Quebecor Inc. raised its quarterly dividend as it reported its fourth-quarter profit rose compared with a year ago, as the company continued to boost the number of wireless phone customers it serves.
The telecommunications and media company said it will now make a quarterly payment to shareholders of 35 cents per share, up 7.7 per cent from 32.5 cents per share.
Quebecor said Thursday its net income attributable to shareholders totalled $177.7 million or 76 cents per share for the quarter ended Dec. 31. The result compared with a profit of $146.2 million or 63 cents per share in the last three months of 2023.
Revenue for the quarter totalled $1.50 billion, relatively flat year-over-year. On an adjusted basis, Quebecor said its income from operating activities amounted to 80 cents per share, up from an adjusted profit of 73 cents per share in the fourth quarter of 2023.
Chief executive Pierre Karl Péladeau called his company a "smaller troublemaker who ... has forever changed the telecom landscape," referring to Quebecor's market share growth since its 2023 purchase of Freedom Mobile.
That acquisition from Shaw, which at the same time was sold to Rogers Communications Inc., was meant to elevate Quebecor's standing to that of a fourth national carrier in Canada.
"Rarely has it been seen in the telecom markets across the world that the disruptor maintains the best momentum, the strongest cash flow generation capability, the most robust balance sheet and the only improving credit ratings in the industry," Péladeau told analysts on Quebecor's earnings call.
During its fourth quarter, the company said it added 87,500 mobile phone subscriptions, compared with 66,100 added in the same period of 2023 — an increase of 32.4 per cent.
Péladeau said the company remains "firmly committed" to expanding its telecom services across Canada, driving competition and diversifying its products in 2025.
Last month, Quebecor announced that Freedom would offer 5G+ services in all monthly cellphone plans regardless of price. The upgrade was automatically applied to 5G plans of all existing customers with compatible phones, at no extra cost.
"Our mobile growth speaks for itself and we are extremely proud to be promoting healthy competition ... and affordable prices without compromising on network performance and customer experience," said Péladeau.
As part of the federal government's requirements when it greenlighted the Freedom acquisition, the carrier must offer plans that are at least 20 per cent lower than those of its competitors over a period of 10 years.
Péladeau said the "innovative and affordable" offers the company has introduced over the past two years "are increasingly resonating with Canadians throughout the country."
"We are retaining customers at level never seen before, despite all the retaliation tactics of our competitors, which bodes very well for the future."
Other carriers responded by offering "unreasonable" discounts of up to 60 per cent on their premium plans during promotions in the fourth quarter, said Péladeau, "simply and stupidly pushing all telecoms' revenue down."
"We responded on all fronts with a disciplined approach of continuing to reduce our operating expenses through better digital execution, more efficient technical and customer service operation, as well as improved synergies with Freedom Mobile."
Scotiabank analyst Maher Yaghi praised Quebecor's surge in wireless subscription additions but said its pricing "continues to pressure topline metrics."
"Quebecor looks to have strong momentum on customer acquisition, but we believe a more balanced approach in terms of price and quantity would be a better strategy for long term shareholder value creation," he said in a note.
Quebecor reported its mobile phone average revenue per user was $34.36 in the fourth quarter, down $1.93, or 5.3 per cent, from the fourth quarter of the prior year.
It said that was mainly due to higher promotional discounts, lower overage revenues and a change in the customer mix, including the dilutive effect of Freedom’s and Fizz’s prepaid services.
This report by The Canadian Press was first published Feb. 27, 2025.
Companies in this story: (TSX:QBR.B)
Sammy Hudes, The Canadian Press
