Quebecor's 3rd-quarter profit jumps 52%
Last Updated: Thursday, November 5, 2009 | 2:04 PM ET
The Canadian Press
Quebecor Inc. saw its third-quarter profit jump by 52 per cent as customer growth boosted the media company's revenues.
The Montreal-based company, which is involved in publishing, cable TV and phone service, reported net income of $69.4 million, or $1.08 a share, for the quarter ended Sept. 30. This was up from $45.7 million, or 71 cents a share.
Quarterly revenues totalled $918.4 million, up from $908.1 million in the same period a year ago — largely because of customer growth.
The figures beat analyst estimates, which had pegged revenue for the quarter at $910 million, according to Thomson Reuters.
"Quebecor's results tended strongly upward in the third quarter of 2009," said Pierre Karl Péladeau, Quebecor's president and chief executive officer.
Quebecor said the increase in its net income was due to a combination of factors, including a $23.6-million increase in operating income and a $8.1-million decrease in financial expenses.
These figures were, however, partially offset by increases in non-controlling interest, amortization charges and income tax expenses.
Quebecor said its Vidéotron subsidiary, which provides cable television, video on demand, wireless communication and internet services, posted a significant increase in operating income.
Péladeau said the increase in operating income reflected customer growth for all its services. At the same time, the company said Vidéotron was moving ahead with its advanced services network project, which has had 60 per cent of all its build-out of antenna sites leased already.
Quebecor said revenue in its telecommunications sector grew by 11.2 per cent — mainly on account of customer growth.
Sales dipped in the news media division because of lower advertising revenues, but the company said cost-cutting efforts had helped keep the section steady.
The company's shares closed at $23.50 Wednesday on the Toronto Stock Exchange.
