#Canada #Montreal #Telecommunication #Quebecor #Income Statement

Quebecor Inc. Reports Strong All-Round Financial Performance for Q2 2025

On August 7, 2025, Quebecor Inc., a leading Canadian telecommunications and media company, showcased its consolidated financial results for the second quarter of 2025. The numbers indicate a commendable financial outcome, reflecting the company's resilience in a competitive landscape.

Financial Highlights

The second quarter saw Quebecor achieving:

• - Operating Cash Flows: An impressive cash flow from operating activities amounting to $538 million, marking a significant increase of $146.4 million or 37.4% compared to the same quarter of 2024.
• - Revenue: Total revenues amounted to $1.38 billion, a slight decrease of $6.5 million (-0.5%) year-on-year. Despite this minor setback in income, the company's consistent performance across its major business segments remained stable.
• - Adjusted EBITDA: The Adjusted EBITDA figure reached $605.1 million, which is down $19.8 million (-3.2%) due to a notable increase of $24.2 million in stock-based compensation charges. However, excluding this charge, adjusted EBITDA demonstrated growth with a rise of $4.4 million (0.7%).

Moreover, the Telecommunications segment showed a positive trend, with adjusted EBITDA rising by $1.4 million (0.2%). When excluding stock-based compensation impacts, the growth jumped to $8.8 million (1.4%). Additionally, adjusted cash flows from operations increased by $13.7 million (3.1%).

In terms of growth in connectivity, the company reported a net increase of 72,000 connections (1.7%) to its mobile telephony services, along with 33,700 new revenue-generating units in the segment.

Net Income Performance

Net income attributed to shareholders in Q2 2025 rose to $217.7 million, or $0.95 per basic share, reflecting an increase of $10.1 million or $0.05 per share (4.9%) compared to the previous year. Adjusted income from operating activities reached $226.8 million, a rise of $21.7 million (10.6%).

The consolidated net debt leverage ratio has impressively decreased to 3.20x, making Quebecor the lowest in this aspect among Canada’s significant telecommunications providers.

Key Business Operations

Videotron Ltd., a subsidiary of Quebecor, redeemed $400 million of senior notes on maturity in June 2025 and announced a major expansion of its GIGA Internet service, which increased access to over 350,000 additional households across various regions.

Freedom Mobile, another subsidiary, has been actively rolling out 3800 MHz spectrum across its 5G+ network, enhancing network capacity significantly and offering improved download speeds for its customers.

The management, led by President and CEO Pierre Karl Péladeau, highlighted the importance of efficient operational cost management which enabled the reduction of consolidated net debt by roughly $200 million during the quarter. After distributing over $160 million in dividends and around $30 million for share repurchases, the company's financial discipline continues to bear fruit.

In the highly competitive telecommunications landscape, Quebecor is embracing innovation and competitive pricing strategies. Freedom Mobile’s recent launch of the Roam Beyond Travel Data eSIM service provides Canadian consumers with seamless connectivity across over 120 countries, emphasizing Quebecor's commitment to customer-centric solutions.

Despite challenges faced in the Media segment, notably with TVA Group, which recorded a decline in adjusted EBITDA, Quebecor remains resolute. The company’s collective efforts to restructure and streamline operations while managing costs effectively reflect its commitment to preserving the long-term viability of its television business. There's also a call for regulatory support from Canadian authorities to help balance competition in the media landscape.

With a market share of 43.8% during Q2 and increased viewer interest across several key channels, Quebecor is poised for future growth. The quarterly results underscore an organization that is adapting well to shifting market dynamics while striving to enhance its service offerings.

Conclusion

In summary, Quebecor Inc. has demonstrated notable resilience and growth during Q2 2025. The strategic focus on operational efficiency, innovative service offerings, and a commitment to shareholder value positions Quebecor as a robust player in the Canadian telecommunications sector. As the company continues to navigate challenges in the market, its emphasis on maintaining a strong financial performance remains a key priority for stakeholders.