MONTREAL – Quebecor more than doubled its quarterly dividend amidst first quarter gains in revenues and profits, the company said Thursday.
Consolidated revenues for the period grew 2.5% ($25.3 million) to $1.03 billion year-over-year. Revenues increased in Telecommunications ($22.0 million or 2.7% of segment revenues) and in Sports and Entertainment ($3.2 million or 8.6%), though dropped in Media ($0.5 million or -0.3%).
Net income attributable to shareholders was $189.0 million in the quarter, more than triple the $57.1 million posted in the same period of 2018. Adjusted EBITDA increased $4.8 million (1.2%) to $420.7 million.
Quebecor’s Videotron telecom segment significantly increased its revenues from mobile telephony ($15.6 million or 12.4%), Internet access ($12.0 million or 4.6%) and customer equipment sales ($3.7 million or 8.1%) in the first quarter of 2019. It added 23,300 revenue-generating units (0.4%) in the period which included 39,800 connections (3.4%) to its mobile telephony service, 10,900 subscriptions (2.6%) to its Club illico over‑the‑top video service, and 6,300 subscriptions (0.4%) to cable Internet access service.
President and CEO Pierre Karl Péladeau said that the company is “off to a strong start in 2019 and on track to achieve our targets.”
"Our financial results for the first quarter of 2019 again reflect the soundness of Videotron's business model and the sustained, profitable growth generated by its growth drivers, the mobile telephony and Internet services," he said in a statement. "Early in the year, we cemented our position as a tech leader when Videotron acquired 10 blocks of low-frequency spectrum in the 600 MHz band, which will allow the roll-out of 5G. Our ongoing investments in advanced technology will enable us to maintain the industry-leading growth of our mobile telephone service in Québec and the Ottawa area, and to promote real, sustainable competition for the benefit of consumers.”
Quebecor’s Q1 2019 financial results are available here.
