Montréal, Québec – Quebecor Inc. (“Quebecor” or the “Corporation”) today reported its consolidated financial results for the first quarter of 2012. Quebecor consolidates the financial results of its Quebecor Media Inc. (“Quebecor Media”) subsidiary, in which it holds a 54.7% interest.
First quarter 2012 highlights
- Revenues: $1.06 billion, up $73.5 million (7.4%) from the first quarter of 2011.
- Operating income: Up $27.9 million (9.5%) to $322.2 million.
- Net income attributable to shareholders: $72.9 million ($1.15 per basic share), up $38.6 million ($0.62 per basic share) from $34.3 million ($0.53 per basic share) in the first quarter of 2011.
- Adjusted income from continuing operations: $39.3 million ($0.62 per basic share), up $3.4 million ($0.06 per basic share) from $35.9 million ($0.56 per basic share) in the first quarter of 2011.
- In the first quarter of 2012, Videotron Ltd. (“Videotron”) recorded substantial revenue increases from Internet access services ($23.0 million or 13.7%), cable television service ($22.4 million or 9.1%), mobile telephony service ($16.9 million or 81.6%), and cable telephony service ($4.4 million or 4.1%). The Telecommunications segment’s operating income was up $48.5 million (19.1%).
Quebecor’s revenues and operating income increased 7.4% and 9.5% respectively in the first quarter of 2012, once again reflecting the Telecommunications segment’s sustained performance,” said Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor. “Revenues increased significantly for all of Videotron’s main services, driving the Telecommunications segment’s operating income up $48.5 million or 19.1% from the first quarter of 2011. The number of subscriber connections to the mobile telephony service stood at 312,800 as of March 31, 2012, an increase of 22,200. Videotron also announced the launch of illico TV new generation, featuring an entirely new interface for accessing digital services, and innovative functionalities that support smoother and more intuitive navigation. Videotron continues to reinvent its services in order to deliver a consistently superior customer experience to subscribers.
“Another highlight of the first quarter of 2012 was the 2012 season of Star Académie, broadcast on the TVA Network. The program has become a Québec institution and has positive ripple effects across Quebecor Media’s properties. The weekly galas were seen by an average of 2.2 million viewers and the Star Académie 2012 CD has sold more than 125,000 copies to date, topping the Canadian French‑language charts. The show and its tie-in products have achieved very important penetration in the Québec French‑language market.
“In the News Media segment, the Canoe network logged 10.5 million unique visitors in March 2012, up 12.9% from December 2011, 1because of Sun Media Corporation’s successful new approach for the websites of its urban dailies and community newspapers. This new milestone confirms Canoe’s strong position in the Canadian marketplace. In Québec, it now ranks second, just behind behemoth Google.
“The new exclusive agreement to distribute the Sears Canada Inc. national flyer in the Le Sac Plus door‑knob bag, that will be supported by a multiplatform media campaign in all our media properties, is another example of the complementary fit among our multiproduct offerings. Meanwhile, Quebecor MediaPagesTM launched the videotron.smartfind.ca and videotron.trouvetout.ca search engines, a new Web and mobile platform that supports consumer searches for local merchants. Finally, Sun Media Corporation launched four new community weeklies in Ottawa, Windsor, Kitchener‑Waterloo and Guelph, which will reach more than 400,000 Ontario households
“However, the financial results of the News Media and Broadcasting segments continued to be adversely affected by the impact of increased competition and the economic environment for the advertising market, as well as the significant capital expenditures required for the launch of new products and services.
“In the Leisure and Entertainment segment, Archambault Group Inc. (“Archambault Group”) launched ZIK, a music streaming service that offers unlimited interactive access to more than 12 million tracks, including the largest selection of French‑language music with 1.2 million titles. ZIK positions Archambault Group at the forefront of a technological, musical and cultural revolution. The service puts Québec culture and artists front and centre, while offering unique editorial content.
“Finally, in late March 2012, Quebecor Media and Québec City announced the finalization of the functional and technical program for the multipurpose arena to be built in Québec City. Construction is slated to begin in September 2012.
“This year, we are beginning to reap the fruit of our investments in our various businesses over the past three years, as the large increases in operating income and cash flows in our Telecommunications segment tend to indicate. The excellent first quarter results mark a positive start to 2012, a year that should see a number of attractive projects that hold considerable promise for the Corporation’s long‑term development and profitability.”
1 - comScrore Media Metrix, Home/Work, Canada
For more details and to consult definitions of "operating income" and "adjusted income from continuing operations", please refer to the attached PDF file for the complete version of the press release.
Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
J. Serge Sasseville
Senior Vice President, Corporate and Institutional Affairs
Quebecor Media Inc.