Montréal, Québec – Quebecor Inc. (“Quebecor” or the “Corporation”) today reported its consolidated financial results for the third quarter of 2013. Quebecor consolidates the financial results of its Quebecor Media Inc. (“Quebecor Media”) subsidiary, in which it holds a 75.4% interest.
Third quarter 2013 highlights
- Revenues up $20.4 million (1.9%) from the third quarter of 2012 to $1.08 billion.
- Operating income up $31.0 million (8.9%) to $380.3 million.
- Net loss attributable to shareholders: $167.8 million ($1.36 per basic share) in the third quarter of 2013, compared with net income attributable to shareholders in the amount of $17.1 million ($0.14 per basic share) in the same period of 2012, an unfavourable variance of $184.9 million ($1.50 per basic share), including the $177.0 million ($1.45 per basic share) unfavourable non‑cash impact of fluctuations in the value of goodwill, intangible assets and derivative financial instruments.
- Adjusted income from continuing operations: $63.7 million in the third quarter of 2013 ($0.51 per basic share) compared with $49.5 million ($0.39 per basic share) in the same period of 2012, an increase of $14.2 million ($0.12 per basic share) or 28.7%.
- Telecommunications segment’s revenues up $33.1 million (5.1%) and operating income up $24.9 million (8.2%) in the third quarter of 2013.
- Videotron Ltd. (“Videotron”) recorded third quarter 2013 revenue increases for all of its major services: mobile telephony ($13.0 million or 28.9%), Internet access ($12.0 million or 6.2%), cable telephony ($6.0 million or 5.3%), and cable television ($1.5 million or 0.6%).
- Videotron’s revenue-generating units1 up 43,500 in the third quarter of 2013 (compared with an increase of 101,100 in the same quarter of 2012) and up 147,000 (3.0%) in the 12-month period ended September 30, 2013. Videotron passed the 5 million revenue‑generating units mark during the third quarter of 2013.
- On October 22, 2013, Videotron qualified on a provisional basis to participate in the 700 MHz spectrum auction announced by Industry Canada, which is scheduled to commence on January 14, 2014.
- News Media segment’s operating income up 14.7% to $25.8 million; Broadcasting segment’s operating income more than doubled to $15.2 million. The increases reflect, among other things, the impact of significant cost‑containment and repositioning initiatives implemented in recent years.
“The News Media and Broadcasting segments grew their operating income in the third quarter of 2013,” said Robert Dépatie, President and Chief Executive Officer of Quebecor. “Accordingly, the Telecommunications segment’s growth was fully reflected in the overall improvement in the Corporation’s consolidated results. The stronger results at our media subsidiaries show that the restructuring and repositioning initiatives we have taken over the past few years are bearing fruit. Financial transactions that create value for shareholders, carried out since the beginning of 2012, also contributed to the 28.7% increase in adjusted income from continuing operations.”
“In a highly competitive market, Videotron posted strong results again in the third quarter of 2013, growing its revenues by 5.1% and its operating income by 8.2%,” said Manon Brouillette, President and Chief Operating Officer of Videotron. “All of Videotron’s core services generated revenue increases, particularly mobile telephony and Internet access. Average monthly revenue per user (“ARPU”) continued to grow, climbing $6.92 (6.2%) to $119.24. These results demonstrate once again Videotron’s great creativity in developing new services and delivering the best possible customer experience. During the quarter, the illico Club Unlimited service launched in early 2013 passed the 50,000-customer mark. illico Club Unlimited offers the largest selection of unlimited on‑demand French‑language titles in Canada.
“During the third quarter, Videotron announced the expansion of its multiplatform offering with the addition of Super Channel to its illico Digital TV service. Super Channel carries blockbuster films, popular television series and boxing matches. Videotron also announced plans to launch a new English-language community television channel, MYtv, to serve as a voice and mirror for the Anglophone community in the greater Montréal area."
“The numbers show that the refocusing of our news media operations generated concrete financial results in the third quarter of 2013,” commented Julie Tremblay, President and Chief Executive Officer of Sun Media Corporation. “The News Media segment’s operating income increased by 14.7%, reflecting the impact of the many significant cost‑containment and repositioning measures implemented in recent years. On the business development front, Le Sac Plus reached an exclusive agreement to distribute the Target retail chain’s weekly flyer in the Le Sac Plus doorknob bag starting in fall 2013, in partnership with the Novus agency. Le Sac Plus will distribute nearly 100 million promotional flyers per year for Target through its vast, Québec-wide network.”
In the Broadcasting segment, operating income totalled $15.2 million, an $8.4 million increase from the same period of 2012. The increase reflects the positive impact of a retroactive adjustment to retransmission royalties as well as the restructuring and cost‑containment initiatives undertaken in the second quarter of 2013.
“By leveraging all its strengths, Quebecor is positioning itself to pursue its growth, business development and profitability targets,” said Robert Dépatie.
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.