MONTREAL – Quebecor’s net income for the first quarter more than doubled, and the company hiked its quarterly dividend 29%, the Montreal-based giant said Thursday.
For the period ended March 31, 2016, net income attributable to shareholders was $69.9 million, up from $29.4 million in the same period of 2015, as a result of growth in all of its business segments.
Quebecor's revenues increased 5% year-over-year to $975.4 million, and adjusted operating income grew 4.6% to $354.7 million. On an adjusted basis, income from continuing operations was jumped 63.5% to $67.7 million from $41.4 million in the same period of 2015.
The company posted revenue increases in Telecommunications ($38.2 million or 5.2% of segment revenues), Media ($6.0 million or 2.8%) and Sports and Entertainment ($5.5 million or 114.6%).
Revenues at Videotron “increased significantly” year-over-year led by mobile telephony ($27.0 million or 30.2%), Internet access ($18.1 million or 8.1%), business solutions ($9.0 million or 54.2%) and the Club illico over-the-top video service ($2.3 million or 42.6%).
Videotron's average monthly revenue per user (ARPU) increased 7.1% from $131.96 in the first quarter of 2015 to $141.37 in the first quarter of 2016.
Videotron also grew its revenue-generating units by 17,800 (0.3%) this quarter, including 27,100 connections to the mobile telephony service, 9,900 subscriptions to the cable Internet access service and 7,700 memberships in Club illico.
Videotron president and CEO Manon Brouillette credited the division’s results to its “high-growth-potential products and services, particularly mobile telephony, Internet access, business solutions and Club illico”. She added that the net increase of 27,100 connections in the first quarter of 2016 was more than that of any of the incumbent operators in Canada.
"All of our segments posted higher revenues in the first quarter of 2016," said president and CEO Pierre Dion, in a statement. "The significant growth in our business volume was driven by the success of Videotron's service offerings, the diversification of the Media segment's revenue streams and development of the concert management and production business. Quebecor's adjusted operating income increased by $15.5 million (4.6%), propelled once again by the excellent performance of the Telecommunications segment. We are confident that the opportunities created by the long-term evolution of the wireless industry will enable us to maintain sustained growth in our mobile telephony services."
