MONTREAL 鈥� Quebecor Inc. says its purchase of Freedom Mobile drove a big boost in earnings last quarter as the company added more than 1.8 million customers through the acquisition.
The Montreal-based telecommunications company reported that net income climbed 10 per cent to $171.3 million in the three months ended June 30 from $156.3 million in the same period a year earlier.
Quebecor said revenues in its second quarter jumped 25 per cent to $1.40 billion from $1.12 billion the year before. On an adjusted basis, income from continuing operations rose to 79 cents per share last quarter compared to 68 cents per share a year prior, beating analyst expectations of 72 cents per share.
In early April, Quebecor's Videotron entered the national wireless market through its purchase of Freedom Mobile from Shaw Communications Inc., a condition of Rogers Communications Inc.'s acquisition of Shaw imposed to ease competition concerns surrounding the merger.
The vast majority of the company's new subscribers through Freedom are mobile phone customers, along with 20,000 subscriptions to Internet service.
Quebecor chief executive Pierre Karl P茅ladeau said its telecom segment, which accounts for 86 per cent of revenue, drove the company's leap in revenue, more than offsetting losses at its cable division.
"The acquisition of Freedom in April 2023 has positioned Quebecor as Canada鈥檚 fourth national wireless provider. Our mobile network now reaches nearly 70 per cent of Canada鈥檚 population and we will be able to further expand our coverage by functioning as a mobile virtual network operator," he said in a press release.
"In just four months, we have lowered telecom prices across the country by increasing competition and delivered on the majority of the commitments we made to Canadians and to Innovation, Science and Economic Development Canada."
Quebecor's wireless mobile phone average revenue per user was $37.77, down $1.17, or three per cent, from the second quarter of the prior year, mainly due to a change in the customer mix.聽
This report by The Canadian Press was first published Aug. 10, 2023.
Companies in this story: (TSX:QBR.B)
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