MONTREAL – This morning, Videotron and TVA Group owner Quebecor Inc. reported fourth quarter revenues of $1.14 billion, up 4.5% over the fourth quarter of 2018.
Adjusted EBITDA was $494.5 million for the period ended December 31, 2019, a 7.4% increase. Without restatement of comparative figures following adoption of new accounting principles IFRS 16, adjusted EBITDA increased by 9.9%. Adjusted EBITDA increased $27.3 million (6.3%) in the telecommunications (Videotron cable, wireless and broadband) segment. Adjusted EBITDA increased in the Media segment (TVA Group) by $6.8 million or 23.9%.
Quebecor reported a net increase of 21,800 (0.4%) in revenue generating units in the fourth quarter of 2019, including a 41,800 (3.2%) subscriber connection increase for the mobile telephony service, the largest fourth quarter increase in the number of connections since 2014, and a 15,800 (3.6%) subscriber increase for Club illico, says the press release.
The company saw 3,000 broadband net additions on the wireline side. As for Videotron cable TV, there were 13,400 net sub losses (compared to a loss of 6,400 in Q4 2018). Videotron also lost 35,800 home phone customers, more than double the losses in the same period last year.
The company used the strong year to boost its shareholder quarterly dividend by 78% to $0.20 per share.
“The 2019 financial year was remarkable for Quebecor in terms of both financial profitability and technological advances,” said Pierre Karl Péladeau, president and CEO. “Our solid financial results and business model will allow us to continue investing in promising projects and advanced technologies to support further growth in our mobile telephony business. I am very pleased with the 176,700 subscriber connection increase in our mobile phone service registered in 2019, the largest annual increase since the launch of our mobile network in 2010.
“Similarly, we continue to progress successfully through the stages in the lead up to deployment of our LTE A and 5G access networks. We are planning a gradual roll out beginning in 2020, with the goal of offering our customers the best in telecommunications services in the world,” Péladeau added.
On the wired side, the launch in August 2019 of its new Helix home entertainment and management platform, based on partner Comcast Corporation’s Xfinity X1 platform, is starting to pay off, said the company, with over 190,000 RGUS on the platform as of December 31.
“As we work to reach more customers and expand our geographic reach, we are excited about the planned acquisition of Télédistribution Amos, which will end Bell Canada’s monopoly in wireline telephony in the Abitibi Témiscamingue region. We will now be able to offer local residents alternative services featuring attractive pricing and the best customer experience,” said Jean François Pruneau, president and CEO of Videotron.
“Club illico continues to post strong customer growth, as evidenced by a 9.1% increase in its subscriber base in 2019, in the face of fierce competition from major international content providers. Our vision and strategies are bearing fruit and we continue to invest heavily in original content. For the current season, we have decided to triple the number of original Québec productions,” Pruneau added.
