Videotron added 42,400 new wireless customers on Q4, increasing its total base to 630,000, on a multi-faceted strategy of competitive regional pricing, expansive LTE coverage and, perhaps most importantly, bundling deals with internet and TV packages.
At the same time, the LTE network, which it shares with Rogers in Quebec and Eastern Ontario, increased its average revenue per customer by $5.05 in 2014 to $45.48, (well below the equivalent from Rogers or Bell at $59.86 and $61.12 respectively) , the result of beginning to offer the iPhone, and increased data usage.
Quebecor posted revenue of $989.4 million in the quarter, with an adjusted EPS of $0.41, for a take home income of $50.3 million.
Manon Brouillette, President and CEO of Videotron, said, “Videotron’s strong results were driven by the performance of our mobile telephony and Internet access services. The gains reflect the success of our optimal selection of mobile devices, combined with the immense capacity of our new LTE network, one of the most advanced in the industry. In 2014, we launched our LTE network, which covers nearly 90% of Québec’s population at speeds of up to 150 Mbps.”
Videotron boasted improvements to its Club illico video subscription service in the quarter, too, increasing its base to 178,000 at the end of 2014.
Last week, Videotron spent $31.8 million for 30Mhz of AWS-3 spectrum in Quebec and Eastern Ontario, beating out WIND Mobile for additional spectrum in the Ottawa region.