Videotron reaches 1M wireless subscribers as it reports Q3 results

Quebecor Inc. said its wireless division has eclipsed one million subscribers since posting higher revenues and profits in its third-quarter earnings Thursday. “In the space of 7 years, Videotron has carved out a place for itself in the telecom industry’s big leagues,” Manon Brouillette, president and CEO of Quebecor’s telecom division, said in a Thursday release. “It’s an indication of the consumer receptiveness to our offering and the need for more competition in the mobile telephony market.” Videotron added 122,600 wireless subscribers in the three months ended Sept. 30, for a total of 990,300 at the end of that quarter. It said in a separate release on Nov. 8 that it has now added its one-millionth customer. Wireless Average revenue per user (ARPU) grew from $52.61 to $53.34, though Videotron noted in its results that figure took an estimated $0.86 hit "in connection with temporary measures to comply with CRTC's decision over Music Unlimited service." Total revenues for the wireless segment increased 16 per cent to $155 million. Quebecor’s telecommunication customer base grew 2.5 per cent from the same period last year, with a total of 5.84 million Videotron subscribers. Telecom revenues grew 3.8 per cent, finishing the period with $823.7 million. Videotron also reported it now has 1.65 million cable internet subscribers, an increase of 26,900 in the quarter, 1.6 million subscribers to the Illico digital TV service, an increase of 7,100 in the quarter, and 347,000 subscribers of its over-the-top video service Club Illico (an increase of 9,800 in the quarter). The company’s media division revenues grew 4.5 per cent to $231.6 million. That was helped by a 6.4 per cent increase in broadcast revenue due to higher ad and subscription revenues for TVA, while digital revenue was up 9.7 per cent. This was despite losses in newspaper revenues. All figures compared to the same time period last year. Total company revenues of $1.03 billion was an increase of 3.6 per cent from the same quarter last year. Meanwhile, net income rose to $225.3 million in the quarter compared to a net loss of $3 million over the same period. These results were in line with analyst expectations. “Wireline subscribers were largely in line, just like wireless subscribers, which once again benefited from the favourable wireless environment in Canada,” said Desjardins Capital Markets analyst Maher Yaghi, who also noted that an underperforming ARPU could indicate a slowing down of Videotron’s rise through the ranks of Canada’s telecom providers.

Videotron reaches 1M wireless subscribers as it reports Q3 results

Brief | November 10, 2017

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Videotron reaches 1M wireless subscribers as it reports Q3 results

Brief | November 10, 2017

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