Quebecor (QBR-B) Q2 2024 earnings summary

Executive summary

• Consolidated EBITDA reached CAD 625 million (up 3.3% year-over-year), with stable cash flow from operations at CAD 450 million, despite competitive pressures and increased strategic investments.

• Q2 2024 revenues were CAD 1.4 billion, down 1% year-over-year, while net income attributable to shareholders increased 19.2% to CAD 208 million (CAD 0.90/share).

• Over 300,000 new wireless RGUs gained since the Freedom Mobile acquisition, with 93,000 net additions in Q2, driven by Freedom and Fizz brand expansion.

• Fizz completed its beta phase and is now available to over 21 million Canadians, supporting multi-service growth and market share gains.

• Videotron and Freedom received investment-grade credit upgrades, and available liquidity exceeded CAD 2.1 billion at quarter-end.

Financial highlights

• Q2 revenues were CAD 1.4 billion, down 1% year-over-year; EBITDA was CAD 625 million, up 3%; adjusted cash flows from operations were CAD 450 million, down 1%.

• Net income attributable to shareholders was CAD 208 million (CAD 0.90/share), up from CAD 174 million (CAD 0.75/share) last year.

• Adjusted income from operating activities was CAD 205 million (CAD 0.89/share), up from CAD 182 million (CAD 0.79/share) year-over-year.

• For the first six months, revenues rose 9% to CAD 2.7 billion and EBITDA increased 13% to CAD 1.18 billion.

• Capital expenditures were CAD 175.2 million in Q2 2024, up from CAD 149.9 million in Q2 2023.

Segment performance

• Telecom segment revenues decreased by 1% to CAD 1.2 billion; EBITDA stable at CAD 608 million; adjusted cash flows from operations down 3% to CAD 446 million.

• Wireless revenues grew 3% to CAD 558 million; wireless EBITDA up 1% to CAD 254 million, reflecting higher investments in branding and expansion.

• Media segment revenues increased 2% to CAD 184 million; EBITDA improved by CAD 19 million, aided by a CAD 10 million one-time LCN carriage fee adjustment.

• Sports and entertainment revenues fell 7% to CAD 45 million; EBITDA down by CAD 1 million.

• RGU growth: Net increase of 66,200 RGUs (0.9%) in Q2 2024.