MONTREAL – Despite solid growth from its Videotron telecommunications group, Quebecor saw a $19.4 million year-over-year drop in its first quarter profits.
Net income for the quarter ended March 31, 2010 was $38.3 million, down from $57.7 million in the same period of 2009. Adjusted income from continuing operations, minus certain expenses, were up by 6.8% to $46.8 million, while revenues increased 5% to top $948.1 million.
"These results are due to the strong performance of the Telecommunications segment, which logged customer growth for all services for the 19th straight quarter, combined with improved results in the News Media segment”, said president and CEO Pierre Karl Peladeau, in a statement.
Videotron added 29,000 telephone customers, 21,000 Internet subscribers, and 8,500 new cable subscribers, including a 35,800 customer increase for its digital TV product, which helped push up its operating income 12.6% to $28.1-million.
Restructuring initiatives in its News Media segment “continue to bear fruit”, Peladeau added, noting that division saved an estimated $17 million dollars. The division, which includes Sun Media publishing and Canoe Internet properties, saw its operating income increase by 34.7% to $10.3 million this quarter.
The company’s TVA Group Inc. recorded a net income of $1.5 million this quarter, down from $6.5 million in the corresponding quarter of 2009.
