The net profit of Quebecor climbs

Le bénéfice net de Québecor grimpe

Photo: Graham Hughes The canadian Press
Quebecor says it is in a good financial position to launch into new areas, with a liquidity of more than $ 1 billion.

Quebecor has acknowledged that its new subsidiary, wireless phone cheap had encountered a few bumps since its launch, but the telecommunications group said it was encouraged by its current growth.

The launch, in November last, the mobile banner Fizz is part of a new wave of efforts in the sectors of wireless telephony and broadcasting, in order to offset a slowdown in its traditional business of media and cable.

The company, however, in the face of dynamic competition of players already established, pointed out Wednesday, the chief executive officer of Quebecor, Pierre Karl Péladeau, during a conference call.

“The players were in place ready for our launch. They were so, I would say, very dynamic, especially in regards to promotions combined for the season Friday, crazy, as well as for the Christmas period. “

The launch of Fizz was also marred by technical problems that have led the company to limit its advertising in the last quarter, but the deployment can be done much better this quarter, said Mr. Péladeau. “Since this has been resolved and all our marketing campaigns are underway, the success in the first quarter was incredible, well beyond our expectations, and we believe that this continues. “

The company is going also to offer a brand the Internet and plans to launch it gently to its tv platform, Internet-Helix in the coming weeks, in order to position itself to meet the changing demands of consumers. “We believe that we are targeting the younger audience or the younger generation,” said Mr. Péladeau.

The company is said to be in a good financial position to launch into new areas, with a liquidity of more than $ 1 billion.

This foray into new technologies will take place while the revenues of the media have fallen about 3 % in Quebecor, including an 18% decline in its activities-magazines, while the number of subscribers to the cable service Videotron has decreased by 6000, and that of the wireline telephone has retired from 17 000.

Mr. Péladeau indicated that Quebecor was looking to improve its offerings to media, especially with more podcasts, specialty channels and publications.

For the fourth quarter, the company posted a net profit of $ 116.8 million, an increase compared to the 70.4 million for the same period last year, or 46 ¢ a share compared to 29 ¢. The adjusted income of the continuing operations amounted to 132,7 million, or 52 ¢ per share, on revenues of 1.09 billion, compared to 1.06 billion realized a year earlier.