Quebecor (QBR-B) Q1 2025 earnings summary

Executive summary

• Delivered solid operational and financial results in Q1 2025, with continued wireless market share growth, strong cash flow generation, and further leverage reduction.

• Cash flows from operating activities rose 8.1% year-over-year to $420.2M, while revenue declined 1.4% to $1.34B.

• Adjusted EBITDA fell 1.8% to $549.6M, mainly due to a $22.5M increase in stock-based compensation; excluding this, adjusted EBITDA was up 2.3%.

• Net income attributable to shareholders increased 10.1% to $190.7M ($0.82 per share); adjusted income from operating activities rose 13.5% to $185.1M ($0.80 per share).

• Maintained industry-leading balance sheet and lowest net debt-to-EBITDA ratio among Canadian telecom peers.

Financial highlights

• Revenues were $1.34B, down 1.4% year-over-year.

• Adjusted EBITDA was $549.6M, down 1.8%, mainly due to higher stock-based compensation; excluding this, EBITDA rose 2.3%.

• Cash flow from operating activities increased by $31M (8.1%) to $420.2M.

• Adjusted income from operating activities rose by $22M (13.5%) to $185.1M.

• Net income attributable to shareholders was $190.7M ($0.82 per share), up from $173.2M ($0.75 per share) last year.

Outlook and guidance

• Confident in sustaining low single-digit EBITDA growth and returning telecom revenue growth to positive territory in 2025.

• Continued investment in network expansion, including phased rollout of 3800 MHz spectrum for 5G+ in Ontario, Alberta, and BC.

• Plan to continue deleveraging to maintain net debt-to-EBITDA in the low threes.

• Ongoing disciplined CapEx for 5G/5G+ network expansion and growth projects.

• Ongoing restructuring in TVA Group to address media industry challenges and declining advertising revenues.