MONTREAL – Videotron keeps adding thousands of phone customers.
In its second quarter financial results announced today, the company reported it had 41,800 subscribers at the end of June, 2005.
After launching its voice over Internet protocol (VOIP) telephone service in Montreal South Shore and Laval in the first quarter of 2005, Videotron rolled out the service in the West Island on May 25 and the Quebec City area on July 11. The consumer response in Quebec City has been particularly promising thus far.
“There is no indication that it will slow down,” Videotron president Robert Depatie told a conference call with financial analysts this afternoon. “ (The)Quebec City has been as good as the others”
In fact, all the additions (Depatie said the company has the ability to add 4,000 new telephony customers a month – but didn’t say the company was adding that many) has meant Videotron will boost its capital expenditures in the balance of 2005.
Since telephony take-up is “is way over expectations,” said Depatie, “we’re going to see capex increasing in the second half.”
In addition to steadily expanding its cable telephone service into new markets, Videotron added 18,000 customers to its cable modem service during the second quarter. The subscriber base for Videotron’s illico Digital TV service increased from 355,200 to over 381,000 during the quarter and grew by more than 92,400 over the 12-month period ended June 30, 2005. The illico on Demand service registered record numbers with 475,900 paid orders placed from Videotron set-top boxes during the quarter, not counting the highly popular free orders which increase customer satisfaction and foster loyalty.
Videotron corporate sibling Archambault signed an agreement with Warner Bros Entertainment to carry its productions making Videotron the first major cable company in Canada to deliver Warner films on demand. illico on Demand now offers a catalogue of over 1,000 titles.
