PKP still hopeful over Freedom acquisition despite unfruitful mediation with Competition Bureau

Quebecor Inc. released its third quarter figures on Thursday, with president and CEO Pierre Karl Péladeau pleased with the prospects for the future. This was despite a slight decrease in revenues from a year ago. The Quebec telecommunications and media giant entered into an agreement last August to purchase Freedom Mobile from Shaw Communications Inc. This acquisition is part of a divestiture needed so Rogers Communications Inc. can buy out Shaw. Quebecor has also acceded to expectations laid out by the Department of Innovation, Science and Economic Development (ISED) which was to keep its spectrum licences for a minimum of 10 years and bring down its prices to levels in Quebec. It has also purchased VMedia Inc. to extend its footprint nationally. Péladeau was disappointed the Competition Bureau is still opposing the Rogers takeover of Shaw but hopeful about the outcome. “Although the mediation last week did not bring us any closer to an agreement with the Competition Bureau,” he told a financial analysts conference call “We believe the upcoming Competition Tribunal hearings will demonstrate clearly that the acquisition of Freedom by Quebecor will bring to the rest of Canada the healthy competition and lower prices that have been the norm in Quebec for many years.” The executive expressed his delight about the CRTC’s ruling last month on mobile virtual network operations (MVNO) and was glad that the commission has been ordered to review its licence renewal decision for the CBC. Quebecor, which owns Quebec broadcaster TVA, took aim at the public broadcaster. “The government must allow private companies to survive by abolishing advertising on all CBC/Radio Canada platforms just as was decided for CBC radio and the equivalent in French in 2016,” Péladeau stated. He also urged adoption of Bill C-18, the Online News Act, currently before Parliament. Quebecor owns the French-language tabloid newspaper Le Journal de Montréal. Quebecor reported revenues of $1.14 billion for the three months ending Sept. 30th. That is a decline of $4.5 million or 0.4 per cent, from this time last year. However, profits slightly increased from $179.2 million during last year’s third quarter to $180.8 million this quarter. Telecom revenues for Q3 edged up slightly from $939 million in 2021 to $942 million this year. Internet saw a its revenue increase from $301.4 million in the third quarter of 2021 to $315 million this year. Television revenue declined compared to the third quarter last year going from $207.8 million to $200.9 million. Mobile telephony saw an increase from $181.8 in the third quarter 2021 to $201.3 this quarter. Media revenues declined to $170.1 million in Q3 2022 from $190.6 million in 2021. Videotron saw its revenues from mobile services and equipment jump 12.1 per cent or $30.7 million and internet access by 4.6 per cent or $13.6 million. The revenues of VMedia accounted for nearly half of the increase in Internet access revenues. Videotron’s total average revenue per user (ARPU) was $47.65 in the third quarter of 2022 compared with $47.32 in the same period of 2021, a $0.33, or 0.7 per cent increase. Mobile ARPU was $39.89 in the third quarter of 2022 compared with $39.13 in the same period of 2021, a $0.76, or 1.9 per cent, increase. Quebecor saw an increase of 99,100 new customers this quarter, or a 1.6 per cent jump, from the end of the second quarter of 2022. This included the addition of VMedia’s 55,500 customers. In comparison, during last year’s third quarter the company added 25,600 revenue generating units. There were 36,300 additional connections to mobile telephony, a jump of 2.2 per cent since last quarter. That is 4,600 customers fewer additions compared to last year’s third quarter which saw an additional 40,900 customers. Quebecor’s internet services saw an increase of 3.1 per cent or 56,800 subscriptions this quarter. Last year it reported an increase of 22,500 in the same period. VMedia customers made up the majority of new internet users. Péladeau bragged about recent surveys that highlighted Quebecor’s customer service. A Léger Poll found that Videotron is the telecom company with the best service in Quebec and a CRTC Secret Shopper Project placed Videotron first in various categories, including customer satisfaction. –Reporting by Paul Park at ppark@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca

PKP still hopeful over Freedom acquisition despite unfruitful mediation with Competition Bureau

News | November 3, 2022

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PKP still hopeful over Freedom acquisition despite unfruitful mediation with Competition Bureau

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