Q1 2021 Quebecor Inc Earnings Call
[music].
Okay.
Good afternoon, ladies and gentlemen, thank you for standing by and welcome.
Welcome to the Becker, Inc. Financial results for the first quarter and.
As a reminder, you makes you want to ask the question any time during the call and by pressing seven pounds.
And we draw your question, perhaps seven time and again.
Yeah.
I would like to introduce.
Some of our Chief Financial Officer of Quebec are Inc. Please go ahead.
Ladies and gentlemen, and welcome to this COVID-19 call Conference call. My name is ex Nah I'm, the Chief Financial Officer, and joining me to discuss our financial and operating results for the first quarter of 2021 of.
Cash paid at all of our President and CEO.
So if we know the president and CEO of <unk>.
The call.
And you weren't unable to attend the conference call will be able to listen to the recording by telephone or webcast access details will be posted on the Quebec more of website within 24 hours. Following this call. The recording will be available until August 11.
I also want to inform you that certain statements made on the call maybe 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 move on to our first speaker.
The C a J and good afternoon, everyone.
I'm pleased to reported another strong quarter of the resilience.
This has been the execution and steadily improving operational results were getting the call. Despite the continuing impact of the global and they make on the economy as we delivered growth of three 7% and our consolidated EBITDA and fourth line three per cent and our cash flow from.
Operations.
Our telecom operations performed well and all segment.
And in the wireless our two brands combined grab once again, the highest market share of gross adds.
And.
And a highly competitive environment, continuing to deliver double digit growth in revenue and EBITDA, while managing to control the conjecture on impact on Ad pool.
Our Fisher brand continued its upward path both in the wireless and broadband contributing to almost doubling of our net adds and.
The Internet this quarter.
However, and it makes the platform was also fueled our strong wireline performance delivering again more than 100000, new clients this quarter.
Our media segment was of course impacted by the postponement of the NHL season, because the first quarter, which led to higher programming costs and pdfs ball on the quarter to quarter comparison.
That being said.
We are encouraged by the improving performance of advertising revenues and can afford and in our of number one position and come back with a $39 four per cent audience market share and.
And several other popular shows such as the people that is and back of the knee, which attracted the average audience of one points and one seven and $1 4 million viewers respectively.
On the regulatory front, we're pleased with the share of D. C decision and they'll always facility base and the you know.
And as it confirms the importance of maintaining healthy competition and all regions of Canada true of strong well funded and viable and Ford.
Wireless competitor.
Which invariably leads to lower prices for consumers as we ourselves clearly demonstrated in Quebec.
Speaking of our strong tour players, it's imperative that the competition Bureau, and other regulatory authorities Act sensibly and consistently with respect and the recently announced acquisition of shop by Rogers to ensure that the important companion and roll.
Played by Freedom wireless and Ontario, and the Western provinces continues through the sales of these assets do and experience and proven operator, who will ensure the long term viability and success of the fourth competitor in these key markets without the prices and continued to come down for it.
Canadian consumers.
And other CRT few ruling regarding access the Dallas support structures and Tom.
I think we had brought up numerous times and the recent past.
Finally, published on April 16, and.
And was you didn't call me.
You need more.
Local [laughter] of adult articulate on I'm, sorry, it's the software yes.
Now as a country of the numerous regulation and the desert visit the D.
Every day and [laughter], yeah, well do this happens.
Deliberately violated the telecom and Telecommunication Act.
Clearly these and Kim anti competitive behavior, which had been the announced by the do it all and many other industry stakeholders must stop and.
We have heard many empty promises and the last few weeks. It is now the time to walk the talk.
Finally, we are happy with the recent high speed operation The government program initiative.
Which if you do it at home and committed to connect more than 37000 on their served out of adult.
He is a lot of men of and our footprint and as a testament to the due upon expertise and the ability to <unk>.
Carry on large scale project and will now lets dig and review our consolidated financial results.
And if you've got cash.
And that gross revenues were up 3% and the quarter to one O 9 billion revenues from our Telecom segment grew four 5% the $914 million and revenues from our media segment remained stable at 175 million backwards EBITDA was up 4% of 453 million of Telecom segment report.
And EBITDA growth of 3.5% of 451 million, while our media segment reported an EBITDA of $1 million, a 3 million dollar decrease.
We reported a net income attributable to shareholders of 121 million and the quarter or 49 tenths of share compared with net income of 132 or 52 cents per share reported and the same quarter last year. The decrease is explained by an unfavorable variance and the valuation of financial instruments.
Most notably our of convertible debenture, and partially offset by an increase and adjusted EBITDA.
Adjusted income from continuing operations, excluding unusual items and gains or losses on valuation of financial instruments came in at $130 million or 52 cents per share compared with an adjusted income of 112 of 44 cents per share and the same quarter last year.
Our cash flow from operations and the first quarter of 2021 increased by $13 million of four per cent of 308 million once again, demonstrating the resilience and strength of Quebec, whereas the business model, our financial profitability propelled by the strong returns from our telecom segment remains very solid.
And that's at the end of the quarter, our net two weeks our net debt to EBITDA ratio was 267 times down from two eight times reported at the end of the last quarter of.
The first quarter of rather of last year, and comparing very favorably to our telecom peers.
Thanks to the success of our recent financing, where videotron and issued $650 million of senior unsecured notes and the Canadian.
The high yield market, yielding 3.1, and two five or three and one eight per cent our available liquidity of $2 $6 billion.
<unk> the favorable favorably for the upcoming spectrum auctions and the maturities of our notes.
And the quarter, we purchased and canceled $2 6 million class B shares for a total investment of more than $84 million.
Since we initiated the R. N C. I E 10 years ago, approximately $43 3 million class B shares had been for purchased and canceled.
As we have demonstrated in the past our financial position remains healthy and solid enabling us to pursue.
Very successfully our business strategy.
I will now I'll, let J F review on telecom segments operation.
Thank you ladies and.
Good afternoon, everyone.
I hope that everyone and as well and staying safe during these challenging times as we enter into the third wave of the pandemic.
And our focus on the C remains on keeping our employees safe and we continue to work from home, while providing the best and safest condition of our customers and our of colleagues on site.
On April 1st we announced the acquisition of couple of years, you'll Warwick, we're pleased to join forces with a well established cable company and the SUNS, Quebec region.
I'm with you on Huawei, excuse recognized breaks and excellent customer service and its value and proximity with local families and businesses.
We plan to upgrade its existing infrastructure in order to offer are scared of the yard residential and business services.
Before I get into our results for the quarter also wish to highlight the and video with the home was awarded the most admired and telecommunication company and Quebec for the 16th consecutive year. According to the laser in 2020, one and pretax on study.
This recognition and reiterate the privilege planes out of our organization adds and the life of connectors, and we are and Martin and ever dedicated divorce. The two pursuing our vision of being the partner of their connected life.
Well the first quarter of 2021, we posted a solid performance and the wireline. Despite the continued sluggish economic conditions.
We recorded 11000 broadband subscriber growth 70, 575% higher than last year, and this seasonally slowest quarter of the year and manage to reduce the video subs decline same store and you and helix platform.
On a third consecutive quarter of hundreds of thousands of customers signed up to our helix service, bringing us to 827000 and video and broadband subscribers as of April 30th.
I mean, not yet stopped selling our legacy video and Internet services. We are pleased to witness the close to a new video customers out of 10 and choose to subscribe to helix where has it is close to 90, new internet customers out of standard choose helix greatly beneficial dollar churn rates.
The helix platform continues to evolve we officially launched our what's the install option and March, thereby giving our customers more autonomy and the safety over and the installation process.
I am proud to report that we get very good satisfaction ratings dust, thus far which satisfaction rate of 87% from clients, who selected all the way install.
During the quarter. We also added new of home automation partners, who are at least five <unk>, including major of brands, such as Lutheran life ex and others adds.
And Burton functions around the life and indoor of temperature control.
The vast majority of our productions and resume allowing us to continue creating rich content for it globally called subscribers.
And the first quarter, we launched more exclusive content and clothing, what's available and I found me lots of them and it takes any kind of forget something.
We have also begun filming Lisa and I got to do.
In April and finished filming last night the acid plant.
Of interest of our loyal subscribers many of original and exclusive content arguably the launch and the third and the fourth quarter of 2020 one.
Yeah.
On the wireless front and we're supposed to the 22000 net adds during the quarter, our gross being impacted by a complete lockdown and closed stores for the first half of the quarter.
The thing and slower market activity through all of the Florida.
Nonetheless.
We once again and let the market with a 35% market share of gross adds and churn was flat year over year.
Our total market share and get back now stands just shy of 21% and still growing.
One of the CVP you declined three 2% and the Florida, one I've explained by COVID-19 travel and related restrictions and the other half explained by the dilutive impact of fifth.
However, both on mobile and fifth exhibited year over year, a btu growth, which will translate and total a btu of growth once the proportion of <unk> customers and our total base stabilizes.
Despite aggressive handset tough promotion from our rivals. We also managed to keep cost of acquisition and cost of renewables well under control and therefore balancing customer gross and operating income growth.
During the quarter vs officially introduced its assets offerings.
The things and innovative external financing business model and opening up of new addressable market for fifth.
While the pandemic brought its share of challenges, we also tested new operating models and.
For instance, sending working is appreciated by our employees and will remain in place beyond the sanitary crisis.
We expect that 60% six zero of our employee will integrate some kind of scared of working post pandemic.
Which will resolve and a reduction of 75 per cent of our office space rent expense.
As for our financials and overall, we posted solid revenue growth of four five per cent through $914 million, driven primarily by wireless and Internet services as well as equipment sales.
We recorded the EBITDA growth of three five per cent to $451 million cash.
Cash flow from operations were 10 million two of $313 million.
Capex spending increased 4% of $5 million to $138 million in line with guidance.
This increase is primarily explained by our LTE advanced five G row there.
Wireless capex increased by $19 million year over year to 43 millions of dollars net.
Let me now turn the floor back to back out for the conclusion.
The FC some software and.
As a matter of fact and I would like to think of this opportunity the 10th U G F or you're an important and the loyal contribution to.
Ooh, Quebec or success over the years, both as the CFO and a more recently as the.
The other than does do at home.
We've been working together very closely and Oh, and tea time, and sometimes are of the tough time, and we succeeded altogether with the entire team to be where we are today.
And we will Miss you and I sincerely wish you and.
The very best for in your future endeavors.
Looking ahead and the theme of if get back all of the do it totally out of line at all our divisions are focused on continuing to build the momentum to deliver consistent and.
And disciplined execution growing cash flow and that's continuing the strength in our solid balance sheet and thank you for your attention and.
And we will now open the lines for questions.
Operator.
[noise], alright, and ladies and gentlemen, just thought of if you'd like to ask a question.
The press have been calling on your phone and again, that's seven talent.
Draw your question, Chris Southern power and again.
[noise] [noise].
Okay.
Yeah.
Yeah.
Yeah.
Okay.
Yes.
Our first question is from Mr. Jacques Perron.
Yes.
Thank you and good afternoon, everyone and let me just express my thinking at the J F as well for all of the years of partnership, but it's been a long journey and all of the best and you and your next chapter My question I guess there are two questions. One is just around food.
And the videotron brands and how they contribute to your wireless net adds of just.
I'm wondering if if it continues to take a larger.
Share or making a larger share of contribution to net adds are of gross adds overtime to keep you on that.
30% gross adds.
And and how and whether and whether there is gonna be of lapping or we're stabilizing of the base whether it is just kind of continues to take a bigger a bigger share of the albeit total base and and the second question is really.
The bigger picture around National wireless extension and expansion I think everyone on the call is well aware that there may be some divestitures coming out of the Rogers Scholl transaction.
It feels like the Yahoo. You guys have looked at this many many years ago I'm. Just wondering if you can share some insights on on comparing and contrasting how the possible exercise and they look different compared to the last time you looked at this back in 2014. Thank you.
Alright.
I'll start with the first part of the question on the I guess, the Jack I will take the father of the second one.
Well. Thank you are you worried the Jeff the.
And in terms of and.
In terms of the the proportion of their share of bids and our and our total base and whatnot well. The first thing that I would say is.
Is the when you look at their share of gross adds them year over year and and it's been very very constant on a very consistent and.
And for both fans and videos on mobile and so as you mentioned and total where Toby plus and we're 30 of loved this quarter. We've been here of 30, plus four three out of the four quarters last year and.
And but when you look at the shelf gross adds and for Finn the specifically all four videotron mobile brands, specifically, it's very constant over time. So it's not taking a bigger share of the thing is with respect to D. I E V. P of growth is and it's obviously and.
You know over two thirds of our subscribers or new subscribers are either finished or be why you would need right now and our total base does not yet you know stabilizing so there's an enormous.
And increasing proportion here of day after day on a quarter after quarter that is B Y O D and fifth which which obviously come in lower on the a b b and so that's really the reason why you see that dilutive effect and with respect to phase in and and the B Y and D program and I would add to that and you know what.
What's the kind of working obviously people are more relying on Wi Fi and they were relying on the path and the passing of where are relying more on day on their wireless packages and they don't need as much big package and the needed in the past you know and I think it's really since the circumstantial related to the pandemic and once the pandemic will be over and people will start to you know go outside and travel and.
And and visit people I think that we're going to get back to higher Btu, and Ohio packages of bigger packages and obviously that will also help on on the and ABB and I would finish by saying the good thing is that on a year over year basic inbound ABB U for both bidders on mobile and PC is going on so what you know of.
Since all of our base stabilizes with respect to fees and the total base I think for sure if you're going to see a b view of growth.
Victor of Jeff.
And I guess [laughter].
From me after Jeff touched on it.
[laughter] and go up so Jeff and I guess that the you know you were aware of and knows about them.
And when we enter the wireless business 10 years ago.
You know, we entered and adds as a M.
M D N O and and we entered the because we thought that you know and it will make sense and.
And the future to be of facility based operator and.
This is why you know we made them a lot of representations and Ottawa and to make sure that at the end of the day, we will have the capacity to buy spectrum and which as you know the the beginning of the.
Of being a and facility based operator.
I think that we were successful and convinced are the different part of the dishes that if the wood looking to have competition and Canada for the operator is required and to get this requirement and you then.
And the desire or the the requirement of adding a set aside the spectrum auction and that took place and from there you know we we we built but you will remember that well maybe.
You were not but the you know we we are we were looking to have a national brand and.
And and and became throughout the auction that it became very competitive on.
And at the beginning and you know, we we saw and factor.
Sure bidding on the unfortunate of spectrum on the western and size of the country and.
And we are because of the situation. We decided that you know we're not going to go against the Shah there and that they are the through natural and territory and so we concentrated on the Ontario, and Quebec and that time, you will remember that was the globalize we found out the funded by.
And a foreign company Oh, that's gone on.
And you know they pay the remember over 500 the million dollar for the spectrum. The the acquired and so we also there disciplined we are and disciplined and we were knock on and participate in.
Prices, and we were considering not making sense and.
And naturally.
So we want that the 40000, the 40 megahertz.
Mega or it's available on the spectrum set aside and Quebec and start operating.
And.
As of today and all of them I think that we've been the and.
We've been quite successful and we have one 4 million customers of after 10 years.
And that I've been able to fuel our growth.
And you just well and to the either the answer of I'll jump on us what they're there's a sort.
And the limit for us and continue to considered and we will continue to grow and the kind of growth that we've been experiencing and the balance. So here, we are and you know and in front of of this opportunity and there are three regulatory body that will have the review of the transaction.
And regarding Shaw and Rogers on the wireless side I think the evidence has been made that the if you want the.
Competition, and you have lower prices, which also on top of that as a matter of what politicians will and we'll look at that four of the operators and doing the job was done and Quebec and competition Bureau came in where the report and it's not all of our numbers.
Competition Bureau numbers that you know, it's showing the pricing was better for consumers and Quebec and elsewhere.
It's true that for the last few years and this trend took place also in the.
And the freedom and freedom mobile footprint.
But I guess that the if Rogers was to buy a freedom mobile App and you know this trend will completely disappear and.
And you will not out of a fourth operator, and Quebec and Rogers was to buy the deal with the one in 2000.
So you know we have the C or D. C. We have I said and we have competition Bureau, and will review all of this transaction and and Ah and we certainly have the Rogers with the high desire to close this transaction and.
And as quick as possible because you know all the time is money and then therefore and we.
We will be ready to consider or the negotiate what could be a fair price and.
And for this that we will probably not the law.
And I know and I don't think it will be the case, but we certainly have and you know all of the entire expertise.
The run a wireless operator and.
And the capacity of of doing so successfully and.
We have the the balance sheet and as you know you know we've been moving two seven times debt to EBITDA and the beginning and we had obligations and I'm not so long ago of buying back the day steak, which is now behind us and we have the.
The balance sheet are of a of the industry. So I would say that you know all of those aspects and positioning us and are quite favorably and well for our next step.
Yeah.
Great. Thank you both.
Yeah.
Thank you very much ladies and gentlemen.
If you would like to ask a question. Please press seven town on your phone and again, that's seven pounds.
To ask a question.
Yeah.
Yeah.
Okay.
Oh, we have and Oh.
And the other question the other operators is another one.
And yes that we do have one moment please.
That's true.
Uh huh.
Some of it was Q excuse me.
Yes.
Hey loans boy or some of that.
And as Jonathan.
They started this and start.
Yeah.
Yes.
Okay.
One moment.
[noise] of ads.
Yeah.
And that's the bogey.
The next question is from zero and the debris.
But you don't hear from on the thanks for taking my questions that Jeff and congratulation for accomplishment and good luck on your for the future endeavors as well.
First the on maybe on your in terms of departure a day off Gal I'm sure you were already very much involved and decisions that videotron, but maybe can you describe your recent involvement and how you foresee. The this could change going forward and then second on Capex and two part question you said in the past quarters and they weren't.
<unk> out the bits on Capex due to regulatory uncertainty Ah, there's still regulatory uncertainty for sure but do you feel you have the visibility needed now are with the M B and no decision.
And maybe to step up the Capex and is your participation and the Quebec government programs can the corollary is already included in the Capex guidance you provided on on the last call.
And good.
And thats usually at all.
Well all of them, Yeah, I guess that and you're right to say that the no.
No on that.
And involved and the.
And the Oh, let's let's let's call it the supervision, but obviously also as you can imagine your decision, making and at the do at home and I think that you know with and for for the last the.
The decades, and I would say that you know we've been building teams them around on our operation and you do it on and natural things that we see are people retiring and being replaced and I think you know what we can use as an example is oh.
And.
[noise], Daniel pool, which with our engineer of Vice President went the retirement as he was replaced by the number two with Mohammed the beneath the which is now our V P and it.
The life goes on and but Theres, a permanent thing, which as you know the discipline that we've been able to put in.
And the company for the last 20 years, and you were probably not damage the at home.
But you know what we said in 2000, what is that yeah.
We will reduce our of death, and we will increase on where you did talk a that that the quite simple formula and.
But basically you know that the that's what we did.
And you know of 20 years later after also would you know increasing and.
And I, adding a new Oh, a few other segments because the never forget that none in 2000 and at the beginning of the Internet access was not the size that we have today and we didn't we were not inc.
And the pack and in the wireline telephony at all.
And we were far from being in the wireless we built all of this and we built all of this together with the team and that we built a true all the years with with the expertise.
And this expertise is there also to continue to give us opportunity to grow into.
And the future.
So when I'm talking about discipline and this is probably also one of the reason of our success and.
And one of the reason that you know, we've been and being successful and the Formula I mentioned earlier regarding the increasing EBITDA and route and reducing our debt and.
Is that we were disciplined and capital expenditures and we will continue to do so.
And I think it's important to make sure that we will spend where it is worth as much as possible to the spend and I guess that you know you've been raising a very interesting.
Example, which is the his Yamaha she do it.
Yes that youre familiar with the Quebec situation and the news and so you know we were awarded the largest stake and the new.
Hum and he's young policy and as you know our Internet access is considered as an essential service.
We've been successful also in our complaint in front of of this year and do you see again that all of our and our desire and requirement to put our network on their poles and this will deliver you know very interesting resolved at the very low with lower price.
So we look forward to continue the same philosophy that had been built and that had been established and the last 20 years.
Yeah.
Yeah.
Right.
Thank you.
Yeah.
And the next question is from David.
Yeah.
One moment please.
Okay.
Yeah.
Okay.
Yeah.
Our next question is from David.
Go ahead please.
That's not true.
[laughter].
And we usually.
He can't pronounce your last name apparently [laughter], yeah, yeah yeah.
And you know who you are we know who you are [laughter].
[laughter].
And so if the puppy anyway kind.
On the mobile net adds 22000 and the corner I noticed you know you obviously it sounds that.
The share of the gross adds were 30% plus but I thought last part of you might have been a little disappointed with your mobile net adds and I was just wondering this quarter and at the same or are you are you happy with that kind of level of net adds the 'twenty two and and I was wondering if you could disclose the mother of wireless metrics, they usually disclose such as the churn and.
On the wireless EBITDA growth.
And thank you.
Yeah.
Well, that's the let me give you a few of them.
A few factors that I believe explain or 23000 of our lowered road and then.
And the last year, and and obviously sequentially sequentially, it's easy to understand because our business is seasonal and you know what you know Q4 is the very active very active market you have a the boxing day and you have a you have the black Friday promotion, so it's a very active quarter and.
And so sequentially I guess, it's just normal that we're seeing lower gross but if you look at the year over year. Obviously this year, we had happened after the quarter, where we were in the lockdown and the stores were closed and last year. Obviously the pandemic started mid March. So it was only two weeks you know essentially of the of Lockdown and and closed stores. So it obviously adds.
And pack them and as you know and wildly and since we are the challenger when the market is slow and you know we tend to show slower growth than the previous year because of the market is too slow and the good thing I believe is that the is that and despite the slow market, we continue to grab more than 30% of <unk>.
Share of gross adds so and and Chinese stable. So it's not like you know journeys and.
It is growing or increasing and then we were losing a customer and not at all of the Chinese it is stable. This this quarter compared from the last for the same quarter last year and.
One one of the thing I would add is with the reopening of the stores of mid February and what we've seen is and I I think I told that I said, the same and the third quarter of last year. You know following the reopening of the stores and are in line and in the.
Late June.
And once again, we sort of we sort of saw and witnessed some kind of panic from from our competitors with the you know crazy promotions on as the anti cost and we Didnt, we didnt play that game and in fact, I think that's one thing that characterize us is really that we're able to achieve a balance between.
The operating income is growing and thoughts there on growing you know, we don't want and you want to kill off of operating income just because we were chasing customers of on and and doing the same as the you know the.
And the big three are doing essentially and so I think you know and that's something that and it's very important and you understand this balance that debt that is not an easy task, but I think where we're sort of we're able to to achieve this are these the balance and I would finish by saying that the Boeing thing you know.
And in 2014, there was a break and you know some kind of of breakouts and our business. When we launched of our LTE network. We got the Apple phone, we innovated with you know by trading the bigger data buckets, and Canada, and that's essentially allowed us to improve our share of gross adds from.
And on the MIT and the mid teens to low twenties, and then in 2020 18, we went with another innovation and malware and other thing that is that was the difference to our customers with Westfield and new operating model and new business models, and your brand and and where we've been able to grow from the low twenty's too.
And with the low thirties, our share of gross adds and I think now we're ready for it and then you know and next the next phase of growth and one thing that we're essentially working on is the equipment installed and installment plan were working on this initiative and I think it's gonna be and using that will against the you know.
And our addressable market and will probably and I believe will the will improve our share of gross adds further and and on top of that because as you probably know and and no operating assets and what she was which is wasn't of the past again broadening our addressable market.
I think future as grade one and in terms of the subscriber growth and I'm not disappointed on the you know obviously on an absolute basis.
You know the somewhat you can be the disappointed with the with the gross adds but I think that on a relative basis and based on the market that we had and come back and some very very very strong performance.
Okay, and then can you comment on wireless EBITDA growth.
High teens.
Again.
Okay. Okay.
And then just on and just on TV and as far as because he made kind of them.
All of them, having a conference call now and.
Maybe a question for the I'll call them.
So I was just wondering what's the latest with the achieving a higher sow the seeds from south of T. J sports, because I think they're really underpinning and compared with everybody else.
Yeah.
Well, it's a never ending story of David with the with the with Bell as the.
The.
The distributor and as the broadcaster and out of the competitor of T. The asphalt it's true for the the sports segment, but the it's true also for or the other.
Channel the specialty channels and what do we call of the fair market values.
And we've been able to negotiate the prices with all of the other distributors and and.
And you know for for a reason, which we consider and easily understandable on that.
Same kind of agreements are not able to be reach a with the with bell on the distributor.
And so this is why you know we've been in front of the CRT D C and we've been and the front also of of the of course to be able to establish what we consider being fair market value.
It's a long process.
We've been through this process and you all are.
And 15 years ago, when the bell of the Dar and you know the.
And and he will not fall all of the the rules are and the the fair business practices and third of.
Piracy and your room, you will remember.
David that Ah in 2015, the appeal court of Quebec and.
And then about the pay of $140 million because of that do we do it all and D V. So on it.
It's unfortunate to say that that will and yeah.
As I began is it's a never ending story of and Bell.
Okay. So we're not waiting on any tier of D C. The citizen or anything it's just.
And of the kind of status quo.
Right now and so the status quo and it's in front of the federal court, it's going to be.
Apparel current okay.
Alright, and then the last thing the question kind of a can you just update us as much of the Capex plan is for 2020 one.
No no and no change and our AR and our Capex guidance for the year.
And can you ever can you remind us what it is.
And I think sort of 600, 606, 15 range or video drama and God forbid you try and exactly that's the only guidance meeting to get on.
Okay alright, thank you.
Hum.
Thank you very much.
Our next question comes from Vince Valentini.
And then your line now.
And thanks, very much Hum and let me just stay on the Capex for a second.
I'm not sure we answered your own the question from earlier on how much of this these new rural households, the 37000 that you've won and partnership with the government and how much that will cost you and there's none of that spend and start to happen. This year or is it not big enough to change your capex budget of even if it adds this year.
Yeah, I can take that one the Vince so so I you know obviously, it's the it's a pay as you go on and you can imagine, but we've been assisted and we are assisted from from subsidies. The standpoint, we are assisted by the government and are part of the deal.
And I wouldn't say as is the is minimal, but it's it's not that material on the two year basis, because obviously, our investment and will be spread over two years. So are there and there won't we won't see any change and our guidance because of this program.
Most of the for 2020, one if they want and what effect more of a bunch of.
Okay, Thanks, Jeff and Oh by the way the best of luck to you guys. You have you been fantastic too.
Work with over the years I shouldn't you were missing and saying that as well.
The second question the Internet revenue.
And up $6 four per cent a this quarter that's.
One of the double what you were doing through throughout most of the 2020 and its much to seek and can you talk to that and a little bit is is it just some delayed rate increases. That's finally went through or is there a bit more usage by your customers moving to higher tiers, or perhaps a bit more promotional discipline and the market. So you don't have to have as many subs.
On on heavy discounts to if you can just talked of what the key drivers are there would be great share.
So the two things I would say the two of the two major things of that are obviously on price increases.
As you know of price increases were effective March 1st So we got one month of of those price increases kicking in and the they were two of the level of 46% of approximately depending on the kind of package.
So you know, it's obviously had an impact the second thing is you're right with me and mentioning that people are looking for all of your tier of our you know the services instead of working as obviously.
You know of sources for that and so we're seeing people are subscribing to higher tiers packages, yes.
Excellent. Thank you and the last question probably for peer Carl.
And in your answer to Jeff's question earlier regarding the freedom mobile.
You mentioned, having the negotiates a fair price for the asset.
Assuming it does come for sale.
I'm wondering what the terms of the deal as much as the price. The way do you think that you could just acquire what they have and and then be a standalone wireless player with with that network and that spectrum position or is it important to you to also try to G and some sort of network access or network sharing in tandem with any of that.
And you'd be willing to do.
But we're always going to be a you know of open and flexible regarding and different types of transaction and.
And the eventually you know and possibly any kind of of partnership.
I'll tell maybe when we can we can you know.
The on on.
And all of this and.
And again I think it's positioning ourselves of.
Quite favorably.
The the M D N O decisions that Ben.
The relief by the C or D C.
I guess that and you know did.
And was inspired by.
By cause cause the co position and but also from all sort of our position we've been always saying that.
To be fair and then and then the industry that requires a significant capital expenditure and.
You need to.
The sponsor and.
The facility based operators.
And as you know the CRT D C and decisions of lodging any kind of M D and all of our commitment to build your own.
And the network and of certain period of time and the fact, it's it's seven years or so.
Here, we are in and in front of a.
Our position on them.
Market and condition of regulatory market with proper conditions. That's getting on you know the also the availability of of growing R. R.
Our business and certainly you know probably at the.
The the speed or the rate that we will consider being the best way to do so and in front of US you also have the.
And the sports operator of that maybe are must be a considered for sales regarding competition and purpose and meeting expectation from regulatory bodies.
Yeah.
This is also being mentioned it and on the table favorable conditions.
The.
The proper level and.
The the discipline kind of execution that we're looking for.
Fair enough. Thank you.
Yeah.
Operator is there another question or.
There are no more questions at this time.
Excellent.
Uh huh.
Thank you very much of them all and.
Talk to you on next water.
Ladies and gentlemen, this from <unk>.
It's Rebecca Inc. Financial results for the first quarter 2021 conference call. Thank you for your participation and have a nice day.
Yeah.
Okay.
Okay.
The moderator has ended the conference Goodbye and thank you for calling.