricing environment, we've seen certain green shoots.
Speaker Change: And improvements in certain areas over the last few weeks, but again its a matter of how long.
Speaker Change: Those those pricing increases will be sustained.
Speaker Change: Okay.
Speaker Change: <unk> to add on the on the regulatory front.
Speaker Change: To put it bluntly, we're not in the business of building fiber for Telus has benefit and Thats, what the CRT C policy. That's in place right now forces us to do so.
Speaker Change: So to us it makes no sense at the CRT six, forcing incumbent resale at <unk>.
Drew Mcreynolds: Time, and you can kind of combine your two questions to go together drew at this particular point in time when Canadian productivity is already lagging and we're having conversations about how to boost the Canadian economy and boost productivity I don't understand.
Speaker Change: You know.
Speaker Change: Why a regulator would put in place policies that create disincentives to investment.
Speaker Change: Puts jobs at risks and puts at risk they are building out of critical infrastructure.
Speaker Change: It seems like the wrong policy at exactly the wrong time, and we all know that our world leading in say, Canada here are world, leading communications infrastructure was built on long standing facilities based competition policy that serve this country very well for years and years.
Speaker Change: Got it thank you.
Speaker Change: Thank you. Our next question is from Sebastiano Petti from J P. Morgan. Please go ahead.
Speaker Change: Hi.
Speaker Change: Thanks for taking the question also echo congratulations to Spain.
Speaker Change: He will be missed.
Speaker Change: In terms of just maybe a couple of quick follow ups here I think kind of on the topic of the following up on <unk> question, there, but just kind of the macro outlook.
Speaker Change: And then Curtis in your prepared remarks, you did talk about maybe a little bit of decision, making or implied essentially enterprise spend but how have your conversations with large enterprises smbs advertisers.
Speaker Change: <unk> really changed over the last few months.
Speaker Change: Or is there just more kind of.
Speaker Change: Predictability or uncertainty kind of baked into the guidance as we kind of think about the macro outlook just kind of echoing <unk> remarks, just now as well and then another follow up.
Speaker Change: Perhaps to the tier U S.
Speaker Change: U S fiber strategy.
Speaker Change: Just on convergence and partnerships, obviously bundling is core to the Canadian telecom ecosystem and a very big an emerging theme here in the U S. In area of debate for the Big three wireless operator, so I mean as the wireless incumbents push harder on fiber in bundling in the coming years I mean, do you see the need to.
Really partner with a wireless operator, or maybe standup and <unk> to successfully compete in the rapidly converging market in the U S. Just kind of given ZIP please relative scale to some of the other announcements you've seen in the in the U S market from telcos. Thank you.
Speaker Change: Thank you <unk> I'll take the second one first structure as you know is it.
Speaker Change: It is different in the in the U S. The industry structure than it is in in Canada certainly at this point in time, and then I would point out really important to point out in the Pacific Northwest, It's a highly attractive high growth.
Speaker Change: Market and simply fibers footprint is basically either zip Lee with its fiber or one cable company.
Speaker Change: So.
Speaker Change: It was simply fiber and its footprint isn't competing with integrated.
Speaker Change: Providers.
Speaker Change: And without the wireless offering at this point in time the management team. There has executed extremely well and continues to take see quite significant and impressive subscriber growth revenue growth and EBITDA growth and we expect that to continue especially as we as we know.
Speaker Change: Proceed on its build out plans and its and its current incumbent footprint.
Speaker Change: On the macro side of things I think the best way to kind of address the larger macro question <unk> is kind of odd link it back to the pillars of growth that I outlined if you think about our our best networks proposition and what we deliver and what we continue to think.
Speaker Change: We're going to deliver we continue to take the majority of Internet net add growth in the market and we expect that to continue in 2025.
The percentage of customers, we have on the highest speeds is impressive and we expect that to continue our multi product penetration in Canada, continuing a pace.
Speaker Change: You see that in our results and in our Internet revenue growth results and our wireless loadings are all on the premium Bell brand, which is something that we focus on all the time so while the market is.
Speaker Change: Isn't growing as fast in the internet or wireless as it had before it's still growing and we're going to execute on these things as we have in the past.
Speaker Change: Again to macro go back to now media and digital media in particular, that's continuing the pivot to digital is continuing at pace and we expect that to continue quite strongly on on business, whether or not it's small medium or large.
Speaker Change: <unk> focus on business solutions.
Speaker Change: We got to be mindful of what the macro environment will bring two budgets of our enterprise customers, but our business solutions revenue is going to continue to grow and of course, we got to manage it and so so cost will continue to be front and center.
Speaker Change: So all these things are going really well now pricing Curtis mentioned green shoots on.
Speaker Change: Market pricing, both on broadband and wireless.
Speaker Change: So hopefully the green shoots that we're seeing in the early days of 2025 sustain themselves through 'twenty through the entire year I would hope so, particularly when you think about the tremendous value that the industry provides to consumers and enterprises and particularly bell.
Speaker Change: But those new pricing levels really do need to stick.
Speaker Change: Thank you.
Speaker Change: Thank you. Our next question is from Vince Valentini from TD Securities. Please go ahead.
Vince Valentini: Hi, Thanks very much.
Speaker Change: Lots of good stuff here and lots to unpack first op pain, yes, all the best to you.
At the risk of offending others I've dealt with over the years Youre definitely the best IR person I've ever dealt with in my 30 years, so you'll be sorely missed but all the best to you in retirement.
Speaker Change: If I can just try to clarify that the revenue guidance first Curtis.
Speaker Change: It sounds to me like Youre, saying, the higher end as possible.
Speaker Change: Recent pricing changes are sustained.
Speaker Change: We want to make sure. That's the case as opposed to are you, saying, we need even more than everything that's been announced in January in terms of broadband price increases by almost everybody in wireless price increases if we just see those stick does that enough to get you towards the higher end or do you need even more.
Speaker Change: I have I'll throw the other question right now to make sure thing doesn't cut me off.
Speaker Change: On the $7 billion target.
Speaker Change: Just wanted to unpack that and make sure we understand that properly you've already announced.
Speaker Change: Five seven.
Speaker Change: Of the $7 billion.
Speaker Change: <unk> and northwest tell us so that leaves $1 3 billion only as new stuff you're working on for this year is that the way to think of that $7 billion target and can you clarify this.
Speaker Change: Is this stuff of pure selling stuff thats non core and you don't need or is it are you thinking these are potentially sale and leaseback transactions or transactions with EBITDA implications like is it really just a full net $1 3 billion of cash to pay down debt doors or are there potential offsets based on some of the transaction.
Speaker Change: You would be looking at thank you.
Speaker Change: Yes.
Curtis: Curtis Thanks for the questions I'll take the second question first.
Curtis: So you're right. That's the math, that's $1 three implied $1 billion of other asset sales and I would characterize them as non core this is not meant to be.
Curtis: Sale leasebacks that would have a capital lease component of after the fact again there might be some EBITDA sales, but all of this would be EBITDA sold as part of that but these would all be deleveraging transactions and strengthening the balance sheet. So youre thinking about it the right way and in terms of the first question.
Curtis: In and around revenue and ability to hit the high end.
Curtis: Obviously, there are many factors that flow into our revenue performance.
Curtis: Hi pricing in our higher pricing in market and if this pricing increase that we've seen over the last few weeks Stakes that certainly helps I mean, if you go up a little more or to help even more so.
Curtis: I think it's too early to pinpoint one specific variable, but but certainly pricing in market is is a key driver.
Curtis: Very clear thank you.
Speaker Change: Thank you. Our next question is from our vendor gala, particularly from Canaccord Genuity. Please go ahead.
Speaker Change: Good morning, Thanks for taking my question and let me start by offering.
Speaker Change: Offering my best wishes to attain its been a great social support and integrity during my time covering bill.
Speaker Change: Two questions one clarification from me first of all.
Speaker Change: You indicated in your comments that.
Speaker Change: With respect to the U S fiber expansion are you open to sort of third party investments.
Speaker Change: Could you say that.
You would go so far as maybe sort of having a separate entity operating that that may or may not be controlled by Ballard not may not be consolidated by bell with a view to sort of keeping that off balance sheet I realize that's a bit of a speculative question, but just wanted to general thoughts on that.
Speaker Change: And then secondly, with respect to your Internet revenue growth to three 3%, we've seen that number kind of ebb and flow between low single digit to mid <unk>.
Speaker Change: I mean is it fair to say that going forward, it's really sort of price increases that kind of help keep that in the mid single digit range given given instead of the competitive dynamics in terms of subscriber share.
Speaker Change: Thanks.
Speaker Change: And the second question on the Internet revenue growth, yes pricing would be the.
Speaker Change: A key lever there, particularly as you are.
Speaker Change: Since you consider that we're continuing to take the majority of net add growth. So so that's going to continue and therefore pricing becomes the key the key lever.
Speaker Change: And on the first question with respect to potential structures in the U S. I think.
Speaker Change: The most I can say right now is as you know once again.
Speaker Change: We'd be looking at potential opportunities to grow the fiber footprint.
Speaker Change: But only with build out structures that would reduce effectively reduce our funding requirements.
Speaker Change: And the.
Speaker Change: The most direct way to answer your question at this point in time is that as we think that through we're going to remain focused on maintaining our investment grade ratings for senior debt, which is again one of the key things that I've I've made sure to emphasize more than once in our time together this morning execute in the <unk>.
Speaker Change: To drive revenue growth focus on that investment grade rating de lever, which which Curtis again emphasize in response to Vince and optimize the cost of capital.
Okay. Thank you okay.
Speaker Change: Thank you. Our next question is from <unk> from <unk> Securities. Please go ahead.
Speaker Change: Good morning, Thanks for taking my questions two on Capex, maybe want to clarify the comments made on the decision with regards to the CRT see earlier this week you.
Speaker Change: You said the reduction is related to the <unk> decision. This week, but at the same time basically either just.
Speaker Change: Hunting the decision.
Speaker Change: Later this year. So do you intend to increase Capex again this year, if the CRT C blocks incumbent resale of fiber. So that is question number one and question number two is a bit more of a long term capex.
Speaker Change: Troll level.
Speaker Change: The AT&T Investor day, we saw them announce a way to get rid of expensive copper through more usage of fixed wireless.
Speaker Change: There is no business case for fiber is this something that you would consider and that would have regulatory support in Canada and maybe if.
Speaker Change: If you can talk about the potential savings that this could bring longer term just trying to figure out if there is ways to reduce capex further even if fiber builds come to a halt thanks. So.
Curtis: So on the first solid Curtis will answer the second one is at home on the first.
Curtis: On the first question.
Curtis: Our capex guidance is.
Curtis: As.
Curtis: Set for for the year as we outlined this morning in really as it relates to.
Curtis: The regulatory decision and where it ultimately ends up later on the year.
Curtis: It's going to dictate how we allocate the capital within the guidance range. If you know what I mean, so we're going to have our capex budget and where we make the investments throughout the year and into into the following years will will.
Curtis: In a.
Curtis: <unk> way be guided by that decision.
Curtis: So that's how I would I would answer the question. So we can we can pull back on fiber build or we can increased fiber build but that will remain within the intensity ratio that we've we've guided well what I do know given.
Curtis: This week's decision is that.
Curtis: Now it doesn't look like we will be hitting the $8 3 million target homes that we had outlined over a year ago.
Curtis:
Curtis: And over this for the second question over to Curtis and the second question is enrollment it's a good one not as much clarity in the near term I would say long term.
Curtis: We are in alignment with you in terms of there's just an overall benefit to reduce legacy technologies.
Curtis: <unk> networks, obviously the path there is dependent on regulatory so it's not completely within our hands, we do see in the U S.
Curtis: A little bit more willingness to retire legacy networks and convert two newer technologies hopefully that's the case up here I do think there will be significant efficiencies in terms of.
Curtis: Maintenance costs as well as frankly, our ability to sell copper and real estate of <unk> et cetera. So I think it's a I think youre directionally right. It's difficult at this point to know timeline or scale, but certainly certainly eventually a wind for us all.
Curtis: Yeah.
Curtis: Thanks, and congrats gains as well thank you.
Speaker Change: Thank you. Our next question is from David Barden from Bank of America. Please go ahead.
David Barden: Hey, guys. Thanks.
Speaker Change: Thanks, so much for taking the questions.
Speaker Change: I feel like it's a privilege to be part of the last time that we all have an opportunity to ignore.
Speaker Change:
Speaker Change: Admission to have one question and one follow up but thank you for everything.
Speaker Change: Marco.
Speaker Change: No.
Speaker Change: I Wonder if you could elaborate a little bit.
Speaker Change: No.
Speaker Change: Statement.
Speaker Change: <unk> not choosing not to hit your original fiber in Mexico cards or the regulatory environment.
Speaker Change: This is a little bit of an escalation.
Speaker Change: From last year's commentary.
Speaker Change: You are basically saying that the <unk>.
Speaker Change: Median fiber broadband businesses an investable.
Speaker Change: And that you would rather invest in the U S.
Speaker Change: And.
Speaker Change: CRC continues going down this path.
Speaker Change: Bad things will happen and we haven't had a conversation about what those bad things.
Speaker Change: Look like what what does what do you fear happening you're teller does come into retail your fiber and what opportunities.
Speaker Change: Do you have to perhaps re sell fiber.
Speaker Change: In other markets in the future.
Speaker Change: I'd like to hear that.
Speaker Change: Like that scenario that is so dire.
Speaker Change: It's changing your outlook about the capital investment opportunity that you could see.
Speaker Change: In the cap.
Speaker Change: The Canadian market.
Speaker Change: And my follow up question.
Speaker Change:
Speaker Change: It'd be just specifically.
Speaker Change:
Speaker Change: Towers.
Speaker Change: Towers, a noncore asset.
Speaker Change: And our towers, a thing that you think about <unk>.
Speaker Change: Monetizing as you address the balance sheet. Thank you.
Speaker Change: Okay, so on and on.
Speaker Change: On your second question I guess I'll, just reiterate what I said in my opening remarks, which is there is a <unk>.
Speaker Change: Significant amount of untapped value in our telecom infrastructure. So we're looking at ways that we could.
Speaker Change: Surface value there and that's why I pointed out that we've retained financial advisers to retain or to assist us in that regard, but but.
Speaker Change: We do that that wouldn't be part of.
Speaker Change: Of the 7 billion that I outlined and in that Curtis reiterated when he was responding to Vince's question on your on your first point.
Speaker Change: Okay I think.
Speaker Change: What I'm really trying to convey is the following I mean, it's pretty clear.
Speaker Change: The most sustainable form of competition.
Speaker Change: Is through companies, who build their own infrastructure. So we would always rather compete on the basis of networks, we own. So I think thats the simplest way to get at.
Speaker Change: A couple of points that you were making in your first question.
Speaker Change: We want to build we want to compete against other well capitalized companies that build their own and we're prepared to do that here, obviously in Canada, and we're prepared to seize on the growth opportunities in the U S.
Speaker Change: So what happens going forward.
Speaker Change: I didn't say that we would stop entirely building in Canada. What I said is that we're not going to hit the eight three so there's going to be a significant slowdown in the pace of build.
Speaker Change: If they're in Greenfields as new housing continues to be built of course, we'll be looking at the opportunities.
Speaker Change: So long as we can generate the appropriate return to to build infrastructure to new greenfield areas.
Speaker Change:
Speaker Change: But again that that means that a much much slower pace of build in Canada than otherwise could have been the case and it really comes down to.
Speaker Change: Where where is the best use of the next incremental dollar of capital in fiber.
Speaker Change: That's why we're always going to be looking at and now we're going to be able to look at it from a kind of a broader footprint area.
Speaker Change: <unk>.
Speaker Change: Brownfield in Canada, where we have a legacy copper versus Greenfield in Canada versus the Pacific Northwest.
Speaker Change: The fact that we're having this conversation conversation actually speaks to how.
Speaker Change: Inappropriate that see RTC decision was and I know theres going to be a final ruling later in the year and that's all well and good except that cabinet. It clearly asked the CRT C to make a ruling by this week and they didn't.
Speaker Change: I appreciate it. Thank you. Thank you next question.
Speaker Change: Thank you. Our next question is from Patrick Ho from Morgan Stanley. Please go ahead.
Patrick: Hello, Good morning, Patrick on the line from Morgan Stanley.
Speaker Change: Also want to Echo my congrats to thing and thanks for all the help over the last few years.
Speaker Change: Just a couple of questions for me firstly on the drip program. When exactly are you looking to turn this off and are you guys targeting a specific payout ratio or leverage level or something at the closing of simply in order to decide to turn it off.
Speaker Change: And then I guess secondly.
Speaker Change: Just wanted to ask about your current back book as it relates to wireless how much of this has been repriced to reflect the current pricing environment right now thank you.
Curtis: Thanks, Patrick its Curtis I'll address the first one.
Curtis: Look as <unk> said, a few times here our intention is always to optimize cost of capital. So we recognize that issuing equity at these levels is expensive. So the drip is not something we intend to keep in place long term theres not a specific date I can give you, but ultimately the balance sheet actions and benefits that we've talked about.
Curtis: This this call prepared remarks, and Q&A that we've outlined obviously, that's going to accelerate the turning off of that drop.
Curtis: And in terms of the back book are Keefe, our key priority is to get churn down so.
Curtis: So customers that are with us we want to have them stay with us.
Curtis: That's how I'd answer the back book.
Curtis: Great. Thank you.
Curtis: Thank you there are no further questions registered at this time I would now like to turn the meeting over to Mr. Fotopoulos.
Speaker Change: Thank you Matthew So I just want to take a quick second to say, thank you to mercury for his kind words and to all the analysts who have reached out to me in the past few months too with their good wishes and you Challenge me as has the investment community and that can vary privilege and honor to have been part of such a great company for the past 20 years and the.
Speaker Change: And the industry for the past 27, well over 110 quarters.
Speaker Change: It's been an honor to be part of such an amazing.
Speaker Change: <unk> company I have witnessed the transformation of bell from from what it was to what it is now and there is the best is yet to come and we have the best team and leaders in place to do that to take <unk> to the next level and I'll be watching from the sidelines very keenly.
Speaker Change: And thank you to everybody and I wish everybody the best on that that said.
Speaker Change: As usual, Richard and I will be available throughout the day for any follow up questions and clarifications. So thank you again and have a great day. Thank you.
Speaker Change: Clean.
Speaker Change: Everyone. Thanks.
Speaker Change: Thank you.
Speaker Change: <unk> has now ended.
Speaker Change: Disconnect your lines at this time and we thank you for your participation.
Speaker Change: Okay.
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Speaker Change: Okay.