MONTREAL – An uptick in subscribers at Videotron combined with the company's spectrum sale buoyed third quarter revenues and profits at Quebecor.
For the period ended September 30, 2017, revenues of $3.06 billion were up 3.3% year-over-year. Revenues increased in Telecommunications ($97.1 million or 4.1% of segment revenues), Sports and Entertainment ($2.1 million or 8.5%) and Media ($1.4 million or 0.2%).
Net income attributable to shareholders rebounded to $171.9 million from a net loss attributable to shareholders of $8.3 million in the same period of 2016, due in large part to a $243.1 million gain on the sale of spectrum licences recognized this quarter, including $121.6 million without any tax consequences.
Videotron grew its revenues by 3.8% ($30.0 million) in the quarter, and its adjusted operating income increased by 4.3% ($15.7 million) despite a $5.6 million unfavourable variance in one‑time items. Mobile telephony revenues increased 16.0% ($21.4 million), Internet access was up 6.1% ($15.0 million), business solutions increased 8.8% ($2.5 million) and the club illico over-the-top video service was up 29.5% ($2.3 million).
Videotron's average monthly revenue per user (ARPU) rose 6.7% from $146.58 in the third quarter of 2016 to $156.46 in the third quarter of 2017.
Videotron also posted a net increase of revenue-generating units of 50,400 (0.9%) this period, including 37,000 connections to its mobile telephony service, 26,900 subscriptions to its cable Internet access service and 9,800 memberships in club illico.
"The Telecommunications segment's excellent performance in the third quarter of 2017 and the significant improvement in the Media segment's operating profits were major contributors again to the solid increase in Quebecor's adjusted operating income and adjusted income from continuing operating activities," said president and CEO Pierre Karl Péladeau. "Once again, Videotron's numbers were propelled upwards by its high-growth products and services, including mobile telephony and Internet access. The substantial increase in revenues and operating profits in the Media segment was due to the positive impact of our programming strategy on advertising and subscription revenues in the broadcasting business, as well as the notable success of MELS Studios' operations in the third quarter of 2017. The disposal of wireless spectrum licences in the second and third quarters of 2017 generated inflows of $614.2 million and total gains on disposal of $330.9 million. The Corporation now has access to more than $2.0 billion in available liquidity, increasing its financial manoeuvring room to invest in projects for the future."
Quebecor’s complete Q3 2017 financial results are available here.
