MONTREAL – Despite an uptick in revenues, Quebecor saw third quarter profits fall by $93.4 million due in part to restructuring of its operations.
For the period ended September 30, 2016, the company posted a net loss attributable to shareholders of $8.3 million, compared with net income attributable to shareholders of $85.1 million last year, including the $119.6 million unfavourable impact of losses and gains on embedded derivatives related to convertible debentures.
Revenues increased 2.4% to $998.3 million from $974.5 million last year, though adjusted operating income dipped 0.4% to $389.8 million, which included a $10.7 million unfavourable variance in the consolidated stock‑based compensation charge.
The company's Telecommunications segment grew its revenues by $39.5 million (5.2% of segment revenues) and Sports and Entertainment revenues increased $1.6 million (or 25.8%). Revenues decreased in Media $17.3 million (or ‑7.2%).
Videotron significantly increased its revenues from mobile telephony ($27.6 million or 25.9%), Internet access ($14.3 million or 6.2%), business solutions ($10.6 million or 59.6%) and the Club illico over‑the‑top video service ($1.9 million or 32.2%).
Videotron's average monthly revenue per user (ARPU) was up $9.64 (7.0%), from $136.94 in the third quarter of 2015 to $146.58 in the third quarter of 2016.
Videotron also posted a net increase of 54,700 revenue‑generating units (1.0%) in the quarter, including 38,800 connections to its mobile telephony service, 24,400 subscriptions to its cable Internet access service and 12,200 memberships in Club illico.
"Quebecor's revenues were up $23.8 million (2.4%) in the third quarter of 2016, reflecting a strong performance by its Telecommunications segment, which grew its revenues by 5.2%," said Quebecor president and CEO Pierre Dion, in a statement. "Once again, Videotron's rising numbers were driven by products and services with strong growth prospects. Consumer response to Videotron's offerings continues to be very positive.”
Quebecor’s complete Q3 2016 financial results are available here.
