#Canada #Montreal #financial results #Telecommunications #Quebecor

Quebecor Inc. Financial Performance for Q1 2025

Quebecor Inc. has recently published its consolidated financial results for the first quarter of 2025, indicating robust cash flow performance amidst a dynamic market environment. The Corporation recorded cash flows from operating activities amounting to $420.2 million, an increase of $31.4 million (8.1%) compared to the same quarter of the previous year. However, total revenues saw a slight decline, decreasing by $19.7 million (-1.4%), totaling $1.34 billion.

One notable aspect of Quebecor's financial results was the adjusted EBITDA, which dropped by $9.9 million (-1.8%), primarily due to a significant $22.5 million rise in stock-based compensation. Notably, if this accounting adjustment is excluded, adjusted EBITDA would reflect an increase of $12.6 million (2.3%).

The telecommunications segment, a core component of Quebecor's operations, experienced a modest adjusted EBITDA increase of $5.9 million (1.0%). Despite this, revenues in this segment decreased by $19.4 million (-1.6%), predominantly driven by lower equipment sales, although this was somewhat offset by growth in mobile services. The cash flows from operations in this segment remained stable at $439.2 million.

It is worth mentioning that Quebecor achieved a net income of $190.7 million ($0.82 per share), marking an increase of $17.5 million ($0.07 per share) or 10.1% from the prior year. The adjusted income from operations also rose to $185.1 million ($0.80 per share), a 13.5% improvement from last year's figures.

Additionally, the corporation's consolidated net debt leverage ratio decreased to 3.26x, maintaining its position as the lowest ratio among Canada's major telecommunications providers. Noteworthy too was Quebecor's initiative in purchasing and cancelling 1,830,000 Class B Subordinate Voting Shares for $60.8 million, a move likely aimed at enhancing shareholder value.

In April 2025, Quebecor began rolling out its 3800 MHz spectrum across its 5G+ network in Ontario, Alberta, and British Columbia. This upgrade is pivotal in boosting network capacity and improving customer connectivity, catering to the demand for high-speed services. Customers with compatible devices will benefit from download speeds potentially exceeding 1 Gbps, supporting the growing trend of mobile service consumption.

In February, Quebecor’s subsidiary Videotron extended its wireless service area, enabling more residents to access its offerings. Furthermore, in the same month, Fizz introduced Fizz TV, an all-digital television service available to subscribers with a unique pick-and-pay model, meeting emerging consumer preferences for flexibility in viewing options.

Comments from Leadership

Pierre Karl Péladeau, President and CEO of Quebecor, emphasized the Corporation's strong market performance despite stiff competition, crediting disciplined management and innovative offerings for the solid results. He remarked on the 54,400 new mobile lines added in the first quarter, which reflects the best growth rate among major telecom providers in Canada.

Péladeau noted the importance of Quebecor's strong financial health, having reduced consolidated net debt significantly and continuing to invest in its services amidst a rapidly evolving telecommunications landscape. He also highlighted the corporation's contributions to community welfare, affirming Quebecor’s commitment to ongoing philanthropic endeavors.

As Quebecor looks ahead, it remains focused on maintaining its momentum through strategic investments in technology, expanding its customer base, and enhancing service offerings to meet the dynamic demands of the market.

For further insights into Quebecor's financial status and future strategies, please refer to their detailed management discussions provided on their official website.

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