MONTREAL – Despite an uptick in revenues, Quebecor saw fourth quarter profits fall by $57.7 million from a year ago when it recorded a number of favourable non-operating items, the company said Wednesday.
Revenues for the quarter ended December 31, 2017 inched up 0.8% ($8.8 million) to $1.06 billion year-over-year. Revenues increased in Telecommunications ($36.2 million or 4.5% of segment revenues), though dropped in Media ($22.7 million or -10.2%) and in Sports and Entertainment ($3.8 million or -7.0%).
Net income attributable to shareholders fell to $65.6 million in the fourth quarter of 2017, compared with $123.3 million in the same period of 2016, due in part to a $55.9 million unfavourable variance in the loss on valuation and translation of financial instruments, including $56.8 million without any tax consequences.
Quebecor’s Videotron telecom segment added 34,900 revenue-generating units in the fourth quarter of 2017, including 33,700 new wireless subscribers, 12,400 new Internet customers and 14,200 new memberships in its Club illico.
2017 revenues were $4.12 billion, up 2.6% from 2016 and adjusted operating income was up 6.6% to $1.59 billion. Net income attributable to shareholders was $369.7 million for the year, an increase of 90.0% which the company said partly reflects the favourable impact of the increase in adjusted operating income and a $330.9 million gain on the sale of its spectrum licences outside of Quebec to Shaw Communications. Adjusted income from continuing operating activities was $ 330.0 million, an increase of 8.0%.
Noting that he was “proud” to return to Quebecor in 2017, president and CEO Pierre Karl Péladeau said that the company was now in “a very solid financial position”.
“The Corporation now has more than $2.0 billion in available liquidity, placing it in a powerful position in a highly competitive environment”, he said in a statement. “Our excellent financial position will enable us to continue investing in Videotron's wired and wireless networks, in Comcast Corporation's XFINITY X1 platform, and in the process of repurchasing the Quebecor Media Common Shares held by CDP Capital d'Amérique Investissement inc.".
Quebecor’s complete Q4 2017 financial results are available here.
