Montréal, Québec – Quebecor Inc. (“Quebecor” or the “Corporation”) today reported its consolidated financial results for the fourth quarter and full year of 2021. Quebecor consolidates the financial results of its wholly owned Quebecor Media Inc. (“Quebecor Media”) subsidiary.

Highlights
 

2021 financial year

• Revenues: $4.55 billion in 2021, up $236.6 million (5.5%) from 2020.

• Adjusted EBITDA: $1.97 billion, up $20.6 million (1.1%).

• Net income attributable to shareholders: $578.4 million ($2.38 per basic share) in 2021, compared with 607,2 million ($2.41 per basic share) in 2020.

• Adjusted income from continuing operating activities: $621.9 million ($2.55 per basic share) in 2021, compared with $594.5 million ($2.36 per basic share).

• Adjusted cash flows from operations: $1.38 billion in 2021, up $69.7 million (5.3%).

• Quarterly dividend on the Corporation’s Class A Multiple Voting Shares (“Class A Shares”) and Class B Subordinate Voting Shares (“Class B Shares”) raised by 9% from $0.275 to $0.30 per share.

• The Telecommunications segment grew its revenues by $112.4 million (3.1%) and its adjusted EBITDA by $11.3 million (0.6%) in 2021, despite the $12.6 million unfavourable impact of recognition of a one-time item in 2020.

• Videotron Ltd. ("Videotron") increased its revenues from mobile services and equipment ($73.2 million or 8.0%), Internet access ($70.0 million or 6.2%) and wireline equipment ($52.3 million or 34.5%) in 2021.

• Net increase of 41,700 revenue-generating units (“RGUs”) (0.7%) in 2021, including 120,800 connections (8.2%) to the mobile telephony service and 44,000 subscriptions (2.4%) to the Internet access service.

• Videotron acquired, in December 2021, 294 blocks of spectrum in the 3500 MHz band across the country for $830.0 million. More than half of the investment is concentrated in four Canadian provinces outside Québec: Ontario, Manitoba, Alberta and British Columbia.

• Videotron announced, on May 12, 2021, the roll-out of its 5G network in Québec City, following the successful launch in Montréal in December 2020. With its increased speed, expanded connectivity and minimal latency, 5G will open up a world of possibilities for Québec City customers.

• Videotron acquired, on April 1, 2021, Cablovision Warwick Inc., serving the municipalities of Warwick, Kingsey Falls and Saint-Félix-de-Kingsey in the Centre-du-Québec region.

• Videotron launched, on August 17, 2021, Vrai, a new Québec subscription platform that meets the strong demand for unscripted lifestyle, documentary and entertainment content. In its first year, Vrai offered thousands of hours of all-French, on-demand content, including more than a hundred new original Québec productions.

• Videotron entered, on March 22, 2021, into agreements with the Québec government and the government of Canada jointly aimed at achieving government targets for the roll-out of high-speed Internet services in various regions of Québec. Under these agreements, Videotron is expanding its high-speed Internet network to connect approximately 37,000 more households and the governments have undertaken to provide financial assistance in the amount of approximately $258.0 million, which will be used in its entirety for the extension of Videotron’s network.

• Videotron issued, on January 22 and June 17, 2021, $1.40 billion aggregate principal amount of 3.125% and 3.625% Senior Notes maturing on January 15, 2031 and June 15, 2028, respectively. On June 17, 2021, Videotron also issued US$500.0 million aggregate principal amount of 3.625% Senior Notes maturing on June 15, 2029.

• Videotron completed, on July 6, 2021, the early redemption of the entirety of its 5.000% Senior Notes due July 15, 2022, in aggregate principal amount of US$800.0 million, at a redemption price of 104.002% of their principal amount. The related hedges in an asset position were also unwound. On July 5, 2021, Quebecor Media completed the early redemption of the entirety of its 6.625% Senior Notes due January 15, 2023, in aggregate principal amount of $500.0 million, at a redemption price of 107.934% of their principal amount.

• Quebecor unveiled, on September 15, 2021, the new QUB digital platform, which brings together all of its news and entertainment content in one place. Available on the Internet and via a mobile app, QUB is differentiated by its vast quantity of multi-source, multi-format content, including text, music, video and audio, available live or on demand on a single platform to support discoverability.

• TVA Group Inc. (“TVA Group”) announced, on July 16, 2021, that the studios of Canadian film and television industry leader MELS will be enlarged with the construction of MELS 4, with the support of Investissement Québec and the City of Montréal. The project will strengthen MELS’ position on the market for foreign blockbusters and series.

• Videotron and TVA Sports announced, on September 9, 2021, a partnership with the Lions de Trois-Rivières, the new ECHL hockey team. The new Trois-Rivières arena is named the “Colisée Vidéotron” and TVA Sports is the exclusive official broadcaster of the Lions’ home games.

• The Sports and Entertainment segment acquired, on February 1, 2021, Les Disques Audiogramme inc. the largest independent French-language record label in North America, which also includes Éditorial Avenue, Canada’s largest French-language music publisher, in order to continue supporting talented Québec artists and promoting the dissemination of Québec music.

• The Sports and Entertainment segment became, on October 6, 2021 the new manager of the Cabaret du Casino de Montréal. It is now operating the acoustically superior multipurpose venue and presenting unique programming for thousands of guests.

Fourth quarter 2021

• Revenues: $1.18 billion, up $37.1 million (3.2%).

• Adjusted EBITDA: $498.8 million, down $28.0 million (-5.3%).

• Net income attributable to shareholders: $160.5 million ($0.67 per basic share) in the fourth quarter of 2021, a favourable variance of $0.7 million ($0.03 per basic share).

• Adjusted income from continuing operating activities: $157.6 million ($0.66 per basic share) in the fourth quarter of 2021, a $7.4 million decrease.

• Adjusted cash flows from operations: $370.6 million, up $25.4 million (7.4%).

• Net increase of 43,000 RGUs (0.7%) in the fourth quarter of 2021, including 36,200 subscriptions (7.7%) to the over-the-top video (“OTT video”) service, 30,600 connections (1.9%) to the mobile telephony service and 8,100 subscriptions (0.4%) to the Internet access service.

Comments by Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor:
 

In the 2021 financial year, operating in an environment of ongoing and particularly intense competition in the Québec telecom industry, we posted increases of 5.5% in revenue, 1.1% in adjusted EBITDA and 5.3% in adjusted cash flows from operations. We stayed focused on the sound management of our operations, our balance sheet and our investments, as evidenced, among other things, by the 7.4% increase in adjusted cash flows from operations in the fourth quarter of 2021. With net available liquidity of $1.57 billion as at December 31, 2021, we have a solid foundation to pursue our strategic priorities and offer our growing customer base the most innovative technology at the best price.

 

We were very pleased to complete the $830.0 million acquisition of 294 blocks of 5G spectrum in December 2021, with half of the investment concentrated in Ontario, Manitoba, Alberta and British Columbia. With this spectrum and with favourable conditions that would ensure the economic viability of mobile virtual network operators (MVNOs), which are now mandated by the CRTC, Videotron would be the independent player best-placed to ensure the emergence of real competition across Canada.
 

We continued increasing our RGUs in the highly competitive mobile telephony space, with an increase of 120,800 subscriber connections, or 8.2%, in the last 12 months, including 30,600 in the fourth quarter of 2021. Our complementary Videotron and Fizz brands set us apart from the competition, as does the outstanding customer experience for which we are known. Thereby, for the third year in a row, Fizz placed first for online experience in Canada’s telecommunications industry on Léger’s WOW Digital Index.
 

Our Helix platform also continues to perform strongly, as evidenced by the 157,000 RGUs that switched over to the service during the fourth quarter of 2021, the highest quarterly numbers of the year. Meanwhile, the number of Internet access subscribers stood at 1,840,800 at December 31, 2021, an increase of 44,000 (2.4%) in 2021. We have started connecting households to our high-speed Internet service under a joint project with the Québec government and the government of Canada. Videotron will receive $258.0 million in government financial assistance to connect approximately 37,000 households in various regions of Québec.
 

We are excited about our successful 5G roll-out in Montréal and Québec City. With its increased speed, expanded connectivity and minimal latency, 5G opens up a world of possibilities for our customers. We will continue investing in this technology in the coming years to gradually bring it to our entire mobile network.
 

Our choices and investments in OTT video service continued to prove sound, as demonstrated by the 36,200-subscriber increase (7.7%) in the fourth quarter of 2021. With its diverse, regularly updated selection of local content, the service now has more than 503,000 subscribers, including 42,000 to our new Vrai subscription platform, which carries unscripted lifestyle content in French. At the same time, in view of the federal government’s Bill C-11, which amends the Broadcasting Act and adds foreign online undertakings to its purview, we must note again the importance of lightening the regulatory and financial burden on conventional broadcasters so that we can remain competitive and continue investing heavily in the production of original Canadian content.
 

Advertising revenues from the TVA Network and the specialty channels were up for the fourth consecutive quarter, driving an increase of approximately $24.3 million (16.5%) in TVA Group’s revenues in the fourth quarter of 2021. The higher revenues partially offset the increase in content costs, including higher content costs at TVA Sports than in the fourth quarter of 2020 because of the late start to the National Hockey League’s 2020-2021 season, and significant investments in the fourth quarter of 2021 to face increased competition from proliferating consumer offerings. Furthermore, thanks to our high-calibre original productions and major television events, our consolidated market share was 38.8% in the fourth quarter of 2021, reflecting in part a 0.5-point increase for the over-the-air TVA channel.
 

Our new QUB digital platform, which consolidates all of Quebecor’s news and entertainment content, continues to gain traction, driving revenue growth by bringing content offerings together in one place.
 

Also, I would like to thank Normand Provost for his great collaboration and valuable contribution throughout his 17 years of service as a director. Our Corporation had the privilege of being able to count on his expertise, loyalty and dedication to Quebecor Media, Quebecor and Videotron.
 

With 2022 well underway, we are more committed than ever to maintaining our leadership position, continuing the sound management of our business, and staying at the forefront of technological progress in order to deliver a world-class experience to our customers.  I want to underscore the outstanding work of our employees, who once again demonstrated extraordinary dedication throughout the year. Day after day, they embody our values of innovation, passion, collaboration, performance and agility.
 

We are in an excellent position to seize the opportunities that lie ahead, guided by our overriding goal of creating long-term value for our customers, our employees, our shareholders and our community.