Montréal, Québec – Quebecor Inc. (“Quebecor” or the “Corporation”) today reported its consolidated financial results for the second quarter of 2014. Quebecor consolidates the financial results of its Quebecor Media Inc. (“Quebecor Media”) subsidiary, in which it holds a 75.4% interest.
Second quarter 2014
- Revenues up $6.0 million (0.6%) to $1.07 billion.
- Adjusted operating income up $13.6 million (3.7%) to $385.9 million despite the unfavourable impact on the comparative results of a one‑time $5.8 million adjustment to Canadian Radio-television and Telecommunications Commission (“CRTC”) fees in 2013.
- Net loss attributable to shareholders: $54.8 million ($0.45 per basic share) in the second quarter of 2014 compared with $93.6 million ($0.75 per basic share) in the same period of 2013, a favourable variance of $38.8 million ($0.30 per basic share).
- Adjusted income from continuing operations: $66.0 million ($0.54 per basic share) in the second quarter of 2014, compared with $53.0 million ($0.43 per basic share) in the same period of 2013, an increase of $13.0 million ($0.11 per basic share).
- The Telecommunications segment grew its revenues by $20.7 million (3.1%) and its adjusted operating income by $10.7 million (3.3%) in the second quarter of 2014. Mobile telephony revenues were up $13.7 million or 25.8% and Internet access revenues were up $10.5 million or 5.1%.
- The News Media segment’s adjusted operating income was up $6.1 million (20.8%) in the second quarter of 2014. The sale of 74 Québec weeklies to Transcontinental Interactive Inc (“Transcontinental Interactive”), a subsidiary of Transcontinental Inc. (“Transcontinental”), for a cash consideration of $75.0 million closed on June 1, 2014.
- On April 28, 2014, Pierre Dion was appointed President and CEO of Quebecor and Quebecor Media, replacing Robert Dépatie, who resigned for health reasons. Manon Brouillette was named President and CEO of Videotron Ltd. (“Videotron”) on May 7, 2014.
- On June 19, 2014, at the Corporation's Annual Meeting of Shareholders, the Right Honourable Brian Mulroney was named Chairman of the Board of Quebecor.
- On July 31, 2014. Quebecor announced the creation of Media Group, a new segment dedicated to entertainment and news media. Media Group includes the operations of TVA Group Inc. (“TVA Group”), Sun Media Corporation, QMI Agency, QMI Out of Home, Quebecor Media Sales, Messageries Dynamiques, and Quebecor Media Printing Inc. Julie Tremblay was named President and CEO of the new segment. She will also serve as President and CEO of TVA Group.
In the second quarter of 2014, Quebecor posted a $13.6 million increase in adjusted operating income and a 24.5% increase in adjusted income from continuing operations,” noted Pierre Dion, President and CEO of Quebecor. “Once again, the strong results were propelled by the Telecommunications segment’s performance, combined with successful cost-containment and reduction initiatives in our News Media segment and the positive impact of various refinancing operations completed at advantageous interest rates.
“The News Media segment will continue its repositioning with the creation of Media Group. The new entity will maximize our group’s strengths by pooling its talents in order to provide even better, more diverse and more distinctive content. Media Group will enhance our capability to push content across all our platforms more effectively and more nimbly, taking the convergence strategy that undergirds our success to the next level.”
“Videotron continued its growth in the second quarter of 2014, increasing its revenues by $20.7 million or 3.1%, and its adjusted operating income by $10.7 million, despite the $4.7 million unfavourable impact of CRTC fees,” said Manon Brouillette, President and CEO of Videotron. “Average monthly revenue per user (“ARPU”) rose to $123.61, up $6.37 (5.4%) from the second quarter of 2013. Our mobile telephony service made substantial gains, adding more than 100,000 subscriber connections over the past 12 months. Videotron continues to demonstrate its formidable capacity to innovate and launch new products, such as its new illico app for the iPad and a next-generation Wi‑Fi router that is compatible with the latest wireless technology.”
“The adjusted operating income of the News Media segment, now part of Media Group, jumped 20.8%, despite a 7.3% decrease in revenues,” said Julie Tremblay, President and CEO of Media Group. “The numbers reflect the positive impact of the major cost‑reduction and repositioning initiatives implemented over the past few years.”
In the Broadcasting segment, on July 1, 2014 TVA Sports became the official French-language broadcaster of the National Hockey League for the next 12 years. TVA Group reached agreements with TELUS and Cogeco Cable Canada whereby TELUS and Cogeco customers will have access to TVA content on demand and to the TVA Sports and TVA Sports 2 specialty channels. TVA Group also announced that the successful television program La Voix will be back for a third season in winter 2015.
“Quebecor’s solid year-to-date consolidated financial results were driven by the pursuit of its business plan in its growth sectors and the refocusing and transformation of its more traditional media outlets,” said Pierre Dion. “The Corporation remains favourably positioned to achieve its business development, growth and profitability objectives in the second half of 2014 and subsequent quarters.”
For more details and to consult definitions of "adjusted operating income" and "adjusted income from continuing operations", please refer to the attached PDF file for the complete version of the press release.
Senior Vice President and Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
Vice President, Public Affairs
Quebecor Media Inc.