BCE Announces Strong Fourth Quarter And Year-End Results


	BCE Announces Strong Fourth Quarter And Year-End Results - Revenue up 8% in Q4 and 9% in 2000 (excluding Teleglobe Inc. and CTV); - EBITDA up 9% in Q4 and 8% in 2000 (excluding Teleglobe Inc. and CTV); - Cash baseline earnings per common share of $0.40 in Q4 and $1.81 in 2000. MONTREAL,Jan. 24 2001 --BCE today announced fourth quarter and year-end 2000 results reflecting strong growth from its operations. OPERATIONAL HIGHLIGHTS (Q4 2000 vs. Q4 1999, unless indicated) - Sympatico High Speed Edition subscribers grew 49% over Q3 to 264,000 (299,000 including Aliant subscribers), representing 34% of the market; - Bell's data revenue was up 29%; - Bell Mobility cellular subscribers grew 30% to reach 2.3 million (2.8 million including Aliant subscribers); - Bell ExpressVu subscribers grew 74% to 722,000; - BCE Emergis revenue was up 127% to $141 million. "Our results demonstrate continued solid progress in all core areas of our business," said Jean C. Monty, Chairman and Chief Executive Officer of BCE Inc. "I am particularly pleased with Bell Canada's progress in key growth areas. During the quarter, Bell captured approximately 60% of all new High Speed Internet subscribers and saw continued strong demand for its cellular services with subscribers growing to 2.8 million. Wireless and data, two significant components of Bell's future success, now represent nearly one third of its revenue." He added, "The completion of the Teleglobe acquisition and the CRTC's approval of the acquisition of CTV capped an eventful year for BCE. We believe that the addition of global connectivity and Canadian content to our strong Canadian telecom base should provide even greater opportunities for growth in the coming years." FINANCIAL GUIDANCE FOR 2001 For 2001, BCE expects consolidated pro-forma revenue to grow between 8% and 10% (revenue for 2000 will be adjusted to include Teleglobe Inc. and CTV). Consolidated EBITDA is expected to grow by a few percentage points more than revenue growth. As expected, due to the acquisition of Teleglobe Inc., cash baseline earnings per share will be lower in 2001 than in 2000. Management expectations are in line with analysts' consensus of around $1.60 per share. BCE will provide greater detail on its guidance for 2001 and beyond at a meeting with analysts and media which will be held February 5. RESULTS BY BUSINESS GROUP (unaudited) BCE's activities are now organized around five business groups: Bell Canada (Canadian connectivity), Bell Globemedia (content), Teleglobe (global connectivity), BCE Emergis (commerce) and BCE Ventures (other investments). << _________________________________________________________________________ ($ millions, except per share amounts) __________________________________________ Fourth Quarter Twelve Months For the period ended December 31 2000 1999 2000 1999 _________________________________________________________________________ _________________________________________________________________________ Revenue Bell Canada Bell Canada Holdings(1) 4,071 3,799 15,486 14,371 Bell ExpressVu 98 47 305 133 Bell Globemedia 85 2 98 3 Teleglobe(2) 326 - 326 - BCE Emergis 141 62 468 188 BCE Ventures 673 508 2,064 1,810 Corporate, Intercompany eliminations, and Other (209) (188) (653) (503) _______ _______ _______ _______ Total revenue 5,185 4,230 18,094 16,002 _________________________________________________________________________ _________________________________________________________________________ Cash baseline earnings(3) Bell Canada Bell Canada Holdings(4) 299 295 1,245 1,215 Bell ExpressVu (54) (39) (146) (98) Bell Globemedia 17 - 22 - Teleglobe(5) (23) (6) (60) - BCE Emergis 10 (2) 16 (2) BCE Ventures 19 20 52 71 Corporate, Intercompany eliminations, and Other 31 (5) 80 (93) _______ _______ _______ _______ Cash baseline earnings applicable to common shares 299 263 1,209 1,093 Cash baseline earnings per common share 0.40 0.41 1.81 1.70 _________________________________________________________________________ _________________________________________________________________________ Cash baseline earnings applicable to common shares 299 263 1,209 1,093 Baseline adjustments(6) (330) 446 3,573 4,273 _______ _______ _______ _______ Net earnings applicable to common shares (31) 709 4,782 5,366 Net earnings per common share (0.04) 1.10 7.43 8.35 _________________________________________________________________________ >> 1 Aliant revenues are consolidated since the first quarter of 2000. For improved comparability, Aliant revenues for 1999 are also presented on a consolidated basis. Aliant is held by BCE (14%) and by Bell Canada (39%). 2 Teleglobe represents Teleglobe Communications Corporation; Excel Communications is included in BCE Ventures. 3 BCE is reporting on a "cash baseline earnings" basis which excludes baseline adjustments. 4 Reflects BCE's 80% ownership since June 1, 1999. 5 Represents cash baseline earnings for Teleglobe Inc. (Teleglobe, Excel and Corporate). 6 Baseline adjustments include (on an after tax basis) BCE's share of: gains on reduction of ownership in subsidiary and significantly influenced companies; discontinued operations; net gains on disposal of investments; restructuring and other charges; amortization of purchased in-process research and development expense; results of Bell Canada International (BCI); and goodwill expense. Fourth quarter baseline adjustments relate mainly to goodwill expense, BCI's results and the impact of income tax rate adjustments. FOURTH QUARTER REVIEW (Q4 2000 vs Q4 1999, unless indicated) BELL CANADA (Canadian Connectivity) The Bell Canada segment includes Bell Canada Holdings and Bell ExpressVu. Bell Canada Holdings includes Bell Canada, Aliant and Bell Canada's interests in Manitoba Telecom Services and other Canadian telcos. BELL CANADA HOLDINGS - Operating revenue was up 7% to $4.1 billion in the fourth quarter due mainly to strong growth in data, including IP/Broadband revenue at Bell Nexxia, and increased revenue from a higher number of lines in service, wireless services and SmartTouch features. Local and access services revenues increased by 6% to $1.5 billion. Long distance services revenue decreased by 5% to $699 million. Data revenue increased 29% to $839 million. Other revenue decreased by 8% to $570 million. Bell Mobility revenue was up 22% to $352 million due primarily to strong growth in new activations. Bell Mobility added 185,000 new subscribers in the quarter, a 67% increase over last year. - Cash operating expenses were up 7% to $2.4 billion due mainly to increased expenses associated with increased revenue; - Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 7% to $1.7 billion. Bell Canada statutory net earnings applicable to common shares were $321 million in the fourth quarter. BELL EXPRESSVU - Bell ExpressVu had revenue of $98 million and an EBITDA of $(61) million in the quarter. Subscribers increased by 128,000 to 722,000 at year end, an increase of almost 22% over third quarter 2000. BELL GLOBEMEDIA (Content) Bell Globemedia includes CTV (consolidated as of December 2000) and Sympatico-Lycos, (for the three-month period). - Bell Globemedia contributed revenue of $85 million and EBITDA of $5 million to BCE's fourth quarter. "Beginning in the first quarter of 2001, Bell Globemedia will include the results of CTV, The Globe and Mail and new media interests." TELEGLOBE (Global Connectivity) Teleglobe represents Teleglobe Communications Corporation. Teleglobe's results are consolidated as of November 2000. - Teleglobe contributed revenue of $326 million and EBITDA of $20 million to BCE for November and December, 2000. - Teleglobe's total revenue for the quarter was $506 million. Data and Internet revenue reached $158 million, a 10% increase over the third quarter of 2000. Voice revenue was $348 million, a 7% decrease from the third quarter. - Total EBITDA for the quarter was $40 million. BCE EMERGIS (Commerce) - BCE Emergis' revenue for the quarter was up 127% compared with the same period in 1999 and reached $141 million, mainly attributable to the acquisition of UP&UP. - EBITDA grew significantly to reach $24 million at the end of the fourth quarter compared with $3 million for the same period in 1999, showing overall improved financial performance. BCE VENTURES (Other Investments) BCE Ventures includes the activities of Bell Canada International, CGI, Telesat, Excel and other investments. - BCE Ventures' revenue was $673 million in the quarter compared with $508 million in the same period of 1999. The increase is mostly attributable to the consolidation of Excel beginning in November 2000. - EBITDA was $29 million in the quarter compared with $19 million in the same period of 1999. The increase is also mainly due to the consolidation of Excel. Excel Revenue Adjustment On November 1, 2000, BCE completed the acquisition of Excel Communications Inc. During the course of reviewing Excel's financial results for purposes of determining the purchase price allocation, certain inaccuracies were noted. The accounts receivable balance, at that date, was overstated by approximately US$100 million, which is attributable to revenue processing errors. A US$100 million writedown will be reflected in the accounts of Excel, and therefore Teleglobe Inc., for the year ended December 31, 2000. However, the adjustment does not result in a direct charge to BCE's earnings, as it is reflected in BCE's purchase price allocation (reduction of net tangible assets acquired) thereby increasing goodwill. BCE is Canada's largest communications company. It has more than 20 million customer connections through the wireline, wireless, data/Internet and satellite services it provides, largely under the Bell brand. BCE leverages those connections with extensive content creation capabilities through Bell Globemedia which features some of the strongest brands in the industry -- CTV, Canada's leading private broadcaster, The Globe and Mail, Canada's National Newspaper, and Sympatico-Lycos and Globe Interactive, which jointly have the largest Canadian presence on the web. As well, BCE has extensive e-commerce capabilities provided under the BCE Emergis brand and serves international customers through Teleglobe, a global connectivity, content distribution and Internet hosting company. BCE shares are listed in Canada, the United States and Europe. Supplementary financial information is available in the "Investors" section of BCE's Web site at www.bce.ca. BCE's fourth quarter 2000 conference call with analysts is scheduled for 8:30 a.m. eastern time today. You may participate by phone, dial (416) 695- 5806 or via an audio webcast from our Internet site at www.bce.ca. A replay of the conference call with analysts can be heard between 12:00 eastern time Wednesday, January 24 and 12:00 eastern time Wednesday, February 7. To access the replay facility, dial (416) 695-5800 - access code: 632069. The audio webcast will also be archived on BCE's Web site. Note: Certain statements made in this press release, which describe BCE's intentions, expectations or predictions, including, but not limited to, the statements made under "Financial Guidance for 2001", are forward-looking and are subject to important risks and uncertainties. These statements do not reflect the potential impact of any mergers, acquisitions, other business combinations or divestitures that may be completed after the date of this press release. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: uncertainty as to whether BCE's strategies and acquisitions will yield the expected benefits, revenue projections, synergies and growth prospects; the impact of rapid technological and market change; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets, including interest rate and currency exchange rate fluctuations; the intensity of competitive activity and its resulting impact on pricing strategies and new product offerings; the final outcome of pending or future litigation or regulatory initiatives or proceedings; the inability to further identify, develop and achieve commercial success for new products, services and technologies; the level of expenditures necessary to maintain quality of service; the availability and cost of capital; Teleglobe's Globe System initiative requiring more capital than anticipated to complete, or not being completed in time, or Globe System not providing the anticipated benefits, or insufficient financing being available to complete Globe System; the ability, particularly in the case of Teleglobe, to increase revenues from business segments other than voice services (such as data and Internet services) in order to offset declining revenues in the voice business segment; uncertainties related to the transformation of Teleglobe from a voice-driven global carrier to a global data and Internet provider; the extent of demand for traditional and emerging services; the uncertainties of the Internet including the Internet economy growing at a slower pace than is currently anticipated as well as changes in laws or regulations governing Internet commerce; stock market volatility; the ability of BCE to make acquisitions and/or integrate the operations of acquired businesses in an effective manner; the availability of, and ability to retain, key personnel; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports on Forms 6-K and 40-F filed by BCE with the United States Securities and Exchange Commission. THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS PRESS RELEASE REPRESENT BCE'S EXPECTATIONS AS OF JANUARY 24, 2001 AND, ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, BCE DISCLAIMS ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. %SEDAR: -30- For further information: Jean-Charles Robillard, Communications, (514) 786-3908, Web site: www.bce.ca; George Walker, Investor Relations, (514) 870-2488 To request a free copy of this organization's annual report, please go to www.newswire.ca and click on reports@cnw.

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