“Different world, different landscape” says PKP in first earnings report since Freedom buy

Quebecor Inc. president and CEO Pierre Karl Péladeau said his company has delivered on its promises to increase competition and lower prices in Canada in its first quarter since acquiring Shaw’s Freedom Mobile. Industry Minister François-Philippe Champagne laid out a set of requirements for the Montreal-based telecom when he approved the Rogers-Shaw-Quebecor transactions. Since Quebecor completed its $2.85-billion purchase of Freedom, the company added 10 per cent more domestic data for Freedom subscribers, implemented a price freeze on existing plans, and launched a $50 plan that includes unlimited calls and text messages and 40 GB of data anywhere in Canada or the United States. “We can’t completely anticipate what will take place in the future. But this is certainly… where we are today. A different world, a different landscape,” Péladeau said in a Thursday call to analysts. Péladeau, however, reiterated that in order to become a true fourth national player, incumbents must offer third-party internet access (TPIA) services to aggregated FTTH facilities. The CEO did applaud the CRTC’s decision to choose its MVNO rates over Rogers Communications Inc. after the two parties entered final offer arbitration to resolve an impasse over the price of access to Rogers’s wireless facilities. Péladeau said Quebecor’s rates, which remain undisclosed, are in line with international rates and will enable the company to offer more affordable and competitive plans across Canada. “The decision indicates that the CRTC and its new leadership are committed to increasing competition in Canada’s telecom industry while encouraging network investments,” the CEO said. Quebecor has yet to reach a deal with Telus Corp. and BCE Inc. – the latter of which Quebecor is currently in final offer arbitration with. Péladeau added that the company is more encouraged under new CRTC chair Vicky Eatrides’ leadership than it was during the Ian Scott era, saying the commission is now releasing decisions at a much more efficient pace, “to the benefit of all Canadians.” Quebecor more than doubled its mobile customers this quarter thanks to Freedom. Mobile subscribers increased by more than 1.87 million for a total of 3.6 million. For the three month period ended June 30 Quebecor reported almost $1.4 billion in revenue, a 25 per cent increase from this time last year. Net income increased by 9.6 per cent to $171.3 million. Quebecor added just under 1.87 million customers this quarter for a total of 7.4 million. Quebecor brought in 25,300 new internet subscribers this quarter totalling 1.72 million. Losses in television RGUs have slightly slowed down. In Q2 2022 Quebecor lost 12,900 customers in the segment, whereas this year it lost 11,100. Quebecor now has less than 1.38 million television customers. Despite the decline, television revenues increased by 1.4 per cent to $203.2 million this quarter. Total telecommunications revenue increased by 31.6 per cent for a total of $1.2 billion. Mobile revenue more than doubled, jumping from $191.8 million to $401.6 million. Internet revenue grew by 5.6 per cent to $321.9 million. Mobile average revenue per user (ARPU) declined by $1.17, or three per cent, to at $37.77 while total ARPU declined by almost $2 to $45.20. – Reporting by Jenna Cocullo at jcocullo@thewirereport.ca.

“Different world, different landscape” says PKP in first earnings report since Freedom buy

News | August 10, 2023

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“Different world, different landscape” says PKP in first earnings report since Freedom buy

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