Quebecor’s Q2 revenue flat as telecom growth offset by media decline
Quebecor became 100 per cent owner of Quebecor Media after buying out the Caisse de depot
MONTREAL – Quebecor Inc.’s revenue in the second quarter was $1.04 billion, up a slight 0.5 per cent from the same time last year as growth at its telecommunications arm was largely offset by a decline in media revenue.
Revenue at Quebecor’s media arm fell to $186.6 million from $199.5 million while revenue from the sports and entertainment division was relatively unchanged at $36.9 million, up from $36 million.
The Montreal-based company had $41.3 million of net income attributable to shareholders in the second quarter, or 18 cents per share.
That was down from $137.8 million or 57 cents per share in the second quarter of 2017, when Quebecor’s profit was boosted by a gain from the sale of a spectrum licence.
Adjusted income from continuing operating activities, which excludes the spectrum sale and other items, was $106.2 million or 45 cents per share, up from $88.6 million or 37 cents per Quebecor share.
Quebecor chief executive Pierre Karl Peladeau said the company had achieved a major milestone in the second quarter when it became 100 per cent owner of Quebecor Media, after buying out its strategic partner – the Caisse de depot.
“With access to all the cash flows generated by the subsidiary, the corporation will now be better equipped to seize business opportunities as they arise, to achieve its objectives with respect to its dividend payment policy, and to take full control of its development projects,” Peladeau said Thursday in a statement.
Earlier this week, Peladeau said in a Facebook posting that Quebecor’s ability to do business with the Quebec government was jeopardized because he had pleaded guilty on July 10 to violating the province’s election act by personally reimbursing a $137,000 debt accumulated by his campaign to become leader of the Parti Quebecois.
However, Peladeau’s Monday social media posting said the province’s treasury board and premier have the power to declare an exception to the act’s automatic penalties and a Quebecor statement on Tuesday said it was confident “that the matter will be settled in the near future without restricting the corporation’s activities or its public sector clients.”