Quebecor Inc. (“Quebecor” or “the Corporation”) has released its consolidated financial results for the first quarter of 2024, showcasing significant growth and strategic initiatives across its various segments.
Highlights of the First Quarter of 2024:
- Revenue Surge: Quebecor’s revenues surged to $1.36 billion, marking a substantial increase of $247.2 million (22.2%) compared to the same period in 2023.
- Robust Performance: The adjusted EBITDA reached $559.5 million, up by $116.7 million (26.4%), and adjusted cash flows from operations soared to $419.0 million, an increase of $73.0 million (21.1%) compared to the first quarter of the previous year.
- Telecommunications Segment Growth: The Telecommunications segment exhibited remarkable growth, with revenues up by $254.5 million (27.5%), adjusted EBITDA by $101.3 million (21.4%), and adjusted cash flows from operations by $63.1 million (16.6%) in Q1 2024. This growth is attributed, in part, to the impact of the Freedom Mobile acquisition in April 2023.
- Expansion in Mobile Services: Revenue from mobile services and equipment surged by $264.2 million (95.7%), largely due to the Freedom acquisition, alongside a $5.8 million (1.8%) increase in revenues from Internet access.
- Increase in Revenue-Generating Units (RGUs): Q1 2024 saw a net increase of 17,400 RGUs (0.2%), including 60,200 connections (1.6%) to the mobile telephony service.
- TVA Group Performance: TVA Group Inc. (“TVA Group”) experienced a slight decline in revenues by $6.9 million (‑5.1%) but saw a favorable variance of $4.7 million in adjusted EBITDA compared to the same quarter in 2023.
- Sports and Entertainment Segment: Despite a decrease in revenues by $1.8 million (‑3.7%), the adjusted EBITDA for the Sports and Entertainment segment increased by $0.5 million (14.7%) in Q1 2024.
- Financial Strength: Quebecor’s consolidated net income attributable to shareholders surged to $173.2 million ($0.75 per basic share), up by $52.3 million (43.3%). Adjusted income from operating activities also increased to $163.1 million ($0.71 per basic share), reflecting a $27.1 million (19.9%) rise.
- Debt Leverage Ratio: The consolidated net debt leverage ratio improved from 3.39x at December 31, 2023, to 3.31x at March 31, 2024, indicating enhanced financial stability.
- Strategic Initiatives: In April 2024, Videotron Ltd. (“Videotron”) announced plans to enhance wireless coverage in outlying regions of Québec by installing a minimum of 37 new cell towers in Abitibi‑Témiscamingue and the Laurentians in collaboration with the Québec government.
- Credit Rating Upgrade: On May 6, 2024, credit rating agency S&P Global Ratings (“S&P”) upgraded Videotron’s credit rating from BB+ to BBB- and raised its unsecured debt rating from BB+ to BBB-, underscoring confidence in Videotron’s financial standing and operational performance.
Quebecor’s robust performance, strategic initiatives, and enhanced financial metrics position the Corporation for continued growth and success in the evolving telecommunications and media landscape.
