Quebecor boasts ‘best balance sheet of the industry’ in releasing Q2 numbers

Quebecor Inc. issued its second quarter figures on Thursday Aug. 7, giving a strong report over performance from a year earlier. The mobility telephone network saw an increase of 72,000 subscribers, a jump of 1.7 per cent. The telecommunications segment as a whole posted 33,700 revenue generating units, a hike of 0.4 per cent. Revenues dipped by half a percentage point to $1.38 billion, a decline of $6.5 million. Adjusted income from operating activities was $226.8 million, an increase of $21.7 million or 10.6 per cent. “We’re continuing to deliver on our expansion plan, quarter after quarter, growing our wireless market share across Canada, generating consistently strong cash flows and reducing our leverage to maintain the best balance sheet of the industry,” CEO Pierre Karl Péladeau told an analysts call. Debt has been reduced by $192 million while capital expenditures (capex) came in at $152 million, he added. The executive stressed that his firm does not need to employ quick fixes to help its balance sheet. “At Quebecor we don't need to sell or pledge our assets to generate cash and reduce our debt and leverage ratio,” he stated. “We don't need to impair our future free cash flow with additional interest costs or byzantine financial engineering structure.” Average revenue per user (ARPU) improved to $34.35 in the second quarter, up four cents from $34.31 in the first quarter of this fiscal year. In April, Freedom Mobile rolled out spectrum across its network in Ontario, Alberta and British Columbia. This will increase capacity and deliver better connectivity to consumers, the company said. Péladeau commented on the previous evening’s announcement that the government would not be overturning the CRTC’s decision on wholesale fibre access. Third party internet access (TPIA) costs must be uniform across the country, he maintained. “Our position remains the same and is quite straightforward. TPIA pricing must be the same everywhere, coast to coast independently of which network is used to provide the service,” he asserted. “Failure to do so would create an unfair advantage to some players in the market at the detriment of others.” Market reaction was strong. Aravinda Galappatthige of Canaccord Genuity praised the numbers. “The main takeaway for us in Q2 was the growing strength of Freedom, with notable market share gains coupled with early signs of improving economics in parallel,” he wrote. “Alongside a de-levering balance sheet and long track record of outperformance of peer stocks (including in 2025), this is likely to sustain the investment thesis as a reliable defensive play with an element of growth, in our view.” He is maintaining a “buy” recommendation on the stock and foresees a target share price of $43.50, up from $43.25. ppark@thewirereport.ca

Quebecor boasts ‘best balance sheet of the industry’ in releasing Q2 numbers

Telecom |
By Paul Park
| August 7, 2025

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Quebecor boasts ‘best balance sheet of the industry’ in releasing Q2 numbers

Telecom | By Paul Park | August 7, 2025

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Telecom |
By Paul Park
| August 7, 2025