CEO says they are “more determined and motivated than ever” to expand across Canada
MONTREAL – Quebecor Inc. today announced its second quarter 2022 financial results, which states revenue for the quarter was $1.1 billion – a decreased of $16 million compared to Q2 2021.
Adjusted EBITDA was reported to be $491.4 million, a $10 million decrease compared to the same quarter of 2021, according to a press release.
In its telecommunications segment, Quebecor reported $912.6 million in revenue for Q2 2022 (a decrease from $928.4 million in the same quarter of 2021) while adjusted EBITDA was $487.5 million (up from $481.5 million in Q2 2021).
In media, the company reported $188.1 million in revenue (a decrease from $198.2 million) and adjusted EBITDA was reported to be $4.1 million (down from $16.7 million).
In sports and entertainment revenue increased to $45 million (from $33.5 million in Q2 2021), and adjusted EBITDA was $4.7 million (up from $3.1 million).
Quebecor subsidiary Videotron reportedly “increased its revenues from mobile services and equipment by $27.0 million (11.4%) in the second quarter of 2022,” the press release says.
“Videotron continues to invest in high-value growth initiatives such as wireline network extensions across the province, including the Régions Branchées program, in order to expand coverage while maintaining performance and reliability,” said Pierre Karl Péladeau, president and CEO of Quebecor, in the release. “Also, our 5G network already covers the major urban centres and roll-out is continuing apace.”
TVA, which reported its financial results at the end of July, saw a decrease in revenues by $12 million to $147.5 million.
“The results of TVA… were significantly affected by lower profitability in the Broadcasting segment in the second quarter of 2022, due mainly to increased content investments at TVA Network, particularly in reality and variety programming,” Péladeau said.
“Despite the soft advertising market due to the unfavourable business landscape and regulatory environment, our strong programming enabled us to stand out with advertisers and to limit the impact on our over‑the‑air network’s advertising revenues,” he said.
(Péladeau indicated in the TVA Q2 2022 press release they expect advertising revenue to continue to trend downwards given announcements from streamers including Netflix and Disney+ that they will be introducing ad-supported subscription tiers to their offerings and because of “heightened competition from the public broadcaster, Radio-Canada…”. As Cartt.ca reported today, Péladeau has written a letter to the Heritage minister expressing his concerns.)
Today’s press release on Quebecor’s Q2 2022 financial results discusses the company’s plans to expand nationally, pointing to Videotron’s agreement with Rogers and Shaw to acquire Freedom Mobile and the recent acquisition of VMedia as steps in that direction.
“We are more determined and motivated than ever to pursue our ambitious plans to grow across Canada as an agile, proven player that aims to disrupt the market and lower prices for Canadian consumers,” Péladeau said.
“The acquisition of Freedom Mobile will be a highly beneficial transaction for all parties. By investing in Canadian expansion with the goal of becoming the fourth national wireless carrier, we will foster healthy competition in the interests of Canadian consumers and position ourselves in a high‑growth market, in which we will be able to offer consumers in British Columbia, Alberta and Ontario multiservice bundles and innovative mobile and Internet products,” he said, adding that the VMedia acquisition “will support our growth strategy outside Québec with advantageous multiservice bundles, giving Canadian consumers more choice at better prices.”
During a conference call today with investors, Péladeau was asked if it was too early to acquire VMedia given the sale of Freedom is contingent on the Rogers/Shaw merger being approved and that the CRTC still has not approved the terms and conditions associated with its mandated mobile virtual network operator (MVNO) framework – both of which the company is exploring as options to help it expand.
“We are opportunistic,” Péladeau responded, adding that they have an interest in VMedia’s technology, not just the role it could play in helping realize Quebecor’s nationwide ambitions.
Quebecor has been clear with the CRTC that television regulation is a factor that is putting their hands “in a kind of handcuff”, he said. “In an unregulated environment, where we’re facing the streaming services of the Americans, this is the technology that could position ourselves in a relatively interesting position if we were to increase the content in a unregulated environment. This is what we’re working on and this is what we’re looking also to introduce in our Fizz proposal where we can bundle services already with our own services that we’re offering.”
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