Montréal, Québec – Quebecor Inc. (“Quebecor” or the “Corporation”) today reported its consolidated financial results for the first quarter of 2013. Quebecor consolidates the financial results of its Quebecor Media Inc. (“Quebecor Media”) subsidiary, in which it holds a 75.4% interest.
First quarter 2013 highlights
- Revenues down slightly by $9.5 million (-0.9%) from the first quarter of 2012 to $1.05 billion.
- Operating income up $0.1 million to $320.4 million.
- Net income attributable to shareholders: $35.6 million ($0.57 per basic share) compared with $71.4 million ($1.13 per basic share) in the first quarter of 2012, a decrease of $35.8 million ($0.56 per basic share).
- Adjusted income from continuing operations: $33.1 million in the first quarter of 2013 ($0.53 per basic share) compared with $37.8 million ($0.60 per basic share) in the first quarter of 2012, a decrease of $4.7 million ($0.07 per basic share).
- Telecommunications segment’s revenues up $23.0 million (3.6%) and operating income up $14.3 million (4.7%) in the first quarter of 2013.
- All major services of Videotron Ltd. (“Videotron”) increase their revenues in the first quarter of 2013: mobile telephony ($12.4 million or 33.0%), Internet access ($7.1 million or 3.7%), cable telephony ($4.0 million or 3.6%) and cable television ($3.9 million or 1.5%).
- Videotron’s revenue-generating units1 up 31,100 in the first quarter of 2013 (compared with an increase of 30,200 in the same period of 2012) and up 222,700 (4.7%) in the 12‑month period ended March 31, 2013.
- Net increase of 18,300 subscriber connections to the mobile telephone service in the first quarter of 2013; the service passes the break‑even point for the first time since it was launched, based on operating income.
- Robert Dépatie, President and Chief Executive Officer of Videotron since 2003, takes over from Pierre Karl Péladeau as President and Chief Executive Officer of Quebecor and of Quebecor Media. Mr. Péladeau becomes Chairman of the Board of Quebecor Media and Vice Chairman of the Board of Quebecor. He will also take responsibility for some of the Corporation’s strategic files.
- Manon Brouillette, President, Consumer Market, of Videotron, is appointed President and Chief Operating Officer of the subsidiary. Robert Dépatie remains Chief Executive Officer of Videotron.
We are very satisfied with Videotron’s results, which continued showing healthy improvement in the first quarter of 2013,” said Robert Dépatie. “Our revenues rose by $23.0 million and our operating income grew by $14.3 million, increases of 3.6% and 4.7% respectively in comparison with the first quarter of 2012. Revenues from all of Videotron’s main services were up, led by the mobile telephony service, which increased its revenues by $12.4 million or 33.0% from the same quarter of 2012. Videotron’s average monthly revenue per user increased by $5.31 to $114.49.
In the first quarter of 2013, a little more than two years after its launch, the mobile service passed the break‑even point, based on operating income, a very strong performance given the highly competitive environment. The service continued making substantial gains, adding 18,300 subscriber connections in the first quarter of 2013 to bring the total to 420,900. Videotron stepped up the overall pace of growth in revenue‑generating units, adding 31,100 in the first quarter of 2013 compared with an increase of 30,200 in the same quarter of 2012. Meanwhile, the illico Club Unlimited service has already signed up 40,000 subscribers since its launch at the end of February 2013, while illico TV new generation, introduced in March 2012, has passed the 700,000‑subscriber mark.
Unfortunately, in the News Media segment, the latest cost-containment initiatives did not make up for the decrease in revenues during the quarter, which was more significant than in previous periods, commented Pierre Karl Péladeau.
In addition to intense competition from new media, traditional newspapers are also facing large reductions in advertising spending by local and national advertisers. Despite signs of a potential recovery in advertising spending in the coming quarters, News Media segment management took immediate steps to adjust its cost structure again in light of the conditions experienced in the first quarter of 2013.
In the Broadcasting segment, TVA Network’s hit show La Voix was a resounding success, registering exceptional ratings throughout its run from January 20 to April 14, 2013. The weekly galas drew an average audience of more than 2.6 million and an average market share of more than 57%. According to BBM Ratings, TVA Network had an overall market share of 24.5% in the first three months of 2013, more than its two main conventional rivals combined. Finally, under a partnership with CBC/Radio‑Canada, the TVA Sports specialty service will enrich its content by becoming an official broadcaster of the 2014 FIFA World Cup BrazilTM and the 2014 Winter Olympics in Sochi.
I am very pleased with Quebecor’s evolution and growth over the 14 years during which I had the privilege of serving as President and Chief Executive Officer, said Pierre Karl Péladeau.
I thank all the colleagues who helped, guided and supported me in that position throughout the years. In view of Videotron management’s exceptional track record over the past 10 years, I have full confidence that Robert Dépatie’s arrival at the head of Quebecor will enable the Corporation to successfully continue its growth and development going forward, in the best interests of its customers, employees, business partners and shareholders.
I want to express my deepest gratitude to Serge Gouin, who is retiring after serving as Chairman of the Board of Quebecor Media since its creation in 2000, said Françoise Bertrand, Chair of the Board of Quebecor.
His dedication and his generosity with his expertise and his time as Chairman of the Board and as a member of Quebecor Media’s Executive Committee made a vital contribution to the Corporation’s success.
1 - Revenue generating units are the sum of cable television, cable and mobile Internet access and cable telephony service subscriptions and subscriber connections to the mobile telephony service.
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.
Senior Vice President and Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
Vice President, Public Affairs
Quebecor Media Inc.