MONTREAL – Profits at Quebecor soared by almost 50% thanks in large part to the strength of its telecommunications subsidiary Videotron Ltee.
Net income for the company’s fourth quarter ended December 31, 2009 was $73.8 million, compared with a net loss of $343.6 million in the same quarter of 2008. Operating income for the quarter jumped by 25% to $387.6 million, which included a $62.8 million (or 28.8%) increase in its telecommunications segment.
The Montreal-based media company posted a 2009 net income of $277.7 million, a 47.7% increase from its 2008 profits of $188 million. Revenues for the year were up by 1.4% to $3.78 billion, while operating income grew 13.9% to $1.28 billion over last year.
Company president and CEO Pierre Karl Peladeau called the results “a noteworthy operational performance.”
"The Telecommunications segment’s excellent results, propelled by customer growth for all its services, which has now continued for 18 consecutive quarters, played a significant role in the Company’s strong revenues, operating income and net income”, he said in a statement. “Despite the economic crisis, which has hit the media industry hard, Quebecor’s diversified business model proved to be a robust driver of growth.”
Looking ahead, Peladeau said that 2010 will see the company “strengthening our positioning as a fully integrated media group”, and referenced the highly anticipated launch of its wireless service this summer.
“We are confident that this growth sector will become a mainstay of our business plan”, he continued. “It will enable Quebecor to distribute its exclusive original content on a new mobile platform, promising significant opportunities for multimedia synergies and long-term growth.”
