Quebec-based media conglomerate Quebecor released their second quarter earnings results, reporting an estimated $1.03 billion CAD in revenue.
According to Quebecor, that represents a four percent increase when compared to revenues from the same time last year.
The increase in revenue is no doubt a result of Videotron’s sale of its Advanced Wireless Services (AWS-1) spectrum license in the metropolitan Toronto area to national carrier Rogers, as well as the sale of seven 2500MHz and 700MHz wireless spectrum licenses to Shaw.
The Rogers deal netted $184.2 million, while the Shaw deal drew in $430 million in revenue.
It’s important to mention that the Rogers deal was recognized in the second quarter of 2017, while the Shaw deal will be recognized in quarter three.
“Quebecor’s telecommunications segment posted another solid performance, said Manon Brouillette, president and CEO of Videotron, in a media release.
In fact Quebecor’s telecommunications earnings increased this quarter by $39.7 million — roughly 5.1 percent.
Compared to last year, Quebecor’s telecommunications earnings have increased by $67.1 million — roughly 4.3 percent.
Quebecor’s revenues in media and sports and entertainment decreased by a total of $2.7 million — roughly 40.3 percent — compared to last year.
However, it’s interesting to note that the company’s Club illico streaming service — the company’s answer to services like Bell’s Crave TV as well as Netflix — increased revenue by $2.4 million compared to last quarter, while also increasing its subscribers by four percent.
Roughly 337,600 people are subscribed to the Club illico service.
Looking ahead, Pierre Karl Peladeau, president and CEO of Quebecor said that the company is looking ahead to expanding its 4G network, preparing for an eventual 5G network, as well as upgrading its IP wireline network.
Quebecor’s telecommunications division — Videotron — is a regional carrier that supplies wireless, internet and broadcast services to Quebec, parts of New Brunswick, and parts of eastern Ontario.
In May 2017, J.D. Power ranked Videotron’s wireless network as the best in eastern Canada.
Roughly 920,900 people are subscribed to Videotron, according to the Canadian Wireless Telecommunications Association.