Q1 2025 Quebecor Inc Earnings Call
David McFadgen, Matthew Griffiths, David McFadgen
Ladies and gentlemen, welcome to this Quebecor conference call. My name is Hickey Maher, I'm the CFO and joining me to discuss our financial and operating results for the first quarter of 2025 is Pierre-Calpiedadot, our President and Chief Executive Officer.
Anyone unable to attend the conference call will be able to access the recorded version by logging on to the webcast available on Quebecor's website until August 6th.
this year.
As usual, I also want to inform you that certain statements made on the call today may be considered forward looking, and we would refer you to the risk factors outlined in today's press release and reports filed by the corporation with the regulatory.
Authorities. Let me now turn the floor to Pieszka. Let's see you again, good afternoon, everyone.
Pierre Caron: I am happy to report once again solid operational and financial results for Quebecor in the first quarter of 2025.
Pierre Caron: Solidative basis of the first quarter of 2020, huh? It's actually the meeting.
Okay, I will continue, I guess.
Pierre Caron: So, in a consolidated basis in the first quarter of 2025,
to $420 million.
Pierre Caron: In a CPTOX-Tooting Stock-based compensation by 13 million or 2% to 569 million, and its adjusted income from operating activities by 22 million or 14% to 185 million.
We reduce our debt by $155 million in the border.
Pierre Caron: and Dustin Poov, our net debt evid door ratio to 3.26 times.
Pierre Caron: The lowest leverage of the Canadian industry while investing more than 146 million in capital expenditures to continue to improve our network and invest in growth projects.
Pierre Caron: I will now review our operational results starting with our telecom second.
Pierre Caron: A strong start of the year for us to do at home for the men and the kids.
despite the generally slower quarter, lower immigration level.
Pierre Caron: especially in the Freedom of Footprint and on-rooling pricing strategies from our competitors, particularly in March.
Pierre Caron: We stay on course with our effective discipline execution, reacting and adjusting, still gaining traction and increasing our share in ads, as shown by our 54,000 net new lines in the quarter.
Pierre Caron: From 48.8% a year ago, to 50.1% in Goodpart due to a 13 million increase in growth margins on customer equipment of setting the unfavorable impact of a 7 million increase in stock-based compensation. Aravinda Galappatthige, Maher Yaghi,
Pierre Caron: Our mobile art would continue to decrease, but improve our sequential performance with a $1.3 $1.63 decrease in the first quarter, compare with a decrease of $2.97 for the same period last year.
Pierre Caron: We expect this grant to continue this year as we continue to optimize.
Pierre Caron: The market positioning of our various brands, to mitigate the dilutive impact of the pre-prote services of FIDs and focus freedom on richer plans and new initiatives that will continue to solidify our customer experience.
Pierre Caron: After announcing early in the year, a major upgrade to its mobile health services by including state-of-the-art 5G-plus technology to all monthly plans.
Pierre Caron: Briden Mobile began the gradual deployment of 3,800 MHz spectrum across its 5G-plot network in Ontario, Alberta and British Columbia.
This is the Spectre of the Blindness.
Pierre Caron: Both Significantly Upgrade Freedom Network Capabilities, allowing customers with compatible 5G plus devices and plans to enjoy faster connectivity, resulting in a richer and even more seamless
Pierre Caron: This is also coming after the extension of their Rome beyond plans to over one hundred global destination, which is also the case for the total custom.
Speaker Change: These investments are clearly having a significant impact on our absurd.
Pierre Caron: which continued to improve, to become not only our lowest sense, the integration of freedom mobile, but also the best of the industry, an exceptional performance, adding come from the IIS and the market two years ago.
Yatsanding improvement on our network coverage and performance.
Pierre Caron: is certainly the force behind actor and double, along with our superior customer experience, a sticky competitive advantage that I've maintained us at the top of the industry for many years at the Do-A-Tone.
Pierre Caron: Speaking of client experience, the total leaders in position have been recognized with many distinctive honours over the years.
Pierre Caron: Again, in 2025, our outstanding customer service is recognized in the 2025 Levy Reputation
Speaker Change: Deuteron was ranked the most respected telecommunication company in Quebec for the 19th time since 2006.
The impressive track record spanning over two decades.
Speaker Change: clearly demonstrates the power of our unique customer-sendering business model as we remain committed more than ever to continue to build on that standard of excellence which defines us.
Speaker Change: Even more remarkable is the performance of our three mobile brands. You do it home, freedom and faith. In the latest mid-year report, released by the Commission for Complaint for Telecom Television Services, the CCTS.
Speaker Change: While the volume of complaints flawed by the CCTS for the industry as a whole, the earlier rate by 12%
Speaker Change: Our three brands remain staying, which resolved in a lower proportion of the total industry for each of that. Both don't believe freedom mobile continue to improve significantly.
Speaker Change: Rita and Vince Performance is even more noteworthy given the major cross-Canada expansion of both brands and particularly the substantial growth in the subscriber base.
Speaker Change: Along the long-standing success of Fifth Mobile and Internet Services in the province of Quebec, we launch our new Fifth TV and all digital television service.
Speaker Change: Now, available to all of his Internet subscribers and Quebec, this TV is differentiated by a pick-and-pay model that let users build their own TV plan, bringing back court cutters to the cable service.
Speaker Change: I would also like to play out the immediate success of our new illegal plot plot one, released in October 2024.
Consolidating our content off me.
Subscribe Birds, enjoy a non-mass virality of the French language content.
Speaker Change: With its an Anne Scadala, an improved user experience, Edith Colossus is becoming the obvious destination to enjoy local original production.
Turning now to the media segment.
Speaker Change: CDL Group reported a negative impact of 20 million in the first quarter of 2025, which is 1 million and last year in the first quarter.
Speaker Change: and primarily due to the continued decline in advertising revenues resulting from the worldwide media crisis.
Speaker Change: as well as the impact of fewer major flooring productions in male studios, despite significantly lower operating expenses, stemming from our ongoing restructuring plan.
Speaker Change: Even though Trivia Group remained by far, the dominant broadcaster network in Quebec, with a market share of more than 42%.
Speaker Change: The situation remains dire and we must double down on our efforts to reduce our operating costs and expand our resources of revenue.
Moral Raul, I repeat that the CRTC needs...
to set a fair and equitable regulatory framework.
Speaker Change: including a drastic reduction of actual financial, administrative and regulatory burden waiting on Canadian broadcaster, and set meaningful financial contributions from foreign online service.
Speaker Change: For far too long, these companies have enjoyed a non-do competitive advantage.
Speaker Change: Allowing them to access the Canadian Broadcasting Market, without contributing to it.
Speaker Change: while Canadian broadcasters have subject to numerous regulatory obligations, financial costs, and the lack of flexibility, that impact, or competitiveness, and for any.
in addition, as I have said, again, many times.
Speaker Change: The federal government must act quickly to reform Adju Canada and the CBC mandate and implement the numerous recommendations of the Yale Report published in 2020 in particular by eliminating advertising.
which is a private broadcaster, primary source of ribbon.
I will now let you review our detail for that short result.
Merci Pierre-Claude
Speaker Change: A consolidated basis in the first quarter, Quebecor reported revenues of a billion three, a decrease of 1% from last year. EBITDA reached 550 million, down 10 million or 2%, mainly due to a 22.5 million increase in the stock-based compensation charge across all of the corporation segments.
Speaker Change: Excluding this factor, EBITDA was up by $13 million or 2%, cash flows from operating activities and increased $31 million to $420 million of 8%.
Speaker Change: In our telecom segment, that total revenue is slightly decreased by 2% for the quarter, primarily due to lower equipment revenues as we have transitioned to renting our Helix devices.
Speaker Change: Additionally, mobile device sales decreased as we maintained a disciplined approach to subsidy management, which led to a significant improvement in gross margin on mobile devices.
Speaker Change: Importantly, we also significantly mitigated the impact of the declining trends of waterline services by cautiously increasing waterline prices in late 2024.
Speaker Change: Driven by these effective strategies, combined with our continued rigorous cost management, are even dying increase in the order by 6 million or 1% and by 12.5 million or 2% if we exclude the impact of the 7 million dollar in the case of telecom stock based compensation charge.
Speaker Change: Delicom CapEx spending, excluding the acquisition of a spectrum of licenses was up by $9 million in the quarter, as we delivered our guidance.
Speaker Change: in 5G and 5G plus network expansions, supporting our recent announcements combined with the rental of
Speaker Change: As a result, our quarterly adjusted cash flows from operations decreased slightly by $3 million or 1%.
Speaker Change: Armedia segment reported revenues of 165 million or a 2% decrease, a negative $19 million, $2 million unfavorable variance compared to the same quarter last year.
Speaker Change: Our Sports and Entertainment segment revenues increased by 6% to $50 million, and EBDAF was $3 million to the quarter.
Speaker Change: Quebecor reported a net income attributable to shareholders of $191 million in the quarter, or $0.82 per share compared to a net income of $173 million last year, or $0.75 per share.
Speaker Change: Adjusted income from operating activities, excluding unusual items and losses on valuation of financial instruments, came in at $185 million or $80 cents per share, compared to an adjusted income of $163 million or $71 cents per share last year.
Speaker Change: As at the end of the quarter, Quebecor's net debt to EBITDA ratio decreased the 3.26 times, still the lowest of all telecom operators in Canada.
Speaker Change: We intend to continue to deliver over the next borders and operate in the little threes as we have stated before.
Speaker Change: Our balance sheet remains the strongest of the industry with available liquidity of more than $1 billion at the end of the quarter. We thank you for your attention and will now open the lines for your questions.
Thank you sir.
Speaker Change: Ladies and gentlemen, if you do have any questions, please press star followed by one on your touch home phone. You will hear a prompt that your hand has been raised.
Speaker Change: And should you wish to decline from the polling process? Please press star followed by two and if you're using a speaker phone you will need to lift the handsets first before pressing any keys. Please go ahead and press star one now if you have any questions.
Speaker Change: And your first question will be coming from Maher Yaghi, Scotia Bank, Montreal. Please go ahead.
Thank you. Bye-bye.
Maher Yagi: Great, Matthew McFadgen. I wanted to ask you in terms of your subscriber loading and wireless, we saw a material increase in your net market share of net new ads in the quarter.
Um, um, um, um, Aravinda Galappatthige, Maher Yaghi,
Maher Yagi: He seems actually quite high and I was wondering if maybe we can get into a better loading versus pricing mix.
Maher Yagi: Any time soon, noticed also last week pricing in Canada on the flanker side came down again.
Maher Yagi: Your ARPU numbers will continue to be in the negative territory going forward.
Speaker Change: Thank you. Well, you know, you're supposedly better positioned than we are to find out because you speak with different operators in Galappatthige.
Speaker Change: What I would say is that obviously we all know that we're going to have a sort of mechanical effect because the watcher of our fifth breath.
I'm afraid it is delayed.
Pat is doing good, sorry, and badly.
You know what we introduce?
What we consider being a
It's like that of Fred.
Speaker Change: for the rest. We will continue to make sure that we work. We are going to be in the market place regarding pricing.
I don't think
Speaker Change: Any kind of nature that we are the one that is driving the market.
What we're doing is, again, improving our networks.
Speaker Change: investing in our customer service being more present in the marketplace than what Freedom
Do you think that we're marketing the brand, our service well?
and that's the results.
Abigail Leffery
Speaker Change: I don't know if you have any other comments that maybe you may have or you can [inaudible]
Speaker Change: So I was just on our view, you know, to your second question about, you know, the expectations, our expectations as to our view. I mean, you know, Maher, you know what? I mean, we're not the aggressor. I mean, you saw it in Q1. I mean, we did what we said we were going to do. That is, we...
The quarter is starting at 9 o'clock.
Speaker Change: started more disciplined, and then at some point the one competitor and the same until the end of the quarter kept...
Speaker Change: kept bringing Price down, so we responded it as we said we would, but we always responded with time limited promotions, as I'm sure you saw.
Speaker Change: The whole thing that composition was going to be a little more disciplined. I mean, other than that, you know, I mean, in that situation, of course, RQ is going to continue to...
to come down.
Speaker Change: Now I think our bath is still better than it was, than it was sequentially over the last few quarters.
Speaker Change: But, you know, who knows? It depends how a competition continues to react, you know? And in our case, it's turned with down significantly.
Speaker Change: and continues to be down significantly as the Jakobsin and his prepared remarks.
Speaker Change: Down to the lowest of the industry. So I think from our standpoint, we are executing well and will continue to do so. You'll just have to ask the question to our competitors. And excuse me, I'll start with that.
Speaker Change: Thank you for your answers. Just to follow up, you're already in the low threes in terms of leverage. You mentioned your goal is to be in the low threes and your distribution ratio is
Speaker Change: You know, it's still below 100%, so where are you going to allocate that extra capital if you're already close to your target in terms of leverage?
Speaker Change: Well, as I said, we are a little bit more delivering. We are close to the low threes at 3.26. I agree with you, but we would certainly at this point intend to continue to repay down debt somewhat over the next few quarters.
Speaker Change: Or on stock buybacks, which we can always flex. So we feel pretty comfortable as to our capital allocation going forward, but still a little bit more of reduction of debt over the next couple of quarters I would expect.
The opposite of our healing.
Speaker Change: This is what we did, you know, for the many of you who are required [inaudible]
Speaker Change: and in previous waters, we will continue to do this.
Speaker Change: Great. Thank you. I'll ask you the same question in six months. We'll see where we are then. All right. I'm counting on you
Aravinda Galapetich: Thank you. The next question will be from Aravinda Galappatthige. Can the court Toronto please go ahead?
Aravinda Galapetich: Good morning. I'm sorry I could have good afternoon. Thanks for taking the questions. I wanted to drill in a little bit with respect to the wireless gains. You know, we've obviously been seeing a movement to its prepaid when you track some of the incumbents. Are you seeing a similar trend when you sort of dissect that 54,000 or the mix that you've had has that changed dramatically? Maybe start there.
Aravinda Galapetich: No, in our case, the trend is that we're not seeing, I'll be honest, we're not seeing a drastic trend as,
Aravinda Galapetich: As our competition actually we're not seeing a trend at all, we've been both of our all three of our brands as a matter of fact are performing quite well.
Aravinda Galapetich: So there's no huge movement from one to the next, but all three are on different, obviously different.
Aravinda Galapetich: Gross Strategies, but all three are gaining, so we are seeing a very balanced growth between pre-paid and post-paid and we expect that to continue.
Speaker Change: and a little bit in terms of proportions and look for some reciprocity from the telco. More recently, is there any sign of that or is it pretty much as usual?
Speaker Change: Unfortunately, Aravinda, I wish I could say that we're seeing some more discipline in wireline and Quebec from Belle.
Speaker Change: I can't, and I'll point to a very recent, it's just what a few days ago were.
Speaker Change: last week where a three gig internet for $55 a month if you go on Bell's site, the same package in Toronto is $130.
Speaker Change: So, I think that speaks for itself. I don't know what else to tell you.
Speaker Change: Thank you. And just two quick questions, two quick counting questions I apologize, but just to get it in, one is on the depreciation. I mean there's a little bit of a step down there, more than 20 million dollars. Should we sort of base our future depreciation projections on that or is there anything unusual there? And then the TV sub losses slowed down considerably. I was wondering if there were any.
Anything I miss there, perhaps a reclassification? [inaudible]
Aravinda Galapetich: Aravinda, on the appreciation and amortization, we are, as you know, we have been over the last couple of years very disciplined in our CAPEX, and as you know, this brings, you know, this moves forward in terms of our depreciation and amortization schedule.
Aravinda Galapetich: So we have been trending down and we'll continue to trend down. So what you see, the trend you see in Q1 is one to be expected for the rest of the year in depreciation and amortization.
Speaker Change: In terms of TV net ad, we were obviously, and we set that in our remarks held by the fact of the launch of a 5th TV, and I'll be honest with lower margins obviously, we're still in launch mode.
Speaker Change: So that helped on that. The launch of Eddie Popluss as well.
Speaker Change: which we mentioned was also a big plus for us. So these are the moving...
the moving forces in the NTV net apps.
Great, very helpful. Thank you. I'll pass the line.
Speaker Change: Thank you. Next question will be from Matthew Griffiths, Bank of America Toronto, please go ahead.
Oh hi, thanks for taking the question.
Speaker Change: My first one is just on turn. I understand obviously that it's down year over year. I was wondering if you could quantify it at all so we could get a sense of how much of an improvement you're experiencing. And maybe if you could elaborate on...
Speaker Change: You know, what the historically the main drivers of term been things like Bill Shock and-
Speaker Change: I'm sure customer service is one, but I'd be interested to hear your thoughts on that. And then just an accounting question, if I could, as you're deploying the 3.8 spectrum,
Speaker Change: Should we expect any kind of noticeable material shift in kind of capitalized interest to interest expense kind of as you go through that process? Thanks.
We're mentioning earlier regarding the latest role model.
Speaker Change: It's important which we are, I guess, able to slow down or to reduce the fact that our customer experience has been all the time and again it shows, you know, in the different surveys that we are running.
Speaker Change: So it's it's it's the kind of thing that we're offering compared to the competitive with not able to do so or is trying to do so but never been able you know to really deliver it on day.
Back to the course of during increased.
Speaker Change: I understood the churn declined year over year, but your thing churn increased.
Speaker Change: No, no, no, no, turn decline, decline, our performance, like I said, our performance got better.
Speaker Change: Okay, maybe I misunderstood. Okay, sorry, I didn't mean to jump in.
Speaker Change: Oh, that's fine. As to your second question, on 38, capitalized interest, I don't expect
Speaker Change: Honestly, I don't expect any things specific on this map. Okay. And I'm on capitalize interests continuing. So I don't, I honestly can't think of many things.
All right, I appreciate it. Thank you
Speaker Change: Matthew Next question will be from Stephanie Price, C.M.B. C. Toronto, please go ahead.
Good afternoon.
Speaker Change: So, as you mentioned, you've prepared remarks. You've launched Fizz TV in Quebec and then Freedom Home Internet in a few provinces. Hopefully you can talk a little bit about the bundling strategy for freedom and Fizz brands and what you're seeing in terms of uptake and what's next in terms of bundling strategy.
Speaker Change: It reminds me of the kind of conversation we had in front of the competition bureau.
Speaker Change: Stephanie will probably remember when this was taking place, that the management of the bureau was saying that we're not going to have something that is covering the public capacity that will disqualify.
Speaker Change: the new owner of Freedom Mobile to be competitive with other operators.
We've been, you know
Speaker Change: being able to be even a TPIAA and Quebec when we started.
Speaker Change: and servicing. I'm not sure that you remember that before building our network in the region called EBITB, you know, we were at TTIA, if it's been able, you know, to serve our...
Speaker Change: New customers down the road with a TV service and an internet service.
Speaker Change: So when we said that we're going to be able you know to deliver bundles in front of the bureau
We knew that when they are another, we'll go there.
Speaker Change: and why we will go there, because a few years ago, we bought a TPIA.
Speaker Change: I guess that makes me worried. The first one to do this, this TPI was called the media.
And the media was…
Who's part? Not because it was a TPI. [inaudible]
Speaker Change: It was a TPI, but I would say a TPI plus plus plus because the technology that they were proposing was a deliverer for us folks.
Delivering Procedures, who will be able to offer television and internet.
Speaker Change: and also elsewhere, as I mentioned earlier, to be able to offer a bundle service.
Speaker Change: And we look forward to get a certain portion of the market being interested in that kind of proposal.
Speaker Change: As of today, it's too early to be able to deliver comments, but we look forward to see that service being interesting again for a certain segment of the market.
Speaker Change: Thanks for the color. And then he's maybe one for you, just on telecom adjusted either to margin. It was up year over year and ahead of the street. Just curious if you could talk about your ability to continue to ring costs out of the telecom side of the business here.
Speaker Change: Stephanie, you know, there's always, are saying here at Quebecor is that there's always [inaudible]
Speaker Change: More potential for cost savings and cost reduction. Of course, as I said before, it always becomes a bit of a law of diminishing returns over time as we've always been very disciplined and very good at it.
Speaker Change: and we don't have the pockets of opportunities that maybe some of our competitors have.
Speaker Change: But there's always more you can do everywhere and it's been our approach for many, many years as you know.
Speaker Change: and we continue every week, every month to continue to look for opportunities of cost reductions and you know what, when you look hard enough to find.
Speaker Change: And one last point is that don't forget that our synergies with the integration coming from the integration of freedom have not yet all fully counted in.
Speaker Change: as some of these, for example, in IT and other areas when you, you know, you have to wait until these.
Speaker Change: Combine and save money. So this is an ongoing exercise, but you can count on us to continue to push us as much as, or as strongly as we have in the event.
Speaker Change: So that our competitors are using the new buzz words, you know what's the new buzz word is all about me.
IEI or AI or AI. So, yes, obviously, you know...
Speaker Change: We're looking at a certain solution that is offering the capacity to automate certain hour of our process. Yes, to me AI is...
Speaker Change: The potential you have to increase automation, which at the end of the day is reducing the expenses that we're forced to face, running a telecom business.
Thanks for the colour. Thank you. Thanks for the question.
Next question is from Jérôme Dubreuil, Desjardins, Montreal.
Speaker Change: People are welcome. Thanks for thinking my question. Kind of a similar line of questioning that as Maher started with.
Speaker Change: We've been talking a lot about the perception gap that still exists between your brands and your peers brands. Now you're talking about having an industry-leading turn. I wonder if you're still thinking that you have this kind of perception gap versus the other brands we see in the market.
Speaker Change: Well, I guess that, you know what we can say on this, if you're always that, you know, we heat.
The one brand that, you know, we're working on.
More than other because
This is the one we acquire, then.
We know that we will face some issues so we can...
We're addressing them.
Speaker Change: What we're trying to do, and I guess that you know we're achieving it, is to say that freedom mobile is a quality brand, is a product that is able to deliver not only prices but also quality.
Speaker Change: with the different other proposals that we've been able to offer, I think of Rome beyond. In fact, I guess that we should mention that once again we've been the operator introducing
innovative proposal.
Speaker Change: and we will continue to do this, and by doing so...
Speaker Change: I think that we're improving significantly the image of this brand that would not consider the premium brand.
Was it considered a low-end? [inaudible]
Speaker Change: Yes, we would not be able to deliver the amount of new subscribers.
Speaker Change: without being able to deliver new segments of population and then improve it.
We just announced yesterday, you know what?
Speaker Change: Big partnership with the Calgary Stampede, so we're going to be the largest sponsor of the event.
We did the same in Vancouver with the... [inaudible]
The P. N. E., which is the Pacific...
Speaker Change: Exhibition at the National Exhibition, so we're going to have a naming right on the, I do, uh...
amphitheater or stadium kind of stadium stage.
Speaker Change: Stage in Vancouver, so I think that we're doing the right thing, you know, to get this plan and this this
did serve as better known and better appreciated.
Speaker Change: Yeah, makes sense. The follow-up for me, Capix has been accelerating a bit on the telecom side. I mean, that was expected, but I'm wondering if there's any learning so far and if you're able to improve cash margins in some instances versus maybe the MVN model. Thank you.
Speaker Change: No, the CapEx, as you said, was expected. This was, we're on plan.
Speaker Change: There's no, you know, we're at the early stages of, of, of considering some, some network extensions and some in some areas, but nothing has been.
Speaker Change: We're still at the very beginning of that phase. It will get done as we said many times over time, where it will make sense for us to build, where we have built enough business and enough cash coming in.
So, we're staying on planned schedule. Aravinda Galappatthige, Maher Yaghi,
Speaker Change: Don't worry, Jerome, we're not gonna fall in love with technology. You're gonna fall in love with technology.
We've been seeing some operators [inaudible]
being in love with 5G.
Speaker Change: and increased significantly their capital expenditure to try to be the first and the only player in 5G.
Speaker Change: I guess that what we've been seeing down the road is that they were not able to deliver any improvement in terms of hard-loving people that have turned to additional subscribers.
Speaker Change: So I guess that, you know, we should learn. We don't need to learn because we've been not there, but we've been learning from our competitors perspectives, which opportunity for them didn't really deliver.
Appreciate it, Mephic.
Thank you all. Next question.
Speaker Change: Next will be Vince Valentini at TD Cowan Toronto. Please go ahead.
Speaker Change: Sell some of their their towers, and with a business plan deliberately intending to add more players and capacity under those towers, would that change your capex outlook at all make things even better potentially as you start to analyze those MVNO regions gradually hue?
Speaker Change: Yeah, and Vince, while it's interesting, I never remember thought that, you know, that could be the situation because then, you know, I'll tell you that I will be very surprised to see this happening.
Speaker Change: But I guess that obviously, if this was to take place, we'll look at it, and we'll figuring out, you know, if it's...
Speaker Change: We guard spectrum in the western part of the country which will...
Speaker Change: Obviously today, it's an improved aspect, but we're ready to use it to expand, and there we go, without being historical operators, like the ones that require it.
Speaker Change: with freedom. So we'll see, you know, what's going to take place. I think that, you know, you've been you guys in the market saying that why this is not taking place in Canada where everywhere in the world you've been seeing.
No company, nor operator selling the infrastructure too.
Speaker Change: So, financial, it's a financial, it's a financial play, we should not accept anything, if it takes place, we'll review it with the proper attention.
Go back to that a little bit, yeah sure good, instead of that [inaudible]
Speaker Change: As you know, Vince, we're already renting on a number of hours. That's already something that's happening. It's not...
Speaker Change: It's not pervasive, but it certainly is something that's already happening.
Speaker Change: We will continue as Jack Allen has said to look at the best financial option for us between renting, building, sharing. The one thing that has been very clear for us for many years is that we do not intend to do any off-balance sheet.
Speaker Change: Deals, especially ones that aren't clear to the market before we announce them, but I'll stop there.
Speaker Change: I'll say a bath of all the analysts. I appreciate that. We've got enough modeling to do on on that front. The
We'll try to understand also.
The...
Speaker Change: I have a question to go back. Again, I'm going to be going back to something you talked about earlier just to circle back on a couple things. One is the outlook for wireless R-Poo.
Speaker Change: So I'm aggressive pricing behavior later on in the quarter that as you noted you were forced to respond to have you seen a little bit better market activity that may avoid that type of pitfall in price aggression so far in the second quarter.
No, unfortunately not Vince, it's been, it remains very competitive.
Speaker Change: Um, I mean, we'll see. Again, the first quarter changed pretty much on its head, at the...
Speaker Change: towards the end of it. So I guess they're still hope that it might change the other way in Q2, but who knows? As we keep repeating, you know, the answer to that question is not in our camp because we will not be the aggressor, but we will respond. That's all.
Speaker Change: There's no change, there's no point. Vince, the only thing Vince I would add is that our handset subsidy, as you saw, is way down.
continue to be disciplined on.
Speaker Change: Step-ups, a lot of the freedom customers were assigned up on plans that were at a certain rate and then after 18 months it went up five dollars. We should have laughed. Yes, that's correct. For some of them, we start with you guys.
Speaker Change: Well, yes, but as you know, at the end, it's all going to be a matter of where the market is at that point in time, but yes, theoretically you are in range.
Speaker Change: Except that as you know, it's a dynamic market. We'll see where the market is at the time of the $5 step up.
Speaker Change: and last one is on the cable business on internet revenue.
Speaker Change: It did improve in the first quarter versus the fourth quarter, but...
Speaker Change: Only by 2.6 million dollars. Is that in your mind the full extent of the benefit of any pricing changes that happened in December or is there some sort of lag effect where we could see a bit more of an improvement on internet revenue in subsequent quarters? No, no, no.
Speaker Change: continues to be very competitive and increasingly competitive on all. So that certainly isn't...
Speaker Change: It's pushing the other way, obviously. So, no, but specifically on your question, the price increases are in, and they were in for all of Q1s, so I don't expect any more backwind from that in Q2, no.
Okay, that's all for me, thanks.
Thank you, Ed.
Next question will be from Drew McReynolds, RBC Toronto, please go ahead.
Drew Mcreynolds: Yeah, thanks very much. Good afternoon. Free for me first to and then I'll ask my last one. You just on.
Drew Mcreynolds: An update on kind of market share, wireless market share outside of Quebec, so effectively in Ontario and Western Canada. Are you able to give us broad strokes on where that would be?
Drew Mcreynolds: Beckand, I know it was last quarter just your confidence in turning Telecom Remedy, you grow positive at some point in 2025.
Speaker Change: Well, sustaining either Dubreuil, which obviously was really good here in Q1, is that something you're still confident in? And then I'll just ask a third at work. Thank you.
Well, on, on market, um,
Speaker Change: On market share, in Ontario, we have a bit of a higher market share, and let's call it in the mid-teens or thereabouts, probably, with a lower market share out west as we had not focused on this.
Speaker Change: at the beginning of or immediately after the acquisition of freedom, and we have since allocating [inaudible]
Speaker Change: West. So it is that they are both growing, but I call it generally speaking out to the west of Quebec and the low teams is probably how I would...
Speaker Change: I would give you in terms of market share. Your second question was Equipment Revenue, is that what you asked, right?
Speaker Change: Just your confidence in getting telecommunications segment revenue growth back to positive and just an ability to sustain the low thing of the giddy but dog growth that we found to want.
Speaker Change: Yes, yes, yes, we are absolutely confident on, especially on the equipment sites so yes, due to the equipment sites so yes, the answer to your question is yes.
Speaker Change: previous questions in and around, or wireless, your volume kind of versus our poor growth versus profitability balance.
Speaker Change: The Big Three, but just across the board, and Q1 clearly, you did very well on the volume side and you are making progress, obviously an R-Prob, but it's still down pretty significantly. I'm just wondering, is your $5 discount and I know I'm simplifying it.
Speaker Change: Bill Required, would you narrow that up, get less volume, but get better financials, if the gravity is just inherently poured in, not just towards you, but towards the discount or flanker, or freedom, end of the market. Just wondering what your thoughts would be there. [inaudible]
Speaker Change: Drew, on that, you know, we, I don't know how else to say it, we said and we're continuing to say that we need a price advantage.
Speaker Change: To continue, we're on a market share game, obviously. We're here for the long term, we're taking the long term view on this and to continue to be a force long term.
Speaker Change: We need to pick up market share, you know, low teams or whatever we were discussing a few minutes ago is not enough, we're clearly on a path to higher market share than that.
Speaker Change: as well. You know, we are building, as Jack has said, we're building our customer experience, we're rebuilding a freedom's customer experience.
We're improving our network.
Speaker Change: and some other areas as well, so we're continuing on this until we get there.
Speaker Change: So I don't know what else to say to you, but to talk to you or to your other clients.
Speaker Change: and then try to get some logic into them, which we believe that there is, if there's more disciplining, there's room for everyone, and...
Speaker Change: And then, you know, maybe we would have done less than 54 and more RQ, that's true. And we would have gladly accepted that if it had been reasonable.
Speaker Change: But the answer we felt at the answer to our pricing by that competitor, which shall remain nameless, in March was unreasonable.
Speaker Change: Anyway, yeah, no, understood. You can thank for that additional granularity.
Speaker Change: Thank you. Thank you, Drew McFadgen. Next question will be from David McFadgen at Cornmark Toronto. Please go ahead.
David Mcfadden: Thank you. I'm just looking at the subscriber trends on the internet on the TV side. I'm just wondering if you could give us some sort of color on is your success. I'll try to go back because that's starting to have an impact here. I was just wondering if you could write some color. Thank you very much.
David Mcfadden: Well, yeah, the impact of Bell and Quebec, you're talking about internet, sub of them Quebec, right? No, no, I mean, you know, because you're bundling all of the freedom of home internet and the government, yeah, yeah, for it is that.
Pierre-Karl Péladeau: Yeah, I got mentioned it a little bit earlier. It is, you know, bundling was clearly a key strategy for us at Freedom based on our success in bundling at Vidutron for many years. And we were very happy to be in a position to launch it very quickly, but it's...
Us being too aggressive on that, so it has...
Pierre-Karl Péladeau: Certainly worked on from a chance standpoint, obviously based on our numbers, but it is a bit early for us to claim victory on that one and we will continue to remain small and it to be quite honest and we will continue to develop it.
Okay, all right, thank you [inaudible]
Thanks, David.
Speaker Change: And our last question will be from Tim Casey at BMO. Please go ahead.
Speaker Change: Yeah, thanks. You mentioned Fist TV's in promo when you've got another a few other.
Speaker Change: sort of bundle options. I'm just wondering you're thinking about, one, are these promos, are they really just so small in terms of sheer volume that they're not impacting margin and do you expect them to be a margin drag at some point or are they really just around the edges?
Um...
Speaker Change: Well, as volume picks up, I think it would be incorrect to me to tell you that they will not have an impact. Obviously, we manage all of our promos to make sure that we limit.
Speaker Change: The Impact on Margin, and with a view to him, increasing prices.
Speaker Change: Ultimately. So as it works out the way we intend, and we believe that the we're launching promos in the right, you know, in a discipline fashion.
It should ultimately build margin.
I mean, that's what they're intended to do, and we, as we know, we can't control that, and sometimes it...
Speaker Change: It blows up in our face a little bit, but generally speaking, we have been, we have been, we have been improving as we are improving quality of the network and everything we've, we've talked about and these problems have become increasingly attractive.
Speaker Change: as you know, still. But we will continue to be quite disciplined to ensure obviously to lower the impact on margin, for sure.
Thank you.
May I wish you well, thank you.
Speaker Change: Thank you. Ladies and gentlemen, this concludes the Quebecor financial results for the first quarter 2025. Thank you for your participation. You may now disconnect.
Music
David McFadgen, Matthew Griffiths, Stephanie Price, David McFadgen