Mr. George Cope reports

BCE REPORTS 2016 Q4 AND FULL-YEAR RESULTS, ANNOUNCES 2017 FINANCIAL TARGETS - COMMON SHARE DIVIDEND INCREASED 5.1% TO $2.87 PER YEAR

BCE Inc. has released its results for the fourth quarter and full year 2016, provided financial guidance targets for 2017, and made a 14-cent-per-share, or 5.1-per-cent, increase in the BCE annual common share dividend to $2.87.

                                           FINANCIAL HIGHLIGHTS                                                                       
                                   (In millions except per-share amounts)

                                                       Q4 2016      Q4 2015         2016         2015
BCE
Operating revenues                                      $5,702       $5,603      $21,719      $21,514
Net earnings                                               699          542        3,087        2,730
Net earnings attributable to common shareholders           657          496        2,894        2,526
Adjusted net earnings                                      667          615        3,009        2,845
Adjusted EBITDA                                          2,121        2,073        8,788        8,551
EPS                                                       0.75         0.58         3.33         2.98
Adjusted EPS                                              0.76         0.72         3.46         3.36
Cash flows from operating activities                     1,520        1,510        6,643        6,274
Free cash flow                                             923          916        3,226        2,999

"Our fourth quarter performance was a strong finish to a year in which the Bell team consistently executed our broadband leadership strategy, delivering value for our customers, communities and shareholders alike. Bell is a company with momentum, rolling out new fibre and wireless networks that rank with the best in the world and the exclusive innovations in communications and media that Canadians clearly want the most," said George Cope, president and chief executive officer of BCE and Bell Canada. "Unceasing network and service innovation is key to Bell's growing leadership in broadband communications, reflected in the fourth quarter with a gain of more than 54,000 Fibe TV and Internet net customer additions, and approximately 240,000 in 2016; more than 112,000 new postpaid wireless customers in the quarter and 315,000 in 2016, increases of 23 per cent and 19 per cent, respectively; and the accelerating growth of Bell Media's CraveTV streaming service.

"Marketplace success and fast-growing customer usage of Bell's superior services -- including an increase of 41 per cent in total wireless data usage and 31 per cent in broadband Internet compared to the fourth quarter last year -- is delivering solid revenue growth. Combined with our team's disciplined focus on cost-efficiency in a competitive marketplace, Bell is delivering ongoing increases in operating profitability, especially in our wireless business which grew service revenue 7.2 per cent, ARPU (average revenue per user) 4.7 per cent and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) 5.1 per cent. Increased free cash flow enables our industry-leading investment in Bell's award-winning LTE (long-term evolution) wireless and fibre networks and product R&D (research and development); our focus on returning value to shareholders with another increase to the BCE common share dividend, the 13th since the end of 2008; and our support for the national community with another record Bell donation for mental health in 2017 thanks to the unprecedented engagement by Canadians in Bell Let's Talk Day last week."

Bell is focused on achieving a clear goal -- to be recognized by customers as Canada's leading communications company -- through the execution of six strategic imperatives: invest in broadband networks and services, accelerate wireless, leverage wireline momentum, expand media leadership, improve customer service, and achieve a competitive cost structure. This broadband leadership strategy has delivered world-class fibre and wireless LTE networks; continued strong performance across wireless, TV, Internet and media growth services; 45 consecutive quarters of uninterrupted year-over-year adjusted EBITDA growth; and 13 increases to the BCE common share dividend since the end of 2008 -- a total increase of 97 per cent.

"Again in 2016, BCE achieved all of our financial guidance targets. This consistent performance year after year shows the strength of the business model Bell has built around our six strategic imperatives, and our unwavering focus on profitable subscriber growth and cost discipline in a highly competitive and dynamic marketplace," said Glen LeBlanc, chief financial officer of BCE and Bell Canada. "Going into 2017, BCE's operations and financial foundation are strong. Our healthy balance sheet is underpinned by investment-grade credit metrics and good liquidity, together with a defined benefit pension plan that is very well funded and attractively positioned to benefit from a rising interest rate environment.

"BCE's 2017 guidance targets reflect a favourable financial profile for all three Bell operating segments, with free cash flow providing a strong and stable foundation for the 5.1-per-cent increase in BCE's common share dividend for 2017 as well as continued significant capital investment that will enable future growth of the business and support our objective to deliver sustainable shareholder returns."

CRTC approves Bell MTS broadcast distribution licence

In December, the Canadian Radio-television and Telecommunications approved the transfer to Bell of the terrestrial broadcasting licence held by Manitoba Telecom Services Inc., another step in the process to complete BCE's acquisition of MTS. Expected to close by the end of the first quarter of 2017, the transaction has also been approved by MTS shareholders and the Manitoba courts, and remains subject to approvals by the Competition Bureau and Innovation, Science and Economic Development (ISED).

BCE common share dividend increased

Today's dividend announcement is BCE's 13th increase to its annual common share dividend since the fourth quarter of 2008, representing a 97-per-cent increase. The BCE annualized common share dividend will increase 5.1 per cent, or 14 cents per share, from $2.73 to $2.87 effective with BCE's first quarter 2017 dividend payable on April 15, 2017, to shareholders of record at the close of business on March 15, 2017. This is BCE's ninth consecutive year of 5-per-cent-or-better dividend growth, while maintaining the dividend payout ratio within the target policy range of 65 per cent to 75 per cent of free cash flow. The higher dividend for 2017 is fully supported by projected growth in free cash flow.

Voluntary pension plan contribution

BCE made a $400-million voluntary pension plan contribution in December, 2016, further reinforcing the strong solvency position of its defined benefit (DB) pension plans, reducing the amount of future pension obligations and effectively positioning BCE to assume the MTS DB pension plan postacquisition. The voluntary contribution to prefinance future obligations was an efficient use of cash on hand at the end of 2016, favourably impacting BCE's free cash flow generation in 2017 due to the contribution's tax deductibility and accelerating the move to a surplus position should interest rates rise.

Bell Let's Talk Day 2017 sets new records

With new ways for Canadians to engage including Instagram and Snapchat, Bell Let's Talk Day 2017 was the biggest mental health conversation ever, generating 131,705,010 total texts, calls and social media messages of support on Jan. 25. The hashtag BellLetsTalk was again the top Twitter trend in Canada and worldwide, and overall social media engagement on Twitter, Facebook, Snapchat and Instagram more than tripled this year. With Bell donating five cents per interaction, participants drove $6,585,250.50 in new Bell financing for mental health programs. Bell's total commitment to mental health now stands at $86,504,429.05 and will reach at least $100-million in 2020. Bell Let's Talk has supported more than 700 organizations delivering anti-stigma, care, research and workplace mental health initiatives in every region of the country.

BCE results

BCE operating revenue was up 1.8 per cent in the fourth quarter to $5,702-million, reflecting a 2.3-per-cent year-over-year increase in service revenue to $5,169-million driven by solid wireless, residential services and media top-line growth. Product revenue decreased 3.2 per cent to $533-million, the result of aggressive competitor discounting and promotions for mobile handsets and lower wireline product sales to business customers. For full year 2016, BCE operating revenue increased in line with the company's guidance target to $21,719-million, or 1.0 per cent, from $21,514-million in 2015 on service revenue growth of 1.7 per cent, while total product revenue decreased 7.2 per cent.

Net earnings increased 29.0 per cent to $699-million from $542-million in the fourth quarter of 2015, while net earnings attributable to common shareholders totalled $657-million this quarter, or 75 cents per share, up 32.5 per cent and 29.3 per cent, respectively, from $496-million, or 58 cents per share, last year. These year-over-year increases were due to growth in operating revenue that drove higher adjusted EBITDA, as well as decreased severance, acquisition and other costs, and lower other expense, partly offset by increased amortization expense and higher income taxes.

Severance, acquisition and other costs were lower this quarter due mainly to higher wireline and media work force restructuring costs in the fourth quarter 2015. Other expense improved as a result of lower year-over-year asset impairment charges related to Bell Media properties. Excluding the impact of severance, acquisition and other costs, net losses on investments, and early debt redemption costs, adjusted net earnings increased 8.5 per cent to $667-million or 76 cents per common share, compared with $615-million or 72 cents per common share in the fourth quarter 2015.

For the full year 2016, net earnings grew 13.1 per cent to $3,087-million from $2,730-million in the previous year, while net earnings attributable to common shareholders were $2,894-million, or $3.33 per share, up 14.6 per cent and 11.7 per cent, respectively, compared with $2,526-million or $2.98 per share in 2015. The increases were the result of solid operating revenue growth and tight cost control that drove higher adjusted EBITDA, lower severance, acquisition and other costs, reduced finance costs that reflected lower interest expense on various Bell Canada debt instruments, and lower interest on postemployment benefit obligations, as well as higher other income. This was partly offset by higher amortization expense and higher income taxes. Adjusted net earnings of $3,009-million and adjusted net earnings per share (EPS) of $3.46 in 2016 were up 5.8 per cent and 3.0 per cent, respectively, compared with 2015, reflecting higher adjusted EBITDA across all three Bell operating segments.

BCE's adjusted EBITDA increased 2.3 per cent to $2,121-million in the fourth quarter, driven by year-over-year increases of 5.1 per cent at Bell Wireless, 0.9 per cent at Bell Wireline and 2.2 per cent at Bell Media. BCE's consolidated adjusted EBITDA margin was up modestly, increasing to 37.2 per cent this quarter from 37.0 per cent last year, reflecting the flow-through of higher wireless average revenue per user (ARPU), increasing broadband Internet and IPTV (Internet protocol TV) scale and lower wireline operating costs. Consistent with its 2016 guidance target range of 2-per-cent-to-4-per-cent growth for the year, BCE's adjusted EBITDA increased 2.8 per cent to $8,788-million from $8,551-million in 2015.

BCE invested $993-million in new capital in the fourth quarter, bringing total capital expenditures for 2016 to $3,771-million, an increase of 4.0 per cent over 2015. This result was consistent with higher planned spending on advanced broadband wireline and wireless infrastructure, and represented a capital intensity ratio (capital expenditures as a percentage of total revenue) for 2016 of 17.4 per cent, in line with the company's guidance assumption of approximately 17 per cent.

Capital investment was focused on expanding broadband fibre directly to more homes and businesses, including the build-out of Gigabit Fibe infrastructure in Toronto and other urban locations; continued investment in Bell's leading 4G LTE and LTE advanced (LTE-A) networks, including the deployment of small-cell technology to optimize coverage, signal quality and data capacity; and increased wireless and Internet network capacity to support subscriber growth and accelerating data usage.

BCE cash flows from operating activities in the fourth quarter were $1,520-million, up from $1,510-million the year before, the result of higher adjusted EBITDA, lower income taxes paid, and higher acquisition and other costs paid in the fourth quarter 2015 due mainly to the payment in full satisfaction of the judgment rendered in a litigation claim for satellite TV signal piracy as well as severance and integration costs relating to the privatization of Bell Aliant. This was largely offset by a higher voluntary contribution of $400-million made to postemployment benefit plans at the end of 2016 compared with $250-million at the end of 2015, and a decrease in working capital. BCE generated free cash flow of $923-million this quarter, an increase of 0.8 per cent from $916-million the year before, reflecting higher cash flows from operating activities and lower cash dividends paid on preferred shares as a result of the timing of payment, partly offset by higher capital expenditures. For full year 2016, BCE's cash flows from operating activities increased 5.9 per cent to $6,643-million from $6,274-million in 2015, while free cash flow grew 7.6 per cent to $3,226-million from $2,999-million.

In the fourth quarter 2016, BCE gained 112,393 net new wireless postpaid customers and reported a net loss of 24,470 prepaid subscribers; 35,905 net new Fibe TV customers and a net loss of 36,869 satellite TV customers; and the addition of 18,402 net new high-speed Internet customers. NAS line net losses totalled 100,630. At the end of 2016, BCE served a total of 8,468,872 wireless customers, up 2.7 per cent from the fourth quarter 2015 (including 7,690,727 postpaid customers, an increase of 4.3 per cent); total TV subscribers of 2,744,909, up 0.2 per cent (including 1,337,944 Fibe TV customers, an increase of 13.1 per cent); total high-speed Internet subscribers of 3,476,562, up 1.9 per cent; and total NAS lines of 6,257,732, a decrease of 6.4 per cent.

BCE operating results by segment

Bell Wireless

Wireless operating revenue growth accelerated this quarter, increasing 6.4 per cent over the fourth quarter 2015 to $1,883-million on a 7.2-per-cent increase in service revenue to $1,702-million driven by a higher mix of postpaid subscribers in the company's customer base and strong year-over-year blended ARPU growth. Product revenue of $170-million was essentially unchanged compared with the fourth quarter 2015. For the full 2016 year, Bell Wireless operating revenue increased 4.1 per cent to $7,159-million with service revenue growing 5.7 per cent to $6,602-million. However, total product revenue in 2016 declined 12.7 per cent to $515-million, despite a higher number of subscriber gross additions compared with 2015, due to lower average handset pricing reflecting the sustained high level of competitive promotional market activity throughout the year and fewer year-over-year customer upgrades.

Wireless adjusted EBITDA was up 5.1 per cent to $674-million in the fourth quarter on strong service revenue growth from an increased mix of higher-value postpaid subscribers in the company's overall customer base and price discipline. Service revenue margin decreased to 39.6 per cent from 40.4 per cent in the fourth quarter 2015, due to a $67-million year-over-year increase in total combined retention spending and subscriber acquisition costs, which drove operating cost growth of 7.1 per cent in the quarter. For full year 2016, adjusted EBITDA increased 6.2 per cent to $3,003-million. Higher blended ARPU more than offset higher retention and subscriber acquisition costs, driving a 0.2-percentage-point increase in service margin to 45.5 per cent. Postpaid gross additions totalled 434,008, up 11.9 per cent over the fourth quarter 2015, reflecting increased market activity driven by richer promotions throughout the holiday period compared with last year; Bell's continued leadership in mobile network speeds; and overall strong sales execution across all the company's channels. For full year 2016, postpaid gross additions increased 5.2 per cent to 1,408,030 from 1,338,141 in 2015.

Postpaid net additions grew 23.1 per cent to 112,393, from 91,308 in the fourth quarter 2015, the result of higher gross additions. For the full year 2016, postpaid net additions were up 18.8 per cent to 315,311 from 265,369 in 2015, driven by higher gross additions and lower customer churn.

Postpaid subscriber churn increased 0.07 percentage point to 1.45 per cent this quarter, due to the seasonally higher level of aggressive promotional activity and the deactivation of low-ARPU customers resulting from the loss of a corporate contract. Postpaid churn in full year 2016 improved 0.03 percentage point to 1.25 per cent, reflecting greater overall market activity in 2015 due to the double cohort as well as the operational benefits stemming from continued investments in network speed and quality, customer retention and service excellence.

Bell Wireless postpaid customers totalled 7,690,727 at the end of 2016, a 4.3-per-cent increase over 2015. Total wireless customers grew 2.7 per cent to 8,468,872. The percentage of postpaid subscribers with smart phones increased to 83 per cent from 78 per cent at the end of 2015, while the proportion of postpaid subscribers on LTE reached 81 per cent, up from 68 per cent a year earlier.

Blended ARPU increased 4.7 per cent to $66.69 in the fourth quarter, driven by a higher postpaid subscriber mix, a greater percentage of subscribers on higher-rate two-year plans, increased data usage on the company's 4G LTE and LTE-A mobile networks, and pricing discipline. For full year 2016, blended ARPU increased 3.8 per cent to $65.46.

Cost of acquisition (COA) was up 3.0 per cent to $541 per subscriber in the fourth quarter, due to richer handset promotions in line with competitor offers, a higher sales mix of premium smart phones, more postpaid gross additions compared with last year, and higher handset costs due to the weak Canadian dollar. For full year 2016, COA increased 5.8 per cent to $494.

Retention spending increased to 16.4 per cent of wireless service revenue from 14.3 per cent in the fourth quarter 2015, reflecting a higher mix of premium handset upgrades and more aggressive promotional market activity. Retention spending for full year 2016 was 13.2 per cent of total wireless service revenue.

Bell's LTE-A wireless network provided service to 73 per cent of the Canadian population at the end of 2016 with data download speeds up to 260 megabits per second (mbps) (expected average 18 to 74 mbps). In addition, the company's Tri-band LTE-A service delivered download speeds of up to 335 mbps (expected average 25 to 100 mbps). This is complemented by a national 4G LTE mobile network that reached 97 per cent of Canadians at the end of 2016 with download speeds ranging from 75 mbps to 150 mbps (expected average 12 to 40 mbps).

Bell Wireline

Wireline operating revenue was down 0.8 per cent to $3,137-million in the fourth quarter, impacted by lower wholesale revenue as a result of downward revisions to wholesale Internet tariffs by the CRTC and lower sales of international long-distance minutes, as well as by a year-over-year decline in business customer spending on core connectivity services and data products reflecting slow economic growth and competitive pricing pressures.

This was moderated by the financial performance of Bell Wireline residential services, which delivered positive revenue growth in the quarter despite richer acquisition and retention discounts offered to match competitor promotional bundle offers, and the contribution of data centre operator Q9 Networks Inc., which was acquired on Oct. 3, 2016. Similarly, full-year 2016 wireline operating revenue decreased 1.3 per cent to $12,104-million.

With increasing broadband scale and a 1.8-per-cent reduction in total operating costs driven by continuing spending controls, fibre-related savings as well as customer service improvement and other operating efficiencies, wireline adjusted EBITDA grew 0.9 per cent to $1,259-million in the fourth quarter, driving a 60-basis-point increase in margin to 40.1 per cent.

For a second consecutive year in 2016, Bell Wireline delivered positive adjusted EBITDA growth, increasing 0.8 per cent to $5,042-million and yielding a 0.9-percentage-point improvement in Bell's North American-leading margin of 41.7 per cent. This was enabled by a 2.7-per-cent year-over-year decline in operating costs, the result of integration synergies with Bell Aliant, cost savings from work force restructuring initiatives undertaken at the end of 2015 and continuing service improvement.

Bell TV added 35,905 net new Fibe TV customers, compared with 74,092 in the fourth quarter 2015, reflecting limited new footprint expansion combined with the increasing maturity of established Fibe TV markets, fewer satellite TV customer migrations and promotional bundle offers that were generally less rich than the year before. Fibe TV net additions totalled 155,153 in 2016 compared with 253,329 the year before. At the end of 2016, BCE served 1,337,944 Fibe TV subscribers, up 13.1 per cent year over year.

Satellite TV net customer losses were relatively stable this quarter at 36,869 compared with 36,306 in the fourth quarter 2015. For full year 2016, satellite TV net customer losses increased 1.9 per cent to 148,740 from 145,949 in 2015, due to the cable competitors targeted acquisition offers in areas where IPTV service is not available. At the end of 2016, BCE had a combined total of 2,744,909 TV subscribers, compared with 2,738,496 at the end of 2015.

High-speed Internet net additions totalled 18,402 this quarter, compared with 38,908 in the fourth quarter 2015. Despite strong year-over-year growth in new customer activations within the company's rapidly expanding fibre-to-the-home (FTTH) service footprint, total Internet net additions decreased as a result of higher residential customer churn due to more aggressive promotional bundle offers from the cable competitors and a higher volume of Bell customers with expired promotions as well as fewer wholesale subscriber activations.

With full-year 2016 Internet net additions of 85,099 compared with 155,052 in 2015, BCE continued to build on its position as the leading Internet service provider in Canada with a high-speed Internet subscriber base of 3,476,562 at the end of 2016, up 1.9 per cent over 2015.

Bell's broadband fibre footprint reached approximately 8.3 million homes and businesses at the end of 2016, including approximately 2.9 million fibre-to-the-premises (FTTP) locations.

Wireline data revenue increased 2.9 per cent to $1,916-million in the fourth quarter, driven by combined residential Internet and TV service revenue growth of 5.8 per cent and strong 11.8-per-cent business service solutions growth reflecting the incremental financial contribution of Q9. This was partly offset by lower data product sales to large enterprise business customers due to the soft economy and the continuing decline in legacy data services as business customers migrate to Internet-protocol-based services and reduce overall communications spending. Similarly, full-year 2016 wireline data revenue increased 2.6 per cent to $7,350-million.

Residential NAS net losses increased 16.0 per cent to 67,385, from 58,081 in the fourth quarter 2015, due to reduced pull-through from fewer year-over-year Fibe TV activations, aggressive competitor discounts on promotional service bundle offers, and continued wireless and Internet-based technology substitution for local services. For full year 2016, residential NAS net losses totalled 283,993, up 2.1 per cent compared with 278,124 in 2015.

Business NAS net losses improved 31.9 per cent to 33,245 in the fourth quarter, from 48,829 the year before, due to improved small business performance as well as fewer large business customer deactivations and a reduction in business voice-line conversions to IP-based services. Similarly, for full year 2016, business NAS net losses were down 18.0 per cent to 131,415 from 160,310 in 2015.

Total NAS access lines at the end of 2016 totalled 6,257,732, or 6.4 per cent lower than the year before, resulting in local and access revenue declines in the fourth quarter and full year 2016 of 6.1 per cent and 5.6 per cent, respectively, to $753-million and $3,089-million. Long-distance revenue was down 12.7 per cent to $178-million this quarter and 10.8 per cent to $741-million in 2016 due to fewer NAS access lines and lower sales of international long-distance minutes compared with 2015.

Bell Media

Media operating revenue grew 3.6 per cent to $845-million, up from $816-million in the fourth quarter 2015. The increase was the result of higher subscriber revenue driven by the national expansion of the Movie Network (TMN) in March, 2016, and continued growth in CraveTV and TV Everywhere Go streaming products.

Advertising revenue in the fourth quarter was essentially unchanged compared with last year as declines in conventional TV, mainly reflecting the non-recurrence of revenue generated in the fourth quarter 2015 from the federal election and a soft radio advertising market, were offset by growth in outdoor advertising at Astral Out of Home (OOH) from acquisitions and new contract wins in 2016, and higher year-over-year revenues from Bell Media's specialty entertainment and news channel services.

Media adjusted EBITDA increased 2.2 per cent to $188-million, from $184-million in the fourth quarter 2015, due to higher year-over-year revenue that more than offset operating cost growth of 4.0 per cent attributable to TMN's national expansion, CraveTV content growth and increased expenses at Astral OOH related to acquisitions and outdoor advertising contract wins over the past year.

For the full year 2016, operating revenues were up 3.6 per cent to $3,081-million as operating costs increased 3.9 per cent, resulting in adjusted EBITDA growth of 2.8 per cent to $743-million.

CTV was the No. 1 network for the 13th consecutive fall season among total viewers and all key adult demographics with 10 of the top 20 programs, more than all other Canadian networks combined.

Bell Media's English specialty and pay-TV properties reached 82 per cent of Canadian English specialty and pay-TV viewers in the average week in the fourth quarter and broadcast 12 of the top 20 programs among key adult viewers. Discovery remained the top entertainment specialty channel in prime time while TMN, Space and Bravo all ranked in the top 10.

Bell Media maintained its leadership position in Quebec's French-language market with audiences for specialty and pay TV reaching 77 per cent of all TV viewers in the average week. Five of the top 10 specialty and pay channels among key viewers are Bell Media properties: RDS, Canal D, Super Ecran, Canal Vie and Z.

Total prime-time viewership in the fourth quarter for TSN was up 11 per cent over last year, supported by higher average audiences for the Canadian Football League, the National Football League and Toronto Raptors games and the Major League Soccer Cup playoffs, which produced the three most-watched MLS games in Canadian TV history and attracted 1.3 million viewers for the final game. During the quarter, TSN's deal with MLS was extended for five years.

The World Juniors final on Jan. 5 was the most-watched hockey broadcast on Canadian TV since 2015, attracting 5.2 million viewers on TSN and RDS.

Bell Media continued to lead in Canadian digital media with monthly unique visitors in the fourth quarter totalling 18.4 million, average monthly time spent of 961 million minutes, and 47.3 million average monthly videos served.

Bell Media remained Canada's top radio broadcaster in the fourth quarter, reaching 17.1 million listeners who spent more than 77 million hours tuned in each week.

On Jan. 3, Bell Media acquired Cieslok Media, a specialist in large-format outdoor advertising in key urban areas. Expanding Astral Out of Home's (OOH) digital presence, Cieslok is a premium out-of-home advertiser with 120 high-profile displays in Vancouver, Edmonton, Calgary, Montreal and Toronto, including Canada's largest multimedia billboards at Yonge-Dundas Square. Astral OOH operates 30,000 advertising displays in Quebec, Ontario, Alberta, Nova Scotia and British Columbia.

Common share dividend

BCE's board of directors has declared a quarterly dividend of 71.75 cents per common share, payable on April 15, 2017, to shareholders of record at the close of business on March 15, 2017.

Outlook for 2017

The company's 2017 business plan builds on the positive financial results and operating momentum it delivered in 2016 that reflected strong wireless profitability and postpaid subscriber activations, increasing broadband Internet and TV scale, improved media financial performance, as well as effective operating cost control and price discipline across all the company's operating segments and products.

BCE's 2017 guidance targets are underpinned by continued progress in the execution of its six strategic imperatives and a favourable financial profile for all three Bell operating segments, with higher free cash flow generation providing a strong and stable foundation for the 5.1-per-cent increase in BCE's annualized common share dividend for 2017 as well as continued significant capital investment in wireline and wireless network infrastructures to support future growth. These targets also reflect the confidence the company has in continuing to successfully manage its wireless, wireline and media businesses within the context of a highly competitive and dynamic market.

The company's 2016 guidance, 2016 results and financial guidance targets for 2017, which do not currently reflect the pending acquisition of MTS, are shown in the associated table.

                                                    2016 guidance             2016 results                 2017 guidance

Revenue growth                                           1% -- 3%                     1.0%                      1% -- 2%
Adjusted EBITDA growth                                   2% -- 4%                     2.8%                  1.5% -- 2.5%
Capital intensity                                     approx. 17%                    17.4%                   approx. 17%
Adjusted EPS                                       $3.45 -- $3.55                    $3.46                $3.42 -- $3.52
Free cash flow growth                           approx. 4% -- 12%                     7.6%              approx. 3% -- 7%
Annualized common dividend per share                        $2.73                    $2.73                         $2.87
Dividend payout policy               65% -- 75% of free cash flow  71.5% of free cash flow  65% -- 75% of free cash flow
 

Call with financial analysts

BCE will hold a conference call for financial analysts to discuss the fourth quarter 2016 results and 2017 financial guidance on Thursday, Feb. 2, at 8 a.m. Eastern Time. Media are welcome to participate on a listen-only basis. Please dial toll-free 1-866-223-7781 or 416-340-2216. A replay will be available for one week by dialling 1-800-408-3053 or 905-694-9451 and entering pass code 2972315 followed by the number sign.

A live audio webcast of the conference call will be available on BCE's website. The mp3 file will be available for download on this page later in the day.

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