MONTREAL – Despite continued growth from its telecommunications unit Videotron, Quebecor Inc. saw second quarter profits slip by more than $11 million.
Net income for the quarter ended June 30 was $65.5-million, down from $76.8-million for the same time last year. However, revenue was up 5% to $994-million from $946.4 million a year ago, and operating income also increased 12% to $354.2 million.
The company reiterated its plans to launch its wireless network this summer, but timing has been pushed back until at least September, president and CEO Pierre Karl Peladeau said Wednesday.
“We remain focused on our promise to deliver a superior customer experience by rolling out a reliable, effective wireless network which, combined with our other products and exclusive content, will provide consumers with one-stop solutions to all their telecommunications needs,” Peladeau said in a statement. “As of June 30, 2010, all switching services and platforms were installed and operational. Siting and tower-sharing agreements had been signed for more than 95% of the antenna sites and the equipment was installed or being installed at all those sites.”
Videotron saw a $55.7-million increase in revenue, due in large part to a quarterly increase of 22,100 new cable customers. The company now provides basic cable television service to 1,781,500 households, including 1,142,000 subscribers to its digital TV service.
Its Internet service also continued to grow, increasing its customer base by 10,100 during the quarter to bring the total to 1,201,700 households and businesses. The number of subscribers to Videotron’s cable telephone service increased by 22,300 to a total of 1,065,300 this quarter.
Quebecor’s news media segment, which operates the Sun newspaper chain and other publications, saw revenue drop by about $4.3 million, while its broadcasting unit, which operates the TVA network in Quebec, saw revenue fall by $4.5 million.
