MONTREAL – Quebecor saw its first quarter profits jump 52%, however, the majority of the increase was due to a “favourable variance in gain on valuation and translation of financial instruments” rather than the performance of its business units.
Revenues for the quarter ended March 31st were $1.06 billion, up 7.4% year-over-year from $990.5 million, while operating income rose 9.5% to $322.2 million from $294.3 million. Net income attributable to shareholders was $72.9 million over $34.3 million last year.
It’s Videotron subsidiary saw revenues grow by more than 10% to $645.8 million, led by a 9.1% increase in combined cable television revenues due primarily to customer base growth and to higher average monthly revenue per user (ARPU), resulting from increases in some rates, the success of high definition packages, and increased pay TV orders. Operating income rose 19.1% to $303.0 million.
At quarter end, Videotron reported 1.85 million cable television services, of which 1.42 million were subscribers to the company’s illico digital TV service. Illico added 16,700 subscribers during the quarter, though the company lost 7,500 basic cable subscribers.
Internet customers topped 1.34 million Internet customers, while 1.21 million customers subscribed to its cable telephony service. Videotron’s nascent wireless service now has 312,800 customers after adding 22,200 during the quarter.
“This year, we are beginning to reap the fruit of our investments in our various businesses over the past three years, as the large increases in operating income and cash flows in our Telecommunications segment tend to indicate”, said president and CEO Pierre Karl Péladeau, in a statement. “The excellent first quarter results mark a positive start to 2012, a year that should see a number of attractive projects that hold considerable promise for the Corporation’s long?term development and profitability.”
In addition, Quebecor’s board declared a quarterly dividend of $0.05 per share on Class A multiple voting shares and Class B subordinate voting shares, payable on June 19, 2012 to shareholders of record.
