Cable / Telecom News

Led by Videotron, Q3 profits at Quebecor top $45M

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MONTREAL – Led by gains at Videotron, Quebecor’s third quarter profits rebounded back to the black year-over-year.

For the period ended September 30, 2014, net income attributable to shareholders was $45.1 million, compared with a $188.8 million net loss attributable to shareholders in the same period of 2013, a favourable variance of $233.9 million including the total $181.0 million favourable non-cash impact of fluctuations in the value of goodwill, intangible assets and derivative financial instruments.

Quebecor's consolidated revenues dipped 0.2% year-over-year to $1.02 billion, and adjusted operating income fell 0.3% to $380.2 million.  On an adjusted basis, income from continuing operations was $65.6 million, up from $63.1 million in the same period of 2013.

During this quarter, Quebecor changed its organizational structure and its operations are now managed through the following three segments: Telecommunications, Media (which includes all activities of the previous News Media and Broadcasting segments, as well as the book publishing and distribution activities previously included in the Leisure and Entertainment segment), and Sports & Entertainment (which includes all operating, production, distribution and management activities of the previous Leisure and Entertainment segment as well as that segment’s retail businesses).

Revenues increased 3.3% in Telecommunications to $738.2 million, and adjusted operating income grew 2.9% to $339.4 million in the quarter, led by increases in mobile telephony revenues and Internet access revenues.

Videotron grew its revenue-generating units (the sum of cable television, cable and mobile Internet access, and cable telephony service subscriptions and subscriber connections to the mobile telephony service) by 66,900 in the quarter, compared with a 43,500-unit increase in the same period of 2013. All of Videotron's major services registered larger subscriber increases than in the same period of 2013, according to the company’s press release.

Total average monthly revenue per user (ARPU) from all services increased 5.7% to $126.02 which Videotron president and CEO Manon Brouillette said “reflects the success of our new value-added plans, featuring higher data caps at impressive speeds, as well as our optimal selection of mobile devices”.  She credited the company’s customer retention initiatives for a 3.07% decrease in overall churn rate, compared with 3.25% in the same period last year.

Revenues decreased by 6.2% in Media to $298.8 million, and by 22.5% in Sports & Entertainment to $12.4 million.

“Over the past several months, Quebecor has carried out major transactions in order to refocus and transform its more traditional media outlets," said Quebecor president and CEO Pierre Dion, in the release.  "The Corporation also continued implementing its business plan in its growth segments. It therefore remains strongly positioned to achieve its growth, business development and profitability objectives going forward."

www.quebecor.com