Quebecor released its first quarter financial earnings report on Tuesday, May 8th, 2018, revealing 23,300 connections added to its mobile business, Videotron.
The number is slightly lower than some analysts predicted, even as most took a conservative approach to predictions, with Barclay’s Phillip Huang noting that it was a seasonally quiet quarter.
Still, while the wireless additions couldn’t live up to last year (the carrier added 27,000 during the same period in 2017) Videotron improved on mobile revenue, increasing by $14.7 million, an increase of 13.2 percent.
Overall, revenue stood at $1.01 billion, up 0.5 percent from Q1 2017. Adjusted operating income was $407.4 million.
Going hand-in-hand with the increase in mobile revenue, Videotron bumped its mobile average billing per unit to $53.25 in Q1 2018, up from $52.64 in the same period of 2017. It says the 1.2 percent increase reflects the impact of BYOD plans.
Videotron’s total average billing per unit, including internet and its Club illico over-the-top streaming service came in at $48.82, up from $47.41 in the same period last year, a 3.0 percent increase.
In total, Videotron added 21,800 Club illico subscriptions and 8,100 cable internet subscriptions.
Revenues increased for both internet services and Club illico as well. Internet brought in $11.1 million, an increase of 4.4 percent from the same time last year, while Club illico brought in $2.1 million, an increase of 23.3 percent.
Altogether, the telecommunications segment grew its revenues by $18.4 million (2.3 percent).
“The Telecommunications segment was the main profitability driver for Quebecor in the first quarter of 2018,” said Pierre Karl Peladeau, president and chief executive officer of Quebecor, in a press statement.
He added that to “maintain its lead over the competition,” Videotron continued to make investments, including spending on its internet protocol television (IPTV) project, based on the Xfinity X1 platform developed by Comcast — also in use by Shaw and Rogers.
Videotron CEO and president Manon Brouillete also released a statement, noting the company’s investment in Quebec media.
“Club illico and Quebecor Content renewed their commitment to original Quebec film production with the development and production of at least three feature films,” said Brouillette.
“Our ultimate objective is to quickly bring this new content to all of the group’s platforms, including premiers on Club illico.”
Videotron launched its wireless network in 2010, surpassing the 1 millionth wireless subscriber mark in November 2017.