Quebecor (QBR-B) Q4 2024 earnings summary

Executive summary

• 2024 marked the first full year post-acquisition of Freedom Mobile, driving transformative growth and positioning the company as a leading Canadian telecom in cash flow, profitability, and disciplined capital allocation.

• Revenue rose 3.8% to $5.64B, adjusted EBITDA up 5.8% to $2.37B, and net income attributable to shareholders up 14.9% to $747.5M year-over-year.

• Cash flows from operating activities increased 17.6% to $1.72B, and the net debt leverage ratio improved to 3.31x, the lowest among major Canadian telecoms.

• Maintained strong operational execution, expanding market share and investing in network and customer experience, including 5G+ and new bundled services.

• Dividend per share was raised to $0.35 quarterly, with significant investments in network upgrades and spectrum.

Financial highlights

• Full-year revenue: $5.64B (+3.8% year-over-year); Q4 revenue: $1.50B (-0.4% year-over-year).

• Adjusted EBITDA: $2.37B (+5.8% year-over-year); Q4: $589M (+4.2% year-over-year).

• Net income attributable to shareholders: $747.5M ($3.23/share, +14.9% year-over-year); Q4: $178M ($0.76/share, +21.5% year-over-year).

• Adjusted income from operating activities: $747M (+8.6% year-over-year); Q4: $187M (+11.4% year-over-year).

• Cash flows from operating activities: $1.72B (+17.6% year-over-year); Q4: $392M (+16.9% year-over-year).

Outlook and guidance

• Telecom CapEx guidance for 2025 is $650M, with a gradual increase planned.

• Free cash flow expected to remain stable around $1B, with no spectrum auction spending anticipated in 2025.

• Revenue growth in telecom expected to turn positive during 2025.

• Dividend policy remains stable, with an 8% increase in quarterly dividend to $0.35/share.

• Management remains focused on cross-Canada telecom expansion, product diversification, and maintaining strict financial discipline.