Videotron added 31,900 wireless subscribers during Q2 2018

The Quebecor-owned regional carrier generated $847 in revenue from its wireless division

An image showing a Videotron webpage on an iPhone

Quebec-based regional carrier Videotron added 31,900 new wireless connections during its second quarter of 2018.

Videotron’s Q2 2018 subscriber numbers represent a 3.0 percent increased compared to Q1 2018.

According to an August 9th, 2018 Quebecor media release, Videotron also generated approximately $847.2 million in revenue, compared to $823.4 million in Q1 2018.

The carrier’s average billing per unit (ABPU) was $49.68 in Q2 2018, compared to $48.12 in Q2 2017. Interestingly enough, mobile ABPU specifically was $53.70 in Q2 2018, compared to $53.32 in Q1 2017.

“Once again, Videotron’s growth was driven by its flagship products, including mobile telephony and Internet access,” said Manon Brouillette, president and CEO of Videotron.

It’s worth noting that BYOD plans represented 35 percent of new mobile activations in Q2 2018.

Investor analysis

According to a report by Barclay’s analyst Phillip Huang, Videotron’s Q2 2018 performance met expectations.

Huang and Barclay’s expected Videotron to add 33,000 wireless subscribers, while the carrier actually added 32,000.

However, it’s worth noting that Videotron’s overall $847.2 million revenue exceeded Barclay’s $844 million expectations. Videotron failed to meet ABPU estimates, as Barclay’s estimated mobile ABPU would be $53.91, whereas actual mobile ABPU was $53.70.

Huang hypothesized that the failure to meet mobile ABPU estimates was a result of “the continued increase in BYOD mix…as well as increased pricing competition this year.”

Source: Quebecor