As Quebecor releases its third quarterly results for 2016, revenue is up by $23.8 million CAD, reaching a final result of $998.3 million, and an operating income of $389.8 million.
Of that income, Videotron pulled in $363.6 million, up from $351.1 million this time last year. The Quebec-based telco’s mobile earnings produced the lion’s share of this quarter’s telecom earnings at $27.6 million, at a quarterly increase of 25.9 percent.
Revenue from its internet offerings came in at $14.3 million, its business solutions brought in $10.6 million, and its Club ilico video service earned the company $1.9 million.
Furthermore, Videotron’s monthly average revenue per user was $146.58, up seven percent year over year. The telco also increased its subscriber base by 54,700, which includes 38,800 connections to the mobile service, 24,400 subscriptions to the cable internet access service and 12,200 memberships with Club ilico.
This is compared to additions of 85,800 in the third quarter of September 2015. Videotron’s mobile telephone offering has added 125, 200 subscribers year over year.
“Quebecor’s revenues were up $23.8 million in the third quarter of 2016, reflecting a strong performance by its telecommunications segment, which grew its revenues by 5.2%,” said Pierre Dion, President and CEO of Quebecor, in a statement.
“Once again, Videotron’s rising numbers were driven by products and services with strong growth prospects. Consumer response to Videotron’s offerings continues to be very positive.
Overall, the telecommunications division of Quebecor Inc. increased its revenues by $39.5 million, or 5.2 percent, and its operating income by $12.5 million, or 3.6 percent, in the third fiscal quarter of 2016.
While Videotron continues to grow at a consistent rate, its revenues in other categories seemed to fluctuate. Revenues from its media department decreased to $34.5 million, down from $42.9 million this time last year and from $38.7 million last quarter.
Its sports and entertainment department generated a loss of $1.3 million, though this is up from a loss of $4.8 million year over year and $6.2 million sequentially.
On November 2nd, Quebecor Inc. announced a structural change to its media division which will consist of cutting 220 jobs, or nearly eight percent of the company’s workforce.
“The industry has been disrupted in Québec as in the rest of the world, and we have therefore made a number of transformational moves in order to adapt to the changes. The downtrend in advertising revenues impacted the Media segment’s operating profits again in the third quarter of 2016,” said Julie Tremblay, CEO of Quebecor Media service.