QUEBECOR INC. REPORTS CONSOLIDATED RESULTS FOR FIRST QUARTER 2025
PR Newswire
MONTRÃ%AL, May 8, 2025
MONTRÃ%AL, May 8, 2025 /PRNewswire/ - Quebecor Inc. ("Quebecor" or
"the Corporation") today reported its consolidated financial results for
the first quarter of 2025.
First quarter 2025 highlights
-- In the first quarter of 2025, Quebecor recorded cash flows provided by
operating activities of $420.2 million, up $31.4 million (8.1%) from the
same quarter of 2024, revenues of $1.34 billion, down $19.7 million
(-1.4%), and adjusted EBITDA1 of $549.6 million, a decrease of $9.9
million (-1.8%) more than entirely attributable to the significant
$22.5 million increase in the stock-based compensation charge. Excluding
this accounting charge, adjusted EBITDA was up $12.6 million (2.3%).
-- The Telecommunications segment's adjusted EBITDA increased by $5.9
million (1.0%), or $12.5 million (2.2%), excluding the impact of the
stock-based compensation charge, and its revenues decreased by $19.4
million (-1.6%), due mainly to lower equipment sales, partly offset by
growth in mobile services. Its adjusted cash flows from operations2
remained fairly stable at $439.2 million (-0.8%) in the first quarter,
taking into account increased investments of $9.3 million related to the
Canada-wide expansion plan.
-- The Telecommunications segment generated a net increase of 54,400 (1.3%)
connections to the mobile telephony service and 34,300 (0.4%) total
revenue-generating units3 ("RGUs").
-- Quebecor's net income attributable to shareholders: $190.7 million ($0.82
per basic share), an increase of $17.5 million ($0.07 per basic share) or
10.1%.
-- Adjusted income from operating activities:4 $185.1 million ($0.80 per
basic share), an increase of $22.0 million ($0.09 per basic share) or
13.5%.
-- The consolidated net debt leverage ratio5 decreased to 3.26x, still the
lowest among Canada's major telecommunications providers.
-- In the first quarter of 2025, Quebecor purchased and cancelled 1,830,000
Class B Subordinate Voting Shares ("Class B Shares") for a total cash
consideration of $60.8 million.
-- On April 4, 2025, Freedom Mobile Inc. ("Freedom") began the phased
rollout of 3800 MHz spectrum across its 5G+ network in Ontario, Alberta
and British Columbia. This rollout will significantly increase network
capacity and deliver improved connectivity for customers with 5G+
compatible devices and plans, with download speeds that can exceed 1
Gbps. It follows on the announcement, on January 28, 2025, of a major
upgrade to Freedom's services: the inclusion of state-of-the-art 5G+
technology in all monthly mobile plans, regardless of price. 5G+ access
was also automatically added to the 5G plans of all existing customers
with compatible phones, at no extra cost.
-- On February 20, 2025, Videotron Ltd. ("Videotron") announced the
expansion of its wireless service area to several parts of the
Municipalité régionale de comté ("MRC") de
Témiscamingue. Residents and businesses in these areas can now
subscribe to Videotron wireless services.
-- On February 5, 2025, Fizz announced the launch of Fizz TV, an all-digital
television service. Available to all Fizz Internet subscribers in
Québec, Fizz TV is differentiated by a pick-and-pay model that lets
users build their own TV plan.
_______________________
(1) See "Adjusted EBITDA" under "Definitions."
(2) See "Adjusted cash flows from operations" under "Definitions."
(3) See "Key performance indicator" under "Definitions."
(4) See "Adjusted income from operating activities" under "Definitions."
(5) See "Consolidated net debt leverage ratio" under "Definitions."
Comments by Pierre Karl Péladeau, President and Chief Executive
Officer of Quebecor
Quebecor continues to perform well in a highly competitive market,
disrupting the established order and reshaping the industry as Canada's
fourth major telecommunications player. The Corporation continues to
make progress, gaining market share quarter after quarter while
consolidating its position as the most profitable player in the sector,
supported by the strongest balance sheet in the Canadian
telecommunications industry.
Quebecor posted solid financial results in the first quarter of 2025,
including increases of 8.1% in cash flows provided by operating
activities and 13.5% in adjusted income from operating activities. As a
result of this strong performance, driven by rigorous disciplined
management, we were able to reduce our consolidated net debt by more
than $155.0 million in the first quarter of 2025 and lower our
consolidated net debt leverage ratio to 3.26x at March 31, 2025, the
lowest among Canada's major telecommunications providers.
In an aggressively competitive business environment, our innovative
range of products offered at competitive prices allowed us to deliver an
increase of 54,400 (1.3%) new mobile lines in the first quarter of 2025,
the best growth rate among Canada's leading telecommunications providers,
and 367,500 (9.6%) lines over the past twelve months. We continued
investing in our network, in line with our priority of delivering a
superior customer experience. Since April 2025, we have been gradually
deploying 3800 MHz spectrum across Freedom's 5G+ network in Ontario,
Alberta and British Columbia. With access to state-of-the-art 5G+
technology now included in all Freedom monthly mobile plans, regardless
of price, this rollout will significantly boost network capacity and
performance. In February 2025, Freedom also launched a new range of
mobile plans in Manitoba that offer higher data caps and include "Roam
Beyond" international roaming.
Freedom brand awareness is also growing. Freedom is an official sponsor
of the 2025 Calgary Stampede, one of Canada's most iconic cultural
events; the exceptional exposure to millions of attendees and television
viewers will strengthen its national positioning.
We are also proud of the resounding success of Fizz TV, the all-digital
television service we launched in February 2025. Available to Fizz
Internet subscribers in Québec, Fizz TV meets the needs of
customers seeking flexibility, accessibility and innovation. More than
12,000 new customers signed up in just a few weeks, confirming the
relevance of our offer and the appeal of the Fizz brand in a
fast-changing market.
Videotron continued to pick up distinctions, ranking as the most
respected telecommunications company in Québec for the 19th time
since 2006 in Léger's 2025 Reputation survey. It also hit a double
in Léger's WOW 2025 index, in which it ranked first among telecom
retailers for in-store experience in Québec while Fizz was first in
Canada for online experience for the sixth year in a row. Freedom moved
up to third place for online experience.
Although its current restructuring plans have reduced operating expenses
considerably, TVA Group Inc. ("TVA Group") recorded negative adjusted
EBITDA of $20.5 million in the first quarter of 2025 as a result of a
significant ongoing decline in advertising revenues due to the general
crisis in the media industry and fewer major foreign productions filming
at our MELS studios. We must therefore maintain a rigorous approach in
order to meet the current challenges and safeguard the future of the
business.
Even though TVA Group gained market share, climbing to a total of 42.4%
in the Winter 2025 season (January 6 to April 6, 2025), our advertising
revenues continued to decline. Our platforms deliver considerably more
viewing hours than the American platforms, but advertisers continue to
pour their dollars into the latter. Yet their reliability pales in
comparison with the credibility of local media, which offer advertisers
an unrivalled showcase and reach their target audiences more
effectively. As we have repeatedly argued, we believe that the federal
government must eliminate the tax deduction for advertising spending on
foreign platforms and, conversely, introduce a tax deduction for
investment in domestic businesses. At a time when the proliferation of
fake news on social media is widely condemned, it defies logic that our
public institutions continue to encourage foreign platforms and our
governments support them through unfair favourable tax treatment.
Moreover, as private broadcasters struggle to survive in an
over-regulated, over-taxed and loss-making broadcasting environment with
a long-obsolete business model, the federal government must move quickly
to implement the recommendations of the 2020 Yale Report by reforming
CBC/Radio-Canada and its mandate, in particular by eliminating
advertising in order to support private broadcasters, for which it is
the main source of revenue.
I would like to mention the upcoming retirement, on May 14, of Lyne
Robitaille, Senior Vice President, Newspapers, Books and Magazines, and
a valued contributor for the past 36 years. Lyne has had a remarkable
career. Over the years, she has led the development and growth of
several Quebecor subsidiaries. She oversaw a number of major
transformations at Quebecor, including the digital transition of our
newspapers, which made Le Journal de Montréal and Le Journal de
Québec the most-read newspapers in Québec across all platforms,
with over 3.1 million readers per week. On behalf of Quebecor, I wish
her all the best in her well-deserved retirement.
In April 2025, on the occasion of the 100th anniversary of the birth of
Pierre Péladeau, Quebecor launched a year-long tribute to honour
the memory of its founder, a visionary builder of Québec Inc. who
helped transform and modernize Québec society and its economy. This
anniversary is also a reminder that the philanthropic commitment that
was so important to Pierre Péladeau remains central to Quebecor's
values, as our recent historic donations--$20 million to Université
Laval to support the Carrefour international Brian-Mulroney and
$10 million to the Fondation du CHU de Québec to support its
integrated cancer centre--eloquently demonstrate. Several other events
will follow in the course of the year.
Today, the innovation, ambition and courage to think big that we
inherited from Pierre Péladeau continue to drive our growth and
expansion. Extending our track record of successful execution, we are
maintaining rigorous financial discipline and building on solid
foundations to achieve our objectives and create long-term value for all
our stakeholders.
Non-IFRS financial measures
The Corporation uses financial measures not standardized under
International Financial Reporting Standards ("IFRS"), such as adjusted
EBITDA, adjusted income from operating activities, adjusted cash flows
from operations, free cash flows from operating activities and
consolidated net debt leverage ratio, and key performance indicators,
including RGUs. Definitions of the non-IFRS measures and key performance
indicator used by the Corporation in this press release are provided in
the "Definitions" section.
Financial table
Table 1
Consolidated summary of income, cash flows and balance sheet
(in millions of Canadian dollars, except per basic share data)
Three months ended
March 31
------------------------------- ---- ----------------------
2025 2024
------------------------------- --------- --------
Income
Revenues:
Telecommunications $ 1,160.1 $ 1,179.5
Media 164.6 168.8
Sports and Entertainment 49.7 46.7
Inter--segments (31.3) (32.2)
------------------------------------- --------- --------
1,343.1 1,362.8
------------------------------- --------- --------
Adjusted EBITDA (negative
adjusted EBITDA):
Telecommunications 581.4 575.5
Media (18.6) (16.7)
Sports and Entertainment 3.5 3.9
Head Office (16.7) (3.2)
------------------------------------- --------- --------
549.6 559.5
Depreciation and amortization (215.3) (236.2)
Financial expenses (92.5) (108.9)
Gain on valuation and translation of
financial instruments -- 9.8
Restructuring, impairment of assets
and other 3.3 (2.2)
Income taxes (60.8) (54.4)
Net income $ 184.3 $ 167.6
------------------------------------- --------- --------
Net income attributable to
shareholders $ 190.7 $ 173.2
Adjusted income from operating
activities 185.1 163.1
Per basic share:
Net income attributable to
shareholders 0.82 0.75
Adjusted income from operating
activities 0.80 0.71
Three months ended
Table 1 (continued) March 31
----------------------- -----------------------------
2025 2024
----------------------- -------- ---------
Capital expenditures:
Telecommunications $ 142.2 $ 132.9
Media 2.9 6.2
Sports and
Entertainment 1.2 1.4
Head Office -- --
----------------------- -------- ---------
146.3 140.5
Acquisitions of
spectrum licences -- 59.8
Cash flows:
Adjusted cash flows
from operations:
Telecommunications 439.2 442.6
Media (21.5) (22.9)
Sports and Entertainment 2.3 2.5
Head Office (16.7) (3.2)
----------------------------- -------- ---------
403.3 419.0
Free cash flows from
operating activities(1) 237.8 222.6
Cash flows provided by
operating activities 420.2 388.8
Mar. 31, Dec. 31,
2025 2024
---------------------- -------- ---------
Balance sheet:
Cash and cash equivalents $ 214.2 $ 61.8
Working capital 79.9 (36.0)
Net assets related to
derivative financial
instruments 115.6 141.2
Total assets 12,964.9 12,998.7
Bank indebtedness 9.6 6.7
Total long--term debt
(including current
portion) 7,586.0 7,619.7
Lease liabilities (current
and long term) 412.1 409.7
Equity attributable to
shareholders 2,215.3 2,157.2
Equity 2,316.4 2,264.7
Consolidated net debt 3.26x 3.31x
leverage ratio(1)
________________________
(1) See "Non-IFRS financial measures."
2025/2024 first quarter comparison
Revenues: $1.34 billion, a $19.7 million (-1.4%) decrease.
-- Revenues decreased in Telecommunications ($19.4 million or -1.6% of
segment revenues) and in Media ($4.2 million or --2.5%).
-- Revenues increased in Sports and Entertainment ($3.0 million or 6.4%).
Adjusted EBITDA: $549.6 million, a $9.9 million (-1.8%) decrease. This
decrease was due to, among other things, a $22.5 million increase in the
stock-based compensation charge related to a significant change in the
fair value of Quebecor stock options and stock-price-based share units.
-- There were unfavourable variances at Head Office ($13.5 million) and in
the Media segment ($1.9 million or -11.4% of segment adjusted EBITDA),
and a decrease in the Sports and Entertainment segment ($0.4 million or
-10.3%).
-- Adjusted EBITDA increased in Telecommunications ($5.9 million or 1.0%).
Net income attributable to shareholders: $190.7 million ($0.82 per basic
share) in the first quarter of 2025, compared with $173.2 million ($0.75
per basic share) in the same period of 2024, an increase of $17.5
million ($0.07 per basic share) or 10.1%.
-- The main favourable variances were:
-- $20.9 million decrease in the depreciation and amortization
charge;
-- $16.4 million decrease in financial expenses;
-- $5.5 million favourable variance in the charge for restructuring,
impairment of assets and other.
-- The unfavourable variances were:
-- $9.9 million decrease in adjusted EBITDA;
-- $9.8 million unfavourable variance related to the gain on
valuation and translation of financial instruments;
-- $6.4 million increase in the income tax expense.
Adjusted income from operating activities: $185.1 million ($0.80 per
basic share) in the first quarter of 2025, compared with $163.1 million
($0.71 per basic share) in the same period of 2024, an increase of $22.0
million ($0.09 per basic share) or 13.5%.
Adjusted cash flows from operations: $403.3 million, a $15.7 million
(-3.7%) decrease in the first quarter of 2025 due to the $9.9 million
decrease in adjusted EBITDA and the $5.8 million increase in capital
expenditures.
Cash flows provided by operating activities: $420.2 million, a $31.4
million (8.1%) increase due primarily to the favourable net change in
non-cash balances related to operating activities and the decrease in
the cash portion of financial expenses, partially offset by the decrease
in adjusted EBITDA.
Financing operations
-- On April 15, 2025, Quebecor Media Inc. ("Quebecor Media") terminated its
$300.0 million secured revolving credit facility. On April 30, 2025,
Videotron requested an increase in its revolving credit facility by an
equivalent amount, consistent with its rights, under its credit agreement,
to request additional commitments of up to $1.00 billion from its
lenders. Videotron anticipates that the increase from $500.0 million to
$800.0 million will become effective in May 2025.
-- On February 26, 2025, Videotron amended and restated its credit agreement
to, among other things, amend its existing $500.0 million revolving
credit facility (reduced from $2.00 billion to $500.0 million on January
29, 2025) by creating two tranches: (i) a first tranche in the amount of
$250.0 million maturing in February 2030, and (ii) a second tranche in
the amount of $250.0 million maturing in February 2026 and providing for
a conversion option into a term facility maturing in February 2027.
Capital stock
On August 7, 2024, the Board of Directors of the Corporation authorized
a normal course issuer bid for a maximum of 1,000,000 Class A Shares
representing approximately 1.3% of issued and outstanding Class A Shares,
and for a maximum of 5,000,000 Class B Shares representing approximately
3.2% of issued and outstanding Class B Shares as of August 1, 2024. The
purchases can be made from August 15, 2024 to August 14, 2025, at
prevailing market prices on the open market through the facilities of
the Toronto Stock Exchange or other alternative trading systems in
Canada. All repurchased shares will be cancelled.
On August 9, 2024, the Corporation entered into an automatic securities
purchase plan ("the plan") with a designated broker whereby shares may
be repurchased under the plan at times when such purchases would
otherwise be prohibited pursuant to regulatory restrictions or
self-imposed blackout periods. The plan received prior approval from the
Toronto Stock Exchange. It came into effect on August 15, 2024 and will
terminate on the same date as the normal course issuer bid.
Under the plan, before entering a self-imposed blackout period, the
Corporation may, but is not required to, ask the designated broker to
make purchases under the normal course issuer bid. Such purchases will
be made at the discretion of the designated broker, within parameters
established by the Corporation prior to the blackout periods. Outside
the blackout periods, purchases will be made at the discretion of the
Corporation's management.
During the three-month period ended March 31, 2025, the Corporation
repurchased and cancelled 1,830,000 Class B Shares for a total cash
consideration of $60.8 million (no shares were repurchased and cancelled
in the first quarter of 2024), and 48,444 Class B Shares were issued
following the exercise of stock options, for a total cash consideration
of $1.3 million (no shares were issued in the first quarter of 2024).
Dividends declared
On May 7, 2025, the Board of Directors of Quebecor declared a quarterly
dividend of $0.35 per share on its Class A Multiple Voting Shares and
Class B Shares, payable on June 17, 2025 to shareholders of record at
the close of business on May 23, 2025. This dividend is designated an
eligible dividend, as provided under subsection 89(14) of the Canadian
Income Tax Act and its provincial counterpart.
Detailed financial information
For a detailed analysis of Quebecor's first quarter 2025 results, please
refer to the Management Discussion and Analysis and condensed
consolidated financial statements of Quebecor, available on the
Corporation's website at
www.quebecor.com/en/investors/financial-documentation and the SEDAR+
website at www.sedarplus.ca.
Conference call for investors and webcast
Quebecor will hold a conference call to discuss its first quarter 2025
results on May 8, 2025, at 1:00 p.m. EDT. There will be a question
period reserved for financial analysts. To access the conference call,
please dial 1-800-990-4777. The conference call will also be broadcast
live on Quebecor's website at
www.quebecor.com/en/investors/conferences-and-annual-meeting. A
recording will be available at the same address until August 6, 2025 for
anyone unable to attend the call.
Cautionary statement regarding forward-looking statements
The statements in this press release that are not historical facts are
forward-looking statements and are subject to significant known and
unknown risks, uncertainties and assumptions that could cause Quebecor's
actual results for future periods to differ materially from those set
forth in forward-looking statements. Forward-looking statements may be
identified by the use of the conditional or by forward-looking
terminology such as the terms "plans," "expects," "may," "anticipates,"
"intends," "estimates," "projects," "seeks," "believes," or similar
terms, variations of such terms or the negative of such terms. Some
important factors that could cause actual results to differ materially
from those expressed in these forward-looking statements include, but
are not limited to:
-- Quebecor's ability to continue successfully developing its network and
the facilities that support its mobile services;
-- general economic climate, financial and economic market conditions,
global business challenges, such as tariffs and trade barriers, as well
as market conditions and variations in the businesses of local, regional
and national advertisers in Quebecor's newspapers, television outlets and
other media properties;
-- Quebecor's ability to implement its business and growth strategies
successfully;
-- the intensity of competitive activity in the industries in which Quebecor
operates and its ability to penetrate new markets and successfully
develop its business, including in growth sectors and new geographies;
-- fragmentation of the media landscape and its impact on the advertising
market and the media properties of Quebecor;
-- new technologies that might change consumer behaviour with respect to
Quebecor's product suites;
-- unanticipated higher capital spending required for developing Quebecor's
network or to address the continued development of competitive
alternative technologies, or the inability to obtain additional capital
to continue the development of Quebecor's business segments;
-- risks relating to the ongoing integration of Freedom, acquired in 2023,
which could result in additional and unforeseen expenses, capital
expenditures and financial risks, such as the incurrence of unexpected
write-offs, unanticipated or unknown liabilities, or unforeseen
litigation. In addition, the anticipated benefits of the Freedom
acquisition may not be fully realized or could take longer to realize
than expected;
-- the impacts of the significant and recurring investments that will be
required for development and expansion and to compete effectively with
the incumbent local exchange carriers ("ILECs") and other current or
potential competitors in the Telecommunications segment's target markets;
-- disruptions to the network through which Quebecor provides its television,
Internet access, mobile and wireline telephony and over-the-top (OTT)
services, and its ability to protect such services against piracy,
unauthorized access and other security breaches;
-- labour disputes and strikes, service interruptions resulting from
equipment breakdown, network failure, the threat of natural disasters,
epidemics, public-health crises and political instability in some
countries;
-- impacts related to environmental issues, cybersecurity and the protection
of personal information;
-- changes in Quebecor's ability to obtain services and equipment critical
to its operations;
-- changes in laws and regulations, or in their interpretations, which could
result, among other things, in increased competition, changes in
Quebecor's markets, increased operating expenses, capital expenditures or
tax expenses, or a reduction in the value of some assets; and
-- Quebecor's substantial indebtedness, interest rate and exchange rate
fluctuations, the tightening of credit markets and the restrictions on
its business imposed by the terms of its debt.
The forward-looking statements in this document are made to provide
investors and the public with a better understanding of the
Corporation's circumstances and are based on assumptions it believes to
be reasonable as of the day on which they are made. Investors and others
are cautioned that the foregoing list of factors that may affect future
results is not exhaustive and that undue reliance should not be placed
on any forward-looking statements. For more information on the risks,
uncertainties and assumptions that could cause the Corporation's actual
results to differ from current expectations, please refer to the
Corporation's public filings, available at www.sedarplus.ca and
www.quebecor.com, including, in particular, the "Trend Information" and
"Risks and Uncertainties" sections of the Corporation's Management
Discussion and Analysis for the year ended December 31, 2024.
The forward-looking statements in this document reflect the
Corporation's expectations as of May 8, 2025, and are subject to change
after that date. The Corporation expressly disclaims any obligation or
intention to update or revise any forward-looking statements, whether as
a result of new information, future events or otherwise, except as
required by applicable securities laws.
About Quebecor
Quebecor, a Canadian leader in telecommunications, entertainment, news
media and culture, is one of the best-performing integrated
communications companies in the industry. Driven by their determination
to deliver the best possible customer experience, all of Quebecor's
subsidiaries and brands are differentiated by their high-quality,
multiplatform, convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec and employs
more than 11,000 people in Canada.
A family business founded in 1950, Quebecor is strongly committed to the
community. Every year, it actively supports more than 400 organizations
in the vital fields of culture, health, education, the environment, and
entrepreneurship.
Visit our website: www.quebecor.com
Follow us on X: www.x.com/Quebecor
DEFINITIONS
Adjusted EBITDA
In its analysis of operating results, the Corporation defines adjusted
EBITDA, as reconciled to net income under IFRS, as net income before
depreciation and amortization, financial expenses, gain on valuation and
translation of financial instruments, restructuring, impairment of
assets and other, and income taxes. Adjusted EBITDA as defined above is
not a measure of results that is consistent with IFRS. It is not
intended to be regarded as an alternative to IFRS financial performance
measures or to the statement of cash flows as a measure of liquidity.
This measure should not be considered in isolation or as a substitute
for other performance measures prepared in accordance with IFRS. The
Corporation's management and Board of Directors use this measure in
evaluating its consolidated results as well as the results of the
Corporation's operating segments. This measure eliminates the
significant level of impairment and depreciation/amortization of
tangible and intangible assets and is unaffected by the capital
structure or investment activities of the Corporation and its business
segments.
Adjusted EBITDA is also relevant because it is a component of the
Corporation's annual incentive compensation programs. A limitation of
this measure, however, is that it does not reflect the capital
expenditures and acquisitions of spectrum licences needed to generate
revenues in the Corporation's segments. The Corporation also uses other
measures that do reflect capital expenditures, such as adjusted cash
flows from operations and free cash flows from operating activities. The
Corporation's definition of adjusted EBITDA may not be the same as
similarly titled measures reported by other companies.
Table 2 provides a reconciliation of adjusted EBITDA to net income as
disclosed in Quebecor's condensed consolidated financial statements.
Table 2
Reconciliation of the adjusted EBITDA measure used in this press release
to the net income measure used in the condensed consolidated financial
statements
(in millions of Canadian dollars)
Three months ended
March 31
------------------------------- ---- ----------------------
2025 2024
------------------------------- ---------- ----------
Adjusted EBITDA (negative
adjusted EBITDA):
Telecommunications $ 581.4 $ 575.5
Media (18.6) (16.7)
Sports and Entertainment 3.5 3.9
Head Office (16.7) (3.2)
------------------------------------- --------- --------
549.6 559.5
Depreciation and amortization (215.3) (236.2)
Financial expenses (92.5) (108.9)
Gain on valuation and translation of
financial instruments -- 9.8
Restructuring, impairment of assets
and other 3.3 (2.2)
Income taxes (60.8) (54.4)
Net income $ 184.3 $ 167.6
------------------------------------- --------- --------
Adjusted income from operating activities
The Corporation defines adjusted income from operating activities, as
reconciled to net income attributable to shareholders under IFRS, as net
income attributable to shareholders before the gain on valuation and
translation of financial instruments, and restructuring, impairment of
assets and other, net of income tax related to adjustments and net
income attributable to non-controlling interest related to adjustments.
Adjusted income from operating activities, as defined above, is not a
measure of results that is consistent with IFRS. It should not be
considered in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. The Corporation uses adjusted income
from operating activities to analyze trends in the performance of its
businesses. The above-listed items are excluded from the calculation of
this measure because they impair the comparability of financial results.
Adjusted income from operating activities is more representative for
forecasting income. The Corporation's definition of adjusted income from
operating activities may not be identical to similarly titled measures
reported by other companies.
Table 3 provides a reconciliation of adjusted income from operating
activities to the net income attributable to shareholders' measure used
in Quebecor's condensed consolidated financial statements.
Table 3
Reconciliation of the adjusted income from operating activities measure
used in this press release to the net income attributable to
shareholders measure used in the condensed consolidated financial
statements
(in millions of Canadian dollars)
Three months ended
March 31
------------------ ---- ---------------------------
2025 2024
------------------ --------------- --- -----
Adjusted income from
operating activities $ 185.1 $ 163.1
Gain on valuation
and translation of
financial
instruments -- 9.8
Restructuring,
impairment of assets
and other 3.3 (2.2)
Income taxes related to
adjustments(1) 1.9 2.4
Non--controlling
interest related to
adjustments 0.4 0.1
------------------------ --------------- --- -----
Net income attributable
to shareholders $ 190.7 $ 173.2
------------------------ --------------- --- -----
(1) Includes impact of fluctuations in income tax applicable to adjusted
items, either for statutory reasons or in connection with tax transactions.
Adjusted cash flows from operations and free cash flows from operating
activities
Adjusted cash flows from operations
Adjusted cash flows from operations represents adjusted EBITDA less
capital expenditures (excluding spectrum licence acquisitions). Adjusted
cash flows from operations represents funds available for interest and
income tax payments, expenditures related to restructuring programs,
business acquisitions, acquisitions of spectrum licences, payment of
dividends, repayment of long-term debt and lease liabilities, and share
repurchases. Adjusted cash flows from operations is not a measure of
liquidity that is consistent with IFRS. It is not intended to be
regarded as an alternative to IFRS financial performance measures or to
the statement of cash flows as a measure of liquidity. Adjusted cash
flows from operations is used by the Corporation's management and Board
of Directors to evaluate the cash flows generated by the operations of
all of its segments, on a consolidated basis, in addition to the
operating cash flows generated by each segment. Adjusted cash flows from
operations is also relevant because it is a component of the
Corporation's annual incentive compensation programs. The Corporation's
definition of adjusted cash flows from operations may not be identical
to similarly titled measures reported by other companies.
Free cash flows from operating activities
Free cash flows from operating activities represents cash flows provided
by operating activities calculated in accordance with IFRS, less cash
flows used for capital expenditures (excluding spectrum licence
acquisitions), plus proceeds from disposal of assets. Free cash flows
from operating activities is used by the Corporation's management and
Board of Directors to evaluate cash flows generated by the Corporation's
operations. Free cash flows from operating activities represents
available funds for business acquisitions, acquisitions of spectrum
licences, payment of dividends, repayment of long-term debt and lease
liabilities, and share repurchases. Free cash flows from operating
activities is not a measure of liquidity that is consistent with IFRS.
It is not intended to be regarded as an alternative to IFRS financial
performance measures or to the statement of cash flows as a measure of
liquidity. The Corporation's definition of free cash flows from
operating activities may not be identical to similarly titled measures
reported by other companies.
Tables 4 and 5 provide a reconciliation of adjusted cash flows from
operations and free cash flows from operating activities to cash flows
provided by operating activities reported in the condensed consolidated
financial statements.
Table 4
Adjusted cash flows from operations
(in millions of Canadian dollars)
Three months ended
March 31
------------------------ ------------- --------------------
2025 2024
----------------------- --- ----- ------- --------
Adjusted EBITDA
(negative adjusted
EBITDA)
Telecommunications $ 581.4 $ 575.5
Media (18.6) (16.7)
Sports and Entertainment 3.5 3.9
Head Office (16.7) (3.2)
-------------------------------------------- -------
549.6 559.5
Minus
-----------------------
Capital
expenditures:(1)
Telecommunications (142.2) (132.9)
Media (2.9) (6.2)
Sports and Entertainment (1.2) (1.4)
Head Office -- --
----------------------- --- ----- ------- --------
(146.3) (140.5)
Adjusted cash flows
from operations
Telecommunications 439.2 442.6
Media (21.5) (22.9)
Sports and Entertainment 2.3 2.5
Head Office (16.7) (3.2)
-------------------------------------------- ------- --------
$ 403.3 $ 419.0
--- ----- ------- --------
Three months ended
March 31
--------------------
(1) Reconciliation to
cash flows used for
capital expenditures
as per condensed
consolidated financial
statements 2025 2024
-------- ----------
Capital expenditures $(146.3) $ (140.5)
Net variance in current
operating items
related to capital
expenditures
(excluding government
credits receivable for
large investment
projects) (36.2) (25.7)
------- ----------
Cash flows used for
capital expenditures $(182.5) $ (166.2)
------- ----------
Table 5
Free cash flows from operating activities and cash flows provided by
operating activities reported in the condensed consolidated financial
statements
(in millions of Canadian dollars)
Three months ended
March 31
------------------------ ----- --------------------
2025 2024
------------------------ ------ -------
Adjusted cash flows from
operations from
Table 4 $ 403.3 $ 419.0
Plus (minus)
------------------------
Cash portion of
financial expenses (90.2) (106.6)
Cash portion of
restructuring,
impairment of assets
and other (3.3) (0.4)
Current income taxes (75.2) (82.1)
Other (0.4) 1.3
Net change in non--cash
balances related to
operating
activities 39.8 17.1
Net variance in current
operating items
related to capital
expenditures
(excluding government
credits receivable
for large investment
projects) (36.2) (25.7)
------------------------ ------
Free cash flows from
operating activities 237.8 222.6
Plus (minus)
------------------------
Cash flows used for
capital expenditures
(excluding spectrum
license acquisitions) 182.5 166.2
Proceeds from disposal
of assets (0.1) --
Cash flows provided by
operating activities $ 420.2 $ 388.8
------------------------ ------ -------
Consolidated net debt leverage ratio
The consolidated net debt leverage ratio represents consolidated net
debt divided by the trailing 12-month adjusted EBITDA. Consolidated net
debt represents total long-term debt plus bank indebtedness, lease
liabilities and liabilities related to derivative financial instruments,
less assets related to derivative financial instruments and cash and
cash equivalents. The consolidated net debt leverage ratio serves to
evaluate the Corporation's financial leverage and is used by management
and the Board of Directors in decisions on the Corporation's capital
structure, including its financing strategy, and in managing debt
maturity risks. Consolidated net debt leverage ratio is not a measure
established in accordance with IFRS. It is not intended to be used as an
alternative to IFRS measures or the balance sheet to evaluate the
Corporation's financial position. The Corporation's definition of
consolidated net debt leverage ratio may not be identical to similarly
titled measures reported by other companies.
Table 6 provides the calculation of consolidated net debt leverage ratio
and the reconciliation to balance sheet items reported in Quebecor's
condensed consolidated financial statements.
Table 6
Consolidated net debt leverage ratio
(in millions of Canadian dollars)
March
31, Dec. 31,
2025 2024
----- ----------------------------- -------- --------
Total long--term debt(1) $7,586.0 $7,619.7
Plus (minus)
------------------------------------
Lease liabilities(2) 412.1 409.7
Bank indebtedness 9.6 6.7
Derivative financial
instruments(3) (115.6) (141.2)
Cash and cash equivalents (214.2) (61.8)
------------------------------------ ------- -------
Consolidated net debt 7,677.9 7,833.1
Divided by:
Trailing 12--month adjusted
EBITDA $2,357.6 $2,367.5
------------------------------------ ------- -------
Consolidated net debt 3.26x 3.31x
leverage ratio
---------------------------- ----- ------- -------
(1) Excludes financing costs
(2) Total liabilities.
(3) Assets less liabilities.
Key performance indicator
Revenue-generating unit
The Corporation uses RGU, an industry metric, as a key performance
indicator. An RGU represents, as the case may be, subscriber connections
to the mobile and wireline telephony services and subscriptions to the
Internet access and television services. RGU is not a measurement that
is consistent with IFRS and the Corporation's definition and calculation
of RGU may not be the same as identically titled measurements reported
by other companies or published by public authorities.
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars, except for
earnings per share data) Three months ended
(unaudited) March 31
------------------------------------------------- ----------------------
2025 2024
------------------------------------------------- -------- -------
Revenues $ 1,343.1 $1,362.8
Employee costs 197.3 189.2
Purchase of goods and services 596.2 614.1
Depreciation and amortization 215.3 236.2
Financial expenses 92.5 108.9
Gain on valuation and translation of financial
instruments - (9.8)
Restructuring, impairment of assets and other (3.3) 2.2
-------- -------
Income before income taxes 245.1 222.0
Income taxes (recovery):
Current 75.2 82.1
Deferred (14.4) (27.7)
60.8 54.4
-------- -------
Net income $ 184.3 $ 167.6
-------- -------
Net income (loss) attributable to
Shareholders $ 190.7 $ 173.2
Non-controlling interests (6.4) (5.6)
-------- -------
Earnings per share attributable to shareholders
Basic $ 0.82 $ 0.75
Diluted 0.82 0.70
Weighted average number of shares outstanding (in
millions) 231.3 230.7
Weighted average number of diluted shares (in
millions) 232.2 236.0
-------- -------
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions of Canadian dollars) Three months ended
(unaudited) March 31
------------------------------------------------- ----------------------
2025 2024
------------------------------------------------- -------- -------
Net income $ 184.3 $ 167.6
Other comprehensive income:
Items that may be reclassified to income:
Cash flow hedges:
Gain on valuation of derivative financial
instruments 8.0 7.9
Deferred income taxes (0.9) (2.5)
Loss on translation of investments in foreign
associates (1.4) (1.2)
Items that will not be reclassified to income:
Defined benefit plans:
Re-measurement gain - 53.8
Deferred income taxes - (14.1)
Equity investment:
Gain on revaluation of an equity investment 2.3 3.3
Deferred income taxes (0.3) (0.4)
-------- -------
7.7 46.8
Comprehensive income $ 192.0 $ 214.4
-------- -------
Comprehensive income (loss) attributable to
Shareholders $ 198.4 $ 216.7
Non-controlling interests (6.4) (2.3)
-------- -------
QUEBECOR INC.
SEGMENTED
INFORMATION
(in millions of
Canadian
dollars)
(unaudited)
----------------- ------------ ------ -------- -------- -------
Three months ended March 31, 2025
---------------- ------------------------------------------------------
Sports Head
and office
and
Telecommuni- Enter- Inter-
cations Media tainment segments Total
---------------- ------------ ------ -------- -------- -------
Revenues $ 1,160.1 $ 164.6 $ 49.7 $ (31.3) $1,343.1
Employee costs 120.7 45.2 13.0 18.4 197.3
Purchase of goods
and services 458.0 138.0 33.2 (33.0) 596.2
----------------- ------------ ------ -------- -------- -------
Adjusted
EBITDA(1) 581.4 (18.6) 3.5 (16.7) 549.6
Depreciation and
amortization 215.3
Financial
expenses 92.5
Restructuring,
impairment of
assets and
other (3.3)
------------ ------ -------- --------
Income before
income taxes $ 245.1
----------------- ------------ ------ -------- -------- -------
Cash flows used
for capital
expenditures $ 175.7 $ 5.6 $ 1.2 $ - $ 182.5
----------------- ------------ ------ -------- -------- -------
Three months ended March 31, 2024
---------------- ------------------------------------------------------
Sports Head
and office
and
Telecommuni- Enter- Inter-
cations Media tainment segments Total
---------------- ------------ ------ -------- -------- -------
Revenues $ 1,179.5 $ 168.8 $ 46.7 $ (32.2) $1,362.8
Employee costs 123.2 47.6 11.1 7.3 189.2
Purchase of goods
and services 480.8 137.9 31.7 (36.3) 614.1
----------------- ------------ ------ -------- -------- -------
Adjusted
EBITDA(1) 575.5 (16.7) 3.9 (3.2) 559.5
Depreciation and
amortization 236.2
Financial
expenses 108.9
Gain on valuation
and translation
of financial
instruments (9.8)
Restructuring,
impairment of
assets and
other 2.2
------------ ------ -------- --------
Income before
income taxes $ 222.0
----------------- ------------ ------ -------- -------- -------
Cash flows used
for capital
expenditures $ 161.0 $ 3.8 $ 1.4 $ - $ 166.2
Acquisition of
spectrum
licences 59.8 - - - 59.8
----------------- ------------ ------ -------- -------- -------
(1) The Chief Executive Officer uses adjusted EBITDA as the measure of profit
to assess the performance of each segment. Adjusted EBITDA is a non-IFRS
measure and is defined as net income before depreciation and
amortization, financial expenses, gain on valuation and translation of
financial instruments, restructuring, impairment of assets and other and
income taxes.
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF EQUITY
(in millions of
Canadian
dollars)
(unaudited)
Equity attributable to shareholders Equity
---------------------------------------------------------
Accumulated attributable
other com- to non-
Capital Contributed Retained prehensive controlling Total
income
stock surplus earnings (loss) interests equity
---------------- --------------- ------------- -------- ------------ ------------- ---------------
Balance as of
December 31,
2023 $ 914.6 $ 17.4 $ 789.1 $ 5.8 $ 110.8 $ 1,837.7
Net income
(loss) - - 173.2 - (5.6) 167.6
Other
comprehensive
income - - - 43.5 3.3 46.8
Dividends - - (75.0) - - (75.0)
---------------- --------------- ------------ -------- ------------ ------------- ---------------
Balance as of
March 31, 2024 914.6 17.4 887.3 49.3 108.5 1,977.1
Net income
(loss) - - 574.3 - (0.4) 573.9
Other
comprehensive
loss - - - (94.3) (0.4) (94.7)
Dividends - - (226.7) - (0.2) (226.9)
Repurchase of
Class B Shares (23.4) - (91.3) - - (114.7)
Issuance of
Class B Shares 150.0 - - - - 150.0
---------------- --------------- ------------ -------- ------------ ------------- ---------------
Balance as of
December 31,
2024 1,041.2 17.4 1,143.6 (45.0) 107.5 2,264.7
Net income
(loss) - - 190.7 - (6.4) 184.3
Other
comprehensive
income - - - 7.7 - 7.7
Dividends - - (81.3) - - (81.3)
Repurchase of
Class B Shares (12.0) - (48.8) - - (60.8)
Issuance of
Class B Shares 1.3 0.5 - - - 1.8
Balance as of
March 31, 2025 $ 1,030.5 $ 17.9 $ 1,204.2 $ (37.3) $ 101.1 $ 2,316.4
---------------- --------------- ------------ -------- ------------ ------------- ---------------
QUEBECOR INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian dollars) Three months ended
(unaudited) March 31
------------------------------------------------- ----------------------
2025 2024
------------------------------------------------- -------- -------
Cash flows related to operating activities
Net income $ 184.3 $ 167.6
Adjustments for:
Depreciation of property, plant and equipment 126.1 141.9
Amortization of intangible assets 57.4 65.3
Depreciation of right-of-use assets 31.8 29.0
Gain on valuation and translation of financial
instruments - (9.8)
Impairment of assets 0.6 2.4
Amortization of financing costs 2.3 2.3
Deferred income taxes (14.4) (27.7)
Other (7.7) 0.7
-------- -------
380.4 371.7
Net change in non-cash balances related to
operating activities 39.8 17.1
-------- -------
Cash flows provided by operating activities 420.2 388.8
-------- -------
Cash flows related to investing activities
Capital expenditures (182.5) (166.2)
Deferred subsidies received to finance capital
expenditures 18.3 37.0
Acquisition of spectrum licences - (59.8)
Proceeds from disposals of assets 0.1 -
Acquisitions of investments and other 1.1 (14.6)
-------- -------
Cash flows used in investing activities (163.0) (203.6)
-------- -------
Cash flows related to financing activities
Net change in bank indebtedness 2.9 2.7
Net change under revolving facilities, net of
financing costs - (107.8)
Repayment of lease liabilities (29.9) (28.3)
Issuance of Class B Shares 1.3 -
Repurchase of Class B Shares (60.8) -
Cash flows used in financing activities (86.5) (133.4)
-------- -------
Net change in cash, cash equivalents and
restricted cash 170.7 51.8
Cash, cash equivalents and restricted cash at
beginning of period 96.0 11.1
Cash, cash equivalents and restricted cash at end
of period $ 266.7 $ 62.9
-------- -------
QUEBECOR INC.
CONSOLIDATED BALANCE SHEETS
(in millions of Canadian dollars)
(unaudited) March 31 December 31
----------------------------------------- -------- -----------
2025 2024
----------------------------------------- -------- -----------
Assets
Current assets
Cash and cash equivalents $ 214.2 $ 61.8
Restricted cash 52.5 34.2
Accounts receivable 1,085.9 1,208.9
Contract assets 128.1 139.6
Income taxes 35.3 32.6
Inventories 441.6 440.1
Other current assets 195.9 185.1
-------- -----------
2,153.5 2,102.3
Non-current assets
Property, plant and equipment 3,280.9 3,302.7
Intangible assets 3,466.4 3,486.9
Right-of-use assets 377.7 376.7
Goodwill 2,713.4 2,713.4
Derivative financial instruments 128.7 148.4
Deferred income taxes 30.3 24.7
Other assets 814.0 843.6
-------- -----------
10,811.4 10,896.4
--------
Total assets $12,964.9 $ 12,998.7
-------- -----------
Liabilities and equity
Current liabilities
Bank indebtedness $ 9.6 $ 6.7
Accounts payable, accrued charges and
provisions 1,084.4 1,167.0
Deferred revenue 373.8 376.7
Deferred subsidies 52.5 34.2
Income taxes 43.9 46.5
Current portion of long-term debt 400.0 400.0
Current portion of lease liabilities 109.4 107.2
-------- -----------
2,073.6 2,138.3
Non-current liabilities
Long-term debt 7,150.9 7,182.2
Lease liabilities 302.7 302.5
Derivative financial instruments 13.1 7.2
Deferred income taxes 807.2 814.7
Other liabilities 301.0 289.1
-------- -----------
8,574.9 8,595.7
Equity
Capital stock 1,030.5 1,041.2
Contributed surplus 17.9 17.4
Retained earnings 1,204.2 1,143.6
Accumulated other comprehensive loss (37.3) (45.0)
-------- -----------
Equity attributable to shareholders 2,215.3 2,157.2
Non-controlling interests 101.1 107.5
-------- -----------
2,316.4 2,264.7
Total liabilities and equity $12,964.9 $ 12,998.7
-------- -----------
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content:https://www.prnewswire.com/news-releases/quebecor-inc-reports-consolidated-results-for-first-quarter-2025-302449314.html
SOURCE Québecor
(END) Dow Jones Newswires
May 08, 2025 08:51 ET (12:51 GMT)