Q2 2024 Quebecor Inc Earnings Call

August 8, 2024

The conference is now being recorded.

Operator: Good day, everyone. Thank you for standing by. Welcome to Quebecor Inc.'s financial results for the second quarter.

Operator: Hello everyone. Thank you for standing by. Welcome to Quebecor Inc.'s financial results for the second quarter conference call. I would like to introduce Hugues Simard, Chief Financial Officer of Quebecor Inc. Please go ahead.

Hugues Simard: Good day everyone. Thank you for standing by. Welcome to Quebecor Inc.'s financial results for the second quarter conference call. I would like to introduce Hugues Simard, Chief Financial Officer of Quebecor Inc. Please go ahead.

Hugues Simard: Ladies and gentlemen, welcome to the call. My name is Hugues Simard.

Hugues Simard: Ladies and gentlemen, welcome to the call. My name is Hugues Simard, I'm the CFO . And joining me to discuss our financial and operating results for the second quarter of this year is Pierre Pladeau, our President and Chief Executive Officer.

Hugues Simard: I'm the CFO, and joining me to discuss our financial and operating results for the second quarter of this year is Pierre-Karl Pladeau, our President and Chief Executive Officer. Anyone unable to attend the conference call will be able to listen to a recording by telephone or webcast. Access details are available on our website at www.quebecor.com. The recording will be available until November 8th this year. As usual, I want to inform you that certain statements made today on the call may be considered forward-looking, and we would refer you to the risk factors outlined in today's press release and all the other reports filed by the Corporation with the regulatory authority. I now turn the floor to Pierre Galappatthige.

Speaker Change: Anyone unable to attend the conference call will be able to listen to a recording by telephone or webcast.

Hugues Simard: Access details are available on our website at www.quebecor.com. The recording will be available until November the 8th of this year.

Speaker Change: As usual, I want to inform you that certain statements made today on the call may be considered forward-looking, and we would refer you to the risk factors outlined in today's press release and all the other reports filed by the Corporation with the regulatory authorities.

Speaker Change: Let me now turn the floor to Pierre Galappatthige.

Pierre Galappatthige: And good morning, everyone. So, I'm pleased to report today that Quebecor, in its first quarter of operation, overlapping the Freedom Acquisition, generated $625 million in consolidated EBITDA, $20 million more than in the same quarter last year, as we maintain our discipline and continue to improve our industry-leading margins. Moreover, despite an expected competitive environment continuing to pressure revenues and while increasing our strategic investment in our network, our brands, and our customer experience. We maintain a stable consolidated cash flow from operations of $450 million in the quarter.

Pierre Galappatthige: And good morning, everyone. So, I'm pleased to report today that Quebecor, in its first quarter of operation, overlapping the Freedom Acquisition, generated $625 million in consolidated EBITDA, $20 million more than in the same quarter last year, as we maintain our discipline and continue to improve our industry-leading margins. Moreover, despite an expected competitive environment continuing to pressure revenues and while increasing our strategic investment in our network, our brands, and our customer experience. We maintain a stable, consolidated cash flow from operations of $450 million in the quarter.

Pierre Galappatthige: Les Tiègues

Pierre Galappatthige: And good morning, everyone.

Pierre Galappatthige: So I'm pleased to report today that Quebecois

Les Tiègues: in its first quarter of operation, overlapping the Freedom Acquisition, has generated $625 million in consolidated EBITDA.

Hugues Simard: $20 million more than in the same quarter last year as we maintain our discipline and continue to improve our industry-leading margin.

Hugues Simard: Moreover, despite an expected competitive environment continuing to pressure revenues, and while increasing our strategic investment in our networks,

Hugues Simard: Our brands and our customer experience, we maintain a stable consolidated cash flow from operation of $450 million in the quarter.

Pierre-Karl Pladeau: Since the acquisition of Freedom Mobile in April 2023, we spared no effort building our tree branch and investing in our networks to offer reliable and affordable wireless services to more Canadians. Almost 25 million Canadians in Ontario, Manitoba, Alberta, and British Columbia can free themselves from the Incumbent Oligopolistic Control. Since the acquisition.

Pierre-Karl Pladeau: Since the acquisition of Freedom Mobile in April 2023, we spared no effort building our tree branch and investing in our networks to offer reliable and affordable wireless services to more Canadians. Almost 25 million Canadians in Ontario, Manitoba, Alberta, and British Columbia can liberate themselves from the incumbent Oligopolistic Control. Vince the Acquisition.

Hugues Simard: Since the acquisition of Freedom Mobile in April 2023, we spared no effort building our tree branch and investing in our networks.

Hugues Simard: to offer reliable and affordable wireless services to more Canadians.

Hugues Simard: Today, almost 25 million Canadians in Ontario, Manitoba, Alberta, and British Columbia can freedom themselves of the incumbent oligopolistic control.

Pierre-Karl Pladeau: We have gained more than 300,000 new wireless RTUs, and there will be nothing stopping us, with affordability being our key to market share growth since day one. We have recently launched the brand new, cutting-edge and affordable Freedom Home Internet and Freedom Home TV service. Establishing ourselves as a multi-service player across Canada is a key milestone in our plan to foster healthy competition and give Canadians better telecommunication options at the right price. We are delivering what we promised. In wireless, we're pleased with our highest quality net addition of 93,000 new RTUs in the second quarter. 44 million.

Pierre-Karl Pladeau: We have gained more than 300,000 new wireless RTUs, and there will be nothing stopping us, with affordability being our key to market share growth since day one. We have recently launched a brand new, cutting-edge, and affordable Freedom Home Internet and Freedom Home TV service. Establishing ourselves as a multi-service player across Canada is a key milestone in our plan to foster healthy competition and give Canadians better telecommunication options at the right price. We are delivering what we promised. In wireless, we're pleased with our highest quality net addition of 93,000 new RTUs in the second quarter. 44 million. I'm sorry, 44,000 more than in Q2 last year. An exceptional performance outside of the seasonality more active last September of the year.

Hugues Simard: Since the acquisition, we have gained more than 300,000 new wireless RTUs and there will be nothing stopping us.

Hugues Simard: Affordability being our key to market share growth since day one. We have recently launched brand new, cutting edge and affordable Freedom Home Internet and Freedom Home TV service.

Hugues Simard: Establishing ourselves as a multi-service player across Canada is a key milestone in our plan to foster healthy competition and give Canadians better telecommunication options at the right price.

Hugues Simard: We are delivering what we said.

Hugues Simard: In wireless, we're pleased with our highest quality net additions of 93,000 new RTUs in the second quarter.

Pierre-Karl Pladeau: I'm sorry, 44,000 more than in Q2 last year. An exceptional performance outside of the seasonality more active last September of the year. This strong momentum across our footprint is attributable to the superior performance of freedom, which continues to capitalize on effective market offerings, and also to the growing success of our brand Fizz, adequately suited to compete against aggressive pricing strategies with our cost efficient, fully digitalized model. This completed its beta phase in early April and is now available to more than 21 million Canadians in Quebec, Ontario, Manitoba, Alberta, and British Columbia.

Hugues Simard: 44 million...

Speaker Change: I'm sorry, 44,000 more than in Q2 last year, an exceptional performance outside of the seasonality more active last December of the year.

Pierre-Karl Pladeau: This strong momentum across our footprint is attributable to the superior performance of freedom, which continues to capitalize on effective market offerings, and also to the growing success of our brand Fizz, adequately suited to compete against aggressive pricing strategies with our cost efficient, fully digitalized model. This completed its beta phase in early April and is now available to more than 21 million Canadians in Quebec, Ontario, Manitoba, Alberta, and British Columbia. You will see more and more Siddh Green Ads everywhere in major cities across Canada, and green being the color of hope, even more Canadians will be able to hope for truly affordable wireless services on board with the industry-leading fully digitalized experience. Again, we delivered what we said.

Hugues Simard: This strong momentum across our footprint is attributable to the superior performance of freedom.

Hugues Simard: which continue to capitalize on effective market offerings and also to the growing success of our brand, Fizz, adequately suited to compete against aggressive pricing strategies with our cost-efficient, fully digitalized model.

Hugues Simard: This finalizes beta phase in early April and is now available to more than 21 million Canadians in Quebec, Ontario, Manitoba, Alberta and British Columbia.

Pierre-Karl Pladeau: You will see more and more Sid Green ads everywhere in major cities across Canada. And green being the color of hope, even more Canadians will be able to hope for truly affordable wireless services on board with the industry-leading fully digitalized experience. Again, we delivered what we said.

Speaker Change: You will see more and more Siddh Green Ads.

Hugues Simard: everywhere in major cities across Canada. And green being the color of hope, even more Canadians will be able to hope for truly affordable wireless services.

Hugues Simard: On board by the industry-leading, fully digitalized experience.

Pierre-Karl Pladeau: And we expect FYS to be as successful in English Canada as it has been in French Canada. However, in our own base of Quebec, we continue to face strong wireless pricing retaliation from the incumbents during the second quarter. We responded by focusing on our proven commercial agility and second-to-none customer experience, with our superior growth activation rate and churn management fueling our continued growth and growth. As we stated last quarter, we are finding it quite ironic that the incumbents are bringing freedom prices to Quebec, an even more competitive and discounted market with established networks, which do not warrant further discounting And a move that is simply grounding them to the reprising effect. With the growing success of Freedom and Faith,

Pierre-Karl Pladeau: And we expect FYS to be as successful in English Canada as it has been in French Canada. However, in our own base of Quebec, we continue to face strong wireless pricing retaliation from the incumbents during the second quarter. We responded by focusing on our proven commercial agility and second-to-none customer experience, with our superior growth activation rate and churn management fueling our continued growth and growth. As we stated last quarter, we are finding it quite ironic that the incumbents are bringing freedom prices to Quebec. And historically, a more competitive and discounted market with established networks, which do not warrant further discounting, a move that is simply grounding them, to the reprising effect. With the growing success of Freedom and Fear.

Hugues Simard: Again, we delivered what we said.

Hugues Simard: And we expect FYS to be as successful in English Canada as it has been in Quebec.

Hugues Simard: In our own base of Quebec, we continue to face strong wireless spicing retaliation from the incumbents during the second quarter.

Hugues Simard: We responded by focusing on our proven commercial agility and second-to-none customer experience with our superior growth activation rate and churn management fueling our continued growth in Quebec.

Hugues Simard: As we stated last quarter, we are finding it quite ironic that the incumbents are bringing freedom prices to Quebec.

Speaker Change: and historically more competitive and discounted market with established networks which do not warrant further discounting a move that is simply earthing then through the repricing effect

Pierre-Karl Pladeau: Consolidated wireless ARPU decreased by $2.45 at $35.32, largely attributable to the dilutive impact of Freedom's prepaid services and FISP's introductory pricing level, to hire professional, I'm sorry, promotional discounts, and to lower average revenues as our plans are getting richer to the benefit of all Canadian consumers. For a second consecutive quarter, our consolidated churn rate on postpaid customers remained remarkably stable, contrary to the challenging trends seen at our wireless competitors. We are particularly proud of Freedom Turn Improvement in just one year, on both postpaid and prepaid.

Pierre-Karl Pladeau: Consolidated wireless ARP will decrease by $2.45 to $35.32, largely attributable to the dilutive impact of Freedom's prepaid services and FIS's introductory pricing level, to higher promotional discounts, and to lower average revenues as our plants are getting richer to the benefit of all Canadian consumers. For a second consecutive quarter, our consolidated churn rate on postpaid customers remained remarkably stable, contrary to the challenging trends seen at our wireless competitors.

Speaker Change: With the growing success of Freedom and Fizz,

Speaker Change: Consolidated wireless ARPU decrease by $2.45 at $35.32.

Hugues Simard: Largely attributable to the dilutive impact of Freedom prepaid services and FISP's introductory pricing level.

Hugues Simard: to higher promotional discounts and to lower average revenues as our plans are getting richer to the benefit of all Canadian consumers.

Hugues Simard: For a second consecutive quarter, our consolidated churn rate on postpaid customers remained remarkably stable, contrary to the challenging trends seen at our wireless competitors.

Pierre-Karl Pladeau: We are particularly proud of Freedom Turn Improvement in just one year, in both postpaid and prepaid. This is clearly demonstrating the effectiveness of all our initiatives to offer more affordable, value-added, worry-free wireless services on an even more reliable network, which received an impressive 93% approval rating from our customers as per a legacy survey conducted in June 2024. In these times of higher prices everywhere, what a blessing.

Hugues Simard: We are particularly proud of Freedom Turn Improvement in just one year, in both postpaid and prepaid.

Pierre-Karl Pladeau: This is clearly demonstrating the effectiveness of all our initiatives to offer more affordable, value-added, worry-free wireless services on an even more reliable network, which received an impressive 93% approval rating from our customers as per a legislative survey conducted in June 2024. In these times of higher prices everywhere, what a blessing.

Hugues Simard: This is clearly demonstrating the effectiveness of all our initiatives to offer more affordable, value-added, worry-free wireless services.

Hugues Simard: on even more reliable network which received an impressive 93% approval rating from our customers as per a legislative survey conducted in June 2024.

Speaker Change: in these signs of higher prices everywhere what a blessing

Pierre-Karl Pladeau: Our acquisition of Freedom Mobile, what's that been for Canadians? significantly lowering their wireless bill. In fact, we're pleased, very pleased to announce that we do applaud and fulfill all nine undertakings made to Innovation, Science, and Economic Development Canada, famous as I said, at the time of the Freedom Mobile acquisition on April 3rd, 2023. In just over a year, our achievements are remarkable.

Pierre-Karl Pladeau: Our acquisition of Freedom Mobile was that bin for Canadians, significantly lowering their wireless bill. In fact, we're pleased, very pleased to announce that Bidu Apprentice would fill all nine undertakings made to Innovation, Science and Economic Development Canada, famous as I said, at the time of the Freedom Mobile acquisition on April 3rd, 2023. In just over a year, our achievements are remarkable.

Speaker Change: Our acquisition of Freedom Mobile, let that bin for Canadians.

Hugues Simard: Significantly lowering their wireless bill.

Hugues Simard: In fact, we're pleased, very pleased to announce that we do applause for Phil ALL!

Speaker Change: Nine undertakings made to Innovation, Science and Economic Development Canada, famous ICED, at the time of the Freedom Mobile acquisition on April the 3rd, 2023.

Pierre-Karl Pladeau: We maintained the price of wireless plans by introducing a mobility price guarantee for all current and future customers of Freedom Mobile. We fueled competition and lowered wireless prices by offering affordable mobile packages supported by an enhanced customer experience, which was instrumental in the 20.6% reduction in the wireless component of the Consumer Price Index. We extended Freedom Mobile and FIT services to Manitoba and other Canadian markets through our NBNO agreement, and we are offering low-cost, high-tea plants to a growing number of people.

Pierre-Karl Pladeau: We maintain the price of wireless plans by introducing a mobility price guarantee for all current and future customers of Freedom Mobile. We fueled competition and lowered wireless prices by offering affordable mobile packages supported by an enhanced customer experience, which was instrumental in the 20.6% reduction in the wireless component of the Consumer Price Index. We extended Freedom Mobile and FIT services to Manitoba and other Canadian markets through our NBNO agreement. And we are offering low-cost 5G plans to a never-growing number of people. Speaking of NBNOs, I must call out Bell's continued and systematic obstruction to finalize our NBNO contractual agreements with them, against the clear guidelines of the NDNO framework.

Hugues Simard: In just over a year, our achievements are remarkable.

Hugues Simard: We maintain the price of wireless plans by introducing a mobility price-free guarantee.

Hugues Simard: For all current and future customers of Freedom Mobile.

Hugues Simard: We fueled competition and lowered wireless prices by offering affordable mobile packages supported by an enhanced customer experience, which was instrumental in the 20.6% reduction in the wireless component of the Consumer Price Index.

Hugues Simard: We extended Freedom Mobile and FIT services to Manitoba and other Canadian markets through our NBNO agreements. And we are offering low-cost 5G plans to a never-growing number of Canadians.

Pierre-Karl Pladeau: Speaking of NBNOs, I must call out Bell's continued and systematic obstruction to finalize our NBNO contractual agreements with them, against the clear guidelines of the NDNO framework. Our main competitor is unduly delaying a situation that should have been resolved a long time ago, still forcing us to pay outdated and unfair rates, while calling on the CRTC to resolve this situation quickly. So we can all go about our business of providing healthy competition as mandated by the Canadian government and authorities.

Speaker Change: Speaking of NBNOs, I must call out Bell's continued and systematic obstruction to finalize our NBNO contractual agreements with them.

Hugues Simard: against the clear guidelines of the MD&O framework.

Pierre-Karl Pladeau: Our main competitor is duly delaying a situation that should have been resolved a long time ago, still forcing us to pay outdated and unfair rates, and are calling on the CRTC to resolve this situation quickly so we can all go about our business of providing healthy competition as mandated by the Canadian government and authority. Disrupting the Canadian wireless market was not just a one-off. We just announced a refresh of our range of mobile plans, making it easier for customers to get it on savings without any of the worry.

Speaker Change: our remain competitor is on toly de laying a situation that should have been resolved a long time ago

Hugues Simard: Still, forcing us to pay outdated and unfair rates.

Hugues Simard: who are calling on the CRTC.

Hugues Simard: To resolve this situation quickly so we can all go about our business of providing healthy competition as mandated by the Canadian government and authorities.

Pierre-Karl Pladeau: Disrupting the Canadian wireless market was not just a one-off. We just announced a refresh of our range of mobile plans, making it easier for customers to get it on savings without any of the worry. All monthly plans now include 5G access in Freedom network coverage areas. Additionally... Traveling and roaming has never been easier and more affordable with no more pesky daily roaming charges when crossing the U.S. and Mexico border with Freedom. Wireless is now worry-free. The Enoire link.

Hugues Simard: Disrupting the Canadian wireless market was not just a one-off.

Pierre-Karl Pladeau: All monthly plans now include 5G access on Freedom network coverage areas. Additionally, traveling and roaming has never been easier and more affordable with no more pesky daily roaming charges when crossing the U.S. and Mexico border with Freedom. Wireless is now worry-free. Inuar O'Lean, We continue to face an aggressive competition only in Quebec on In Quebec Price Watch. So Maher and me, are competitive.

Pierre-Karl Pladeau: We continue to face an aggressive, only in Quebec, price watch. Re Budget, et al. So Maher's main competitors... We responded with responsible pricing, including adding to affordable internet prices increased this year and reintroducing the rental program of ElixDevices. We finished the second quarter with a positive 1000 in net customer growth. A good performance, compared to the 7,000 decrease last quarter, especially in the context of the annual moving season in Quebec and the absence of Lyft this year from the high-speed internet bus.

Hugues Simard: We continue to face an aggressive only in Quebec.

Hugues Simard: Only in Quebec price War.

Hugues Simard: While we remain competitive.

Pierre-Karl Pladeau: We responded with responsible pricing, including adding to affordable internet prices increased this year and reintroducing the rental program of Elex Devices. We finished the second quarter with a positive 1000 in net customer growth. A good performance, compared to the 7,000 decrease last quarter, especially in the context of the annual moving season in Quebec and the absence of Lyft this year from the high-speed internet project. On that topic, we honestly can't explain Bell's reaction to the CRTC's decision on the FTPP access rate.

Speaker Change: We responded.

Hugues Simard: With responsible pricing.

Hugues Simard: Including adding to forego internet prices increase this year.

Hugues Simard: And reintroduce the rental program.

Hugues Simard: It makes devices.

Hugues Simard: We finished the second quarter was a positive 1000 internet customers growth.

Hugues Simard: A good performance.

Hugues Simard: Paired to the 7000 decrease last quarter.

Hugues Simard: Especially in the context of the annual moving season in Quebec, and the absence of lift this year from the ice speed Internet project.

Pierre-Karl Pladeau: On that topic, we honestly can't explain Bell's reaction to the CRTC's decision on the FTPP access rate. That decision fixed a wholesale rate of $68.94 plus, consumption estimated to around $10 a month for all access up to 1.5 gigs, most incredible. They stated that these prices would force them to reduce their investment. While there are multiple brands, including e-box, Tributelle, and Brainerd.

Speaker Change: On that topic, we honestly can't explain downs reactions of the CRT D decision.

Speaker Change: On the F T P P access rates.

Pierre-Karl Pladeau: That decision fixed a wholesale rate of $68.94, and consumption estimated to be around $10 a month for all access up to 1.5 gigs. Most amazingly, They stated that these prices would force them to reduce your investment. While there are multiple brands, including e-box.

Hugues Simard: That decision fix a wholesale rate of $68.94.

Speaker Change: Consumption estimated to around $10 a month, we're all access up to one five gig.

Speaker Change: Most incredibly they.

Speaker Change: They stated that these prices would force them.

Speaker Change: To reduce your investment.

Speaker Change: While there are multiple brands Inc.

Speaker Change: Cooling E box.

Pierre-Karl Pladeau: Tributelle, Brian Moore, Arikam, and many others are offering the service directly to consumers at a price of about 50% of the FTPP access rate. In Quebec, we are seeing atrocious targeted offers, where a customer can get bundled services discounted by 50%, while acquisition costs, including prepaid gift cards and all other bells and whistles that come with them, add up to more than $1,000 for a new customer, raising serious questions about the return on investment of such a, quote unquote, superior, Superior Products.

Dan: Thank you Dan.

Brian: Brian there.

Speaker Change: All he come.

Speaker Change: And many others.

Pierre-Karl Pladeau: Orica, and many others, are offering the service directly to consumers at a price of about 50%, of the FTPP access rate. In Quebec, we are seeing atrocious targeted offers, where a customer can get bundled services discounted by 50% while acquisition costs, including prepaid gift cards, and all other bells and whistles that come with it, add up to more than $1,000 for a new customer, raising serious questions about the return on investment of such a, quote unquote, superior Superior Professor… It is imperative, that the CRTC carefully reviewed, and adjust the rates to the market reality for, The Permanent Decision.

Speaker Change: The offering the service directly to consumers at a price of about 50%.

Speaker Change: E S E T access rates.

Speaker Change: In Quebec, we are seeing the trade.

Brian: Just targeted offers.

Brian: The American get bundled services, the Kansas discounting by 50%, while acquisition costs, including prepaid gift cards, and all other bells and whistles that come with it.

Brian: Add up to more than $1000 for a new customer.

Brian: Raising serious questions about the return on investment of such a quote unquote superior.

Brian: Superior trial.

Pierre-Karl Pladeau: It is imperative that the CRTC carefully reviews and adjusts the rates to the market reality. War, The Permanent Decision. Turning to our immediate future, CBR Group hosted a $17 million favorable change in EBITDA during the second quarter of 2024, due, in good part, to the $10 million retroactive adjustment to the LCN carriage fee and the return of major foreign productions to male studios. As for the television activity, CBR Group continues to suffer the repercussions of the decline in advertising revenues and to be confronted with the same major challenges that persist with the David Dahl from Television Activities, but I've remained negative.

Brian: It is imperative that.

Speaker Change: The CRT D C carefully reviewed.

Brian: And adjust the rates with the market reality.

Brian: Or.

Brian: So a permanent decision.

Pierre-Karl Pladeau: Turning to our media segment, DVR Group had a $17 million payable change in EBITDA during the second quarter of 2024, due in good part to the $10 million retroactive adjustment to L-C-N carriage speed and the return of major foreign productions to male studios. As for television, it continues to suffer the repercussions of the decline in advertising revenues and to be confronted with the same major challenges that persist with the media industry, excluding the one-time interactive adjustment on carriage fees. David Dahl from Television Activities would have remained negative.

Brian: Turning to our media segment.

Speaker Change: D var group.

Speaker Change: Posted a 17 million favorable change in EBITDA.

Hugues Simard: During the second quarter of 'twenty four.

Hugues Simard: Due in good part to the 10 million retroactive adjustment to alky and carriage fee.

Hugues Simard: And then the return of major foreign production to nail studio.

Hugues Simard: Okay.

Hugues Simard: As for the liberation activity.

Hugues Simard: They continue to suffer the repercussions of the decline in advertising revenues and to be confronted.

Hugues Simard: At the same major challenges that persist with the media industry.

Hugues Simard: Excluding the onetime retroactive adjustment on carriage fees.

Hugues Simard: EBITDA, rather than TV activity without remain negative.

Pierre-Karl Pladeau: We're continuing our ongoing efforts to obtain fair market value for all of our specialty channels, as we were able to do with SCN. We're also counting on the TRTC's upcoming arbitration on Tibiastal, Garbage Fee, and the family receipt from Bell to give us the fair value that we have long been demanding. Despite this challenging situation, savings from our reorganization initiatives announced last year are beginning to materialize. Furthermore, Iliad Group remains the favorite television channel of Quebecers.

Pierre-Karl Pladeau: We're continuing our ongoing efforts to obtain fair market value for all of our specialty channels that we were able to do with SCN. We're also counting on the TRTC's upcoming arbitration on Tibiastal, and Garbage Fee, to finally receive from Bell the fair value that we have long been demanding. Despite this challenging situation, savings from our reorganization initiatives announced last year are beginning to materialize. Furthermore, Iliagrou remains the favorite television channel of Quebecers, thanks to the continuous strength of its programs, during the second quarter of 2024. Divya Group increased its market share to 22.5%.

Speaker Change: We're continuing our ongoing efforts to obtain fair market value.

Hugues Simard: All.

Hugues Simard: Our specialty channels that we were able to do with SDN.

Hugues Simard: We're also counting on the T. I D E upcoming arbitration on DVR stall carriage fees, but finally received from bell.

Hugues Simard: Fair value that we have long been the man.

Hugues Simard: Despite this challenging situation.

Hugues Simard: Savings from our reorganization initiatives announced last year.

Hugues Simard: Beginning to materialize. Furthermore.

Speaker Change: Idiot group remains a favorite them at their favorite TV channels of Quebec, alright. Thanks.

Pierre-Karl Pladeau: Thanks to the continued strength of its program, during the second quarter of 2024, DVR Group increased its market share to 22.5%.

Hugues Simard: Thanks to the continued strength of its programs.

Hugues Simard: During the second quarter of 'twenty 'twenty four.

Hugues Simard: Our group increased its market share to 20.

Hugues Simard: 2.5% shares.

Hugues Simard: So I need to 0.5.

Pierre-Karl Pladeau: A resolve that keeps us in the lead by a wide margin, where they have so far experienced exceptional growth of one. Thanks for sharing, driven by the broadcast of the NHL playoffs and Euro 2020. Finally... Our sports and entertainment division put on major shows in the quarter, including Queens of the Stone Age, Ice Cube, and Monster Spectacular. The second edition of our popular Shigal Festival, starting this weekend, is fully booked. In June, Jet Set acquired an event company specializing in the management of popular and corporate events, including the famous 59th and 50th. This acquisition marks an important step in Jet Set's expansion, strengthening its leading position in the event market. I will now let Hugues review our detailed financial results.

Pierre-Karl Pladeau: A result that keeps us in the lead by a wide margin. The ASTAR experience exceptional growth of one thanks for sharing, driven by the broadcast of the NHL playoffs and Euro 2020. Finally, Now we're a sports and entertainment division put on major shows in the quarter, including Queens of the Stone Age, Ice Cube, and Monster Spectacular. The second edition of our popular Shigal Festival, starting this weekend, is fully booked.

Hugues Simard: Our resolve that keeps us in the lead by a wide margin.

Speaker Change: But he asked all experienced exceptional growth.

Hugues Simard: One.

Peter: Peter share.

Speaker Change: Driven by the broadcasting the Wildcats with NHL playoff and the Euro 'twenty 'twenty four.

Hugues Simard: Finally.

Hugues Simard: How long of a sports and entertainment Division put on major shows in the quarter.

Speaker Change: Including Queens of the stone age ice cube and monsters pick back up.

Speaker Change: The second edition of our popular she got the festival.

Speaker Change: This weekend.

Hugues Simard: Is fully booked.

Pierre-Karl Pladeau: In June, Jet Set acquired even companies specializing in the management of popular and corporate events, including the famous Chris Pizan and Chris Pizan Events. This acquisition marks an important step in JetStat's expansion, strengthening its leading position in the event market. I will now let Hugues review our detailed financial results.

Hugues Simard: In June that they have acquired even a company specializing in the management of popular and corporate events.

Speaker Change: <unk> that famous design, but yeah.

Hugues Simard: This acquisition marks an important step in just that extension.

Hugues Simard: Threatening its leading position in the event market.

Speaker Change: I will now.

Hugues Simard: Review our detail.

Hugues Simard: Actual results.

Hugues Simard: R.C.B.R.C.O.W. On a consolidated basis, in the second quarter of 2024, Quebecor reported revenues of $1.4 billion, down 1%, EBITDA of $625 million, up 3%, and adjusted cash flows from operations of $450 million, down 1% from the same period last year. In our telecom segment, total revenues decreased by $14 million, or 1%, EBITDA remained stable at $608 million, and adjusted cash flows from operations were down by 3% to $446 million. Wireless revenues increased by 3% to $558 million in the quarter, and wireless EBITDA reached $254 million, a 1% increase reflecting our additional long-term investments to develop customer-centric brands, position them solidly, and fuel their growth.

Cynthia Kal: Yes, Cynthia Kal.

Hugues Simard: On a consolidated basis, in the second quarter of 2024, Quebecor reported revenues of $1.4 billion dollars, down 1%, EBITDA of $625 million dollars, up 3%, and adjusted cash flows from operations of $450 million dollars, down 1% from the same period last year. In our telecom segment, total revenues decreased by $14 million or 1%, EBITDA remained stable at $608 million, and adjusted cash flows from operations were down by 3% to $446 million.

Cynthia Kal: On a consolidated basis in the second quarter of 'twenty 'twenty four cut back our reported revenues of $1 $4 billion down, 1% EBITDA of $625 million up 3% and adjusted cash flows from operations of $450 million down 1% from the same period last year.

Hugues Simard: In our Telecom segment total revenues decrease by 14 million or 1% EBITDA remained stable at $608 million and adjusted cash flows from operations were down by 3% to $446 million.

Unknown Executive: Good day, everyone. Thank you for standing by.

Hugues Simard: Welcome to Quebecor Inc's financial results for the second quarter, a conference call. I would like to introduce Hugues Simard, Chief Financial Officer of Quebecor Inc. Please go ahead.

Hugues Simard: Wireless revenues increased by 3% to $558 million in the quarter, and wireless EBITDA reached $254 million, a 1% increase reflecting our additional long-term investments to develop customer-centric brands, position them solidly, and fuel their growth. As such, our results this quarter reflect us absorbing more domestic and international roaming fees and investing more in branding and advertising for the launch of Fizz and also for Freedom, including their recent expansion in all provinces west of Quebec.

Hugues Simard: Wireless revenues increased by 3% to $558 million in the quarter and wireless EBITDA reached 254, million% to 1% increase reflecting our additional long term investments.

Hugues Simard: Ladies and gentlemen, welcome to the call. My name is Hugues Simard. I'm the CFO, and joining me to discuss our financial and operating results for the second quarter of this year is Jack Alpideau, our President and Chief Executive Officer. Anyone unable to attend the conference call will be able to listen to a recording by telephone or webcast. Access details are available on our website at www.cubecor.com. The recording will be available until November 8th of this year.

Hugues Simard: Customer centric brands position them solidly and fuel their growth as such our results this quarter reflect us absorbing more domestic and international roaming fees and investing more in brand advertising.

Hugues Simard: As such, our results this quarter reflect us absorbing more domestic and international roaming fees and investing more in branding and advertising for the launch of Fizz and also for Freedom, including their recent expansion in all provinces west of Quebec. Telecom CapEx, excluding the acquisition of Spectrum licenses, is up $60 million as compared to the same quarter last year, essentially due to lower investment levels just following the acquisition.

Hugues Simard: For the launch of <unk>.

Hugues Simard: And also for freedom, including their recent expansion in all provinces West of Quebec.

Hugues Simard: As usual, I want to inform you that certain statements made today on the call may be considered forward-looking, and we would refer you to the risk factors outlined in today's press release and all the other reports filed by the court. Thank you for your cooperation with the regulatory authorities.

Hugues Simard: Telecom CapEx, excluding the acquisition of Spectrum licenses, was up $16 million as compared to the same quarter last year, essentially due to lower investment levels just following the acquisition. We now invest more in 5G network expansion, revenue growth opportunities, as well as in wireline equipment rental, but altogether remaining prudent and focused on strategically targeted areas. Our media segment recorded revenues of $184 million, a 2% increase, and an EBITDA of $19 million, a $19 million improvement compared to the same quarter last year.

Speaker Change: Telecom Capex, excluding the acquisition of spectrum licenses are up $16 million as compared to the same quarter last year essentially due to lower investment levels. Just following the acquisition last year.

Hugues Simard: We now invest more in 5G network expansion, revenue growth opportunities, as well as in wireline equipment rental, but altogether remaining prudent and focused on strategically targeted areas. Our media segment recorded revenues of $184 million, a 2% increase, and an EBITDA of $19 million, a $19 million improvement compared to the same quarter last year. Sports and Entertainment segment revenues decreased by 7% to $45 million, and EBITDA was down $1 million in the quarter.

Cynthia Kal: We now invest more than five G network expansion.

Unknown Executive: Let me now turn the floor to guest count. Let's see, and good morning, everyone.

Cynthia Kal: Revenue growth opportunities as well as in wireline equipment rentals, but altogether remaining prudent and focused on strategically targeted areas.

Unknown Executive: So, I'm pleased to report today that Quebecor is the first quarter of operation overlapping the Freedom Acquisition as generated $600,000,000,000 in consolidated EBITDA, $20,000,000 more than in the previous year. This is the same quarter last year as we maintain our discipline and continue to improve our industry-leading margin. Moreover, despite an expected competitive environment continuing to pressure revenues, and while increasing our strategic investment in our networks, our brands and our customer experience, we maintain a stable consolidated cash goal from operation of $450 million.

Hugues Simard: Our media segment recording recorded revenues of $184 million, a 2% increase in EBITDA of $19 million and.

Hugues Simard: $19 million improvement compared to the same quarter last year.

Hugues Simard: Sports and Entertainment segment revenues decreased by 7% to $45 million, and EBITDA was down $1 million in the quarter. Quebecor reported a net income attributable to shareholders of $208 million in the quarter, or $0.90 per share, compared to a net income of $174 million or $0.75 per share reported last year. Adjusted income from operating activities excluding unusual items and losses on valuation of financial instruments came in at $205 million, or $0.89 per share, compared to an adjusted income of $182 million, or $0.79 per share, in the same quarter last year.

Cynthia Kal: Sports and entertainment segment revenues decreased by 7% to $45 million and EBITDA was down $1 million in the quarter.

Hugues Simard: Quebecor reported a net income attributable to shareholders of $208 million in the quarter, or $0.90 per share, compared to a net income of $174 million or $0.75 per share reported last year. Adjusted income from operating activities excluding unusual items and losses on valuation of financial instruments came in at $205 million or $0.89 per share, compared to an adjusted income of $182 million or $0.79 per share in the same quarter last year.

Hugues Simard: Quebec, our reported net income attributable to shareholders of $208 million in the quarter or <unk> 90 per share.

Hugues Simard: Compared to a net income of $174 million or 75 cents per share reported last year.

Hugues Simard: Adjusted income from operating activities, excluding unusual items and losses on valuation of financial instruments.

Hugues Simard: Came in at $205 million or <unk> 89 per share compared to an adjusted income of $100 million to $182 million or <unk> 79 per share in the same quarter last year.

Unknown Executive: Since the acquisition of Freedom Mobile in April 2023, we spared no effort building our tree brands and investing in our networks to offer reliable and affordable wireless services to more Canadians. Today, almost 25 million Canadians in Ontario, Manitoba, Alberta, and British Columbia, and Freedom themselves of the incumbents all able to ballistic control. Since the acquisition, we have gained more than 300,000 new wireless RGU and there will be nothing stopping us. Affordability being our key to market share growth since day one.

Hugues Simard: For the first six months of the year, Quebecor's revenues were up 9% to $2.7 billion, and EBITDA was up 13% to $1.18 billion. EBITDA from our telecom segment grew 9% to $1.2 billion for the same period, an improvement of $102 million over last year.

Hugues Simard: For the first six months of the year, Quebec, whereas revenues were up 9% to $2 $7 billion and EBITDA was up 13% to one point $18 billion.

Hugues Simard: EBITDA from our Telecom segment grew 9% to $1 $2 billion for the same period in.

Hugues Simard: An improvement of $102 million over last year.

Hugues Simard: As of the end of the quarter, Quebecor's net debt-to-EBITDA ratio stood at 3.39x, still the lowest of all our telecom competitors and peers. I would also point out that we are the only telecom company in Canada to continue to regularly reduce our debt and strengthen our balance sheet. Thanks to our steady and disciplined cash flow generation capabilities quarter after quarter, we intend to continue to delever over the next quarter and operate in the low threes, as we have stated before.

Hugues Simard: As of the end of the quarter, Quebec, where is net debt to EBITDA ratio stood at 339 times still the lowest of all our telecom competitors and peers.

Hugues Simard: I would also point out that we are the only telecom company in Canada to continue to regularly reduce our debt and strengthen our balance sheet. Thanks.

Unknown Executive: We have recently launched brand new cutting edge and affordable fruit freedom on internet and freedom on TV services. Establishing ourselves as a multi-service player across Canada is a key milestone in our plan to foster healthy competition and give Canadians better telecommunication options at the right price. We are delivering what we said. We are pleased with our highest quality net addition of 93,000 new RGU in the second quarter. 44 million, I'm sorry, 44 thousand more than in QT last year, an exceptional performance outside of the seasonality more active last September of the year.

Hugues Simard: Thanks to our steady and disciplined cash flow generation capabilities quarter after quarter.

Hugues Simard: We intend to continue to delever over the next quarters.

Hugues Simard: And operate in the low threes as we have stated before.

Hugues Simard: We were particularly proud that both S&P and Moody's recognized this discipline and rewarded us with investment grade ratings in May of this year. I would also like to highlight the success of our recent refinancing, where Videotron issued $600 million and $400 million of senior notes in the Canadian investment grade market, yielding, respectively, 4.65% and 5%. The proceeds were used to repay existing indebtedness, which included a portion of the revolving facility drawings under Videotron's credit agreement and also the redemption at maturity of Videotron's 5.375% senior note.

Hugues Simard: We were particularly proud that both S&P and Moody's recognized this discipline and have rewarded us with investment grade ratings in may of this year.

Hugues Simard: I would also like to highlight the success of our recent refinancings, where videotron issued 600 million and 400 million of senior notes in the Canadian investment grade market, yielding respectively for six five and 5%.

Hugues Simard: The proceeds were used to repay existing indebtedness, which included a portion of the revolving facility drawings under our video trends credit agreement and also the redemption of at maturity of Videotron, five 375% senior notes.

Unknown Executive: This strong momentum across our footprint is that we're beautiful to the superior performance of freedom, which continue to capitalize on effective market offerings and also to the growing success of our grand fit adequately suited to compete against aggressive pricing strategies with our cost efficient fully digitalized models. Vince finalizes beta phase in early April and is not available to more than 21 million Canadians in Quebec, Ontario, Manitoba, Alberta, and British Columbia. You will see more and more fizz green ads everywhere in major cities across Canada and green being the color of hope.

Hugues Simard: On June 25th of this year, at maturity, Quebecor exercised its share redemption payment right and redeemed all issued and outstanding 4% convertible debentures. This decision aligns with our prudent balance sheet management strategy and our commitment to further reducing our debt leverage ratio. Available liquidity of more than $2.1 billion at the end of the quarter and our growing free cash flows will allow us to continue to improve our already very strong balance sheet.

Hugues Simard: On June 25th of this year at maturity, Quebec, where exercise that share redemption payment right and redeemed all issued and outstanding 4% convertible debentures.

Hugues Simard: This decision aligns with our prudent balance sheet management strategy and our commitment to further reducing our debt leverage ratio.

Hugues Simard: Available liquidity of more than $2 $1 billion at the end of the quarter and our growing free cash flows will allow us to continue to improve our already very strong balance sheet.

Hugues Simard: During the first six months of the year, we purchased and canceled 940,000 Class B shares for a total investment of $28 million. Please note that the Board of Directors also approved the renewal of the program for an additional year. We thank you for your attention and will now open the lines for your questions.

Hugues Simard: During the first six months of the year, we purchased and canceled 940000 class B shares for a total investment of $28 million.

Hugues Simard: Please note that the board of Directors also approved upon termination of this year's program the.

Unknown Executive: Even more Canadians will be able to hope for truly affordable wireless services on board by the industry leading fully digitalized experience. Again, we delivered what we sent and we expect fizz to be successful in English Canada as it had been in Quebec. In our own base of Quebec, we continue to face strong wireless pricing retaliation from the incumbents during the second quarter. We responded by focusing on our proven commercial agility and second to none customer experience with our superior growth activation rate and turn management tooling our continued growth in Quebec.

Hugues Simard: The renewal of the program for an additional year.

Hugues Simard: We thank you for your attention and we'll now open the lines for your questions.

Operator: For people on the phone, if you'd like to queue up to ask a question, please press star 1 on your phone's keypad. If ever you wish to withdraw from the queue, please press star 2. The first question is from Vince Valentini from Katie Cohen. Please go ahead.

Speaker Change: For people on the phone if you'd like to queue up to ask a question. Please press star one on your phone's keypad if ever you wish to withdraw from the queue. Please press star two.

Speaker Change: The first question is from.

Speaker Change: Vince Valentini from Katie Coleman. Please go ahead.

Vince Valentini: Hey, thanks very much. Let me start with wireless. So sub ads have

Vince Valentini: Hey, thanks very much.

Vince Valentini: Let me start with wireless. So sub ads have now exceeded 300,000 for the past 12 months, which is excellent. Do you think that's a good sort of run rate volume, Pierre-Karl? Are you happy with that level? Or do you think there has to be a lot of harder work and more marketing investment to perhaps drive that to $350,000 or $400,000?

Speaker Change: Start with wireless so sub ads have now exceeded 300000 for the past 12 months, which is which is excellent.

Unknown Executive: As we stated last quarter, we are finding it quite ironic that the incumbents are bringing freedom prices to Quebec. An historically more competitive and discounted market with established networks which do not warrant further discounting a move that is simply earthing them through the repricing effect. With the growing success of freedom and fizz, consolidated wireless output decrease by $2.45 at $35.32. Largely, attributable to the dilutive impact of freedom prepaid services and fizz, introductory pricing level to our professional, I'm sorry, promotional discounts and to lower average revenue as our plans are getting richer to the benefit of all Canadian consumers.

Vince Valentini: Do you think that's a good sort of run rate volume peer girl or are you happy with that level or do you think they asked me a lot of hard work and more marketing investment to perhaps start drive back to 350 or 400000 per year end and then on the back end of that you know can you talk about.

unknown: per other hand.

Speaker Change: The ARPA decline and whether you're satisfied with that given the volume growth or would you rather see you.

Speaker Change: Not that it's fully in your control, but would you rather see a bit more of a balance there and they get you all back up to 36 $37 over overtime as well as the volume growth. Thanks.

Hugues Simard: Okay.

Maher Yaghi: All right. Thank you, Vince. The next question is from Maher Yaghi from Scotiabank. Please go ahead, Maher.

Speaker Change: Alright. Thank.

Unknown Executive: For a second consecutive quarter, our consolidated turn rate on post paid customers remained remarkably stable, contrary to the challenging trend seen at our wireless competitors. We are particularly proud of freedom's turn improvement in just one year in both post paid and prepaid. This is clearly demonstrating the effectiveness of all our initiatives to offer more affordable, value added, worry free wireless services on even more reliable network which receive an impressive 93% approval rating from our customers asked for a lazy survey conducted in June 2024.

Vince Valentini: Thank you Vince.

Hugues Simard: The next question is from Mayer Yaghi from Scotiabank. Please go ahead ma'am.

Maher Yaghi: No, we didn't. There was a problem with the... The answer, wasn't it? I didn't hear the answer. Did you hear the answer, Vince?

Speaker Change: No. We didn't there was a problem with the.

Speaker Change: The answer wasn't it.

Speaker Change: I didn't hear the answer is it did you hear the answer events.

unknown: Oh, I'm sorry, I was muted. Can you hear me now? Oh, sorry Vince, I was muted. Okay, Vince, if you could press star one more time.

Speaker Change: Oh, I'm, sorry, I was muted.

Mayer Yaghi: Yes, Okay can you hear me now.

Hugues Simard: Oh, sorry, I was muted.

Operator: Okay, Vince, if you could press the star one more time, please.

Hugues Simard: Okay, Vince if you could press star one one more time please.

Operator: Operator, are you there, can you hear me?

Operator: Operator are you that you hear me now.

Operator: I can, I'm going to put in, I'm going to open up Vince's line, Maher, after this, if you could just press star 1 one more time.

Hugues Simard: Ah I can I'm going to put a have you open up a business line Amir. After this if you could just press star one one more time. Please thank you.

Unknown Executive: In these signs of higher prices everywhere, what a blessing, our acquisition of freedom mobile, what's that been for Canadian? Significantly lowering their wireless bill. In fact, we're pleased, very pleased to announce that the due clause will fill all nine undertakings made to innovation science and economic development Canada, famous I'd said, at the time of the freedom mobile acquisition on April the 3rd, 2023. In just over a year, our achievements are remarkable.

Hugues Simard: What.

Speaker Change: I will then go ahead.

Speaker Change: I will answer Vince question Okay.

unknown: [inaudible]

Speaker Change: Before going to mine.

Pierre-Karl Pladeau: I will answer Vince.

Speaker Change: Yes so.

Speaker Change: What I was saying Vince sorry, I was muted.

Hugues Simard: That then we will always going to be at the 60.

Speaker Change: Our our growth and our views are going.

Pierre-Karl Pladeau: I will answer Vince's question, okay? First, before going to my... What I was saying, Vince, sorry I was muted, is that we will always be happy to see our growth in our GUs going in the right direction. We've been seeing improvements quarter after quarter. I think that we should be even more successful given that our footprint is getting bigger, our marketing efforts are also stronger, and our services are more numerous given our capacity now to offer the internet and television with Freedom on a larger scale and our brands with Fizz, which is also going there. So if we can get better than $93,000, both Duotone and Freedom, or what we call the West of Quebec, we will continue to be happy, and this is certainly something.

Speaker Change: In the right direction.

Speaker Change: <unk> improvement quarter after quarter.

Speaker Change: I think that you know what we should be even more successful and given that our footprint is getting bigger.

Speaker Change: Our marketing efforts are also also stronger.

Unknown Executive: We maintain the price of wireless plans by introducing the mobility price trees, guarantee for all current and future customers of freedom mobile. We fuel competition and lowered wireless prices by offering affordable mobile packages supported by an enhanced customer experience which was instrumental in the 20.6% reduction in the wireless component of the consumer price index. We extended freedom mobile and free services to Manitoba and other Canadian markets through our NBNO agreements, and we are offering low cost-wide deep lands to a never-growing number of Canadians.

Speaker Change: And our services are more numerous given our capacity now to walk or the internet and the TV with freedom on a larger scale and our brands, which is which also is going there.

Speaker Change: If we can.

Speaker Change: If we can get better than 93000, both do at home and freedom or what we call the west of Quebec, and we will continue to be happy and this is certainly something that we're looking for.

Speaker Change: Operator.

Speaker Change: Yes.

Unknown Executive: Speaking of NBNOs, I must call out bells continue in a systematic obstruction to finalize our NBNO contractual agreements with them. Against the clear guidelines of the NBNO framework, our main competitor is on duly delaying a situation that should have been resolved a long time ago, still forcing us to pay outdated and unfair rates. We are calling on the CRTC to resolve this situation quickly so we can all go about our business of providing healthy competition as mandated by the Canadian government and authorities.

Maher Yaghi: All right, Maher, you go ahead. Yes, thank you. Can you hear me?

Speaker Change: Okay.

Speaker Change: Ed.

Ed: Yes. Thank you can you hear me.

Speaker Change: Yeah.

Pierre-Karl Pladeau: I wanted to ask you just a follow-up to Vince's question. You have been very aggressive on price plans, and granted, this is a fundamental condition for acquiring freedom and gaining market share. I wanted to ask if there's anything you can do to add value to your plans to potentially begin to get a higher price point on these services. It seems to me that everybody's focusing on just selling capacity right now in Canada.

Speaker Change: Okay great.

Speaker Change: Thank you for taking my question guys. So I wanted to ask you just a follow up to Vince's question.

Speaker Change: You have been very aggressive on price plans and granted this is fundamental condition for acquiring.

Speaker Change: Acquiring freedom and to gain market share I wanted to ask if there's anything you can do to add value to your plans to potentially begin to you know get.

Speaker Change: Get a higher price point on these services seems to me everybody is focusing on just selling capacity right now in Canada.

Speaker Change: The product continues to be Commoditized anything we can do to add value to customers and potentially get upside revenues from these services and.

Pierre-Karl Pladeau: The product continues to be commoditized. Anything we can do to add value to customers and potentially get upside revenues from these services? Just on the Videotron side, you held your position quite well in a very aggressive push by BCE in Quebec. As you mentioned, their pricing is very aggressive on price. I wanted to ask you how much you believe the ARPU decline that we saw in the quarter on your broadband services is now starting to reflect the price lock guarantees that you have and the conversions you're doing on Helix?

Unknown Executive: Disrupting the Canadian wireless market was not just a one-off. We just announced a refresh of our range of mobile plans, making it easier for customers to get it on saving without any of the worries. All monthly plans now include 5G access on freedom network coverage area. Additionally, traveling and roaming has never been easier and more affordable with no more pesky daily roaming charges when crossing the U.S, and Mexico borders, which freedom wireless is now worried free.

Speaker Change: Just on the Videotron side, you held your positioned quite well in a very aggressive push by B C. He would get back as you mentioned the pricing is they are very aggressive on price I wanted to ask how much do you believe are the ARPA decline that.

Speaker Change: We signed the quarter on your broadband services is now starting to reflect.

Speaker Change: The price lug guarantees that you have and ER and.

Pierre-Karl Pladeau: How much further can we expect ARPU pressure on broadband to continue before we see some stabilization? Maybe if I can squeeze one last one on free cash flow, are you still targeting the billion dollars for the year? Thank you.

Speaker Change: And the conversions you're doing on helix Ah I E. You know how how much further can we expect to our pool pressure on broadband to continue before we see some stabilization.

Unknown Executive: In our line, we continue to face an aggressive only in Quebec, only in Quebec price war from our main competitor. We responded with responsible pricing, including adding to affordable internet prices increased this year, and reintroduce the rental program of Elix device. We finished a second quarter with a positive 1000 and net customers growth, a good performance compared to the 7,000 decrease last quarter, especially in the context of the annual moving season in Quebec and the absence of lift this year from the ISP Internet project.

Speaker Change: And maybe if I can squeeze one last one on free cash flow are you still targeting the $1 billion for the year. Thank you.

Pierre-Karl Pladeau: Okay, thank you, Maher. I will ask the first question, and you will do it for the wireline and the free cash. So you were asking, you know, or talking about the value added on the web. And this is certainly something that we've been successful in Quebec. And this is also something that the Bureau, the Competition Bureau, raised during their analysis, where they were saying that, you know, if you can't get bundles, if you can't offer bundles, you're not going to be competitive.

Speaker Change: Okay. Thank you, Matt and I will ask the first question and are you.

Speaker Change: Due for the the wireline and the free cash flow.

Speaker Change: You were asking you know or talking about the.

Speaker Change: Value adding.

Speaker Change: Hum.

Speaker Change: But lets call the telecom services, because it's more than wireless and I think it should I should repeat that it's we're not coming to.

Speaker Change: We're not going in the commodity side since you know we had been adding.

Speaker Change: And this is certainly something that we've been successful in Quebec and this is also one something that the Bureau, and the competition Bureau raised during at the.

Unknown Executive: On that topic, we honestly can't explain Bell's reactions of the CRTC decision on the FTPP access rates. That decision fixed an old sale rate of $68.94 plus consumption estimated to around $10 a month for all access up to 1.5 gig. Most, incredibly, they stated that these prices would force them to reduce their investment while their multiple brands, including E-Box, Distributelle, Primus, Alicam, and many others, are offering the service directly to consumers at a price of about 50% of the FTPP access rates.

Speaker Change: The analysis, where they were saying that you know if you can't get bundles. If you can offer bundle, we're not going to be competitive and so the answer is literally no. Because we will continue to offer a standalone services that we've been doing with fish and for which we've been quite successful in Gabon.

Pierre-Karl Pladeau: So the answer is clearly no, because we will continue to offer standalone services as we have done with FIS and for which we were quite successful in Quebec, despite the fact that it was only a wireless service. So we can say the same now with the FIS launch west of Quebec, on top of which, you know, we're also offering other telecom services, if you do. We all know that being a TPIA is certainly not the model that we would favor, but we're not going to build a nationwide network.

Speaker Change: Despite the fact that it was only a wireless service, but we can say the thing now with the phase launch you know west of Quebec.

Speaker Change: On top of which now you know we're offering also other telecom services.

Speaker Change: You do an internet.

Speaker Change: We all know.

Speaker Change: And that being a P P I E.

Speaker Change: Certainly not you know the model that we would favor a but we're not going to build it.

Unknown Executive: In Quebec, we are seeing the trade just targeted offers where a customer can get bundle services discounted by 50% while acquisition costs, including pre-paid gift cards, and all other bells and whistles that come with it, add up to more than $1,000 for a new customer, raising serious questions about the return on investment of such a quote-on-quote superior product. It is imperative that the CRTC carefully review and adjust the rates of the market reality or the permanent decision.

Speaker Change: A nationwide network and those rules are are the one that you know is regulated in Canada, we expect to use that as we've been seeing.

Pierre-Karl Pladeau: And those rules are the ones that are regulated in Canada. We expect to use them as we've been seeing TPIAs on our own networks for many, many, many years. In fact, in Quebec, we've been seeing much more TPIAs than anywhere else in Canada.

Speaker Change: Seeing T P I E using our own networks.

Speaker Change: Many many many years in fact in Quebec, we've been seeing much more T T I a N everywhere else in Canada.

Pierre-Karl Pladeau: So probably now is the time to come to see other operators being also able to offer telecom services on a TPIA basis. And this is where we are. Finally, I would say that Sizz is a highly value-added product. Yes, it's cheaper than other products, but it's fully digital, and you can order what you want. You can keep your gig. This is something brand new.

Speaker Change: So probably not all the time at Con C. A R.

Speaker Change: Other operators being able also to walk on the PPI a basis.

Speaker Change: Services and this is.

Speaker Change: Where are we are.

Speaker Change: Finally, I would say that's excellent.

Unknown Executive: Turning to our media seconds, Divya Group hosted a $17 million favorable change in EBITDA during the second quarter of 2024. Due, in good parts, to the $10 million retroactive adjustment to Alcyan carriage fee and the return of major foreign productions to Mel's studio. As for television activity, we continue to suffer the repercussions of the decline in advertising revenues and to be confronted with the same major challenges that persist with the media industry.

Speaker Change: I can't not emphasizing the fact that Oh.

Speaker Change: <unk> is a highly value added product, yes, it's cheaper than other products, but it's fully digital digital and you can order what you want and you can keep your gig. This is something brand new no. One is able to offer. This so when we talk about you know value adding.

Pierre-Karl Pladeau: No one is able to offer this. So when we talk about, you know, value-adding telecom services, I think Sizz is one of the greatest examples, if not the only one right now. So I will let you talk about Waterline.

Speaker Change: Telecom services I think this is one of the greatest example, if not the only me right now.

Speaker Change: So again I will let you talk about wireline.

Hugues Simard: Yeah, so to answer your specific question, Nial, there's no price freeze on wireline. It's only, we only offer that on wireless.

Speaker Change: Yeah. So two answers to your specific question now that there's no price freeze on on wireline. It's it's only we only offer that in wireless so there's absolutely no impact.

Unknown Executive: Excluding the one time we do act in the adjustment on carriage fee, EBITDA from television activity would have remained negative. We are continuing our ongoing efforts to obtain fair market value for all of our specialty channels as we were able to do with Alcyan. We are also counting on the CRTC upcoming arbitration on Divya's fall, the rich fee, the family received from Bell, the fair value that we have long been the men's.

Speaker Change: From that.

Hugues Simard: So there's absolutely no impact from that on the RPU. I mean, you know, a good chunk, a good part of the revenue decrease in Wireline this quarter has to do because we're comparing ourselves to the same quarter last year when we had annual increases. And a good chunk of that, of that difference lies right there where we didn't, you know, as we said in our introductory remarks, we are fighting, we're fighting an aggressive Wireline competitor in Quebec and did not proceed with annual increases this year. So now we're lapping that. And that's, that's most of the difference.

Speaker Change: On the on the <unk> I mean, you know that so there's a good chunk a good part of the you know the revenue decrease and in wireline. This quarter has to do because we're comparing ourselves to the same quarter last year. When we had annual increases and a good chunk of that Oh.

Speaker Change: Of that difference lies right there when we didn't.

Speaker Change: As we said in our introductory remarks, we you know we're fighting a we're finding an aggressive a wireline competitor in Quebec and did not proceed with annual increases this year. So now we're lapping over that.

Unknown Executive: Despite this challenging situation, savings from our reorganization initiative, the now-plashed year are beginning to materialize. Furthermore, Dilia Group remains a favorite color vision channels of Quebecers thanks to the continuous trend of its program during the second quarter of 2024. Dilia Group increased its market share to 22.5% shares, 22.5%. I resolve that keeps up and believed by a wide margin. Dilia Spark experienced exceptional growth of one inch of share driven by the Broadcasting, the Broadcast of NHL Playoff and the Euro 2024.

Speaker Change: That's that's most of that are of that difference.

Hugues Simard: In terms of cash flow, yes, we're reaffirming, we're still, we're still confident in our objective for the year. And, you know, I think the numbers are showing even this number while, you know, paying, buying back a little more stock, paying the second chunk of the 80% of the spectrum, you know, we're still, you know, we're still in pretty good shape. So, our debt is stable, and our EBITDA ratio is stable as well. And we'll continue to lower it later on in the year.

Speaker Change: In terms of cash flow, yes, we are reaffirming we're still we're still confidence in our AR and our objective for the year and you know my I think the numbers are showing even this number a while oh bang are buying back a little more stock paying the second chunk of the the 80% of the AR.

Speaker Change: Spectrum you know, we're still you know we're still in pretty good shape, so and our depth is stable and our our EBITDA ratio is as stable as well and we will continue to lower our later on in the in the year.

Pierre-Karl Pladeau: Thank you. So, should we expect that pricing on the Internet? to improve going forward?

Speaker Change: Thank you. So so should we should we expect that pricing on the internet.

Unknown Executive: Finally, our sports and entertainment division put on major shows in the quarter, including Queens of the Stone Age, Ice Cube, and Monsters Spectacular. The second edition of our book, in June, just yet acquired even the company specializing in the management of popular and corporate events, including the famous 59.5% share. This acquisition marked an important step in just yet extension, trending, misleading position in the event market.

Speaker Change: To improve going forward.

Pierre-Karl Pladeau: Well, who knows? Who knows, but I think that the future will say that something I would like to reiterate is that we will always be at the forefront of offering our customers the best service. There is no compromise on this; this has been the recipe for our success in the past, and we will continue to do so because what we have been seeing is that yes, we can compare to competition only on price when you get a better service, and I was emphasizing the fact that there is supposed to be a superior product. I doubt this because a superior product usually calls for a superior price, but it is certainly not something that we are seeing with the Bell price.

Speaker Change: Well.

Speaker Change: Who knows.

Speaker Change: Who knows but I think that yeah.

Speaker Change: [laughter] future, let's say.

Speaker Change: But something I would like to reiterate is that you know, we will always going to be at.

Speaker Change: At the forefront of offering to our customers the best service, there's no comp in Michigan.

Speaker Change: This this ive been the recipe our success in the past and we will continue to do so because what we've been seeing is that yes, we can compare to competition only pricing competition when you got a.

Unknown Executive: I will now let you review our detailed financial results. On a consolidated basis in the second quarter of 2024, Quebec were reported revenues of $1.4 billion down 1%, EBIDOT $625 million up 3%, and adjusted cash flows from operations of $450 million down 1% from the same period last year. In our telecom segment, total revenues decreased by 14 million or 1%, EBIDOT remains stable at $608 million, and adjusted cash flows from operations were down by 3% to $446 million.

Speaker Change: A better service and you know I was emphasizing the fact that they're supposed to be a superior product.

Speaker Change: Uh huh.

Speaker Change: I doubt about this because of superior product, usually you know call for a superior price, but does it certainly not something that we're seeing with the Dell pricing.

Speaker Change: Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you.

Matthew Griffiths: The next question is from Matthew Griffiths from Bank of America. Please go ahead, Matthew.

Speaker Change: The next question is from Matthew Griffiths from Bank of America. Please go ahead Matthew.

Pierre-Karl Pladeau: Hi, good morning. Thanks for taking the question. Just on the telecom margins, you've been doing a good job of, you know, maintaining some margin growth, offsetting some kind of revenue pressure. I think Pierre Carly, you were talking about what sounded to me like, you can correct me, sounded like some increased, maybe marketing spending. And obviously, there's the ongoing promotional environment.

Matthew Griffiths: Hi, good morning, Thanks for taking the question.

Unknown Executive: Wireless revenues increased by 3% to $558 million in the quarter, and wireless EBIDOT reached $254 million, a 1% increase reflecting our additional long-term investments to develop customer-centric brands, position them solidly and fuel their growth. As such, our results this quarter reflect us absorbing more domestic and international roaming fees and investing more in branding and advertising for the launch of Fizz and also for freedom, including their recent expansion in all provinces west of Quebec.

Matthew Griffiths: Just on the telecom margins you know you've been doing a good job.

Matthew Griffiths: Maintaining some margin growth offsetting some kind of revenue pressure.

Speaker Change: I think to your call you were talking about.

Speaker Change: It sounded to me like you can correct me sounded like some increased marketing spending and obviously, there's the ongoing.

Speaker Change: Commercial environments as we look ahead into Q3 and four you know how should we think about kind of the market margin progression for the rest of the year should we expect flat would be a success or is there just that it ends up getting a pressure.

Unknown Executive: Telecom capex, excluding the acquisition of spectrum licenses, are up $60 million as compared to the same quarter last year, essentially due to lower investment levels just following the acquisition last year. We now invest more in 5G network expansions, revenue growth opportunities as well as in wireline equipment rentals, but altogether remaining prudent and focused on strategically targetting areas. Armedia segment, recorded revenues of $184 million, a 2% increase, and an EBITDAV $19 million, a $19 million improvement compared to the same quarter last year.

Pierre-Karl Pladeau: Hello, everyone. It's always, you know, not a good thing to answer you so clearly. We just don't want to give any perspective to our competitors. And then, therefore, you know, we'll keep quiet on this one. But we will continue, you know, what we've been doing, and as of now, I think that we should be happy with the kind of delivery we've been able to offer to our shareholders and to our customers also, because, at the end of the day, they are the ones that are taking the decision to move from one very known or knowledgeable operator to a new one, a new one who's coming with something different.

Speaker Change: Uh huh.

Speaker Change: It's always a you know not.

Speaker Change: A good thing to answer you. So so clearly your question well, we we just don't want to give us any perspective.

Speaker Change: To do all of our competitors.

Speaker Change: And then therefore, you know we'll keep the.

Speaker Change: Quiet.

Speaker Change: On this one but.

Speaker Change: But we will continue you know what we've been doing and I'm done.

Speaker Change: Now.

Speaker Change: I think that we should be happy with.

Speaker Change: The kind of delivery, we've been able to to offer to our shareholders.

Unknown Executive: Sports and entertainment segment, revenues decreased by 7% to $45 million, and EBITDAV was down $1 million in the quarter. Quebecor reported a net income attributable to shareholders of $208 million in the quarter, or $0.90 per share, compared to an net income of $174 million or $75 cents per share reported last year. Adjusted income from operating activities, excluding unusual items and losses on valuation of financial instruments, came in at $205 million or $8.9 per share compared to an adjusted income of $102,182 million, or $79 cents per share in the same quarter last year.

Speaker Change: And therefore and to our customers also because at the end of the day. These are the ones that are taking the decision to move them from one yeah very novel very known or knowledgeable operator to a new one a new one.

Speaker Change: I mean with something different and you know we were talking about the again you know value added.

Pierre-Karl Pladeau: And we were talking about, again, you know, value added. We were the first to introduce, you know, Can U.S. and Can U.S.-Mexico, Roaming Beyond, all those things. You know, it's not just a matter of luck; it's a matter of good execution.

Speaker Change: We're the first to introduce you know can you WAF and dam U S, Mexico and roaming beyond all of those things you know, it's not just a matter of luck, it's a matter of a good execution.

Pierre-Karl Pladeau: We would keep, you know, the rest of our strategy inside our own management to deliver the customer in due time. I'm sorry Matthew, but this is the answer I'm giving to you. Sure. And maybe just one kind of quick follow up, just as you kind of extend service into Manitoba. What should we expect...,,,,,,,, Well, you know, we are in the mode of doing it. You know, I was referred to my narrative earlier. Our capital expenditures are growing. As you can see, they're more important than the one we had for the equivalent last quarter.

Unknown Executive: For the first six months of the year, Quebecor's revenues were up 9% to $2.7 billion, and EBITDAV was up 13% to $1.18 billion. EBITDAV from our telecom segment grew 9% to $1.2 billion for the same period, an improvement of $102 million over last year. As of the end of the quarter, Quebecor's net debt to EBITDAV ratio stood at 3.39 times still the lowest of all our telecom competitors and peers. I would also point out that we are the only telecom company in Canada to continue to regularly reduce our debt and strengthen our balance sheet thanks to our steady and disciplined cash flow generation, kind of capabilities quarter after quarter.

Speaker Change: And you know.

Speaker Change: We would keep you and all the rest of our strategy.

Speaker Change: Inside our own management to deliver there.

Speaker Change: The customer and in due time.

Matt: I'm sorry, Matt.

Speaker Change: This is the answer to you sure.

Speaker Change: Sure.

Matt: One quick follow up just as you kind of extended service into Manitoba.

Speaker Change: Should we expect.

Speaker Change: That's you know our retail distribution network will follow a staff sales staff customer service staff will follow that entry into the Providence network building like when should we expect these type of things too.

Speaker Change: Begin to materialize.

Speaker Change: Well, you know, where we are and are in the mode of doing it you know I was right I won't be afraid to even at the root of my my.

Unknown Executive: We intend to continue to de-lever over the next quarter and operate in the low threes as we have stated before. We were particularly proud that both S&P and Moody's recognized this discipline and rewarded us with investment-grade ratings in May of this year. I would also like to highlight the success of our recent refinancing, where videotron issued 600 million and 400 million of senior notes in the Canadian investment-grade market, yielding respectively 4.65 and 5%.

Speaker Change: Hi, My narrative earlier, no our capital expenditures are growing them as you can see you know there are more important than the one week, we had or the equivalent of last quarter and we are in.

Pierre-Karl Pladeau: We are, and again, this has been, you know, one of the reasons for our success in Quebec, delivering, you know, a good product. A good product in wireless goes to wireless, and as you know well, and..., talking about this also. First of all, you know, and others, and myself. I.?? So. We have been doing this. It means, you know, I am.

Speaker Change: And again this has been you know one of the reason of our success in Quebec.

Speaker Change: Delivering they all have a good problem.

Speaker Change: A good product and a lot of those goes to the wireless.

Speaker Change: And as you know well and I've been talking about this also is first of all you know D E N.

Unknown Executive: The proceeds were used to repay existing indebtedness, which included a portion of the revolving facility drawings, under videotron's credit agreement, and also the redemption of admeturity of videotron's 5.375 percent senior notes. On June 25th of this year, at maturity, Quebec were exercised that chair redemption payment rights and redeemed all issued and outstanding 4% convertible debentures. This decision aligns with our prudent balance sheet management strategy and our commitment to further reducing our debt leverage ratio.

Speaker Change: N V I know.

Speaker Change: There's people network or aren't available are they expensive, yes, you have to be on and our conditions in onto the spectrum with the.

Speaker Change: Bill.

Speaker Change: The network and this is what we expect to do as you know from the beginning of.

Speaker Change: The launch of the light sensor through the and we have seven years to do so.

Speaker Change: So our plan is to continue to grow.

Speaker Change: <unk> again, what Craig mentioned and I start with with a disciplined balance sheet approach.

Unknown Executive: Available liquidity of more than $2.1 billion at the end of the quarter and our growing free cash flows will allow us to continue to improve our already very strong balance sheet. During the first six months of the year, we purchased and canceled 940,000 class B shares for a total investment of $28 million. Please note that the Board of Directors also approved a determination of this year's program. The Renewal of the program for an additional year.

Speaker Change: So.

Speaker Change: Yeah to me.

Speaker Change: It means I am.

Pierre-Karl Pladeau: I've been thinking about, you know, the 5G. When 5G started, people, many operators thought this would be the end of the world, this would be a revolution. Well, I guess that two years later, we're all in agreement to say it's the normal evolution of wireless services. So from 4G, 4G LTE to 5G and 5G+, there's not a significant difference. Will we continue to invest in R5G? No doubt we will continue, but we're not going to get crazy and spend $300 million in a quarter doing this. We will continue to be disciplined, and we will improve our network as we've been doing for the last, what? Now it's been almost 18 years since we were in the wireless business.

Speaker Change: I've been thinking about you know what the five G. You know when you started with.

Speaker Change: People are many operators.

Speaker Change: What will be the end of the world. This will be a rather use them well you know I guess that three years later.

Speaker Change: We're all in agreement that they are it's the normal evolution of wireless services.

Unknown Executive: We thank you for your attention and will now open the lines for your questions. For people on the phone, if you'd like to queue up to ask a question, please press star 1 on your phone's keypad. If ever you wish to withdraw from the queue, please press star 2.

Speaker Change: Oh from <unk>, that's if I agree with probably a G block, there's not a significant change.

Speaker Change: Well, we continue to invest in our five G. No doubt, we will continue but we're not gonna get.

Vince Valentini: The first question is from Vince Valentini from Katie Cohen, please go ahead. Hey, thanks very much. Let me start with wireless. So sub ads have now exceeded 300,000 for the past 12 months, which is excellent. Do you think that's a good sort of run rate volume, Pierre Carl, are you happy with that level? Or do you think there has to be a lot of hard work and more marketing investment to perhaps drive that to 350 year?

Speaker Change: Get crazy and spend 300 million dollar and a quarter of doing this.

Speaker Change: We'll continue to be disciplined.

Speaker Change: Through our network as we've been doing for for the last what now it's been a boom.

Speaker Change: Almost 18 years, we've been in in the wireless business.

Speaker Change: Okay. Thanks.

Speaker Change: Okay.

Speaker Change: Thank you.

Jerome Dubreuil: The next question is from Jerome Dubreuil from Desjardins; please go ahead, Jerome.

Speaker Change: The next question is from as you know I believe from Desalinating. Please go ahead gentlemen.

Pierre-Karl Pladeau: Thank you for taking my questions. The first one is on the, you know, the strong market share that you had in the last two quarters, 19% approximately versus, if we're only considering the big poor in Canada now. And that's before much of the bundling, and this is just launching in many new provinces. Where do you ultimately want to go in terms of market share in the markets you're in? Thank you.

Speaker Change: We've also come on the thanks for taking my questions. The first one is on the you know the strong market share that you had in the last two quarters, a 19% approximately versus were only considering the big corn, Canada now and that's before much of the bundling in and.

Vince Valentini: So 400,000 per year. And then on the back end of that, you know, can you talk about the art blue decline and whether you're satisfied with that, given the volume growth, would you rather see it, you know, not that it's fully in your control, but would you rather see a bit more of a balance there and get your output back up to $36.37 over time, as well as the volume growth. Thanks. All right. Thank you, Vince.

Speaker Change: So it is just launching in many provinces, where do you ultimately want to go in terms of market share in the markets our year end. Thank you.

Pierre-Karl Pladeau: Yes, thank you, Jay Allman. Well, you know, it's another way to ask the question which has been asked previously, about, you know, will you be satisfied? We will continue to offer our telecom services with a good product and good customer service, and we have other things that you know will be available in the future. Again, you know, we're not going to talk about our marketing strategy in front of our competitors. You know, this is where we are.

Speaker Change: Yes, he was there.

Speaker Change: Well you know [laughter], it's a it's another way to ask a question of which had been asked previously.

Speaker Change: Previously.

Speaker Change: About you know well would you be satisfied.

Unknown Executive: The next question is from Mary Agu from Scotia Bank, please go ahead, mayor. Now we didn't, there was a problem with the answer, wasn't it? I didn't hear the answer. Did you hear the answer, Vince? Oh, I'm sorry I was muted. Can you hear me now? Sorry, Vince, I was muted. Okay. Vince, if you could press star one more time, please. Operator, are you here, me? I can. I'm going to put up your open of Vince's line. Mayor, after this, if you can just press star one, one more time, please. Thank you. What now? What I will answer? I will answer Vince question. Okay. So it's before going to Maya. Yes.

Speaker Change: [laughter] yeah.

Speaker Change: We will.

Speaker Change: Continuing to want to offer.

Speaker Change: Or telecom services.

Speaker Change: Good product and good customer service.

Speaker Change: Uh huh.

Speaker Change: And we have other things that you know would be available in the future again, you know, we're not going to talk about dollar of marketing strategy.

Speaker Change: And in some of our competitors.

Speaker Change:

Speaker Change: Yeah. This is where we are you know.

Jerome Dubreuil: Yeah, no, fair. Fair enough. I get it.

Speaker Change: Yeah, no Sir fair enough I get it.

Speaker Change: Boeing are calling on to that maybe just some of the price a price freeze guarantee.

Pierre-Karl Pladeau: Following on to that, maybe just on the price, price freeze guarantee. I wonder if we should be reading that your call on the general ARPU for wireless in Canada is that it should probably be staying that way for quite a while. Is this something we should read into from the offer you have put in the market?

Speaker Change: I Wonder if we should be reading that that's your call on the general are true for wireless in Canada.

Speaker Change: It should probably be staying that way for.

Speaker Change: For quite a while it's just it's just something we should read into from that from that offer you have put in the market.

Unknown Executive: So what I was saying, Vince, sorry, I was muted. That we were always going to be happy to see our, our growth and our views going in the right direction. We've been seeing improvement in a quarter after quarter. I think that, you know, we should be even more successful given that our footprint is getting bigger. Our marketing efforts are also stronger. And our services are more numerous given our capacity now to offer the internet and the television with freedom on the larger scale.

Pierre-Karl Pladeau: Well, I would say it's, you know, depends obviously on the competitive aspect of the business. Um, you know, I should repeat that we, uh, we met our conditions through ICED, so there's nothing more that we're forced to do. So we'll see, you know, what will be the take-out from our different brands, for sure. And we experienced this, you know, with Fizz in Quebec. This is certainly an aspect or, you know, an object which puts pressure on our ARPU, but on the other side of the equation, I will repeat what I have said many times before.

Speaker Change: Well I would say, it's you know it depends obviously other than the competitive aspect of the business.

Speaker Change: You know.

Speaker Change: I should repeat that we Oh, we met all the conditions to I said, so there's nothing more that we're forced to do.

Speaker Change: So well see you at all on what will be the take out out of our different brands mm for sure and we experienced this would fit in Quebec.

Speaker Change: This is certainly a Nasdaq or no.

Unknown Executive: And our grants, which is, which also is going there. So if we can get better than 93,000, both do it on and freedom or what we call west of Quebec, we will continue to be happy and this is certain something that we're looking for. Operator? Yes. You go ahead. Yes, thank you. Can you hear me? Yeah. Okay, great. Bonjour. Thank you for taking my question, guys. So I wanted to ask you just to follow up to Vince's question.

Speaker Change: Object, which put pressure on our our food.

Speaker Change: But on the other side of the equation I will repeat what I've said many times before Wap rates is we do not have the same kind of expenses that we need to have a.

Pierre-Karl Pladeau: To operate Fizz, we do not have the same kind of expenses that we need to have for our other brands. So there's no such a thing as a call center; there's no such a thing as someone that we're making to answer or take the phone to reconsider their offer.

Speaker Change: For our other brands. So there's no such a thing like a call center.

Speaker Change: There's no such that they want to come on the road that will lead you to answer I could take the foam for reconsidering their offer them you do that personally it is kind of a self install and obviously, we're seeing on the wireline business with the self install and nature of our equipment expense.

Pierre-Karl Pladeau: You do that personally; it's kind of a self-install, and obviously, we're seeing in the wine line business that with the self-install nature of our equipment, expenses are going down. This is what we've been able to show for the last quarter. The other thing I think that it's worth to mention is that we're going to put more emphasis on selling on the web, improve our website, make it more marketable, you know, more transactional. And this will obviously, you know, get our costs and continue to go down and therefore keep our margins at the highest level as possible regarding the competitive environment that we're facing.

Speaker Change: Things are going down.

Speaker Change: This is what we've been able to show you know for the last quarters.

Unknown Executive: You have been very aggressive on price plans and granted this is fundamental condition for acquiring freedom and to gain market share. I wanted to ask if there's anything you can do to add value to your plans to potentially begin to, you know, get a higher price point on these services. It seems to me everybody's focusing on just selling capacity right now in Canada. The product continues to be commoditized. Anything we can do to add value to customers and potentially get upside revenues from these services.

Speaker Change: The other thing also I think that it shouldn't it worsening of dimension is that we're going to put more emphasis.

Speaker Change: On the selling on the web and through our website and make it.

Speaker Change: More mark out of all of them.

Speaker Change: Transactional and this will obviously you know get our costs and continue to go down.

Speaker Change: And therefore keep our margins.

Speaker Change: At the highest level as possible regarding the competitive environment that we're facing.

Unknown Executive: And just on the video outside, you held your position quite well in a very aggressive push by BCE and Quebec. As you mentioned, pricing is very aggressive on price. I wanted to ask how much do you believe the output decline that we signed the quarter on your broadband services is now starting to reflect the price log guarantees that you have. And the conversions you're doing on Helix, IE, you know, how much further can we expect our poor pressure on broadband to continue before we see some stabilization.

Pierre-Karl Pladeau: Thank you, Pierre-Pierre.

Speaker Change: Nothing that stuck out.

Stephanie Price: Thank you. The next question is from Stephanie Price from CIBC; please go ahead, Stephanie.

Speaker Change: Right right Okay.

Speaker Change: Thank you.

Stephanie Price: The next question is from Stephanie price from CIBC. Please go ahead Stephanie.

Pierre-Karl Pladeau: Hi, good morning. I wanted to continue on the Fizz launch in the Freedom footprint, just thinking about customer differentiation from Freedom and if we should expect that the launch of Fizz gives you the opportunity to reprice Freedom over time.

Stephanie Price: Hi, Good morning, I wanted to continue on this is lance in the freedom footprint, just thinking about how a customer differentiation from freedom than if we should expect them to the launch of things cause you the opportunity to reprice freedom overtime.

Pierre-Karl Pladeau: Uh, well, you, um... Will you answer this? Or maybe I can start by saying again, you know, one is completely digital. So it's a low cost. We've been pitching our fizz on a better, more controlled environment to make sure that our product will be of good quality. We just don't want to launch something that is not working well. As you know, since, again, you know that you order through this white website, we want to make sure that our expectations from a customer standpoint will be high. So the price differentiation is certainly considering this aspect of the business. And I don't know, Hugues, if you have other things to add.

Speaker Change: Oh well you.

Speaker Change: Well you answered there or maybe I can start the <unk>.

Speaker Change: By saying again, you know one is completely digital sorts of low box we've been.

Unknown Executive: And maybe if I can squeeze one last one on free cash row, are you still targeting the billion dollar for the year? Thank you. Okay, thank you. I will ask the first question and you will do for the the war line and the cash. So you were asking, you know, we're talking about the value adding on, you know, but let's call it telecon services because it's more than wireless. And I think it's sure I should repeat you know that it's we're not coming.

Speaker Change: Pitching our fifth on the better.

Speaker Change: Environment.

Speaker Change: To make sure that you know what.

Speaker Change: Our product will be a good quality, we just don't want to launch something is not working well our as you know since again, you know that you order through the white website, we want to make sure that our expectation from a customer standpoint that it would be I'm. So.

Speaker Change: Differentiation is certainly considering this aspect of the business.

Speaker Change: And I know that I guess, you have other things to add.

Unknown Executive: We're not going in the commodity side since you know, we've been adding and this is certainly something that we've been successful on Quebec. And this is also one something that the bureau, the competition bureau ladies during the analysis where they were saying that, you know, if you can't get bundles, if you can't offer bundles, you're not going to be competitive. So the answer is clearly no because we will continue to offer standalone services that we've been doing with fit and for which we've been quite successful in Quebec despite the fact that it was only a wireless service.

Hugues Simard: And just simply to say that, you know, Stephanie, there's very little difference, of course, excluding the introductory pricing, of course, for Fizz. As we did in Quebec and we did in English Canada, we offered, you know, during the beta phase, introductory pricing. Now that that's gone, the pricing is slightly, we're pricing it slightly under freedom, but not a heck of a lot. So there's, you know, there's little potential or risk for re-pricing, really, and as Pierre said, it's more, our approach is more, they're different products aimed at different groups and different demographics, and, you know, we honestly don't think there's a huge re-pricing risk for freedom on that front.

Speaker Change: Just simply to say that are you know Stephanie there's very little difference of course, excluding the introductory pricing of course is as we as we are as we did in in Quebec, and we did it in English Canada. We offer at you know during the beta phase our introductory pricing now that that's gone.

Pascal: You know the pricing is slightly where pricing is slightly under under freedom, but not a heck of a lot. So there there. There's a you know there's little potential or risks for for for repricing really you know and as Pascal said, it's more our approach is more there there are different products are aimed at different.

Unknown Executive: So we can say the thing now with the Fizz launch, you know, west of Quebec on top of which now, you know, we're offering also other telecom services to you and in it. We all know that being a TPI is certainly not, you know, the model that we would favor, but we're not going to build a nationwide network. And those rules are the ones that you know is regulated in Canada. We expect to use them as we've been, you know, seeing TPI using our own networks to many, many, many years.

Pascal: <unk> and different demographics and.

Pascal: No. We I think we honestly don't think there's a there's a huge repricing risk for freedom on that front.

Stephanie Price: That's a good color. Thank you. And then just one more for me on the internet bundling rollout in the Freedom footprint. I think right now that for Freedom mobile customers, it's only available in Ontario. Can you talk a little bit about the internet bundling strategy moving forward and any plans to offer internet packages to non-mobile customers?

Speaker Change: That's good color. Thank you and then just one more for me on the Internet Spangling Rollouts in the freedom footprints I think right now it seems like the freedom mobile customers. It's only available in Ontario can you talk a little bit about the internet bundling strategy moving forward and any plans to offer internet packages.

Speaker Change: Not all customers.

unknown: Doug, will you go with this link?

Speaker Change: Well you go with Brooklyn.

Hugues Simard: No, it's offered everywhere, so it's not only in Ontario. We are starting, though, to your point, we are starting and have been, and are still focusing on our base, a wireless base. I mean, that's where, you know, we, I mean, that's the opportunity for us at this point, and we haven't, you know, maximized it yet. And I think it's, from a strategic standpoint, and from a disciplined rollout strategy, you know, we're still on that huge opportunity that lies with our current wireless customers.

Speaker Change: No. It's it's it's offered everywhere. So it's not only in Ontario, and we are starting though to your point. We are starting it has been and are still focusing on our base on the wireless space I mean, that's where you know we we are I mean that that's the opportunity.

Unknown Executive: In fact, in Quebec, we've been seeing much more TPI A's than everywhere else in Canada. So probably now the time had come to see other operators being able also to offer on the TPI basis telecom services. And this is where we are. That's why I would say that I can't not emphasize the fact that your state is a highly-valuated product. Yes, it's cheaper than other products, but it's fully digital. And you can order what you want.

Speaker Change: For us at this point and we Havent you know maximize yet and I think it's a from a strategic standpoint and from a disciplined rollout.

Speaker Change: Our strategy you know we are we're still on that on that huge opportunity that lies with our current our wireless customers are and then we'll see how we expect if if and when we expand it from there but right now it is available everywhere focusing on our AR on the you know on that.

Hugues Simard: And then we'll see how we, if and when we expand it from there. But right now, it is available everywhere, focusing on our, you know, that sizable opportunity within our, don't forget that, that's one of the opportunities we had outlined that we had seen from the beginning when we acquired Freedom, is that Freedom, you know, a lot of people, especially in the target markets, in the target demographics and geographies of Freedom are looking for a bundling deal.

Unknown Executive: You can keep your gig. This is something brand new, no one is able to offer this. So when we talk about value-adding telecom services, I think there's one of the greatest examples. If not the only right now.

Speaker Change: Feasible opportunity you know within our don't forget that that that's one of the opportunities. We had outlined that we had a we had seen from the beginning when we acquired freedom is that our freedom you know a lot of people, especially in the target markets and then the.

Unknown Executive: So I will let you talk about waterline. Yeah, so two answers to this ear specific question. Now there's no price freeze on on waterline. It's only we only offer that in wireless. So there's absolutely no impact from that on the on the RPU. I mean, you know the good chunk, good part of the revenue decrease in in waterline. This quarter has to do because we're comparing yourself to the same quarter last year when we had annual increases.

Speaker Change: And in the end the AR and the target demographics and geographies are afraid of or looking for a bundling deal and we had nothing to offer them. So now I think this is the opportunity that we've put in place and we're gonna.

Hugues Simard: And we had nothing to offer them. So now, I think this is the opportunity that we've put in place, and we're going to start working on that. And it's obviously also, you will have understood that it's an important strategic play for us to obviously keep these wireless, well, these bundled customers and lower our churn as opposed to having only one product in their hands. Thank you.

Speaker Change: Start working on that and it's obviously also you will if you will have understood that it's a it's an important term play for US are two to obviously keep these wireless got small piece bundled customer and lower our churn as opposed to having only one product in their hands.

Unknown Executive: And a good chunk of that of that difference lies right there where we didn't, you know, as we said in our introductory remarks, we're finding, we're finding an aggressive waterline competitor in Quebec and did not proceed with annual increases this year. So now we're lapping over that. And that's that's most of that of that difference. In terms of cash flow, yes, we're reaffirming. We're still we're still confident in our in our objective for the year.

Speaker Change: Thank you.

Aravinda Galappatthige: The next question is from Aravinda Galappatthige, please go ahead, from Canaccord.

Speaker Change: The next question is from every vendor gathered propagate. Please go ahead.

Speaker Change: Canaccord.

Aravinda Galappatthige: Hi, thanks for taking my questions. Two for me. First of all, Pierre-Carl, you talked about the stability of churn in the wireless business. I thought that was interesting, given what we've been seeing across the incumbents.

Speaker Change: Hi, Thanks for taking my questions. Two for me first of all pay call you talked about stability of churn in the wireless business I thought that was interesting given what we've been seeing a cross the incumbents are can you elaborate a little bit.

Unknown Executive: And, you know, I think the numbers are showing even this number while, you know, paying, buying back a little more stock, paying the second chunk of the 80% of the spectrum, you know, we're still, you know, we're still in pretty good shape. So, and our debt is stable in our our Ibadar ratio is stable as well. And we'll continue to lower later on in the in the year. Thank you.

Speaker Change: On that are you referring to are shown across the market just with that sort of a segment of your wireless space like particularly maybe its postpaid I was wondering if we can build a little bit on that.

Pierre-Karl Pladeau: Can you maybe elaborate a little bit on that? Are you referring to churn across the market? Is it a sort of a segment of your wireless space? I was wondering if you could build a little bit on that for us. And secondly, Hugues, I was wondering if you could give us a sense of the wireless EPIDA movement in Q2, just for modeling purposes.

Speaker Change: For us and and secondly, I was wondering if you can give us a sense of the wireless EBITDA movement in Q2.

Speaker Change: Just so that we just for modeling purposes. Thanks.

Speaker Change: Good.

Speaker Change:

Pierre-Karl Pladeau: Well, you know, we've been seeing, you know, for the last 10 days, the last 10 days that the churn of our competitors has increased. Well, certainly, again, it's the reason for the competitive or a consequence of all competitors in the market. They've been offering themselves prices much below their historical outputs.

Speaker Change: Well you know we've been seeing you know for it to.

Unknown Executive: So, so should we should we expect that pricing on internet to improve going forward? How about who knows? No, but I think that the future will say that something I would like to reiterate is that we will always going to be at the forefront of offering to our customers. You know, the best service. There's no confirmation on this. This I've been the recipe our success in the past and will continue to do so.

Speaker Change: Since the the lifestyle the 10 days last 10 days.

Speaker Change: The churn of our competitors.

Speaker Change: That increase.

Speaker Change: Well, certainly and again, it's the reason why the competitive or the consequence of that and I'll deal with it.

Speaker Change: Our competitors. It is is the market.

Speaker Change: They've been offering themselves are twice as much below that the historical art boots. So at the end of the day you know they will create a direct effect on.

Pierre-Karl Pladeau: So at the end of the day, you know, they will have a direct effect on them. We'll just continue. We'll see how, you know, they will position themselves in the future regarding pricing. We can consider that repricing for them has been costly; will they continue to do so?

Speaker Change: And then well just continue.

Speaker Change: Pete.

Pete: How are you know they will.

Pete: Position themselves in the future regarding pricing.

Unknown Executive: Because what we've been seeing is that yes, we can compare to competition only pricing competition when you get a better service. And, you know, I was emphasizing the fact that they're supposed to be a superior product. I doubt about this, because the superior product usually, you know, call for a superior price, but it's certainly not something that we're seeing with the bell pricing. Thank you.

Pete: We can consider that repricing for them had been costly well they continue to do so.

Pierre-Karl Pladeau: We don't have an answer for that. But again, as we said earlier, you know, we'll be ready for all sorts of environments. From our perspective, from our standpoint, since you know, we are proof of freedom, is lower than, Ben Averitt. I think a stable one, and since our pricing is not a significantly or complete difference where it was before, then the effect is not. Creating. Any incumbencies, so maybe too, but this is something that, as you know, we don't break down.

Speaker Change: This we don't have an answer but again as we said earlier you know we will be ready to all sorts of other environment from our perspective from our standpoint.

Speaker Change: Since you are the are proof of our freedom was lower than our competitors.

Speaker Change: I think a stable one and since our pricing is not.

Speaker Change: Significantly our complete different.

Matthew Griffiths: The next question is from Matthew Griffiths, from Bank of America. Please go ahead, Matthew. Hi. Good morning. Thanks for taking the question. Just on the telecom margins, you know, you've been doing a good job of, you know, maintaining some margin growth, offsetting some kind of revenue pressure. I think Pierre Carl, you were talking about what sounded to me like even correct me. I started like some increased maybe marketing spending and obviously there's the ongoing promotional environment.

Speaker Change: And where it was before than the effect is I'm not.

Speaker Change: It's creating.

Speaker Change: Any incumbencies so.

Speaker Change: Maybe two.

Speaker Change: But this is something that as you know we don't break down.

Pierre-Karl Pladeau: But you know, we have a blended food for Canada. Certainly, it could be different from one region to the other, and we're not going to go there. What we expect in the future is to continue, given the actual environment, to see our ARPU in the same kind of bracket that we've been seeing, and we look forward to figuring out that this strategy has been, as we've been saying, and you've also said, quite successful with the number of RGUs that we've signed for the quarter. I don't know if you have anything else to add.

Speaker Change: But you know we have a blended RFP for Canada.

Speaker Change: Certainly you know could cause could be different from one region to the other but.

Matthew Griffiths: As we look ahead into Q3 and 4, you know, how should we think about kind of the margin margin progression for the rest of the year. Should we expect flat would be a success or is there risk that it ends up getting pressured. Well, it's always, you know, not a good thing to answer you. So, so clearly your question. We just don't want to give any perspective to our competitors. And then therefore, you know, we'll keep quiet on this one.

Speaker Change: We're not going to go there.

Speaker Change: What we expect in the future is to continue given the actual environment well have.

Speaker Change: To see our our pool.

Speaker Change: And the same kind of bracket that we've been seeing and we look forward to figuring out that strategy.

Speaker Change: Ben.

Ben: As we've been saying and you've been also saying a quite successful with a number or to use that we signed for the quarter.

Speaker Change: I don't know if you have anything else due to idle.

Pierre-Karl Pladeau: No, I think that question covers it. I'll just, Aravinda, answer your second question you're referring to.

Ben: No no I think on that last question that that covers it I'll just arlinda answer your second question, you're referring to I think to the you wanted to deal with the wireless EBITDA, which is 254 million.

Matthew Griffiths: But we will continue, you know, what we've been doing. And as of now, I think that, you know, we should be happy with the kind of delivery we've been able to offer to our shoulders. And then, therefore, and to our customers also, because at the end of the day, these are the ones that are taking the decisions, you know, to move from one very, very known or knowledgeable operator to a new one.

Hugues Simard: I think you wanted the wireless EBITDA, which is $254 million for the quarter, a 1% increase over last year. So still an increase over and above what we've talked about, you know, knowing that we've invested more in our rollouts, in our branding, in our advertising, and also absorbing more of the roaming costs in our packages. So over and above all of this, still an increase to $254 million in the quarter.

Ben: For the quarter, a 1% increase over last year.

Speaker Change: So still an increase over and above what we just talked about you know knowing that we have invested more in our rollouts in our branding advertising and also absorbing more of the of the roaming cost in our packages so over and above all and that's still an increase to 254 million in the quarter.

Aravinda Galappatthige: Thank you very much. I'll pass the mic.

Speaker Change: Thank you very much I'll pass the lag.

Matthew Griffiths: A new one is coming with something different. And you know, we were talking about, again, you know, value added. And we were the first to introduce, you know, can you ask and can you ask Mexico and rolling beyond all those things, you know, it's not just a matter of luck. It's a matter of good execution. And, you know, we would keep, you know, the rest of our strategy is inside our own management to deliver the customer in due time.

Tim Casey: Thank you. Our final question is from Tim Casey from BMO. Please go ahead, Tim. Yeah, thanks. Good morning.

Speaker Change: Thank you.

Speaker Change: Our final question is from Tim Casey from BMO. Please go ahead Tim.

Tim Casey: Yeah, thanks. Good morning. Um, could you talk a little bit about what you're seeing in back-to-school so far since you introduced the new plans? And Hugues, in the past, you've said that back-to-school is not as important a promotional season for freedom as others, given pricing. I'm just wondering how your thinking has evolved there, and do you feel that the addition of North American roaming packages is something the clients or your customers are responding to, or is it just a mix of all the different channels? and offers you have out there. I'm just wondering how important that is. And then, Hugues, a second one for you.

Tim Casey: Yeah. Thanks, Good morning could you talk a little bit about what.

Tim Casey: What you're seeing in back to school, so far since you've introduced the new plans.

Tim Casey: And you shoot it in the past you've said that back to school is not as important a promotional season for freedom as as others given pricing I'm just wondering how your thinking has evolved there.

Speaker Change: And do you feel that the addition of North American roaming packages.

Unknown Executive: I'm sorry, Matthew. This is the answer. Sure. And maybe just one kind of quick follow up, just as you kind of extend service into Manitoba, should we expect that, you know, retail distribution network will follow staff like sales staff customer service staff will follow that entry into the problems, network building, like, you know, when should we expect these type of things to, you know, begin to materialize. Well, you know, we are in the motor of doing it.

Speaker Change: Is that something that the clients or your customers are responding to or is it just a mix of all the different channels and.

Speaker Change: And it offers you have out there I'm just wondering how important that is and then you get a second one for you in the prepared remarks, you talked about how on the media side TV is still negative extra game, but you know that there was a pretty decent improvement in EBITDA is.

Pierre-Karl Pladeau: In your prepared remarks, you talked about how on the media side, television is still negative X the game. But, you know, that was a pretty decent improvement in EBITDA. Is that being driven solely by restructuring? Or are you seeing better financial results out of your non-television businesses on that line? Thank you.

Speaker Change: Is that being driven by solely by restructuring are you are you seeing better financial results out of your non television businesses on that line. Thank you.

Unknown Executive: You know, I was referred to you know, to my, my narrative earlier, our capital expenditures are growing. As you can see, you know, they're more important than the one we have for the equivalent last quarter. We are, and again, this has been, you know, one of the reason of our success in Quebec. Good product and why this goes to wireless. And as you know, well, I've been talking about this also. First of all, you know, the NV and all.

Speaker Change: Yeah.

Speaker Change: Yes.

Pierre-Karl Pladeau: I mentioned that we've been seeing a much higher activity in our studio business. We've been doing business with Apple for motion pictures and Skydance, which are now over. So that helped us significantly. The advertising market has continued to be tough, and we've continued to face decline on that side of the business, and our restructuring plan is moving ahead quite quickly. We've been almost out of our historical building and out of everything.

Speaker Change:

Speaker Change: Hi, Tim and well quickly you know regarding their your question with regards to the T V.

Speaker Change: D var, I mentioned that we'd been seeing a much.

Speaker Change: Much higher activity and.

Speaker Change: Our studio business that we've been doing business with Apple for a motion picture and Sky dance.

Speaker Change: Which is worse now or are over so that helped us significantly in the advertising market I've been continue to be tough.

Unknown Executive: Others people network are available. Are they expensive? Yes, yet they are. And our conditions, you know, to the spectrum is to fill the network. And this is what we expect to do. As you know, from the beginning of the launch of the license to the end, we have seven years to do so. So our plan is, you know, to continue to grow. Respecting again, what did mention and I start with with a discipline balance sheet approach.

Speaker Change: We continue to face you know decrease.

Speaker Change: On that side of the business and all of the restructuring plan.

Speaker Change: Is moving ahead.

Speaker Change: Quite quickly.

Speaker Change: We've been almost out of our historical building on development on their own.

Speaker Change: And out of all.

Pierre-Karl Pladeau: Production matters other than the news and the morning show. We moved to the former building of Le Journal de Montréal, which is more recent and easier to manage. So we look forward to getting all our people by the end of September and early October and being able to finalize our total restructure in terms of employees, which was announced earlier a couple of months ago. Unknown Speaker, Yeah. We expect, you know, despite the... Advertising market continued to be tough, you know, an improvement from where we were previously. Would you like to talk about your questions regarding telecom?

Speaker Change: Production matters other than the news in the morning show.

Speaker Change: We are losing in the form of building of and there's another Montreal, which is a more recent and here you're going to manage so we look forward you know to get all our people by the end of September and early October and being able to finalize.

Unknown Executive: So, you know, to me, it means that I've been thinking about, you know, the 5G, you know, when 5G started, people, many operators thought this will be the end of the world. This will be a revolution. Finally, I guess that three years later, we're all in agreement to say it's the normal evolution of wireless services. Well, from 4G, 4G, 5G, 5G plus, there's not a significant change. Where we continue to invest in our 5G, no doubt, we will continue.

Speaker Change: Total restructuring action in terms of employees.

Speaker Change: Which was announced earlier a lot couple of months and before.

Speaker Change: So yeah, we expect you know despite the the.

Speaker Change: Advertising market continues to be tough you know an improvement from where we were previously.

Speaker Change: Would you a big talk about my questions regarding telecom.

Hugues Simard: Yes, absolutely. Yeah, so back to school. It's a bit, it's still early, of course, we've just, you know, launched our various plans, but it's starting to, it's certainly starting to resonate. And my comment in the past, Tim, obviously has to do with us being more disciplined, I think, last year than, and perhaps the market, in general, was more disciplined last year than we had expected.

Unknown Executive: But we're not going to, you know, get crazy and spend, you know, $300 million in a quarter of doing this. We will continue to be disciplined and improve our network as we've been doing for the last month. Now, it's been almost 18 years, it's been in the wireless business. Thanks. Thank you.

Speaker Change: Yes, absolutely.

Speaker Change: Yeah, So back to school I mean, it's a bit it's still early of course, we've we've just launched the our various plans and but its starting to sort of it's certainly starting to resonate and Mike like I commented in the past Tim I think I, obviously has to do with we were more disciplined I think last year then.

Speaker Change: And perhaps the market in general with more disciplined last year than what we had expected it still I think back to school for us as it is a huge opportunity. So we'll see how [laughter] collectively disciplined we are we are this year, but I think you know the the sign from US certainly you didn't didn't light are.

Hugues Simard: It's still, I mean, back to school for us is a, a huge opportunity. So we'll see how collectively disciplined we are this year. But I think, you know, the sign from us certainly didn't, didn't light the fire, and we're not alone in this.

Jerome Zibre: The next question is from Jerome Zibre from Desjardins. Please go ahead, Jerome.

Unknown Executive: We're going to move on to the thanks for fixing my questions. The first one is on the, you know, the strong market share that you had in the last two quarters, 90% approximately versus, if we're only considering the big core in Canada now. And that's before much of the bundling and it's just launching in many new provinces, where you ultimately want to go in terms of market share in the markets, you're in.

Speaker Change: The fire and we're not alone in that so we'll have to see them our competitors react, but the one thing I would I would point out as we think of as we've pointed out in our in our scripted remarks is that.

Hugues Simard: So we'll have to see how our competitors react. But the one thing I would point out, as we've pointed out in our scripted remarks, is that, you know, you guys are aware, I'm sure, that the fighter brands, Bell Intellis' fighter brands, are in the market right now and have been for a few weeks at, at even lower price points than, you know, Freedom.

Speaker Change: Hey, you know you guys are aware I'm sure that the fighter brands, you know Bell and Telus is fight of rents.

Unknown Executive: Thank you. Yes, thank you. They're all right. Well, you know, it's another way to ask the question that we could have been asked if you could see about, you know, well, would you be satisfied? We will continue to offer our telecom services with good product and good customer service. And we have other things that will be available in the future. Again, you know, we're not going to talk about our marketing strategy in some of our competitors.

Speaker Change: <unk> are in the market right now and it had been for a few weeks that are at an even lower price points than our you know then freedom. So so we'll see we'll see how that evolves.

Hugues Simard: So, we'll see, we'll see how that evolves. But we think that our plans for and our strategy for back to school is a good one, and one that will resonate, where we will, you know, pick up some, you know, some profitable growth there. So, you know, we'll see.

Speaker Change: But we think that our our plans for <unk> and our strategy for back to school.

Speaker Change: It's a good one and one that will resonate a where we will pick up some some profitable growth. There. So you know, we'll see obviously, a where we're not in a vacuum you know we'll see how our are our competitors our competitors react but right now we feel that we have the right.

Pierre-Karl Pladeau: Obviously, we're not in a vacuum, you know; we'll see how our competitors react. But right now, we feel that we have the right differentiation from our competitors and that we should be, certainly should be, as successful as last year, and maybe more, you know. And differentiation, of course, I'm referring to our, you know, our roaming packages in the U.S., Mexico, etc., etc. So that's. I think, yeah. Does that answer your question? I will ask Tim, you know, to finish our conference call that, you know, again.

Speaker Change: Differentiation from our from our competitors and that our we should be we should certainly shouldn't be as successful as last year and maybe more you know and differentiation of course I'm, referring to are you know our our roaming packages in the U S, Mexico et cetera et cetera.

Unknown Executive: Yeah, this is where we are, Jerome. Yeah, no, sir, sir, now I get it. Pulling on to that, maybe just some of the price, price-free guarantee. I wonder if we should be reading that that's your call on the general arpu for wireless in Canada is that it should probably be staying that way for quite a while. Is this something we should read into from that offer you have put in the market?

Speaker Change: So that's.

Speaker Change: I think yes does that answer your question I will.

Speaker Change: Well I'll tell you, though to our they finish our conference call that you know again.

Pierre-Karl Pladeau: All the elements that we've been providing to our customers, which refer, you know, to customer service and the quality of our product. It is, you know, Can-US, it is Can-North America, it is roaming beyond, all those things bring something that we can consider value added. And it seems that this is what all Canadians are looking for, certainly a good portion of them. And I guess that this is not really different from anywhere else in the world.

Speaker Change: All the elements that we've been providing to our customers.

Speaker Change: I would prefer you know the customer service and quality of our product.

Speaker Change: It is you know can you as it is Ken North America. It is roaming beyond all of those things bring something that we can consider while you're at it and it seems that this is what all of them. All Canadians are looking Florida, certainly, yes, a good portion of them and I guess that there's there's.

Unknown Executive: Well, I would say it depends obviously on the competitive aspect of the business. I should repeat that. We met our conditions, I said, so there's nothing more that we're forced to do. So we'll see, you know, what will be the takeout out of our different brands? For sure, and we experienced this, you know, with Fid and Quebec. This is certainly a NASPEC or an object which put pressure on our arpu. But on the other side of the equation, I would repeat what I said many times before.

Pierre-Karl Pladeau: And finally, I would say, you know, on the back to school front, we've been seeing, and I mentioned it also, crazy things. Do we expect to go there? I would say that, you know, with Freedom, the famous formula, it's an everyday low price, you know, with Freedom. It's not something that, you know, we're going to focus on for two weeks and come back, you know, two months later with a price increase.

Speaker Change: Not really different than anywhere else in the world. If we can bring a better product at a better place than you know youre going to be able to be successful.

Speaker Change: And finally, I would say on the on the back to school, we've been seeing and I mentioned. It also you were crazy things do we expect to go there.

Speaker Change: I would say that you know with our with freedom today than the famous formula.

Speaker Change: Its everyday low price you know with our fleet and its not something that you know we're not a focus for two weeks.

Unknown Executive: To operate Fid, you know, we do not have the same kind of expenses that we need to have for our other brands. So there's no such a thing like a call center. There's no such a thing as someone that was making it to answer or to take the phone for reconsidering their offer. You do that personally. It's just kind of a self-install and obviously we're seeing on the online business that the self-install nature of our equipment and expenses are going down.

Speaker Change: And came back you know two months later with a price increase it's a matter of credibility, we've been able to establish credibility and at the end of the day I would say it continues to work.

Pierre-Karl Pladeau: It's a matter of credibility. We've been able to establish our credibility, and at the end of the day, I would say it continues to work. We've been successful, and we continue to use the recipes that brought us there.

Speaker Change: We've been successful and we will continue to use the recipe that we've brought that up there.

Pierre-Karl Pladeau: Good. Well, we thank you all for attending our conference call, and we look forward to talking with you next quarter. So, have a nice end to the summer. Thank you. Thank you.

Speaker Change: Good well, thank you and we thank you all for attending our conference call and we look forward to talking with our and next quarter. So I'm not.

Speaker Change: A nice out of the summer.

Speaker Change: Thank you. Thank you.

Unknown Executive: This is what we've been able to show, you know, for the last quarter. The other thing also, I think that it should work with the mention is that we're going to put more emphasis on selling on the web. Through our website, make it more marketable, more transactional, and this will obviously, you know, get our costs and continue to go down. And therefore, keep our margins at the highest level as possible, regarding the competitive environment that we're seeing. Thank you.

Operator: Ladies and gentlemen, this concludes the Quebecor Inc. financial results for the second quarter conference call. Thank you for your participation, and have a nice day.

Speaker Change: Ladies and gentlemen, this concludes the cubic Ora, Inc. 's financial results for the second quarter Conference call.

Speaker Change: You for your participation and have a nice day.

Stephanie Price: The next question is from Stephanie Price from CIBC. Please go ahead, Stephanie. Hi, good morning. I wanted to continue on this is launch in the Freedom Footprint. Just thinking about how customer differentiation from freedom, and if we should expect that the launch is this because you have the opportunity to reprace freedom over time. Well, will you answer this or maybe I can start by saying again, you know, one is completely busy at all, so it's a low cost.

Stephanie Price: We've been pitching our fees on the beta. Environment to make sure that you know what our product will be of good quality. We just don't want to launch something that is not working well. As you know, since again, you know that you order through the white website, we want to make sure that our expectations on the customer standpoint will be on. So, and the price differentiation is certainly considering, you know, this, this aspect of the business.

Stephanie Price: I don't know if you have other things to add. You just simply to say that, you know, Stephanie, there's very little difference. Of course, you know, excluding the introductory pricing, of course, of fifth as we, as we, as we did in Quebec and we did in English Canada, we, we offer, you know, during the beta phase introductory pricing. Now that that's gone. You know, the pricing is slightly, we're pricing is slightly under, under freedom, but not a heck of a lot.

Stephanie Price: So there, there's, you know, there's little potential or risk for, for, for re-bricing really, you know. And as Beck out said, it's more, our approach is more there, there are different products, aims at different groups and different demographics. And, you know, we, I, I, we honestly don't think there's a, there's a huge re-bricing risk for, for freedom on that front. That's good color.

Unknown Executive: Thank you. And then just one more for me on the internet, bundling roll out in the freedom footprint. I think right now it seems like the freedom mobile customers that's only available in Ontario. Can you talk a little bit about the internet bundling strategy moving forward and any plans to offer internet packages to non mobile customers? Well, you go with this. No, it's, it's, it's offered everywhere. So it's not only in Ontario.

Unknown Executive: We are starting though to your point. We are starting and have been in our still focusing on our base on a wireless base. I mean, that's where, you know, we, we, I mean, that's, that's the opportunity for us at this point. And we haven't, you know, maximized it. And I think it's from a strategic standpoint and from a disciplined rollout strategy, you know, we, we're still on that, on that huge opportunity that lies with our current wireless customers.

Unknown Executive: And then we'll see how we explain if and when we, we expanded from there. But, but right now it is available everywhere focusing on our, on the, you know, on that that sizable opportunity. You know, within our, don't forget that that's one of the opportunities we had outlined that we had, we had seen from the beginning when we acquired freedom is that freedom. You know, a lot of people, especially in the target markets in the, in the, in the, in the target demographics and geographies of freedom are looking for a bundling deal.

Unknown Executive: And we had nothing to offer them. So now I think this is the opportunity we put in place and we're going to start working on that. And it's obviously also you will have, you will have understood that it's a, it's an important turn play for us to, to obviously keep these wireless, well, these bundled customer and lower our turns as opposed to having only one product in their hands. Thank you.

Aravinda Galappatthige: The next question is from Aravinda Galappatthige, please go ahead, from Catacort. Hi, thanks for taking my questions. Two for me, first of all, Pierre Carl, you talked about stability of churn in the wireless business. I thought that was interesting, given what we've been seeing across the incumbents. Can you elaborate a little bit on that? Are you referring to churn across the market? Is there a sort of segment of your wireless space?

Aravinda Galappatthige: Particularly maybe it's poor spade. I was wondering if we can build a little bit on that for us. And secondly, I was wondering if you can give us a sense of the wireless epic development in Q2, just so that we can just remodeling purposes. Thanks. Good. Well, you know, we've been seeing, you know, since the lap of the 10 days, last 10 days, the churn of our competitors have had increased. Well, certainly, again, it's the reason the competitive or the consequence of how competitive is the market.

Aravinda Galappatthige: They've been offering themselves prices much below that the historical output. So what do you know today? You know, they will create a direct effect on them. Will this continue? Will we see how, you know, they will position themselves in the future, regarding pricing? We can consider that we pricing for them have been costly. Will they continue to do so? This we don't have an answer. But again, as we said earlier, you know, we'll be ready to all sorts of environments.

Aravinda Galappatthige: From our perspective, from our standpoint, since you know, we are through freedom was lower than the competitors, adding a stable one. And since our pricing is not significantly or complete difference where it was before. Then the effect is not creating any income disease. So maybe to, but this is something that as you know, you don't break down. But, you know, we have a blended our people or Canada. Certainly, you know, could be different from one region to the other, but we're not going to go there.

Aravinda Galappatthige: What we expect in the future is to continue given the actual environment to see our art in the same kind of rocket that we've been seeing. And we look forward to figuring out that, you know, a bit strategy. I've been, as you've been saying, and you've been also saying quite successful with the number of RGUs that we find for the board. I don't know if you have anything else to add.

Unknown Executive: No, I think on that question that covers it.

Unknown Executive: I'll just, Aravinda, answer your second question. You were referring to, I think, to the, you wanted to do the wireless EBITDA, which is $254 million for the quarter, a 1% increase over last year. So still an increase over and above what we've talked about, you know, knowing that we've invested more in our rollouts and our branding, our advertising, and also absorbing more of the, the roaming cost in our packages. So over and above all of this, still an increase to $254 million in the quarter. Thank you very much. I'll pass the line.

Unknown Executive: Thank you.

Tim Casey: Our final question is from Tim Casey, from BMO. Please go ahead, Tim. Yeah, thanks.

Tim Casey: Good morning. Could you talk a little bit about what you're seeing in back to school so far, since you've introduced the new plans? And, you know, in the past, you've said that back to school is not as important a promotional season for freedom as others given pricing. I'm just wondering how you're thinking is evolved there. And do you feel that the addition of North American roaming packages, is that something the clients or your customers are responding to, or is it just a mix of all the different channels and offers you have out there? I'm just wondering how important that is.

Unknown Executive: And then, Hugo, second one for you, in the prepared remarks, you talked about how on the media side, television is still negative extra gain. But, you know, that was a pretty decent improvement in EBITDA. Is that being driven by solely by restructuring? Are you seeing better financial results out of your non-television businesses on that line?

Unknown Executive: Thank you. Hi, Tim. Well, quickly, you know, regarding your questions, regarding the TVA. I mentioned that we've been seeing a much higher activity in our studio business. We've been doing business with Apple for a motion picture and Skydance, which we're now all over. So that helped us significantly. The advertising market had been continued to be tough. And we've continued to face a more decrease on that side of the business. And all the structuring plan is moving ahead.

Unknown Executive: Quite quickly, we've been almost out of our historical building on the summit on the river. And out of all production matters, other than the news and the morning show, we move in the former building of the Ramanda Moya, which is more recent than New Year going to manage. So we look forward to get all our people by the end of September and early October and being able to finalize our total restructuration in terms of employees, which was announced earlier. A couple of months and before. So, we expect, you know, despite the advertising market to continue to be tough, you know, an improvement from where we were previously.

Unknown Executive: Would you talk about your questions with I think Telecom? Yes, absolutely. Yeah, so back to school, I mean, it's still early, of course, we've, we've just, you know, launched the, our various plans and, but it's starting to, it's certainly starting to resonate and my comment and the best Tim, I think obviously has to do with, we were more disciplined, I think last year than, and perhaps the market in general was more disciplined last year than what we had expected.

Unknown Executive: It's still, I mean, back to school for us is a huge opportunity. So, we'll see how collectively disciplined we are, we are this year, but I think, you know, the signs from us certainly didn't, didn't light the fire, and we're not alone in it, so we'll have to see our competitors react, but the one thing I would point out as we, I think, have, as we've pointed out in our, in our scripted remarks is that, you know, you guys are aware, I'm sure, that the fighter brands, you know, Bell and tell us as fighter brands are in the market right now and have been for a few weeks at even lower price points than, you know, than freedom.

Unknown Executive: So, we'll see, we'll see how that evolves, but we think that our plans for, and our strategy for back to school is a good one and one that will resonate where we will, you know, pick up some, you know, some profitable growth there. So, you know, we'll see, obviously, we're not in a vacuum, you know, we'll see how our competitors are, our competitors react, but right now we feel that we have the right differentiation from our, from our competitors and that we should be, we should certainly should be a successful advice here and maybe more, you know, and differentiation, of course, I'm referring to our, you know, our, our roaming packages in the US, Mexico way, et cetera, et cetera.

Unknown Executive: So, that's, I think, yeah, does that answer your question? I will, I will ask him, you know, to, the finish and our conference call that then, you know, again, all the elements that we've been providing to our customers, which before, you know, the customer shows us the quality of our product. It is, you know, can you ask, it is, can, North America, it is roaming beyond all those things bring something that we can consider value at it and seems that this is what all Canadians are looking for, certainly a good person of them and I guess that this is not really different than anywhere else in the world, if you can bring a better product at a better price, then, you know, you're going to be able to be successful.

Unknown Executive: And finally, I would say, you know, on the back of school, we've been seeing, and I mentioned it all, so you know, crazy things. Do we expect to go there? I would say that, you know, with what's free them, after the, the famous formula, it's everyday little price, you know, and it's not something that, you know, we're not focused for two weeks, and came back, you know, two months later, with a price increase.

Unknown Executive: If a matter of credibility, we've been able to establish our credibility, and at the end of the day, I would say it continued to work, which would have been successful and it would continue to use the recipes that we got us there.

Unknown Executive: Good, well, we thank you all for attending our conference call, and we look forward to it to talk to you about our next quarter, so have a nice end of the summer. Thank you.

Unknown Executive: Ladies and gentlemen, this concludes the Quebecor Inc. Financial Results for the Second Quarter Conference call.

Unknown Executive: Thank you for your participation and have a...

Q2 2024 Quebecor Inc Earnings Call

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