Q3 2020 Quebecor Inc Earnings Call
I also want to inform you that certain statements made on the call today may be considered forward looking and we would refer you to the risk factors outlined in today's press release and reports filed by the corporation with regulatory authorities.
Let's now start with our first speaker Calcutta.
Yes, you again good morning, everyone.
As we are collecting connect collectively battling the pandemic second wave here in Quebec and around the World [noise].
We could therefore continue to focus our efforts on keeping our employees safe and ensuring that we support our clients and partners who are struggling through those unfortunate timing.
On the positive side.
The this quarter marks the 10th anniversary of the launch of you do at home Mobile service.
Oh time flies it seems like yesterday that if you do it on entry into mobile services.
Disrupted the market with lower prices innovative marketing and second to none customer service.
As we were gearing up to enter the mobile services market than years ago.
It was obvious to us that competition was not very fierce and that consumers deserves lower prices better service and state of the art technology.
Over the past 10 years, if you do a tone has invested more than 2.5 billion successfully successfully deploying third.
Fourth generation and LT networks, and now rolling out the next generation Fiveg network in urban areas.
And we took it up another notch two years ago. When we launch this is a new brand that we invented the customer experience.
Our unique fully digital model that gives the user full autonomy.
Today, with a 20% market share in Quebec.
Where prices are amongst the lowest in Canada.
And our ongoing is share of gross adds for several quarters.
We can clearly call our entry into wireless a resounding success and we're very wrong.
Very proud of is this impressive progression in less than 10 years, the resolve of our differentiated approach and discipline execution.
While we're celebrating anniversary. We are also proud to highlight the first birthday of ILEC.
Our broadband video and home connected technology platform, which offers the best video customers experience and go back to already more than 300000 customers.
And as we had announced our last quarter.
You recently launched our Alex service in the in the Abitibi region and are quite pleased with the response coming from consumers and the north Western go back.
Despite some anti competitive actions from our competitor Bell for which we filed a complaint to the CRT D C and a $13 million.
Image lawsuit, we are determined to ask the Abitibi citizens and enjoy the best technology, the best customer experience along with lower prices.
[noise] considerable demand from citizen shows the strong desire for quality and choices.
On the regulatory front.
We hope that the CRT D C.
Ooh is expected to review his decision on PPI is wholesale rates over the next few months, we will take action to engage more equitable solution.
We are encouraged by ministers being comments yesterday.
Stating that these rates need to enable the incumbents to earn a fair return on their investment.
Repeating the government's concerns expressed earlier this summer that the earlier approach taken by the CRT D. C may undermine investment in high quality networks and now the commission needs to do a better job at the Lansing, Canada telecommunication policy object.
Yes.
Reducing and to curb investment and the Canadian Telecom network will.
We'll be the worst thing to do in Canada, and in Qubec compromise productivity and economic success.
We are confident that the commission will take these words to heart boat in the context of its review of <unk> rates and also as it wages decision regarding M dnos.
We remain convinced.
That the establishment of a strong fourth facility based competitor in every region of the country.
Is the only way to secure lasting benefits for Canadian wireless consumers.
Turning to our third quarter results, we are happy with the continued growth and ever improving profitability of our telecom segment, where if you do it all performance in broadband was particularly impressive this quarter and also with our wireless operations.
Where our two brands combined where again number one.
In the market.
With a growth of 7% in revenue and 3.4% in EBITDA, Our telecom operations continued to lead the industry in Canada, a clear tribute to our disciplined focus on profitable growth.
In our media segment work we are.
We were I'm, sorry, again impacted by the soft advertising market on all platform this quarter, but we saw positive signs of gradual civilization towards the later part the latter part of the quarter.
In addition production I've started again and the level of activity I smell studios.
It is also back on track.
Yeah groups rating reach an impressive 41.5% market share in the third quarter.
With gains from the main network DVR fall and as Dan, which remain the undisputed leader in information and correct.
I will now let you review our consolidated financial results.
Mr discount.
A million dollars or 4% to $346 million once again, demonstrating the resilience and strength of our business model as well as our discipline and operating excellent.
As of the end of the quarter hour net debt to EBITDA ratio was $2 76 times down from 3.01 times reported it at the end of the third quarter last year and comparing very favorably two hour telecom peers.
[noise] available liquidity of more than 1.8 billion is at the end of the quarter an hour growing free cash flows are more than sufficient to fulfill our commitments and fuel continue to fuel our growth.
On the M C. I V front since the renewal of the program on August 15th we purchase and cancel 600000 class B shares.
We initiated the NCI V program nine years ago, approximately 38.9 million class B shares have been purchased and canceled.
I will now let J F review, our telecom segments operation.
Yeah.
Good morning, everyone.
So we are confronted with the second wave of the pandemic situation their health and safety of our employees and customers continue to be the focal point of our priorities, we are more than ever committed to keeping our customers and communities connected as.
As a result, all of our stores remain open offering a safe and secure experience both for our employees and customers and.
Additionally, the vast majority sorry about that [noise].
[laughter].
[laughter] distribution.
Additionally, the vast majority of our employees, including our customer care agents continued to work efficiently and safely from home.
As Jack I mentioned, and we are proud to highlight the first anniversary of helix, our broadband video and home connected technology platform.
Since our commercial launch in August last year close to 300000 customers have made the leap to our new solution the best customer experience in the Quebec market.
We continued to develop new functionalities as well as integrating new OTT apps.
Contributing to improving customer awareness.
Of note, we have recently launched helix television up.
Ah flexible OTT service that lets users watching cast all of their content at home or away from home without having to purchase additional equipment.
In response to the current and future needs are businesses and their employees. Our business segment has launched a new set of solution to to enhance teamwork security and productivity four teams working from home.
A new working from home offering includes dedicated Internet access advent plowed communication features secured VPN access and mobile solutions.
In addition, we develop a new Iot solution to support physical distancing in the workplace the radius wristband.
Quebec businesses can now welcome employees and customers in their workplace without compromising on <unk> on safety measures.
Turning to our third quarter results were.
We're proud to report to 7% growth in revenues and are quite solid 3% growth in EBITDA.
As of September 30th we powered almost 1.453 million mobile lines fuelled by a growth of 48000 lines during the quarter and a growth of 164000 lines on a year over year basis.
Our slower year over year subscriber growth is primarily explain by the outperformance exhibited by fifth in August September of last year. After we announced mid August the end of the discounted pricing effective for the end of October 2019.
We reported service revenue growth of 8% and a quarter driven mainly by solid subscriber growth.
In fact by the loss and an overage and roaming revenues due to a significant decline and traveling and roaming outside of Canada.
Once again, we clearly outperformed the market with a combined 34% market share of grow sides during the quarter showing the effectiveness of our one two punch offering with videotron in fifth.
Concentrated wireless AVP, you decrease $250.98 from $53.28 recorded in the third quarter of last year.
Firstly impacted by the loss of overage and roaming revenues and secondly by our our increasing BYU D and phase customer mix.
I have said more than once in the past hour B Y U D focused strategy remains top of mine.
And set cost subsidy contributes too strong operating leverage and superior casual generation. Despite the erosion of our of our ABP group.
Once again videotron mobile in fifth exhibited respective year over year, inbound AVP growth, which will position us well from an AVP your perspective once the weight of our <unk> and fifth customers in our overall customer base stabilized.
Finally, our monthly churn rate is stable year over year, despite exceptional aggressive promotions from our competitors during the quarter, which we declined to match as we tried to maintain an orderly market.
Helix gain strong momentum amongst existing as well as new customers.
As we signed up more than 100000, new customers during the quarter.
We know count more than half a million video and broadband RG us on the platform as we posted our best take up performance this quarter.
Turn right on our customers subscribing to our new product.
Okay continue to be 50% lower than those of our legacy prob.
New features such as Chromecast casting and soon from airplanes and fire stick is for sure no strangers to this performance.
During the quarter, we recorded in another impressive growth of 20000 broadband customers compared to a growth of 17000 customers in the same quarter last year and a growth of 49000 customers over the last 12 months.
The growing customer awareness for helix continues to contribute to this outperformance.
Fifth superior value proposal also forever stronger growth despite impacting our <unk> growth due to the discount nature of fifth proposal.
As of the end of the quarter.
452000 customers subscribe to Columbia D Cool, our OTT service.
During these uncertain in difficult times, adding original content is likely a worldwide challenge.
Theory, and production I've resumed and as a result, <unk> recently announced its involvement in the production of four major Quebec feature films.
We are looking forward to proposing a richer and diverse programming with new captivating documentaries drama series and original local productions coming in the first quarter of 2021.
On the financial front.
Concentrated revenues amounted to $938 million in the quarter up 7% to the $870 million 77 million sorry recorded in the same quarter of 2019.
Revenue growth from our lower margin equipment sales and from wireless services, primarily contributed to this group.
For the first nine months of 2020 revenue grew 4% $227 billion.
Tibia amounted to $484 million in the quarter for a year over year growth of more than 3% for the first nine months of the year EBITDA grew 3% 214 billion.
We continue to focus our efforts on casual generation and cost containment as well as leveraging all operational efficiencies without compromising our customer experience.
For the quarter, we generated $326 million in cash flow from operations 19 million higher than the last year.
For the first nine months, we generated $951 million in cash flow for a growth of 74 million.
Capex, including acquisitions of intangible assets amounted to $158 million and a quarter $4 million lower than last year and amounted to 432 million for the first nine months of the year.
For the full year 2020.
We know forecast capex to be $15 million to $25 million lower than the lower end of our annual guidance range.
The launch of our <unk> network technology is scheduled for the end of this year and progresses well despite some delays experience from the pandemic situations.
Wireless capex amounted to $56 million during the quarter and 109 million for the first nine months of the year.
I will now turn it over to France to review TVA groups performance.
Natsios on as well.
As expected the COVID-19 pandemic continue trafficked our business and to cause among other king is significant decline in advertising revenues, a large reduction in the sporting events broadcast by the Tv's for a specialty channel.
Despite the postponement of the NHL playoffs in the third quarter and a need to adapt our work environments and.
In order to protect knee al and safety of our employees and the public.
Sure.
<unk> third quarter financial results.
Da Group recorded operating revenues of 120 million a year over year decrease of 6 million.
But casting revenues increased by 5% essentially due to a 29% increase in TVA sports revenues as a result of the postponement of the NHL playoffs and $2.
Turned a quarter and the fact that the Montreal Canadians qualified for it for Dan partially offset by a 11% decrease in the TVA networks advertising revenue as a result of the pandemic.
Underwritings front are overall viewership market share reach 41.5% up three two points from the same period of 2019.
I am proud of different work or people have been doing to deliver on our mission of informing and entertaining the public under these difficult conditions.
Thanks to the content teens leadership <unk>.
And the way they rose to the challenge of developing five new original products and in the mid.
Of the pandemic and thanks also to the professionalism of the TVA News Division, which has been drying more than a million viewers for the evening newscast every day for the past three weeks.
The specialty channels gain tree tree points, driven by two points increase at LCN.
More than ever the most watched specialty channel in the Quebec with a seven 1% market share.
TVA Sports also registered at 1.9 point increase you didn't broadcast of the NHL playoffs.
Now as revenue decreased 42%, mainly due to the current health crisis.
Which has reduced the volume of activities, most notably in sound stage and equipment rental.
Which gradually resume towards the end of the quarter.
As well as a postproduction and visual effects. This variance was partially offset by attorney 8% increase in dubbing and described video revenues.
During the pandemic mail has introduced a new service offering a virtual production stage.
This innovation combines led screens.
Video game engine and mouths visual other things to create something very close to the finished product when shooting live-action understand.
In the current environment. This type of filmmaking makes it easier to comply with physical distancing rules and reduces the size and scope of shoots sets and crime scenes.
Magazine publishing revenue declined 1% due to continued decreases in advertising subscription and Houston revenues, mostly attributable to the Covid.
19 situation, but largely offset by an increase in financial assistance for the Canada periodical phones.
TVA groups EBITDA reach 23.4 million in the third quarter, a decrease of seven 8 million compared to the same quarter last year.
The broadcasting segment posted EBITDA 16.9 million and negative variance 5 million, mainly due to TVA sports.
Recorded a significant increase in costs from the NHL playoffs, Mal's Sigmund posted EBITDA two of the 2.9 million tree point 5 million lower than last year.
To the lower level of activity during the quarter.
The magazine segments recorded EBITDA are 3 million up by 0.6 million, while the production and distribution segment made it positive EBITDA contribution of 0.4 million.
An improvement over last year back to you.
Let's see <unk>.
So.
On on the strength of our performance in this third quarter.
With increasing cash flow.
Declining leverage below that are natural competitors and a solid balance sheet our.
Hour ever improving financial situation.
Is that clear a result of.
Performing.
And Lo bullshit operating execution and disciplined growth.
As we entered the important last month of the year still in the midst of the lasting effect of global pandemic, we will spare no effort to keep up the momentum while remaining focus to ensure that our employees remain safe and healthy that our clients are a partner.
<unk> and the Quebec population remained connected inform and entertain with the best client experience in the industry, thereby maintaining our leadership position.
Reference in Telecom news media culture and entertainment in Quebec.
Thank you for your attention and operator, please open the line for a question.
Certainly so as a reminder, if anybody would like to queue up you can press star one on your telephone keypad to remove yourself from the queue. You can press the pound sign sorry, you can press start too. So once again, that's star one to queue up.
And we already have a few questions that have popped into the queue.
So our first question will come from.
Blurry vision. Please go ahead.
We are both of them on the thanks for for taking my question. So.
Saw the strong internet and that's ads.
Despite the software moving season was the impact from moving season, maybe more muted than expected.
And do you think that's improvement net additions is sustainable now that maybe.
Maybe work from almost satellite.
[noise] Mexia message at all.
Lisa Deco separately.
The Wall Street.
Steve Lola.
Hello miles that give a call.
So with.
With respect to the specific question and they're moving Susan obviously like I said the the.
The last conference call. The the moving season was was slower this year.
So one could of one should have in fact expected that our performance in terms of.
Internet or broadband in terms of our cable and overall it should've been lower but you know.
I think that we posted there quite an impressive performance despite the slower the slower moving season. So.
Sustainability on the wireline I think that I.
I think that.
The helix cut.
Customer awareness for Elise continues to grow which bodes well for the future I believe.
Fifth is making its right with respect to the broadband service as well so.
There is nothing nothing on.
That should should allow us or should not allow us to maintain this this or this outperformance. So I remained very confident about our queue for wireline results and as far as for wireless you know that.
Bundling is is quite an effective tool to to attract customers to are are all of our services. So I think that bundling will continue to play throat.
Okay. Thanks caused by the <unk>, maybe now switching gears on the on the wireless.
We've seen a stable declined sequentially.
But at tears, we've seen a lighter impact of roaming an overage so far in the quarter.
Also the case for Quebec, or this is due to an acceleration as soon as loading versus the video Trump.
Well in terms of.
Rolling in over revenue.
And in the back of the significant declines or traveling.
60% of our Avut Barnard refined unrelated.
Through this this factors allow this is really a question of the face.
And obviously.
Bill the the weight of our fears and knew already customers customer mix.
Up until the way. It goes are stabilizes I think that we will continue to see some may be bu growth because b y U D customers in fifth customers are are <unk>.
Commending a lower our pool, but we don't have to subsidize the headset and what's important here is not having to subsidize the handset cost obviously is good from a.
Operating leverage perspective is good from a cash flow perspective seven.
70% in the quarter, 70% of our new ads.
<unk> <unk> <unk> <unk> customers combined.
So it's only 30% of our and add that are <unk>.
Asking for.
The handset cost subsidy.
Commending a different business model essentially.
So I really think that the.
I really think that the up until the weight of.
The fifth of February the customers stabilizes, we might continue to see some some ARPA declined but I'm not I'm not concerned about the decline because our casual profile improves.
With duck kind of our customers and that's what I believe is important.
That's helpful. Thank you. Thank you.
Okay. Thank you. Our next question comes from Jeff Fan of Scotiabank. Please go ahead.
Hi, good morning, everyone a.
A couple of Bob just maybe housekeeping questions first can you give us the wireless.
And a quarter and and Capex. If you have those handy and then on the Catholics comment about.
$15 million to $20 million lower than the low end of your original guidance. This year or should we think of that is just being pushed out.
Let's start 2021, capex would be hard without saying the mail.
And then.
In terms of just need your broader question.
What is on the commercial side.
You see an opportunity to work with when you appears cold you call on the wireless side, particularly in regions, where you don't necessarily have a cable footprint just.
Just on the back of your <unk> your comment about how bundle works wondering if that's commercially would be attractive to you to be to be kind of a wholesale provider and parts of Quebec, where you don't have cable place.
Okay with respect to wireless results.
Capex, we're $56 million.
And the year, so wireless capex $56 million for the quarter I should say 109 for the first nine months and.
In terms of wireless EBITDA as you know, Jeff we don't disclose.
Broken down EBITDA by service.
But I can tell you that.
EBITDA growth was approximately 30% for for Wallace.
So based on your model you can probably make the math.
And finally is the Capex the total capex being 15 two.
$25 million expected to be 15 to 25 million dollar lower than the original guidance. This is true.
I'd assume it's going to be pushed out because it's.
It's mostly related to the the cuts that we've made into our capex budget related to the pandemic are and how prudent we managed cashflows and finally wireless MVA no. Yeah. So you know obviously in the in sectors, where we don't have a cable network or wireless performance has not.
As stellar as it would be where we can bundle services.
So so I would say, yes, there's always a possibility then too maybe a track.
New customers on the wholesale side to you know obviously in that in that case, if if something can be done but.
As you know.
It's not a question only for US. It's also in question for the partner takes two to tango as we say here.
Uh-huh.
Great. Thanks for color.
Okay. Thank you again as a quick reminder, if anyone else wants to queue up it's star one on your telephone keypad. The next question comes from David Mcfadden of Cormac. Please go ahead.
Oh, Yeah, Hi, a couple of questions first of all I was just looking at the equipment sounds ravioli.
88% I was just wondering one has changed to drive that grow to be so high.
And then secondly, just following up on a question on in Vietnam for wireless I guess is.
What about the idea of taking says outside of Quebec as as an M. B L. Can you give us your thoughts on that and then lastly, just wanted the dividend last year you raise the dividend when you're part your fourth quarter results.
And so I'm wondering if the intention is to review the dividend again, when you report for a quarter this year and then.
A lot of companies are sort of maybe delaying a dividend increase because they don't want to be seen to be is doing really well enjoying the pandemic.
So instead of Ah.
Doing a dividend increase they're opting for maybe aggressive share buybacks. So.
<unk> comment on that.
Okay with respect to.
Growth and equipment sales, it's it's it's really related to a helix as you know helix, we're working off a cell model rather than a lease models. So it's really our outperformance in the helix that explains the revenue growth.
In Q3 last year. He likes was for two months wasn't there at all so.
It's all it's obviously contributed to the to the.
The equipment sales growth.
As for our fears and potential <unk> outside Quebec, Yeah, absolutely.
You can look at fears as being an you know an autonomous platform.
Platform essentially.
That being said you know we don't have any network outside Quebec. So we would have to find a network partner.
And if we do find a network partner, yes, there is.
There's definitely it makes some sense since it's visit and not economists platform.
On the dividend side, they'll ask David to to give you the answer please.
Yeah on the dividends David We you know we intend to review our dividend policy at the same time as last year or so and they lean towards the end of the year.
As you know we're barely entering the.
The the.
The range that we had set out some some years ago for dividend payout on the basis of free cash flow.
Between 30, and 50% we had said so at this point nothing.
Nothing points to a change in our in our approach in terms of dividends.
And same same comment on the on the share buyback I mean, we are currently.
Continuing our NCIC program and certainly intend to to continue I mean, our our cash flows are solid and strong and.
At this point nothing.
Points to us altering any of the of these two strategies.
Okay. Thanks.
Thank you David next question please.
Yes at the moment, we have one more question, it's from Vince Valentini of TB Securities. Please go ahead.
Hi.
[noise] Claire.
Clarify a couple of things already been talked about that.
You mentioned you can't give coach grow whenever you know on your own Rogers would have to agree.
Let's say that's unlikely is is another strategy to get that bundle in other regions of Quebec.
Is it possible that you could put a fixed wireless internet access or perhaps take advantage of the the third party Internet access rules from this year T. C. So you could effectively bundle.
Rod bandwidth wireless throat 100 per cent or throat oldest, Quebec, where where our cable system exists.
Well.
I'm not sure I got the second part of the question, but the first of all our other question that Vince I haven't spoken about Rogers and my.
In my previous answers.
HM.
Oh, you said to take two to Tango. So you just made it would take cogeco Chihuahua.
Is correct, that's what I meant.
Okay. I think we took that as an obvious that cogeco it'd be interesting [laughter] good asking for it.
[laughter]. Okay. If I then are you under the <unk> network sharing do you are you allowed to do an empty and Oh without the saturnalia clicker that as a confidential agreement I cannot spoke about that okay cannot speak about that so.
The second part is still valid Jefferts can you do can you get broadband bundled with wireless using wholesale access or fixed wireless access.
I guess you know the answer is yes, we did it we did.
Launch a reseller model.
B B earlier, this year, and obviously, Quebec as a as a large market. We we are network.
Covers essentially 80% of the population, but they're still 20 per cent of that is uncovered by our network. So yes, TPI. Our our reseller model is is obviously something that is a from a technical perspective possible yeah.
And I would add the event that you know.
I want to make sure that we're clear with that that we're not against the Tpa, we're not against and you know we were just against.
I mean, they unreasonable pricing as unfortunately, and this is why I called you know and my my my.
My speech that the it was an equitable solution. So we want something that makes sense.
And we will continue to move forward and that so yes, we have a wholesale built business and we will continue to do so so we should not be for US you know to sell at unreasonable prices, which is mandated by that kind of.
Yeah.
Strange experience.
I agree with you.
While we're on regulatory.
Sure I'll call you may want to answer this Judy I don't think I heard you in your opening comments talk about the review of the Broadcasting Act and the the proposals by the heritage administer earlier. This week do you do you like what they've done there do you think they have gone far enough.
Well you know what Vince.
Looks to me, it's highly I guess the positioning there's nothing there you know.
Words and sentences as we use to to listen to what the <unk> government is all about.
Yeah. It does say that we need to deregulate the industry or at while in fact, they're not saying this at all.
They're not raising the question that led to Canada, which is.
An unfortunate illegitimate competitor that the private sector.
It was funny you know for me to read the people in the Toronto Star going against system.
<unk> initiatives because the public broadcasters should have his own mission and is certainly admission is not to compete and too fragile eyes.
What private broadcasters is all all about.
So.
Imposing certain burden on.
Companies that are not participating in the economy. I guess this is just natural and saying that the finance Minister is responsible for imposing you know the sales stacks too.
Companies that doing business in Canada.
Just.
Again, it's worse than sentences without a real actions and say they say, they're waiting and depending international taxation to move forward, where in Quebec, The Quebec government decided many months ago I guess, it's even more than a year to imposed sales facts on on that.
Flicks and other operate other streaming services like they do with all other services. So I guess that again, there is nothing there and it just positioning to me.
So you are undecided on whether you like it or not I get it [laughter] I guess, so [laughter], okay. One last one.
Critical but.
Your internet job ads are fantastic.
But your revenue growth Internet is 2%.
Bell reported this morning that they they talked 10% year over year increase in their internet revenue.
I know they have some different dynamics going on there playing catch up on market share in some areas, but still they seem to be getting some sort of lifted net pricing and usage. It is not showing up for you.
Do you guys to.
2% Internet revenue growth all we can expect or is there. Some hope that we transfer translate this higher usage and higher subject.
Better broadband revenue growth in future periods well.
Well from a long term perspective, I think I definitely think that broadband is Ah is.
As with wireless their service the service in the future.
People will be consuming so much on broadband and wireless that there's definitely some pricing.
We that we own and that we have that being said from a short term perspective, you know I was telling you about the success of fifth in the broadband service.
And the discount nature of fifth proposal comment at the same kind of I would say the same kind of.
Of trends that we've seen and will continue to see in mobile which is R dilution bitch.
Because you know it's a discount service so I think that's.
That's something that you you should be and we should be looking at for a future periods.
Florida.
Alright. Thank you. Thank you Vince will take the next question operator please.
Yeah, certainly so at the moment, we have one more question in the queue and that question comes from Matthew Griffiths of Bank of America. Please go ahead.
Alright, thanks for taking the question.
As you celebrate.
Anti percent market share after 10 years.
I was wondering if you wanted to make any comments on what you think the next maybe not 10, but maybe five years can bring in terms of.
Additional growth so how much more runway there is there.
And also if you could comment on just.
Just on the Ark, who add to drag from the fifth.
I know you're waiting.
We're waiting for when the.
The numbers of subscribers stabilized that you do you think this is something in 2021 that will see a stabilization or does that.
Likely going to carry on for.
Significant number of periods going forward.
And just finally on five G. I know you mentioned the rollout in end of the year or the launch end of the year I'm wondering if you could elaborate a little bit on the pace of the rule loads, whether you're thinking of introducing soon.
Similar type of monetization or lack of monetization model like their peers are doing or if you have something else.
And that might be differentiated thanks.
Okay I can't.
Remember what was the first one but I'll start with the the last two questions on them and if you could you repeat the first one afterwards, but.
But with respect to fit.
Erosion impact in our in our Pew growth.
You know, we like I said above 70% of our total customer take up this quarter was was B Y U T in fifth combine.
It's obviously lower our point impacting our growth and.
An overall, we're not yet at 70% customer base being fears and B Y U D.
That will continue to increase do I think that.
It's going to last it's gonna be fixed and if we can call it that way fixed.
I think it's gonna be fixed by a 2021 I don't think so I think it's probably something that will be like a 12 to 28 months, probably the based on our expectations, but.
But I don't think the 2021, we're going to see the end of it.
With respect to five G.
It's a slow rollout we think that for now <unk> is just so you know.
Just marketing this would that way so in terms of the rollout and the the Capex program, which was back in line with with that comment I think.
You can expect that we're not going to be.
The middle with respect to our Capex programme and <unk>.
And as for the monarchy monetization plan.
I think that because it's just marketing for now it's just a question of.
Reducing or or.
Table icing churn, let's put it that way.
But but we're going to have to see some more user case on the residential the front or on the business front.
Be able to see real true monetization plans from from US and from now all players around the planet because you know it's essentially today.
It seems to be very hard to monetize the <unk> investment.
And can you repeat please mount the first question Yeah sure I was just curious.
Celebrating the 20% market share in 10 years is offering wireless such as fast.
Fast accomplishments and just wanted to see if you could make any comments or money to make any comments on how far you think that could go in the next pick a number of years say five years, how much more runway there is.
To keep expanding market share is.
Multitude of brand for players and so on so any any.
Wanted to comment.
Before we launch and I'll I'll do some I'll make some mystery here before we launched is no remember that's our share of gross gross adds was always between 20% to 23%.
So obviously with market share and to 15% then you know our market share. We're still we're growing to this 22, 20th slowly but surely to this towards this 20% to 23%. After we launch fears you know we can.
Clearly saw.
An increase in share growth sides from you know.
Firstly, 26, 27 28, but over the last two quarters essentially in 2020, we're beyond 30% when we combined fees and and.
And our our premium brand. So I really think that if we can continue to pose a 30% plus share of gross add that.
The overall, 20% market share will continue to grow obviously, we have to look at churn rates and not to lose control over a churn rates, but like I said churn rates are are improving our stable this quarter, even though it was a very aggressive.
Emotional period or quarter from from our competitors.
<unk> stable, so I I really think that the.
It bodes well for the next the next five years and I think we're going to continue to see your overall market share continue to grow.
Okay. Thanks.
Okay. Thank you very much Matthew I think that we have.
Question, another and maybe last I think it's true.
Yes, we do we do have another question that has cute up from drew Mcreynolds of RBC. Please go ahead.
Yeah, Thanks very much.
Per call for us for a bit me in your.
I guess the question for you, Jeff and you just alluded to it and your last question commentary on the wireless competitive environment.
It seems it sure wasn't somewhat of an unusual Q3 love to get your.
Comment on what you've seen through October here and.
And particularly particularly.
Sure.
I guess indicated that.
They've never seen promotional intensely like they did in September so.
When it comes down to a question of enough oxygen in these pricing enbrel is for the regional operators to continue to get.
Good loading it good or poo would love to get an update from you on that clearly in your metrics. It all looks fine.
But any any additional commentary would be helpful. Thank you yeah I confirm it drew.
Q3, what.
What grade.
In Quebec, the third quarter was totally crazy from.
From the equipment site it was crazy.
And the thing and there was a thing that we didn't want to fall and we did not.
And it's not it's not.
It's not.
It's obvious when you when you look at the revenue growth from our from our competitors are appears on the equipment side, which is truly wireless it's pretty obvious that they're really bought subscribers and.
And the accounting rules made them posting very good numbers on the revenue side, but bear with me. The next 24 months, if nothing's changed from.
From a service from a revenue perspective, it's going to be tough on their profitability.
So, but we do not want to follow except for you know a very short period of time because of the one year anniversary of the tenure sorry anniversary of of our mobile services. We had a very short period of time in September web, where we had a promotion that was associated with that with that period with our 10 year anniversary. So we were quite aggressive for that period, but the.
A rest of the of the quarter I can tell you that we were.
Much disciplined.
<unk> October usually October it's quiet period in terms of in terms of promotions and we've seen less aggressive.
Promotion than than there was in the third quarter, but what I'm looking for when I'm looking for is or is it going to be four four black Friday.
Is it going to be again as crazy out it wasn't Q3, hopefully not I think that it's very important that we keep an orderly market we're trying to.
And hopefully our competitors will will follow suit.
Thank you forget so when you're comparing pricing.
Regarding the French market in Quebec, and Ah compared to the English market in Canada, we've been seeing all always for how many years forever I would say no a lower lower pricing, so and the government of Canada, administer beans, and the CIBC and many other reports always said that pricing was was lower and.
Go back then it was compared to other parts of Canada, and therefore, I guess that this is certainly something that appears we will consider moving forward.
Got it thank you.
Okay.
I think we're over now so I would like to thank you all.
And.
Used to have a nice day and we'll talk to you at the next.
Quarterly results. Thank you very much and bye now.
Ladies and gentlemen, this concludes the keep it calm incorporate its financial results for the third quarter of 2020 conference call. Thank you for your participation and have a nice things.
Uh-huh.