MONTREAL – All of Quebecor Media’s business segments reported higher revenues in 2007, the company reported today.
Operating income grew by $164.3 million (20.5%) to $963.9 million in 2007, mainly because of significantly improved results at cable division Videotron, where operating income increased by $130.2 million (25.4%) thanks to cable telephony growth, overall subscriber growth and price increases.
Operating income also increased in newspapers (by $18.3 million or 8.8%), primarily as a result of the acquisition of Osprey Media, and at TVA. Excluding Osprey Media’s operating income and the impact of the consolidated stock option plan, operating income increased by 20% in 2007, compared with 11% in 2006.
Quebecor Media’s overall revenues increased by $367.3 million (12.2%) to $3.37 billion in 2007.
"In 2007, Quebecor Media posted the strongest increase in operating income since the acquisition of Groupe Videotron ltee," said Pierre Karl Peladeau, president and CEO, in the press release. "Our excellent results are mainly due to robust, sustained growth in the cable segment, which continues to register substantial customer base increases for all services, year after year… The results testify to the success of the convergence strategy Quebecor Media has been pursuing for several years. Meanwhile, Quebecor Media welcomed the federal government’s decision to create favourable conditions for new players to enter the Advanced Wireless Services (AWS) market and recommitted to making a major investment in this communications platform to support its future business growth."
At Videotron, operating income rose $130.2 million (25.4%); 238,600 cable telephony customers came on board while 141,000 new cable Internet customers were also added. The company added 66,000 basic subs and 144,600 digital cable customers. In its nascent wireless division, Videotron activated 33,900 phones.
The company now has 1.64 million total cable customers, 933,000 high speed Internet customers, 768,200 digital cable customers, 636,000 cable phone customers and 45,700 wireless subscribers.
Quebecor Media recorded net income of $327.1 million in 2007, compared with a $169.7 million net loss in 2006. The $496.8 million increase was due primarily to the favourable impact on the comparative numbers for 2007 of the recognition in 2006 of a $342.6 million loss on debt refinancing ($219.0 million net of income tax and non-controlling interest) and of a $180.0 million charge for impairment of goodwill and broadcasting licences in the Broadcasting segment ($156.6 million net of income tax and non-controlling interest), reads the press release.
