Quebecor increases its profit despite lower revenues in the second quarter

Quebecor saw its profits increase in the second quarter compared to the same period last year, despite a drop in its revenues from one year to the next, particularly in the telecommunications sector.

The company reported net income of $206.6 million for the quarter ended June 30 on Thursday morning, up from $171.3 million in the same period last year.

For its part, net income attributable to shareholders amounted to 207.6 million, or 90 cents per share, compared to 174.1 million, or 75 cents per share, in the second quarter of fiscal 2023.

According to the company, this 19.2% increase in profit attributable to shareholders is explained by an increase in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), by a decrease in the depreciation expense and by a decrease in the restructuring charge and acquisition costs, among others.

Revenue, however, declined. Companywide, it came in at $1.39 billion, down 0.8% from $1.40 billion last year.

Down in telecommunications, but up in media

In the telecommunications sector, the decline was 14.3 million over a year, while in the sports and entertainment sector the decline was around 3.4 million.

Even though it continues to “feel the effects of declining advertising revenues,” the media sector saw its revenues increase from $180.3 million last year to $184.4 million in the second quarter of this year.

This increase would be partly attributable to an agreement on royalties for the specialty channel LCN, as well as an increase in film and audiovisual services. These two factors were also reflected in the results of the TVA Group last week.

Quebecor also indicated that a quarterly dividend of 32.5 cents per share will be paid on September 17.

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source site-42