MONTREAL – Despite gains at Videotron, Quebecor saw its first quarter profits drop by nearly $10 million from the same quarter last year.
For the period ended March 31, 2015, net income attributable to shareholders was $29.4 million, down $9.7 million from $39.1 million in the same period of 2014, due primarily to restructuring charges and a $20.7 million increase in amortization charge.
Quebecor's revenues increased 5.7% year-over-year to $ 948.6 million, and adjusted operating income grew 1.3% to $339.0 million. On an adjusted basis, income from continuing operations was $40.8 million, down from $44.3 million in the same period of 2014.
Telecommunications segment’s revenues were up 5.3% to $762.5 million and its adjusted operating income was up 2.3% to $343.3 million, despite the unfavourable impact of one-time items totalling $4.6 million. Videotron’s mobile telephony revenues increased by $27.7 million or 44.9% and its Internet access revenues by $13.4 million or 6.4%.
Videotron’s average monthly revenue per user (ARPU) increased 8.4% from $121.72 in the first quarter 2014 to $131.96 in the first quarter 2015, including a 15.0% increase for mobile telephony service, the strongest quarterly growth since the service was launched in 2010.
Videotron grew its revenue-generating units (the sum of subscriptions to the cable television, cable Internet access and over-the-top video services, plus subscriber connections to the cable and mobile telephony services) by 28,000 this quarter, compared with 17,700 in the same period of 2014.
At the end of the first quarter of 2015, Videotron had 1,770,600 subscribers to its cable television services; 1,555,500 subscribers to the illico Digital TV service; 1,543,100 subscribers to cable Internet access services; 1,344,600 subscribers to cable telephony service; 662,100 subscriber connections to the mobile telephony service; and subscribers to its Club illico over-the-top video service stood at 186,800.
Revenues increased by 8.4% in its Media segment to $199.5 million, and by 26.4% in Sports & Entertainment to $17.7 million.
“In the first months of 2015, Quebecor continued focusing on implementation of its business plan in its growth sectors, including mobility, Internet services, business services and its new Sports and Entertainment segment,” said president and CEO Pierre Dion, in a statement. “It remains strongly positioned to achieve its development, growth and profitability objectives going forward."
