Quebecor reported its third quarter earnings on Thursday, revealing record wireless growth as Freedom Mobile, Fizz and Videotron continue to attract customers across Canada.
The company added 136,700 net mobile lines during the quarter, a 3.0 per cent increase and its strongest quarterly growth since Videotron launched wireless service in 2010. Quebecor credited all three brands, pointing to its expansion across Canada and continued growth in Québec.
That puts Quebecor well ahead of its larger rivals in reported wireless additions. Rogers added just 6,000 postpaid and 11,000 prepaid phone customers in the third quarter, while Bell reported 24,110 postpaid and 29,579 prepaid additions.
Combined, Bell and Rogers added 70,689 phone customers, compared with Quebecor’s 136,700 net mobile lines, nearly twice as many. While the carriers use slightly different reporting measures, the gap highlights Quebecor’s strong wireless growth.
Telus is scheduled to report its third quarter results on Friday.
Quebecor is also making more money per mobile line. Average monthly revenue per user (ARPU) increased $1.03, or 2.9 per cent, marking its fourth consecutive quarterly increase. Bell’s ARPU fell 1.7 per cent to $57.07, while Rogers reported a 2.6 per cent decline to $55.22.
Mobile service revenue jumped 9.6 per cent, or $43.1 million, while internet access revenue increased 3.0 per cent. Overall telecom revenue grew 4.2 per cent, with adjusted EBITDA up 7.5 per cent.
Freedom Mobile has been expanding its network and competing aggressively on price.
In July, Freedom made 5G+ available at no extra cost across all its plans, provided customers have a compatible device and SIM card and are within an eligible coverage area.
The carrier also expanded its 5G and 5G+ networks across Ontario, Alberta and British Columbia, bringing improved coverage to more than 500,000 additional Canadians.
With Black Friday approaching, Freedom has also been offering aggressive winback deals to attract former customers.
Meanwhile, Videotron expanded its wireless service area in October to parts of Abitibi-Témiscamingue, Nord-du-Québec, Saguenay-Lac-Saint-Jean and Bas-Saint-Laurent, giving more than 25,000 additional residents another wireless option.
Quebecor’s overall quarterly revenue rose 3.5 per cent to $1.45 billion, while adjusted EBITDA increased 12.5 per cent to $706.7 million. That included a $31.5 million benefit related to stock-based compensation.
Net income attributable to shareholders climbed 25.5 per cent to $296.4 million, or $1.33 per share.
The company also continued paying down debt. Videotron repaid $200 million on a term credit facility during the quarter, followed by another $100 million on October 6, leaving a balance of $100 million.
Quebecor’s net debt leverage ratio fell to 2.69 times, which the company says remains the lowest among Canada’s major telecom providers.
Outside wireless, Quebecor signed a new 12-year agreement with Rogers in September for French-language NHL broadcast rights, keeping hockey on TVA Sports through the 2037-2038 season.
For consumers, Quebecor’s latest results show that Freedom, Fizz and Videotron are continuing to gain ground in Canada’s competitive wireless market, even as incumbents report slower subscriber growth.
Have you switched to Freedom Mobile, Fizz or Videotron this year? Let us know in the comments.
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