Things are looking pretty sweet at Quebecor lately. Employees recently gathered at their Toronto office to celebrate the third anniversary of the company’s Freedom Mobile acquisition with a spread of cake and a very relaxed CEO, Pierre Karl Péladeau.
According to a report by the Globe and Mail, the mood is high for a good reason. Since buying Freedom, Quebecor has managed to do what many thought was impossible: consistently lower wireless prices while rapidly growing its subscriber base.
The strategy is working. While Canada’s Big 3 carriers (Rogers, Bell, and Telus), have seen their share prices dip by 20% or more since the end of 2023, Quebecor’s stock has skyrocketed by 85%.
The 2030 Deadline
Despite the success, there is a catch. Freedom Mobile currently has 4.4 million customers across B.C., Alberta, Ontario, Manitoba, and Quebec, but much of that growth relies on a federal policy. This mandate forces rivals to let Quebecor piggyback on their networks, and it’s currently set to expire in 2030.
While some analysts wonder if the government will extend that deadline to keep competition alive, Péladeau isn’t waiting around to find out. He told the Globe and Mail that the company is ramping up its own infrastructure spending, planning to drop about $700 million this year alone to build out its own towers.
Challenges Remain
It hasn’t all been easy sailing. Like many traditional media companies, Quebecor is battling the decline of its legacy businesses. Since 2023, the company has lost over 100,000 subscribers each in its home phone and television divisions.
There are also question marks surrounding its sports media business. Péladeau confirmed they are in talks with the NHL and Rogers to renew French-language broadcast deals, even though their TVA Sports channel has faced shrinking revenues for years.
Still, with a recent 14% dividend hike and a growing mountain of free cash flow, Péladeau remains optimistic. When asked what his father (who founded the company in 1965) would think of the business today, Péladeau told the Globe, “Maybe he would say that the boy has learned well.”
We’ve seen some pretty aggressive wireless pricing lately, and it’s thanks to Freedom Mobile putting pressure on Rogers, Telus and Bell to lower their prices.
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Freedom fabricated a bill in excess of $980,000 on me and tried sending it to collections. Of course csts is now involved and I’ve been fighting with freedom for over a year regarding money that was never owed. I bought shares in QBR.UN so I can ask at a shareholders meeting why they condone massive theft attempts against a guy who they also sold a defective device, protection that when was time to use was apparently not in the repair guys forte, then they tried to also bill for the device that I had to go an entire month without and they didn’t even offer a credit. Go to any other provider if you want accountability and responsibility. Even their store employees look at you like they’re below 50 IQ when you ask a question. Worst experience of my life and I’ve been in prison.