Media division bolsters Quebecor’s Q2 results

Strong results from its media division gave Quebecor Inc. a robust second quarter, the company reported Thursday. Its TVA Group Inc. recorded a $5.2 million jump in revenues, an increase of 3.7 per cent, while its telecommunications division saw a fall of 1.2 per cent to $14.3 million. Overall revenues were $1.39 billion, down $11.6 million or 0.8 per cent from a year earlier. Net income was $206 million, up from $171 million in Q2 2023. CEO Pierre Karl Péladeau was most excited to discuss telecom operations. It has been 15 months since Quebecor acquired Freedom Mobile from Shaw Communications and rolled out augmented service. The wireless carrier is being promoted along with Quebecor’s flanker brand, Fizz Mobile. The CEO is bullish on the flanker brand’s expansion prospects. “You will see more and more Fizz green ads everywhere in major cities across Canada,” Péladeau told analysts on a conference call. “Green being the colour of hope.” “We delivered what we said and we expect Fizz to be as successful in English Canada as it has been in Quebec,” he added later. There are now 25 million Canadians living within the Freedom footprint, he said. The company is offering service from Quebec westward, with the exception of Saskatchewan. Péladeau said he is pleased with the results of the telecom section, especially in light of the strong competition put up by the incumbent players. That competition took its toll on average revenue per user (ARPU). “With the growing success of Freedom and Fizz, consolidated wireless ARPU decreased by $2.45 at $35.32,” he reported. He also noted that the firm has hit all nine mandated targets issued by the Department of Innovation, Science and Economic Development (ISED) following the purchase of Freedom in April 2023. Freedom is now bundling wireline internet and TV services to its customers. It is also offering a roaming package that covers the United States and Mexico. Meanwhile, Péladeau castigated BCE Inc. for allegedly dragging its feet on negotiations over Freedom’s mobile virtual network operator (MVNO) status. He wants the federal regulator to step in. “We are calling on the CRTC to resolve this situation quickly so we can all go about our business of providing healthy competition as mandated by the Canadian government,” he stated. The Wire Report has reached out to Bell for comment on the matter. Quebecor CFO Hugues Simard was pleased with the quarterly numbers. “We are the only telecom company in Canada to continue to regularly reduce our debt and strengthen our balance sheet thanks to our steady and disciplined cash flow capabilities, quarter after quarter,” he told the analysts. Quebecor touted its favourable ratings with the Commission for Complaints for Television-telecom Services (CCTS), a division of the CRTC. While overall complaints to the group were up 43.1 per cent, Quebecor’s properties saw a decline in complaints. Videotron posted a decrease of 11.4 per cent, while Freedom saw its complaints fall from 6.5 per cent to 4.7 per cent. – Reporting by Paul Park at ppark@thewirereport.ca

Media division bolsters Quebecor’s Q2 results

Broadcast | | August 8, 2024

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Media division bolsters Quebecor’s Q2 results

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