Videotron: Apple’s iPhone Has Helped Contribute to Recent Growth
Videotron has its own take on the competitiveness of the Canadian wireless market: Quebecor launched its mobile business in 2010, but it didn’t report operating profit until the first quarter of 2013. Although we cannot say for sure that it’s the halo effect of the iPhone, Apple’s popular device has certainly contributed to the growth of Videotron’s wireless subscriber base, the company CEO reveals (via the Globe and Mail).
[…] analysts are viewing Vidéotron’s mobile division more favourably this year, particularly after it began selling Apple Inc.’s iPhone in March. The company’s network technology did not work with the popular device until the iPhone 5c and 5S launched last fall, after which Vidéotron had to negotiate a distribution agreement with Apple.
“I would say that we are fully in the game now in terms of our handset portfolio,” Ms. Brouillette said. “When we launched the iPhone we saw a lift.”
Last year, wireless services accounted for roughly 8% of Videotron’s total revenue. The company executives as well as analysts are optimistic about the company’s growth, given the strong demand for mobile data.
National Bank Financial analyst Adam Shine says Videotron’s wireless sales will jump by 25.6% to $277 million this year, up from the $221 million recorded a year prior. The local carrier has recently deployed its LTE network and counts 550,000 customers, which means it controls 12.5% of Québec’s wireless market.
But the carrier has ambitious plans: It acquired spectrum licences in key geographic areas of the country earlier this year and will decide on its expansion plans in the future.