By Ahmad Hathout
The head of Quebecor said Thursday that the company will consider adopting satellite-to-mobile technology, but is in no rush to do so.
“This is an important and interesting matter,” Pierre Karl Peladeau said on a first-quarter earnings conference call. “Obviously, as you can imagine, we’re considering it, we’re looking at it, we’re analyzing it, we’re looking at what’s happening in the marketplace.
“We’re not considering it in urgen[cy],” he added, noting it’s a small market. “But that doesn’t mean that we should not look at it. In fact, we’re considering this is complementary or down the road, probably also of importance.
“So this is why we are reviewing a few avenues.”
Rogers, Bell and Telus are already in on the technology. But Peladeau said Quebecor is not having FOMO just yet.
“We came and followed,” he said, comparing the hype surrounding the technology to the early days of 5G. “Competition is competition; pricing is pricing. And the market is not changing in a New York minute. So we’ve been investing steadily without being rushed. And we kept our market share and, with Freedom Mobile, we continue in the same direction. So we think a little bit of the same in terms of satellites and we will continue to look at it surely, smoothly, without any rush, but certainly without any doubt, also.”
The strategy of patience appears to have paid off in other areas – at least for this past quarter. The company, which was hounded by analysts in recent quarters about its relatively low monthly average revenue per user (APRU) on wireless, can say it has turned things around.
The mobile ARPU was up 1.4 per cent to $35.19, thanks to lower promotional discounts and customers moving up to higher-price plans. The strategy has been to entice customers in the door and then lock them down with bundles.
Last quarter, Quebecor reported positive ARPU growth on a year-over-year basis for the first time since the Freedom Mobile acquisition in April 2023.
“I’m very pleased to report what I believe is one of, if it’s not the strongest, first quarters in our company’s history,” Peladeau said on Thursday’s call.
“Our ARPU is actually growing and growing, not because we’re attracting or retaining customers with short-term unsustainable and ill-advised promotional offerings,” Peladeau said. “Growing because our customers are increasingly happy with our reliability, performance, service and prices, and are thus choosing to stay and upgrade.”
Executives said they were “quite pleased” with the company’s churn figure — a number it does not make public.
On internet, the company’s subsidiaries added 1,000 new internet subscribers, more than the 3,500 it lost in the same quarter last year. The total base at quarter-end was 1.741 million, which has increased for consecutive quarters going back to June last year.
Mobile wireless revenue was $466.4 million, up nearly nine per cent against the same period last year. Mobile equipment sales revenue was $141.6 million, up roughly 11 per cent, thanks mainly to price increases.
The company’s subsidiaries added 28,800 new wireless subscribers, down compared to the 53,000 it added in the equivalent period last year. However, its subscriber base continued to climb, as it has in consecutive quarters going back to at least June 2024. The total base at the end of the quarter was 4.43 million.
Quebecor reported internet revenue of $322.7 million, an increase of three per cent against the same period last year. The telecom – historically the lower-priced compared to the three national players – had increased its internet prices.
Television revenue was $188.2 million, down one per cent compared to the equivalent period. The company reported a loss of 4,400 subscribers, more than the nearly 1,000 it lost in the same period last year. The TV base continues its consecutive-quarter decline, now down to 1.246 million.
Landline revenue was $54 million, down 11 per cent year-over-year. It lost 11,500 subscribers this quarter, less than the 15,700 it lost in the equivalent period last year. As more Canadians adopt smartphones, the total landline base continues its steady decline, now at 536,200 at the end of the quarter.
With other revenue up four per cent to $44 million, total telecom revenue was $1.22 billion, up roughly five per cent.
Media revenue was $156.5 million, down roughly five per cent. Advertising revenue was $70.1 million, down seven per cent, while subscription revenue was $47.4 million, up about eight per cent.
Sports and entertainment revenue was $49 million, roughly flat against the comparable period.
Total revenue was $1.4 billion, up approximately four per cent against the same period last year. Net income was $224.1 million, up just over 17 per cent.
Screengrab of Quebecor President and CEO Pierre Karl Peladeau
