Videotron

Quebecor’s Q2TR Grew by 7.6% Because of Videotron

August 2, 2015 - Written By Cory McNutt

Quebecor Media, Inc., is a broadcasting, telecommunications and publishing company based in Montreal, Quebec, Canada.  It just so happens that they put out their Q2 2015 figures the other day and they also happen to be the parent company of wireless telecom Vid©otron.  Consolidated revenues were at $960.9 million, up $67.9 million or a 7.6-percent compared to last year during the same quarter.  Most of this increase is direct result of the increase in their mobile revenues via Videotron, which rose $29.5 million – an increase of 44.2-percent over last year.  What is especially attractive is that Vid©otron’s average monthly revenue per user (ARPU) is $133.71 in the second quarter of 2015 compared to $123.61 in the same period of 2014, a $10.10 – a 8.2-percent increase – led by a $5.69 or 13.8-percent increase in mobile revenues.

Some other Vid©otron highlights that Quebecor reported – new wireless subscribers increased by 40,800, a 6.2-percent increase, in the second quarter to 700,000 subscribers.  Even with all of the good news, there was a downside as Quebecor’s adjusted operating income was down 2.9% to $349.3 million, reflecting major investments and accounting adjustments.  In May 2015, Quebecor acquired eighteen 2500 MHz spectrum licenses covering all of Qu©bec and all of Canada’s major urban centers for a total of $187.0 million.  They also acquired AWS‑3 licenses earlier this year along with the 700 MHz spectrum licenses they purchased in 2015.  This puts them in a great position to further develop their Qu©bec network in the coming years, as they would most certainly like to compete with the Big Three.

Pierre Dion, President and CEO of Quebecor said, “In the first half of 2015, therefore, Quebecor actively pursued its business plan, focusing on areas with strong growth potential.  The Corporation remains well positioned to achieve its business development and shareholder value-creation targets.”  The Board of Directors of Quebecor announced that ‰rik P©ladeau is rejoining the Board and has this to say, “The business philosophy and entrepreneurial spirit of Quebecor’s founder, Pierre P©ladeau, have been the cornerstone of the Corporation’s success for more than 50 years.  In this respect, ‰rik is a chip off the old block. His vision and business experience will be valuable assets for the Corporation.” Vid©otron had a great year and with their recent spectrum purchases have the material they need to grow even more as that spectrum is turned on.  With WIND Mobile gaining more spectrum and customers, the ‘little engines that could,’ are finally starting to expand coverage and the quality of their services for their subscribers.