Quebecor has posted its first-quarter earnings, announcing a 5.7% increase in revenue driven by growth in the wireless segment. Its wireless arm, Videotron, reported revenues of $38.4 million, up 5.3%. Adjusted operating income grew 2.3%, or $7.7 million, despite the $4.6 million combined unfavourable impact of one-time items. This growth was driven by the solid performance of Quebecor’s telecom and Internet services.
During the first three months, Videotron added 29,300 new subscribers, so as of the end of March the carrier’s user base stands at 660,000. In terms of average revenue per user (ARPU), Videotron reported a 15% increase compared to the same period a year ago, to slightly over $47.
“Videotron increased its revenue-generating units by 247,400 over the 12-month period ended March 31, 2015. The mobile telephony service added 139,600 subscriber connections, including 29,300 in the first quarter of 2015, compared with 18,200 in the same period of 2014. The Club illico over-the-top video service, which still offers the largest selection of unlimited, on-demand French-language content in Canada, added 117,000 customers.”
The historic-high ARPU is due to the optimal combination of plans and the recently launched LTE network that covers about 90% of Québec’s population, supporting theoretical speeds of up to 150 Mbps.
Quebecor was among the carriers complaining about the CRTC’s wholesale roaming rate policy earlier last year. Now that the has CRTC decided to regulate the rates incumbents charge competitors, the regional carrier welcomes the move, along with Wind Mobile.