MONTREAL – Quebecor Media’s cable and telecom division Videotron continues to turn in strong growth numbers, driving the division to across-the-board increases in the second quarter, ended June 30th.
Videotron added 55,000 cable telephony customers, 26,000 high speed Internet subscribers, 10,400 new wireless users, and 1,900 customers for all cable television services combined, including a 26,300 customer increase for illico digital TV, says today’s press release. Videotron’s monthly average revenue per user increased by $9.78 (16.3%) to $69.95 in the second quarter of 2007.
However the rate of growth has remained static in some segments as the company added 56,200 telephony customers in Q2 2006 and 28,800 Internet customers in last year’s Q2.
Quebecor Media Inc.’s net income rose up 49.8% over Q2 2006, to $88.7 million. On a year-to-date basis, the cable segment grew its revenues by $114.8 million (18.6%) to $730.7 million and its operating income by $55.0 million (22.9%) to $294.7 million. Excluding the stock option expense, the cable segment’s operating income increased by 29.1% in the first half of 2007, compared with 18.5% in the first half of 2006.
"Quebecor Media posted excellent second quarter 2007 results, with sustained increases in revenues and operating income," said Pierre Karl Peladeau, president and CEO of Quebecor Inc., in the press release. "The cable segment’s results continued trending upward, with strong customer growth for all its services."
However, the company’s printing division, Quebecor World, is still suffering under soft market conditions, leading to overall company revenue coming in lower than hoped.
Quebecor Media’s net income rose $29.5 million (49.8%) to $88.7 million in the second quarter of 2007 mainly as a result of the $27.7 million growth in operating income.
The Media group also includes TVA Group (broadcaster TVA, some French specialty channels, a movie distribution unit and magazine publishing) and the Sun Media newspaper company.
Quebecor Media recorded net income of $129.9 million in the first half of 2007, compared with a $119.2 million net loss in the same quarter of 2006. The $249.1 million improvement was mainly due to the recognition of a $331.6 million unusual loss on debt refinancing in the first quarter of 2006, as well as the $57 million increase in operating income in the first half of 2007, says the press release.
