Edgar Filing: BCE INC

Untitled Document

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934

For the month of: February 2004

Commission File Number: 1-8481

BCE Inc.
(Translation of Registrant’s name into English)

1000, rue de La Gauchetière Ouest, Bureau 3700, Montréal, Québec H3B 4Y7, (514) 397-7000
(Address of principal executive offices)

Indicate by check mark whether the Registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F

Form 40-F

Indicate by check mark whether the Registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes

If "Yes" is marked, indicate below the file number assigned to the Registrant in connection with Rule 12g3-2(b): 82-_____.

Notwithstanding any reference to BCE’s Web site on the World Wide Web in the documents attached hereto, the information contained in BCE’s site or any other site on the World Wide Web referred to in BCE’s site is not a part of this Form 6-K and, therefore, is not filed with the Securities and Exchange Commission.

Fourth Quarter 2003

Supplementary Financial Information

For further information,
please contact:

BCE Investor Relations

Sophie Argiriou
(514) 786-8145
sophie.argiriou@bell.ca

George Walker
(514) 870-2488
george.walker@bell.ca

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 1

BCE Consolidated ⁽¹⁾Consolidated Operational Data

($ millions, except per share amounts)		Q4 2003			Q4 2002			$ change	% change			Total 2003			Total 2002			$ change		% change

Operating revenues		4,910			5,045			(135)	(2.7	%)		19,056			19,186			(130	)	(0.7	%)
Operating expenses		(3,056	)		(3,238	)		182	5.6	%		(11,630	)		(11,831	)		201		1.7	%

EBITDA ⁽²⁾		1,854			1,807			47	2.6	%		7,426			7,355			71		1.0	%
Amortization expense		(786	)		(773	)		(13)	(1.7	%)		(3,147	)		(3,082	)		(65	)	(2.1	%)
Net benefit plans (cost) credit		(46	)		8			(54)	n.m			(175	)		33			(208	)	n.m
Restructuring and other charges		(51	)		(395	)		344	87.1	%		(52	)		(887	)		835		94.1	%

Operating income		971			647			324	50.1	%		4,052			3,419			633		18.5	%
Other income (expense)		136			2,245			(2,109)	(93.9	%)		213			2,433			(2,220	)	(91.2	%)
Impairment charge		-			(765	)		765	n.m			-			(765	)		765		n.m
Interest expense		(263	)		(341	)		78	22.9	%		(1,093	)		(1,124	)		31		2.8	%

Earnings from continuing operations before
income taxes and non-controlling interest		844			1,786			(942)	(52.7	%)		3,172			3,963			(791	)	(20.0	%)
Income taxes		(340	)		(732	)		392	53.6	%		(1,136	)		(1,583	)		447		28.2	%
Non-controlling interest		(46	)		(261	)		215	82.4	%		(191	)		(602	)		411		68.3	%

Earnings from continuing operations		458			793			(335)	(42.2	%)		1,845			1,778			67		3.8	%
Discontinued operations		(58	)		919			(977)	n.m			(30	)		629			(659	)	n.m

Net earnings		400			1,712			(1,312)	(76.6	%)		1,815			2,407			(592	)	(24.6	%)
Dividends on preferred shares		(14	)		(16	)		2	12.5	%		(64	)		(59	)		(5	)	(8.5	%)
Premium on redemption of preferred shares		-			-			-	n.m			(7	)		(6	)		(1	)	(16.7	%)

Net earnings applicable to common shares		386			1,696			(1,310)	(77.2	%)		1,744			2,342			(598	)	(25.5	%)

Net earnings (loss) per common share - basic
Continuing operations	$	0.48		$	0.87		$	(0.39)	(44.8	%)	$	1.93		$	2.00		$	(0.07	)	(3.5	%)
Discontinued operations	$	(0.07	)	$	1.01		$	(1.08)	n.m		$	(0.03	)	$	0.66		$	(0.69	)	n.m
Net earnings	$	0.41		$	1.88		$	(1.47)	(78.2	%)	$	1.90		$	2.66		$	(0.76	)	(28.6	%)
Net earnings (loss) per common share - diluted
Continuing operations	$	0.48		$	0.86		$	(0.38)	(44.2	%)	$	1.92		$	1.98		$	(0.06	)	(3.0	%)
Discontinued operations	$	(0.07	)	$	0.99		$	(1.06)	n.m		$	(0.03	)	$	0.64		$	(0.67	)	n.m
Net earnings	$	0.41		$	1.85		$	(1.44)	(77.8	%)	$	1.89		$	2.62		$	(0.73	)	(27.9	%)
Dividends per common share	$	0.30		$	0.30		$	-	0.0	%	$	1.20		$	1.20		$	-		-
Average number of common shares outstanding - basic (millions)		923.4			909.1							920.3			847.9


The following items are included in net earnings:
Net gains on sale of investments and dilution gains
Continuing operations		84			1,230							84			1,353
Discontinued operations		(73	)		911							(65	)		658
Restructuring and other charges		(30	)		(251	)						(24	)		(504	)
Impairment charge		-			(527	)						-			(527	)

Total		(19	)		1,363							(5	)		980
Impact on net earnings per share	$	(0.01	)	$	1.49						$	-		$	1.02



n.m. : not meaningful

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 2

BCE Consolidated ⁽¹⁾Consolidated Operational Data - Historical Trend

($ millions, except per share amounts)		Total 2003			Q4 03			Q3 03			Q2 03			Q1 03			Total 2002			Q4 02			Q3 02			Q2 02			Q1 02


Operating revenues		19,056			4,910			4,702			4,748			4,696			19,186			5,045			4,677			4,797			4,667
Operating expenses		(11,630	)		(3,056	)		(2,803	)		(2,848	)		(2,923	)		(11,831	)		(3,238	)		(2,792	)		(2,898	)		(2,903	)

EBITDA ⁽²⁾		7,426			1,854			1,899			1,900			1,773			7,355			1,807			1,885			1,899			1,764
Amortization expense		(3,147	)		(786	)		(813	)		(786	)		(762	)		(3,082	)		(773	)		(755	)		(796	)		(758	)
Net benefit plans (cost) credit		(175	)		(46	)		(44	)		(43	)		(42	)		33			8			7			12			6
Restructuring and other charges		(52	)		(51	)		(1	)		-			-			(887	)		(395	)		(79	)		(413	)		-

Operating income		4,052			971			1,041			1,071			969			3,419			647			1,058			702			1,012
Other income (expense)		213			136			19			7			51			2,433			2,245			(4	)		190			2
Impairment charge		-			-			-			-			-			(765	)		(765	)		-			-			-
Interest expense		(1,093	)		(263	)		(267	)		(285	)		(278	)		(1,124	)		(341	)		(280	)		(253	)		(250	)

Earnings from continuing operations before income taxes and non-controlling interest		3,172			844			793			793			742			3,963			1,786			774			639			764
Income taxes		(1,136	)		(340	)		(285	)		(271	)		(240	)		(1,583	)		(732	)		(304	)		(244	)		(303	)
Non-controlling interest		(191	)		(46	)		(50	)		(57	)		(38	)		(602	)		(261	)		(117	)		(104	)		(120	)

Earnings from continuing operations		1,845			458			458			465			464			1,778			793			353			291			341
Discontinued operations		(30	)		(58	)		6			13			9			629			919			12			(271	)		(31	)

Net earnings		1,815			400			464			478			473			2,407			1,712			365			20			310
Dividends on preferred shares		(64	)		(14	)		(18	)		(17	)		(15	)		(59	)		(16	)		(16	)		(14	)		(13	)
Premium on redemption of preferred shares		(7	)		-			-			-			(7	)		(6	)		-			-			-			(6	)

Net earnings applicable to common shares		1,744			386			446			461			451			2,342			1,696			349			6			291

Net earnings (loss) per common share - basic
Continuing operations	$	1.93		$	0.48		$	0.48		$	0.49		$	0.48		$	2.00		$	0.87		$	0.39		$	0.34		$	0.40
Discontinued operations	$	(0.03	)	$	(0.07	)	$	0.01		$	0.01		$	0.02		$	0.66		$	1.01		$	0.01		$	(0.33	)	$	(0.03	)
Net earnings	$	1.90		$	0.41		$	0.49		$	0.50		$	0.50		$	2.66		$	1.88		$	0.40		$	0.01		$	0.37
Net earnings (loss) per common share - diluted
Continuing operations	$	1.92		$	0.48		$	0.47		$	0.49		$	0.48		$	1.98		$	0.86		$	0.39		$	0.34		$	0.39
Discontinued operations	$	(0.03	)	$	(0.07	)	$	0.01		$	0.01		$	0.02		$	0.64		$	0.99		$	0.01		$	(0.33	)	$	(0.03	)
Net earnings	$	1.89		$	0.41		$	0.48		$	0.50		$	0.50		$	2.62		$	1.85		$	0.40		$	0.01		$	0.36
Dividends per common share	$	1.20		$	0.30		$	0.30		$	0.30		$	0.30		$	1.20		$	0.30		$	0.30		$	0.30		$	0.30
Average number of common shares outstanding - basic (millions)		920.3			923.4			921.5			919.3			917.1			847.9			909.1			864.1			808.7			808.6


The following items are included in net earnings:
Net gains on sale of investments and dilution gains
Continuing operations		84			84			-			-			-			1,353			1,230			12			111			-
Discontinued operations		(65	)		(73	)		8			-			-			658			911			-			(253	)		-
Restructuring and other charges		(24	)		(30	)		6			-			-			(504	)		(251	)		(37	)		(216	)		-
Impairment charge		-			-			-			-			-			(527	)		(527	)		-			-			-

Total		(5	)		(19	)		14			-			-			980			1,363			(25	)		(358	)		-
Impact on net earnings per share	$	-		$	(0.01	)	$	0.01		$	-		$	-		$	1.02		$	1.49		$	(0.03	)	$	(0.44	)	$	-

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 3

BCE Consolidated⁽¹⁾
Segmented Data

($ millions, except where otherwise indicated)	Q4 2003		Q4 2002		$ change	% change			Total 2003		Total 2002		$ change		% change

Revenues
Bell Canada Segment	4,281		4,450		(169	)	(3.8	%)	16,698		17,102		(404	)	(2.4	%)
Bell Globemedia	375		379		(4	)	(1.1	%)	1,363		1,290		73		5.7	%

Advertising	283		284		(1	)	(0.4	%)	978		913		65		7.1	%
Subscriber	69		72		(3	)	(4.2	%)	291		287		4		1.4	%
Production and Sundry	23		23		-		0.0	%	94		90		4		4.4	%

BCE Emergis	77		86		(9	)	(10.5	%)	316		346		(30	)	(8.7	%)

eFinance Solutions	60		68		(8	)	(11.8	%)	249		264		(15	)	(5.7	%)
eHealth Solutions	17		18		(1	)	(5.6	%)	67		82		(15	)	(18.3	%)

BCE Ventures	316		282		34		12.1	%	1,218		1,064		154		14.5	%

CGI	211		185		26		14.1	%	849		709		140		19.7	%
Telesat	99		95		4		4.2	%	345		327		18		5.5	%
Other	6		2		4		n.m		24		28		(4	)	(14.3	%)

Corporate and other (including inter-segment eliminations)	(139	)	(152	)	13		8.6	%	(539	)	(616	)	77		12.5	%

Total revenues	4,910		5,045		(135	)	(2.7	%)	19,056		19,186		(130	)	(0.7	%)


EBITDA
Bell Canada Segment	1,731		1,690		41		2.4	%	7,001		7,079		(78	)	(1.1	%)

Bell Canada (including Aliant)	1,752		1,752		-		0.0	%	7,046		7,255		(209	)	(2.9	%)
Bell ExpressVu	(21	)	(62	)	41		66.1	%	(45	)	(176	)	131		74.4	%

Bell Globemedia	83		72		11		15.3	%	233		180		53		29.4	%
BCE Emergis	6		10		(4	)	(40.0	%)	15		(29	)	44		n.m
BCE Ventures	91		71		20		28.2	%	347		287		60		20.9	%

CGI	33		25		8		32.0	%	131		99		32		32.3	%
Telesat	55		47		8		17.0	%	206		184		22		12.0	%
Other	3		(1	)	4		n.m		10		4		6		n.m

Corporate and other (including inter-segment eliminations)	(57	)	(36	)	(21	)	(58.3	%)	(170	)	(162	)	(8	)	(4.9	%)

Total EBITDA	1,854		1,807		47		2.6	%	7,426		7,355		71		1.0	%


EBITDA margin (%)	37.8	%	35.8	%					39.0	%	38.3	%
EBITDA : Interest expense	7.05		5.30						6.79		6.54


Net earnings applicable to common shares
Bell Canada Segment	493		1,360		(867	)	(63.8	%)	1,773		2,334		(561	)	(24.0	%)

Bell Canada (including Aliant)	530		1,433		(903	)	(63.0	%)	1,900		2,521		(621	)	(24.6	%)
Bell ExpressVu	(37	)	(73	)	36		49.3	%	(127	)	(187	)	60		32.1	%

Bell Globemedia	39		(493	)	532		n.m		51		(492	)	543		n.m
BCE Emergis	(27	)	2		(29	)	n.m		(26	)	(93	)	67		72.0	%
BCE Ventures	28		31		(3	)	(9.7	%)	135		129		6		4.7	%

CGI	12		14		(2	)	(14.3	%)	55		43		12		27.9	%
Telesat	11		19		(8	)	(42.1	%)	68		56		12		21.4	%
Other	5		(2	)	7		n.m		12		30		(18	)	(60.0	%)

Corporate and other (including inter-segment eliminations)	(89	)	(123	)	34		27.6	%	(159	)	(165	)	6		3.6	%
Discontinued operations	(58	)	919		(977	)	n.m		(30	)	629		(659	)	n.m

Total net earnings applicable to common shares	386		1,696		(1,310	)	(77.2	%)	1,744		2,342		(598	)	(25.5	%)

Proportionate EBITDA, net debt and preferreds
As at December 31, 2003
		Proportionate EBITDA

	BCE Ownership (%)		Q4 03		Q3 03		Q2 03		Q1 03		12-Mth Trailing		Proportionate net debt and preferreds

Bell Canada Segment
Bell Canada (excl. Aliant & ExpressVu)	100	%	1,535		1,593		1,536		1,507		6,171		10,969		(a)
Aliant	53.5	%	116		125		125		103		469		437
ExpressVu	100	%	(21	)	(9	)	(9	)	(6	)	(45	)	(3	)	(b)

Total Bell Canada Segment			1,630		1,709		1,652		1,604		6,595		11,403
Bell Globemedia	68.5	%	50		18		45		21		134		109
BCE Emergis	63.9	%	4		3		3		-		10		(64	)
BCE Ventures
CGI	29.8	%	33		32		35		31		131		41
Telesat	100	%	55		51		50		50		206		443
Other	100	%	3		2		3		2		10		2

Total BCE Ventures			91		85		88		83		347		486
Corporate	100	%	(57	)	(43	)	(30	)	(40	)	(170	)
Perpetual Preferred Shares													1,670
Debt due within one year													351		(c)
Long term debt													2,000
less:
Cash and cash equivalents													(133	)
Nortel common shares at market													(77	)

Total Corporate													3,811

Total			1,718		1,772		1,758		1,668		6,916		15,745

n.m. : not meaningful

(a)	Net of $498 million of intersegment debt.
(b)	Net of $422 million of intersegment debt.
(c)	Represents $351 million of retractable preferred shares

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 4

BCE Consolidated ⁽¹⁾
Segmented Data - Historical Trend


($ millions, except where otherwise indicated)	Total 2003		Q4 03		Q3 03		Q2 03		Q1 03		Total 2002		Q4 02		Q3 02		Q2 02		Q1 02

Revenues
Bell Canada Segment	16,698		4,281		4,169		4,145		4,103		17,102		4,450		4,219		4,276		4,157
Bell Globemedia	1,363		375		296		357		335		1,290		379		273		326		312

Advertising	978		283		201		259		235		913		284		180		230		219
Subscriber	291		69		73		75		74		287		72		72		70		73
Production and Sundry	94		23		22		23		26		90		23		21		26		20

BCE Emergis	316		77		78		82		79		346		86		86		91		83

eFinance Solutions	249		60		63		64		62		264		68		65		66		65
eHealth Solutions	67		17		15		18		17		82		18		21		25		18

BCE Ventures	1,218		316		295		304		303		1,064		282		258		261		263

CGI	849		211		205		214		219		709		185		177		176		171
Telesat	345		99		84		83		79		327		95		77		78		77
Other	24		6		6		7		5		28		2		4		7		15

Corporate and other (including inter-segment eliminations)	(539	)	(139	)	(136	)	(140	)	(124	)	(616	)	(152	)	(159	)	(157	)	(148	)

Total revenues	19,056		4,910		4,702		4,748		4,696		19,186		5,045		4,677		4,797		4,667


EBITDA
Bell Canada Segment	7,001		1,731		1,817		1,760		1,693		7,079		1,690		1,849		1,816		1,724

Bell Canada (including Aliant)	7,046		1,752		1,826		1,769		1,699		7,255		1,752		1,888		1,841		1,774
Bell ExpressVu	(45	)	(21	)	(9	)	(9	)	(6	)	(176	)	(62	)	(39	)	(25	)	(50	)

Bell Globemedia	233		83		36		77		37		180		72		17		58		33
BCE Emergis	15		6		4		5		-		(29	)	10		(3	)	(3	)	(33	)
BCE Ventures	347		91		85		88		83		287		71		66		73		77

CGI	131		33		32		35		31		99		25		21		28		25
Telesat	206		55		51		50		50		184		47		44		46		47
Other	10		3		2		3		2		4		(1	)	1		(1	)	5

Corporate and other (including inter-segment eliminations)	(170	)	(57	)	(43	)	(30	)	(40	)	(162	)	(36	)	(44	)	(45	)	(37	)

Total EBITDA	7,426		1,854		1,899		1,900		1,773		7,355		1,807		1,885		1,899		1,764


EBITDA margin (%)	39.0	%	37.8	%	40.4	%	40.0	%	37.8	%	38.3	%	35.8	%	40.3	%	39.6	%	37.8	%
EBITDA : Interest expense	6.79		7.05		7.11		6.67		6.38		6.54		5.30		6.73		7.51		7.06


Net earnings applicable to common shares
Bell Canada Segment	1,773		493		439		415		426		2,334		1,360		325		340		309

Bell Canada (including Aliant)	1,900		530		471		446		453		2,521		1,433		357		375		356
Bell ExpressVu	(127	)	(37	)	(32	)	(31	)	(27	)	(187	)	(73	)	(32	)	(35	)	(47	)

Bell Globemedia	51		39		(1	)	15		(2	)	(492	)	(493	)	(11	)	11		1
BCE Emergis	(26	)	(27	)	5		(2	)	(2	)	(93	)	2		2		(73	)	(24	)
BCE Ventures	135		28		30		38		39		129		31		15		59		24

CGI	55		12		12		13		18		43		14		7		11		11
Telesat	68		11		15		22		20		56		19		8		16		13
Other	12		5		3		3		1		30		(2	)	-		32		-

Corporate and other (including inter-segment eliminations)	(159	)	(89	)	(33	)	(18	)	(19	)	(165	)	(123	)	6		(60	)	12
Discontinued operations	(30	)	(58	)	6		13		9		629		919		12		(271	)	(31	)

Total net earnings applicable to common shares	1,744		386		446		461		451		2,342		1,696		349		6		291

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 5

BCE Consolidated ⁽¹⁾
Consolidated Balance Sheet Data

($ millions, except where otherwise indicated)	December 31 2003		December 31 2002

*ASSETS*
Current assets
Cash and cash equivalents	714		263
Accounts receivable	2,077		2,181
Other current assets	745		731
Current assets of discontinued operations	45		257

Total current assets	3,581		3,432
Capital assets	21,189		20,380
Other long-term assets	3,550		3,789
Indefinite-life intangible assets	2,910		900
Goodwill	7,825		9,471
Non-current assets of discontinued operations	276		1,134

Total assets	39,331		39,106

*LIABILITIES*
Current liabilities
Accounts payable and accrued liabilities	3,691		3,712
Debt due within one year	1,537		1,957
Current liabilities of discontinued operations	27		191

Total current liabilities	5,255		5,860
Long-term debt	12,393		13,117
Other long-term liabilities	4,699		3,650
Non-current liabilities of discontinued operations	1		280

Total liabilities	22,348		22,907

Non-controlling interest	3,403		3,584

*SHAREHOLDERS' EQUITY*
Preferred shares	1,670		1,510

Common shareholders' equity
Common shares	16,749		16,520
Contributed surplus	1,037		1,010
Deficit	(5,830	)	(6,435	)
Currency translation adjustment	(46	)	10

Total common shareholders' equity	11,910		11,105

Total shareholders' equity	13,580		12,615

Total liabilities and shareholders' equity	39,331		39,106

Number of common shares outstanding	924.0		915.9


Capital Structure

Net debt : Total Capitalization	43.8	%	48.4	%
Net debt : Trailing 12 month EBITDA	1.78		2.06

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 6

BCE Consolidated ⁽¹⁾
Consolidated Cash Flow Data

($ millions, except where otherwise indicated)		Q4 2003			Q4 2002			$ change			Total 2003			Total 2002			$ change

Cash flows from operating activities
Earnings from continuing operations		458			793			(335	)		1,845			1,778			67
Adjustments to reconcile earnings from continuing
operations to cash flows from operating activities:
Amortization expense		786			773			13			3,147			3,082			65
Net benefit plans cost (credit)		46			(8	)		54			175			(33	)		208
Restructuring and other charges (non-cash portion)		49			333			(284	)		44			805			(761	)
Impairment charge		-			765			(765	)		-			765			(765	)
Net gains on investments		(101	)		(2,254	)		2,153			(76	)		(2,414	)		2,338
Future income taxes		217			570			(353	)		433			518			(85	)
Non-controlling interest		46			261			(215	)		191			602			(411	)
Contributions to employee benefit plans and other
benefit plan payments		(110	)		(29	)		(81	)		(247	)		(97	)		(150	)
Other items		(31	)		46			(77	)		(90	)		(12	)		(78	)
Change in non-cash working capital		250			(112	)		362			593			(616	)		1,209

		1,610			1,138			472			6,015			4,378			1,637

Capital expenditures		(1,083	)		(1,066	)		(17	)		(3,179	)		(3,731	)		552
Other items		(7	)		(1	)		(6	)		64			13			51
Cash preferred dividends and cash dividends paid by subsidiaries
to non-controlling interest		(69	)		(160	)		91			(245	)		(511	)		266

Free Cash Flow from operations, before common dividends ⁽²⁾		451			(89	)		540			2,655			149			2,506
Cash common dividends		(259	)		(271	)		12			(1,029	)		(999	)		(30	)

Free Cash Flow from operations, after common dividends ⁽²⁾		192			(360	)		552			1,626			(850	)		2,476
Business acquisitions		(42	)		(5,078	)		5,036			(119	)		(6,471	)		6,352
Business dispositions		-			2,758			(2,758	)		55			3,190			(3,135	)
Decrease (increase) in investments accounted for under the cost
and equity methods		151			(13	)		164			164			(86	)		250

Free Cash Flow after investments and divestitures		301			(2,693	)		2,994			1,726			(4,217	)		5,943


Other financing activities
Decrease in notes payable and bank advances		(53	)		(633	)		580			(295	)		(213	)		(82	)
Issue of long-term debt		105			2,509			(2,404	)		1,986			4,908			(2,922	)
Repayment of long-term debt		(1,538	)		(2,068	)		530			(3,515	)		(2,720	)		(795	)
Issue of common shares		5			303			(298	)		19			2,693			(2,674	)
Issue of preferred shares		-			-			-			510			510			-
Redemption of preferred shares		-			-			-			(357	)		(306	)		(51	)
Costs relating to the issuance of common shares		-			-			-			-			(78	)		78
Issue of equity securities and convertible debentures by
subsidiaries to non-controlling interest		19			4			15			130			93			37
Redemption of equity securities by subsidiaries		(34	)		-			(34	)		(108	)		-			(108	)
Other items		(42	)		(9	)		(33	)		(44	)		(44	)		-

		(1,538	)		106			(1,644	)		(1,674	)		4,843			(6,517	)

Cash provided by (used in) continuing operations		(1,237	)		(2,587	)		1,350			52			626			(574	)
Cash provided by (used in) discontinued operations		342			23			319			364			(889	)		1,253

Net increase (decrease) in cash and cash equivalents		(895	)		(2,564	)		1,669			416			(263	)		679
Cash and cash equivalents at beginning of period		1,617			2,870			(1,253	)		306			569			(263	)

Cash and cash equivalents at end of period		722			306			416			722			306			416

Consists of:
Cash and cash equivalents of continuing operations		714			263			451			714			263			451
Cash and cash equivalents of discontinued operations		8			43			(35	)		8			43			(35	)

Total		722			306			416			722			306			416

Other information

Capital expenditures as a percentage of revenues		22.1	%		21.1	%		(1.0) pts			16.7	%		19.4	%		2.7	pts
Cash flow per share ⁽³⁾	$	0.57		$	0.08		$	0.49		$	3.08		$	0.76		$	2.32
Annualized cash flow yield ⁽⁴⁾		6.8	%		(1.2	%)		8.0	pts		9.9	%		0.6	%		9.3	pts
Common dividend payout		67.1	%		16.0	%		51.1	pts		59.0	%		42.7	%		16.3	pts

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 7

BCE Consolidated ⁽¹⁾
Consolidated Cash Flow Data - Historical Trend

($ millions, except where otherwise indicated)		Total 2003			Q4 03			Q3 03			Q2 03			Q1 03			Total 2002			Q4 02			Q3 02			Q2 02			Q1 02

Cash flows from operating activities
Earnings from continuing operations		1,845			458			458			465			464			1,778			793			353			291			341
Adjustments to reconcile earnings from continuing
operations to cash flows from operating activities:
Amortization expense		3,147			786			813			786			762			3,082			773			755			796			758
Net benefit plans cost (credit)		175			46			44			43			42			(33	)		(8	)		(7	)		(12	)		(6	)
Restructuring and other charges (non-cash portion)		44			49			(5	)		-			-			805			333			67			405			-
Impairment charge		-			-			-			-			-			765			765			-			-			-
Net gains on investments		(76	)		(101	)		25			-			-			(2,414	)		(2,254	)		(12	)		(148	)		-
Future income taxes		433			217			134			102			(20	)		518			570			103			(136	)		(19	)
Non-controlling interest		191			46			50			57			38			602			261			117			104			120
Contributions to employee benefit plans and
other benefit plan payments		(247	)		(110	)		(68	)		(42	)		(27	)		(97	)		(29	)		(24	)		(22	)		(22	)
Other items		(90	)		(31	)		(12	)		(91	)		44			(12	)		46			(55	)		(16	)		13
Change in non-cash working capital		593			250			429			60			(146	)		(616	)		(112	)		145			(88	)		(561	)

		6,015			1,610			1,868			1,380			1,157			4,378			1,138			1,442			1,174			624

Capital expenditures		(3,179	)		(1,083	)		(794	)		(708	)		(594	)		(3,731	)		(1,066	)		(896	)		(924	)		(845	)
Other items		64			(7	)		156			(45	)		(40	)		13			(1	)		26			15			(27	)
Cash preferred dividends and cash dividends paid
by subsidiaries to non-controlling interest		(245	)		(69	)		(52	)		(69	)		(55	)		(511	)		(160	)		(146	)		(127	)		(78	)

Free Cash Flow from operations, before common dividends		2,655			451			1,178			558			468			149			(89	)		426			138			(326	)
Cash common dividends		(1,029	)		(259	)		(259	)		(254	)		(257	)		(999	)		(271	)		(243	)		(242	)		(243	)

Free Cash Flow from operations, after common dividends ⁽²⁾		1,626			192			919			304			211			(850	)		(360	)		183			(104	)		(569	)
Business acquisitions		(119	)		(42	)		(7	)		(7	)		(63	)		(6,471	)		(5,078	)		(1,378	)		-			(15	)
Business dispositions		55			-			55			-			-			3,190			2,758			-			306			126
Decrease (increase) in investments accounted for
under the cost and equity methods		164			151			7			(1	)		7			(86	)		(13	)		(8	)		(8	)		(57	)

Free Cash Flow after investments and divestitures		1,726			301			974			296			155			(4,217	)		(2,693	)		(1,203	)		194			(515	)

Other financing activities
Decrease in notes payable and bank advances		(295	)		(53	)		(73	)		(56	)		(113	)		(213	)		(633	)		(58	)		600			(122	)
Issue of long-term debt		1,986			105			17			72			1,792			4,908			2,509			1,104			43			1,252
Repayment of long-term debt		(3,515	)		(1,538	)		(147	)		(1,464	)		(366	)		(2,720	)		(2,068	)		(291	)		(261	)		(100	)
Issue of common shares		19			5			5			4			5			2,693			303			2,381			7			2
Issue of preferred shares		510			-			-			-			510			510			-			-			-			510
Redemption of preferred shares		(357	)		-			-			-			(357	)		(306	)		-			-			-			(306	)
Costs relating to the issuance of common shares		-			-			-			-			-			(78	)		-			(78	)		-			-
Issue of equity securities and convertible debentures by
subsidiaries to non-controlling interest		130			19			24			14			73			93			4			44			38			7
Redemption of equity securities by subsidiaries		(108	)		(34	)		(39	)		(16	)		(19	)		-			-			-			-			-
Other items		(44	)		(42	)		56			(56	)		(2	)		(44	)		(9	)		(39	)		10			(6	)

		(1,674	)		(1,538	)		(157	)		(1,502	)		1,523			4,843			106			3,063			437			1,237

Cash provided by (used in) continuing operations		52			(1,237	)		817			(1,206	)		1,678			626			(2,587	)		1,860			631			722
Cash (provided by) used in discontinued operations		364			342			4			14			4			(889	)		23			20			(533	)		(399	)

Net increase (decrease) in cash and cash equivalents		416			(895	)		821			(1,192	)		1,682			(263	)		(2,564	)		1,880			98			323
Cash and cash equivalents at beginning of period		306			1,617			796			1,988			306			569			2,870			990			892			569

Cash and cash equivalents at end of period		722			722			1,617			796			1,988			306			306			2,870			990			892

Consists of:
Cash and cash equivalents of continuing operations		714			714			1,552			735			1,941			263			263			2,850			990			359
Cash and cash equivalents of discontinued operations		8			8			65			61			47			43			43			20			-			533

Total		722			722			1,617			796			1,988			306			306			2,870			990			892

Other information

Capital expenditures as a percentage of revenues		16.7	%		22.1	%		16.9	%		14.9	%		12.6	%		19.4	%		21.1	%		19.2	%		19.3	%		18.1	%
Cash flow per share ⁽³⁾	$	3.08		$	0.57		$	1.17		$	0.73		$	0.61		$	0.76		$	0.08		$	0.63		$	0.31		$	(0.27	)
Annualized cash flow yield ⁽⁴⁾		9.9	%		6.8	%		17.6	%		8.0	%		7.6	%		0.6	%		(1.2	%)		6.8	%		2.4	%		(5.6	%)
Common dividend payout		59.0	%		67.1	%		58.1	%		55.1	%		57.0	%		42.7	%		16.0	%		69.6	%		n.m.			83.5	%

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 8

Bell Canada Segment⁽¹⁾
Operational Data

($ millions, except where otherwise indicated)	Q4 2003		Q4 2002		$ change		% change		Total 2003		Total 2002		$ change		% change

Revenues
Local and access	1,563		1,564		(1	)	(0.1	%)	6,105		6,129		(24	)	(0.4	%)
Long distance	602		635		(33	)	(5.2	%)	2,487		2,579		(92	)	(3.6	%)
Wireless	674		581		93		16.0	%	2,526		2,203		323		14.7	%
Data	972		1,024		(52	)	(5.1	%)	3,791		3,770		21		0.6	%
Bell ExpressVu	201		176		25		14.2	%	761		638		123		19.3	%
Terminal sales and other	269		379		(110	)	(29.0	%)	1,028		1,282		(254	)	(19.8	%)
Directory advertising	-		91		(91	)	n.m		-		501		(501	)	n.m

	4,281		4,450		(169	)	(3.8	%)	16,698		17,102		(404	)	(2.4	%)
Cash operating expenses	(2,550	)	(2,760	)	210		7.6	%	(9,697	)	(10,023	)	326		3.3	%

EBITDA	1,731		1,690		41		2.4	%	7,001		7,079		(78	)	(1.1	%)

Bell Canada (including Aliant)	1,752		1,752		-		0.0	%	7,046		7,255		(209	)	(2.9	%)
Bell ExpressVu	(21	)	(62	)	41		66.1	%	(45	)	(176	)	131		74.4	%


EBITDA margin (%)	40.4	%	38.0	%			2.4	pts	41.9	%	41.4	%			0.5	pts

Amortization expense	(742	)	(734	)	(8	)	(1.1	%)	(2,970	)	(2,894	)	(76	)	(2.6	%)
Net benefit plans (cost) credit	(46	)	9		(55	)	n.m		(181	)	38		(219	)	n.m
Restructuring and other charges	(13	)	(302	)	289		95.7	%	(14	)	(675	)	661		97.9	%

Operating income	930		663		267		40.3	%	3,836		3,548		288		8.1	%
Interest expense	(231	)	(293	)	62		21.2	%	(945	)	(1,108	)	163		14.7	%
Other income (expense)	134		2,284		(2,150	)	(94.1	%)	194		2,434		(2,240	)	(92.0	%)
Impairment charge	-		(50	)	50		n.m		-		(50	)	50		n.m

Earnings before income taxes and
non-controlling interest	833		2,604		(1,771	)	(68.0	%)	3,085		4,824		(1,739	)	(36.0	%)
Income taxes	(316	)	(766	)	450		58.7	%	(1,127	)	(1,609	)	482		30.0	%
Non-controlling interest	(15	)	(20	)	5		25.0	%	(102	)	(101	)	(1	)	(1.0	%)

Earnings from continuing operations	502		1,818		(1,316	)	(72.4	%)	1,856		3,114		(1,258	)	(40.4	%)
Discontinued operations	53		(3	)	56		n.m		59		14		45		n.m

Net earnings	555		1,815		(1,260	)	(69.4	%)	1,915		3,128		(1,213	)	(38.8	%)
Dividends on preferred shares	(9	)	(15	)	6		40.0	%	(58	)	(63	)	5		7.9	%
Interest on equity settled notes	-		(15	)	15		n.m		(25	)	(59	)	34		57.6	%

Net earnings applicable to common shares	546		1,785		(1,239	)	(69.4	%)	1,832		3,006		(1,174	)	(39.1	%)



The following items are included in net earnings:
Net gains on sale of investments and dilution gains
Continuing operations	86		1,655						92		1,848
Discontinued operations	48		(6	)					56		5
Restructuring and other charges	(9	)	(190	)					(9	)	(426	)
Impairment charge	-		(26	)					-		(26	)
Other	-		-						-		(18	)

Total	125		1,433						139		1,383


Other information

Capital expenditures	991		974		(17	)	(1.7	%)	2,892		3,390		498		14.7	%
Capital expenditures as a percentage of revenues (%)	23.1	%	21.9	%			(1.2) pts		17.3	%	19.8	%			2.5	pts


Net debt and preferreds
At December 31, 2003	Bell Canada		Aliant		Bell ExpressVu		Bell Canada Consolidated		Inter- company eliminations		Bell Canada Segment


Bank indebtedness / (cash and cash equivalents)	(30	)	(365	)	(3	)	(398	)	-		(398	)
Long term debt	8,743		889		392		10,024		(392	)	9,632
Debt due within one year	1,015		120		30		1,165		(30	)	1,135
Long-term note receivable from BCH	(498	)	-		-		(498	)	498		-
PPA fair value increment ⁽⁵⁾											141

Net debt	9,230		644		419		10,293		76		10,510
Preferred shares - Bell Canada ⁽⁶⁾	1,100		-		-		1,100		-		1,100
Preferred shares - Aliant ⁽⁶⁾	-		172				172		-		172

Net debt and preferreds	10,330		816		419		11,565		76		11,782

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 9

Bell Canada Segment ⁽¹⁾
Operational Data - Historical Trend


($ millions, except where otherwise indicated)	Total 2003		Q4 03		Q3 03		Q2 03		Q1 03		Total 2002		Q4 02		Q3 02		Q2 02		Q1 02

Revenues
Local and access	6,105		1,563		1,530		1,512		1,500		6,129		1,564		1,519		1,527		1,519
Long distance	2,487		602		631		608		646		2,579		635		651		645		648
Wireless	2,526		674		661		621		570		2,203		581		570		548		504
Data	3,791		972		931		955		933		3,770		1,024		908		933		905
Bell ExpressVu	761		201		192		191		177		638		176		156		155		151
Terminal sales and other	1,028		269		224		258		277		1,282		379		275		330		298
Directory advertising	-		-		-		-		-		501		91		140		138		132

	16,698		4,281		4,169		4,145		4,103		17,102		4,450		4,219		4,276		4,157
Cash operating expenses	(9,697	)	(2,550	)	(2,352	)	(2,385	)	(2,410	)	(10,023	)	(2,760	)	(2,370	)	(2,460	)	(2,433	)


EBITDA	7,001		1,731		1,817		1,760		1,693		7,079		1,690		1,849		1,816		1,724

Bell Canada (including Aliant)	7,046		1,752		1,826		1,769		1,699		7,255		1,752		1,888		1,841		1,774
Bell ExpressVu	(45	)	(21	)	(9	)	(9	)	(6	)	(176	)	(62	)	(39	)	(25	)	(50	)


EBITDA margin (%)	41.9	%	40.4	%	43.6	%	42.5	%	41.3	%	41.4	%	38.0	%	43.8	%	42.5	%	41.5	%

Amortization expense	(2,970	)	(742	)	(758	)	(747	)	(723	)	(2,894	)	(734	)	(711	)	(746	)	(703	)
Net benefit plans (cost) credit	(181	)	(46	)	(46	)	(45	)	(44	)	38		9		10		11		8
Restructuring and other charges	(14	)	(13	)	(1	)	-		-		(675	)	(302	)	(79	)	(294	)	-

Operating income	3,836		930		1,012		968		926		3,548		663		1,069		787		1,029
Interest expense	(945	)	(231	)	(239	)	(232	)	(243	)	(1,108	)	(293	)	(282	)	(266	)	(267	)
Other income (expense)	194		134		3		13		44		2,434		2,284		(32	)	190		(8	)
Impairment charge	-		-		-		-		-		(50	)	(50	)	-		-		-

Earnings before income taxes and
non-controlling interest	3,085		833		776		749		727		4,824		2,604		755		711		754
Income taxes	(1,127	)	(316	)	(291	)	(273	)	(247	)	(1,609	)	(766	)	(300	)	(242	)	(301	)
Non-controlling interest	(102	)	(15	)	(29	)	(35	)	(23	)	(101	)	(20	)	(36	)	(21	)	(24	)

Earnings from continuing operations	1,856		502		456		441		457		3,114		1,818		419		448		429
Discontinued operations	59		53		-		5		1		14		(3	)	(1	)	13		5

Net earnings	1,915		555		456		446		458		3,128		1,815		418		461		434
Dividends on preferred shares	(58	)	(9	)	(17	)	(16	)	(16	)	(63	)	(15	)	(16	)	(16	)	(16	)
Interest on equity settled notes	(25	)	-		-		(10	)	(15	)	(59	)	(15	)	(14	)	(16	)	(14	)

Net earnings applicable to common shares	1,832		546		439		420		427		3,006		1,785		388		429		404



The following items are included in net earnings:
Net gains on sale of investments and dilution gains
Continuing operations	92		86		6		-		-		1,848		1,655		-		193		-
Discontinued operations	56		48		8		-		-		5		(6	)	-		11		-
Restructuring and other charges	(9	)	(9	)	-		-		-		(426	)	(190	)	(45	)	(191	)	-
Impairment charge	-		-		-		-		-		(26	)	(26	)	-		-		-
Other	-		-		-		-		-		(18	)	-		-		(18	)	-

Total	139		125		14		-		-		1,383		1,433		(45	)	(5	)	-


Other information

Capital expenditures	2,892		991		708		659		534		3,390		974		831		824		761
Capital expenditures as a percentage of revenues (%)	17.3	%	23.1	%	17.0	%	15.9	%	13.0	%	19.8	%	21.9	%	19.7	%	19.3	%	18.3	%

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 10

Bell Canada Segment
Statistical Data*

	Q4 2003		Q4 2002		% change		Total 2003		Total 2002		% change

Wireline
Local
Network access services (k)
Residential							8,511		8,573		(0.7	%)
Business							4,540		4,581		(0.9	%)

Total network access services							13,051		13,154		(0.8	%)

Estimated percentage of wireline NAS - Ontario and Quebec⁽⁷⁾
Residential	96.9	%	97.9	%	(1.0)pts
Business	90.4	%	91.3	%	(0.9)pts

Total estimated percentage of wireline NAS	94.6	%	95.5	%	(0.9)pts

SmartTouch feature revenues ($M)	233		231		0.9	%	931		923		0.9	%

Long Distance (LD)
Conversation minutes (M)	4,685		5,000		(6.3	%)	19,132		19,034		0.5	%
Average revenue per minute ($)	0.122		0.120		1.7	%	0.124		0.126		(1.6	%)
Estimated percentage of traditional wireline LD revenues - Ontario and Quebec ⁽⁸⁾	62.9	%	63.0	%	(0.1) pts

Data
Data revenues ($M)⁽⁹⁾
Legacy	387		486		(20.4	%)	1,644		1,864		(11.8	%)
Non-Legacy	585		538		8.7	%	2,147		1,906		12.6	%

	972		1,024		(5.1	%)	3,791		3,770		0.6	%

Equivalent access lines ⁽¹⁰⁾(k) - Bell Canada only
Digital equivalent access lines							3,867		3,683		5.0	%
Broadband equivalent access lines							16,651		12,568		32.5	%

Internet subscribers ⁽¹¹⁾ (k)
DSL High Speed Internet subscribers (k)							1,482		1,110		33.5	%
Dial-up Internet subscribers (k)							869		957		(9.2	%)

							2,351		2,067		13.7	%

Wireless
Cellular & PCS Net activations (k)
Pre-paid	33		19		73.7	%	101		-		n.m
Post-paid	156		196		(20.4	%)	413		452		(8.6	%)

	189		215		(12.1	%)	514		452		13.7	%
Cellular & PCS subscribers (k)
Pre-paid							1,059		958		10.5	%
Post-paid							3,353		2,940		14.0	%

							4,412		3,898		13.2	%

Average revenue per unit ($/month)	50		47		6.4	%	48		47		2.1	%
Pre-paid	12		10		20.0	%	12		12		0.0	%
Post-paid	62		60		3.3	%	60		59		1.7	%

Churn (%) (average per month)	1.4	%	1.7	%	0.3	pts	1.4	%	1.7	%	0.3	pts
Pre-paid	1.8	%	2.7	%	0.9	pts	1.9	%	2.2	%	0.3	pts
Post-paid	1.2	%	1.4	%	0.2	pts	1.3	%	1.5	%	0.2	pts

Usage per subscriber (min/month)	240		214		12.1	%	228		204		11.8	%
Cost of acquisition ^{(12) ($/sub)}	445		409		(8.8	%)	426		429		0.7	%
Wireless EBITDA	229		151		51.7	%	918		754		21.8	%
Wireless EBITDA margin	34.0	%	26.0	%	8.0	pts	36.3	%	34.2	%	2.1	pts

Browser hits (M)	190		99		91.9	%	653		392		66.6	%

Paging subscribers (k)							524		639		(18.0	%)
Paging average revenue per unit ($/month)	10		10		0.0	%	10		10		0.0	%

Bell ExpressVu (Direct-to-Home Satellite Service)
Total subscribers (k)							1,387		1,304		6.4	%
Net subscriber activations (k)	35		83		(57.8	%)	83		235		(64.7	%)
Average revenue per subscriber ($/month)	48		43		11.6	%	46		44		4.5	%
Cost of acquisition ($/sub)	735		667		(10.2	%)	671		690		2.8	%
Churn (%) (average per month)	1.0	%	0.9	%	(0.1) pts		1.1	%	1.0	%	(0.1) pts

* Operating statistics are reported on a consolidated basis, except where otherwise noted.

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 11

Bell Canada Segment
Statistical Data - Historical Trend*

	Total 2003		Q4 03		Q3 03		Q2 03		Q1 03		Total 2002		Q4 02		Q3 02		Q2 02		Q1 02

Wireline
Local
Network access services (k)
Residential			8,511		8,539		8,504		8,566				8,573		8,580		8,532		8,613
Business			4,540		4,549		4,564		4,577				4,581		4,607		4,630		4,633

Total network access services			13,051		13,088		13,068		13,143				13,154		13,187		13,162		13,246

Estimated percentage of wireline NAS - Ontario and Quebec⁽⁷⁾
Residential			96.9	%	97.3	%	97.6	%	97.9	%			97.9	%	98.0	%	98.3	%	98.7	%
Business			90.4	%	90.3	%	90.6	%	91.0	%			91.3	%	91.5	%	91.6	%	91.8	%

Total estimated percentage of wireline NAS			94.6	%	94.8	%	95.1	%	95.4	%			95.5	%	95.7	%	95.9	%	96.2	%

SmartTouch feature revenues ($M)	931		233		234		233		231		923		231		230		230		232

Long Distance (LD)
Conversation minutes (M)	19,132		4,685		4,664		4,911		4,872		19,034		5,000		4,660		4,725		4,649
Average revenue per minute ($)	0.124		0.122		0.128		0.120		0.124		0.126		0.120		0.130		0.126		0.128
Estimated percentage of traditional wireline LD revenues - Ontario
and Quebec ⁽⁸⁾			62.9	%	63.7	%	63.1	%	63.1	%			63.0	%	63.5	%	62.8	%	63.0	%

Data
Data revenues ($M)⁽⁹⁾
Legacy	1,644		387		417		413		427		1,864		486		451		453		474
Non-Legacy	2,147		585		514		542		506		1,906		538		457		480		431

	3,791		972		931		955		933		3,770		1,024		908		933		905

Equivalent access lines^{(10) (k) - Bell Canada only}
Digital equivalent access lines			3,867		3,771		3,708		3,704				3,683		3,645		3,833		3,815
Broadband equivalent access lines			16,651		15,393		14,658		13,808				12,568		11,265		10,176		9,431

Internet subscribers⁽¹¹⁾ (k)
DSL High Speed Internet subscribers (k)			1,482		1,391		1,287		1,206				1,110		1,002		909		866
Dial-up Internet subscribers (k)			869		892		911		940				957		985		1,031		1,036

			2,351		2,283		2,198		2,146				2,067		1,987		1,940		1,902

Wireless
Cellular & PCS Net activations (k)
Pre-paid	101		33		23		27		18		-		19		(5	)	(29	)	15
Post-paid	413		156		101		104		52		452		196		63		117		76

	514		189		124		131		70		452		215		58		88		91
Cellular & PCS subscribers (k)
Pre-paid			1,059		1,026		1,003		976				958		939		944		973
Post-paid			3,353		3,197		3,096		2,992				2,940		2,744		2,681		2,564

			4,412		4,223		4,099		3,968				3,898		3,683		3,625		3,537

Average revenue per unit ($/month)	48		50		50		48		45		47		47		48		47		44
Pre-paid	12		12		13		12		11		12		10		13		13		11
Post-paid	60		62		62		60		56		59		60		60		59		56

Churn (%) (average per month)	1.4	%	1.4	%	1.4	%	1.4	%	1.4	%	1.7	%	1.7	%	1.8	%	1.6	%	1.6	%
Pre-paid	1.9	%	1.8	%	1.8	%	1.9	%	1.9	%	2.2	%	2.7	%	2.2	%	1.9	%	1.8	%
Post-paid	1.3	%	1.2	%	1.3	%	1.3	%	1.3	%	1.5	%	1.4	%	1.6	%	1.4	%	1.5	%


Usage per subscriber (min/month)	228		240		231		237		203		204		214		207		206		188
Cost of acquisition^{(12) ($/sub)}	426		445		425		435		387		429		409		441		471		407
Wireless EBITDA	918		229		251		219		219		754		151		219		206		178
Wireless EBITDA margins	36.3	%	34.0	%	38.0	%	35.3	%	38.4	%	34.2	%	26.0	%	38.4	%	37.6	%	35.3	%

Browser hits (M)	653		190		170		170		123		392		99		87		94		112

Paging subscribers (k)			524		549		581		606				639		660		680		694
Paging average revenue per unit ($/month)	10		10		10		10		10		10		10		10		10		10

Bell ExpressVu (Direct-to-Home Satellite Service)
Total subscribers (k)			1,387		1,352		1,335		1,317				1,304		1,221		1,176		1,145
Net subscriber activations (k)	83		35		17		18		13		235		83		45		31		76
Average revenue per subscriber ($/month)	46		48		47		47		44		44		43		43		44		45
Cost of acquisition ($/sub)	671		735		613		655		675		690		667		630		769		718
Churn (%) (average per month)	1.1	%	1.0	%	1.4	%	1.1	%	1.0	%	1.0	%	0.9	%	1.2	%	1.0	%	0.8	%

* Operating statistics are reported on a consolidated basis, except where otherwise noted.

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 12

Accompanying Notes

(1)

Effective December 2003, we started presenting the financial results of Aliant’s remote communications segment which consisted mainly of Aliant’s investment in Stratos Global Corporation (Stratos), and BCE Emergis’ US Health operations (US Health) as discontinued operations. Stratos results were previously presented in the Bell Canada Segment and US Health results were previously presented in the BCE Emergis segment. As a result, prior periods have been restated to reflect the discontinued operations treatment of Stratos and US Health.

(2)

Non-GAAP financial Measures

Certain financial measures used in this Supplementary Financial Information do not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). Below you will find a discussion of these non-GAAP financial measures, as well as a reconciliation to the most comparable GAAP measure.

EBITDA

The term EBITDA (earnings before interest, taxes, depreciation and amortization) does not have any standardized meaning prescribed by Canadian GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. We define it as operating revenues less operating expenses, which means it represents operating income before amortization expense, net benefit plans (cost) credit and restructuring and other charges. EBITDA is presented on a basis that is consistent from period to period.

We believe EBITDA to be an important measure as it allows us to assess the operating performance of our ongoing businesses without the effects of amortization expense, net benefit plans (cost) credit and restructuring and other charges. We exclude amortization expense and net benefit plans (cost) credit because they substantially depend on the accounting methods and assumptions a company uses, as well as non-operating factors such as the historical cost of capital assets and the fund performance of a company’s pension plans. We exclude restructuring and other charges because they are transitional in nature.

EBITDA allows us to compare our operating performance on a consistent basis. We also believe that EBITDA is used by certain investors and analysts in measuring a company’s ability to service debt and to meet other payment obligations or as the basis for a valuation measurement that is commonly used in the telecommunications industry.

EBITDA should not be confused with net cash flows from operating activities. The most comparable Canadian GAAP earnings measure is operating income. The following is a reconciliation of EBITDA to operating income on a consolidated and segmented basis.

(in $ millions)	Bell Canada	Bell Globe- media	BCE Emergis	BCE Ventures	Corpo- rate and other	BCE Consoli- dated

Q4 2003

EBITDA	1 731	83	6	91	(57)	1 854
Amortization expense	(742)	(14)	(10)	(34)	14	(786)
Net benefit plans (cost) credit	(46)	(3)	-	-	3	(46)
Restructuring and other charges	(13)	-	(38)	-	-	(51)

Operating income (loss)	930	66	(42)	57	(40)	971

Q4 2002

EBITDA	1 690	72	10	71	(36)	1 807
Amortization expense	(734)	(16)	(12)	(28)	17	(773)
Net benefit plans (cost) credit	9	-	-	-	(1)	8
Restructuring and other charges	(302)	-	-	-	(93)	(395)

Operating income (loss)	663	56	(2)	43	(113)	647

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 13

Accompanying Notes (continued)

(in $ millions)	Bell Canada	Bell Globe- media	BCE Emergis	BCE Ventures	Corpo- rate and other	BCE Consoli- dated

Full Year 2003

EBITDA	7 001	233	15	347	(170)	7 426
Amortization expense	(2 970)	(60)	(46)	(126)	55	(3 147)
Net benefit plans (cost) credit	(181)	(6)	-	-	12	(175)
Restructuring and other charges	(14)	-	(38)	-	-	(52)

Operating income (loss)	3 836	167	(69)	221	(103)	4 052


Full Year 2002

EBITDA	7 079	180	(29)	287	(162)	7 355
Amortization expense	(2 894)	(67)	(58)	(121)	58	(3 082)
Net benefit plans (cost) credit	38	(3)	-	-	(2)	33
Restructuring and other charges	(675)	-	(119)	-	(93)	(887)

Operating income (loss)	3 548	110	(206)	166	(199)	3 419

Free Cash Flow
The term free cash flow does not have any standardized meaning prescribed by Canadian GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers. We define it as cash from operating activities less capital expenditures, total dividends and other investing activities. Free cash flow is presented on a basis that is consistent from period to period. We consider free cash flow as an important indicator of the financial strength and performance of our business as it demonstrates the cash available to repay debt and reinvest in our company. We believe that free cash flow is also used by certain investors and analysts in valuing a business and its underlying assets. The most comparable Canadian GAAP financial measure is cash from operating activities. The following is a reconciliation of free cash flow to cash from operating activities on a consolidated basis:

(in $ millions)	Q4 2003	Q4 2002	FY 2003	FY 2002

Cash from operating activities	1 610	1 138	6 015	4 378
Capital expenditures	(1 083)	(1 066)	(3 179)	(3 731)
Other investing activities	(7)	(1)	64	13
Preferred dividends and dividends paid
by subsidiaries to non-controlling interest	(69)	(160)	(245)	(511)

Free cash flow from operations, before common dividends	451	(89)	2 655	149
Common dividends	(259)	(271)	(1 029)	(999)

Free cash flow from operations, after common dividends	192	(360)	1 626	(850)

(3)

Cash flow per share is calculated as follows:

Cash flow from operations less capital expenditures
Average number of common shares outstanding during the period

(4)

Annualized cash flow yield is calculated as follows:

Free cash flow before common dividends, investments and divestitures
Number of common shares outstanding at end of period multiplied by share price at end of period

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 14

Accompanying Notes (continued)

(5)	Reflects an increase in the Bell Canada Segment debt as a result of the completion of the purchase price allocation (PPA) relating to the repurchase of SBC’s 20% interest in Bell Canada, which resulted in an increase in long-term debt of $165 million. This increase in long-term debt will be applied against interest expense ($6 million in Q4 2003, $24 million YTD) over the remaining terms of the related long-term debt.

(6)	At the BCE Consolidated level, 3^rd Party Preferred Shares reflected in the financial statements of subsidiaries are included in non-controlling interest within the liabilities section of the balance sheet.

(7)	Bell Canada’s estimated percentage of wireline NAS reflects losses to facilities-based competition only.

(8)	Represents Bell Canada’s estimated percentage of traditional wireline revenues in Ontario and Quebec reflecting 1+, toll-free and calling card traffic. This measure does not include Bell Canada’s share of long distance traffic originating through the use of dial-around services, prepaid cards and cellular and PCS services.

(9)	Legacy data revenues include digital transmission services such as MEGALINK^TM, network access and Integrated Services Digital Network (ISDN) and Data, as well as, competitive network services and the sale of inter-networking equipment. Non-legacy data revenues include national and regional IP data, Internet and e-commerce.

(10)	Digital equivalent access lines are derived by converting low capacity data lines (DS-3 and lower) to the equivalent number of voice grade access lines. Broadband equivalent access lines are derived by converting high capacity data lines (higher than DS-3) to the equivalent number of voice grade access lines.

Conversion factors

DS-0	1
Basic ISDN	2
Primary ISDN	23
DS-1, DEA	24
DS-3	672
OC-3	2,016
OC-12	8,064
OC-48	32,256
OC-192	129,024
10 Base T	155
100 Base T	1,554
Gigabit E	15,554


(11)	DSL High Speed Internet subscribers include consumer, business and wholesale. Dial-up Internet subscribers include consumer and business.

(12)	Includes allocation of selling costs from Bell Canada and excludes costs of migrating from analog to digital. Cost of Acquisition (COA) per subscriber is reflected on a consolidated basis.

BCE Inc. Supplementary Financial Information - Fourth Quarter 2003 Page 15

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BCE Inc.
	(signed) Michael T. Boychuk
	Michael T. Boychuk Senior Vice-President and Treasurer
	Date: February 5, 2004