Q2 2025 Quebecor Inc Earnings Call
Good day, everyone, and thank you for standing by, welcome to the Quebec Court, Inc, Financial results for the second quarter 2025 conference call.
I would like to introduce eximo. Chief Financial Officer of Quebec core Inc. Please go ahead.
Ladies and gentlemen, welcome to this Quebec War conference call.
I'm ER and joining me to discuss our financial and operating results for the second quarter of 2025 is pakal. Pedo our president and chief executive officer
And you want unable to attend the conference call will be able to access the recorded version by logging on to the webcast available on quebecers website until October, the 10th of 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 Authority.
Let's now turn the the floor to get out.
Again, good morning everyone.
So, I'm happy to report once again, solid operational and financial resolves for Quebec war. In this second quarter of 2025.
We're continuing to deliver on our expansion plan quarter after quarter growing, our wireless market share across Canada generating, consistently strong, cash flows, and reducing our leverage to maintain the best balance sheets of the industry.
On a Consolidated basis in the second quarter of 2025.
Can I continue to improve all? Its key performance indicators?
Cash flows from operating activities improved by 146 million or 37% to 538 million.
IBA, excluding stock-based compensation, increased by $4 million or 1% to $605 million, and our net operating results increased by $22 million or 11% to $227 million.
We reduce our debt by 192 million in the quarter and thus improve our net debt, Evo ratio.
To 3.20.
Times.
The lowest leverage of the Canadian industry.
While investing more than 152 million dollars in capital expenditures to continue to improve our Network and invest in growth projects.
With our cash flows remaining very strong.
We are able to maintain the best balance sheet of the Canadian Telecom industry.
Without having to resort to Quick. Fixed, delivering debt or infrastructure transactions, which surely will ultimately prove more costly.
At Quebec, or we don't need to sell or pledge, our assets to generate cash, and to reduce our debt and leverage ratio.
We don't need to impair our future free cash flows with additional interest costs from bizantine Financial engineering structure.
We maintain complete flexibility to, to continue to pay and even increase our dividends, according to the board of directors policy, to continue our share buyback program, obviously to repay our debt and to invest even more in our networks to provide best-in-class Telecom services.
Regarding last night Announcement by minister jali.
Let me first say that we never supported the tenants of reducing competition.
But we should add.
And this is very important.
our positions remain the same and it's quite
straightforward.
Tpia.
Pricing.
Coast to Coast.
Independently of which network it used to provide the service?
Failure to do. So would create a non-fair advantage to some players in the Market at the detriment of others?
Which should clearly not be the CRTC road.
To be clear.
There is no reason why Western Canadians.
Should pay more for their internet.
We certainly make sure that they would not have to pay a penny more for their Wireless services, and we intend to do the same for wireless.
I will now review our operational results. Starting with our Telecom segment.
We are very pleased with the second quarter Financial results that you do at home and freedom mobile as we continue to improve our performance on key operational, Leverage
as we have said,
we remain disciplined on pricing of both Mobile plans and devices.
As a result, our mobile service, revenues increased by 26 million or 6% in the quarter.
Our strongest performance since we started lapping the acquisition of Freedom Mobile.
Desire revenues come from the addition of 346,000 net new lines over the last 12 months and also from our ability to manage our pricing strategies with a balanced and complementary position of our different brands.
As a matter of fact, with the mobile industry remain highly competitive,
we recorded the best performance of our Consolidated mobile rpu since the Acquisitions of freedom,
Post notably, it is the first quarter since the acquisition of Freedom mobile during which we potentially improve our R2.
From 34.31 at the end of March 2025 to 34 and 35 cents this quarter.
On a year-over-year basis.
Our mobile R pool.
Decreased 97% this quarter compared to a decrease of 2 dollars and in in 40, 45 45 cents in the second quarter last year.
Clearly demonstrating our effective mitigation of the dilutive impact of the prepaid services of Fizz and freedom through a balanced and coordinated development of our 3 brands.
At current pricing levels. Our Wireless sales are accretive to our food.
this is quite the opposite in wland and Quebec by the way and where we are our main competitors have been offering
And what we can call know. So subtile way prices that are diluted to everyone in the market.
We're happy to have added 72,000 new, net, new lines to our Mobile customer base in the second quarter.
A very strong performance, considering the software market growth conditions this year.
Again.
there is no magic in this, our continued Superior growth come from a balance and complimentary pricing and positioning,
With our tree brand.
Going forward, we will continue to focus on the richness of our plans, on our Superior customer experience, and on new initiatives that will solidify our competitiveness and our Market position.
While the competitive landscape has recently shown some signs of stability and discipline.
It will be key to see how it evolves over the next few weeks. And we're still seeing some of our competitors Target customers with very aggressive.
Hidden. But
Really not. So in an offers, not available to the broader Market.
As we are entering the back to school promotional period.
Keep a steady journey level.
Stay questionable.
Now, the lowest of the Canadian industry and a significant improvement over the second quarter of 2024.
In our line.
We believe things are starting to move in the right direction.
Our service revenues continue to decrease, but the second quarter shows our lowest decline in over a year. And we are expecting significant improvements from new services, like Freedom, home, internet and Fizz TV.
We are also continuing to invest to provide our customers with our customers. I mean, with the best possible connectivity experience.
In June, we announced a major expansion of our Giga internet service throughout the province of Quebec.
Adding highspeed access to more than 300 5050 new potential households.
We also introduce our 2.5 Giga, the metrical speed internet access.
Powered by Judo to 100% fiber Network. This new service is available for several regions of the province of Quebec for the footprint continuing to expand over the next month.
With these significant investments and improvements to our fiber network.
We are delivering our ongoing commitment to provide our customers with state-of-the-art advanced technology.
And to always give them more for their money.
Turning now to our media segment.
Generated IBA of $2 million in the second quarter of 2025.
A decrease of 11 million dollars compared to the same period in 2024.
This is mostly due to a one-time, favorable real retroactive adjustment of $10 million related to LCN Channel royalty recorded in Q2 202024, as well as the impact of the absence of major foreign production being filmed at our Male Studios.
What did they all remains number 1 by far in terms of market share in Quebec?
But cannot stop or even alter the generalized brand of declining over the year audiences which lead to Falling advertising revenues. The only Revenue stream for the conventional broadcast
cost savings.
Resulting from our recently implemented restructuring measures.
including those related to work, force optimization
help us absorb this sharp, and continuing decline in advertising Revenue,
But the situation remains dire.
And the Quebec audio visual landscape is at risk.
Especially in light of major competitive. And balances, is that the global web Giants and the business practices of gradu Canada.
As I have said, many times.
It is imperative that governments step in quickly.
To correct these imbalances.
Because the future of Quebec television is at stake.
I will not let uh, Hood review our detailed Financial results.
On a Consolidated basis in the second quarter of 2025 Quebec or recorded revenues of 1.4 billion, a slight decrease of half a percent or from last over last year.
Ibida reached 605 million down 20 million or 3%, more than entirely due to a 24.2 million increase, in stock based compensation across all of the corporation segments.
Excluding this factor ibida is Up by 4 million.
Dollars or 1% and cash flow from operating activities increased. 146 million to 538 million up 37% compared to the same quarter last year. In our Telecom segment, total revenues remain stable at 1.2 billion dollars for the quarter, mainly due to the expected. Decrease in wiring equipment revenues caused by the rental program of Helix devices established in June, of last year.
This will be our last quarter, having to overcome this transitional adjustment.
Most importantly, our total service revenues are back on the positive side for the first time after a year of declining trends.
this is truly the result of our effectiveness at mitigating, the impact of organic core cutting and shaving trends of wildlife services by cautiously increasing W line prices and by competing with improved Digital Services and new technological features
We Now, counter Wireline declines, with strong mobile, uh, Revenue growth fueled by significant customer growth, and buy a strategic Market positioning of our multiple brands.
Driven by these effective strategies combined with our continued rigorous cost management.
Our Telecom IBA increased in the quarter by $1 million and by $9 million, or 1%, excluding the impact of stock-based compensation.
Telecom capex spending, excluding the acquisition of spectrum licenses was down by 12 million in the quarter, due to the timing difference of mobile equipment, deliveries required for our 5G, and 5G Plus network expansions.
Considering the timing aspect of the situation. We are still looking at delivering, our guided capex, spending of 2025 and anticipate higher investment levels over the last semester.
As a result, our quarterly adjusted cash flows from operations, improved 14 million of 3%. In the quarter, reflecting a favorable variance, uh, in the capex spending that I just spoke about
Our media segment recorded revenues of $174 million, reflecting a 5% decrease, and an EBITDA of $9 million, which represents a $10 million unfavorable variance compared to the same quarter last year. Our sports and entertainment segment saw revenues increase by 13% to $52 million, and EBITDA was up to $5 million.
go back for reported a net income attributable to shareholders of 218 million in the quarter or 95 cents per share compared to when net income of 28 million or 900 cents per share last year.
Adjusted income from operating activities, excluding unusual items and losses. On valuation of financial instruments came in at 227 million, or 999 cents per share compared to an adjusted income of 205 million or 89 cents per share in the same quarter last year.
For the first 6 Months of the Year Quebec or revenues were down 1% to 2.7 billion dollars and ibida was down, 3% to 1.15 billion, dollars mainly due to a 47 million increase.
In stock-based compensation, excluding this factor, EBA is up by $17 million or 1%.
Ibida from our Telecom segment grew 2% and showed an improvement of $21 million over last year, again excluding the stock-based compensation.
As of the end of the quarter, Quebec course. Net debt to EBA ratio decreased to 3.200 times.
Still the lowest compared to the Big 3 competitors in Canada.
We intend to continue to deliberate over the next quarter and operate in the low 3s, as we are currently doing.
Our balance sheet remains very strong with available liquidity of over 755 million at the end of the quarter, following the Redemption at maturity of video trunks 5.625% senior notes.
During the first 6 months of the year, we purchased and canceled 2.6 million Class B shares for a total investment of 91 million.
And please note that the board of directors upon termination of the August 2025 program has 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.
Thank you, ladies and gentlemen, we will not begin the question and answer session. Should you have a question please? Press star. Followed by the 1 on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process? Please press star followed by the 2. If you are using a speaker-phone, please lift the handset. Before pressing any Keys 1 moment, please for your first question.
your first question comes from Mary yagi with Scotia Bank, your line is now open
You know, turn possibly into positive territory. And when you think about uh cable uh same question it seems like pricing has stabilized uh because of some of the adjustments you made the late last year on on rate plans. Uh how would you see the market right now in terms of uh price competition in Quebec? Thank you.
Uh, that's a pretty, um, long question but, you know, we'll try to do our best. Um, well, you know what, you're a little bit asking is again, you know, you're you mentioned yourself. It's I don't, I guess that. No, 1 have a crystal ball here. Um, what we've been trying, you not to mention, and, uh, during our intervention with the say, you know, there is some some Trends, uh,
That are taking place, uh, which seems to be as you would probably consider, you know, in the right direction. Uh, this is for sure, you know, the market was really competitive for a while but this was according, I guess to the new landscape, are we migrating to uh, another new landscape? Uh, again you know, we're not going to
Change our policy, not giving guidances. But, you know, the only thing that we can emphasize on is the fact that, you know, we're seeing trans different than the
Well, not as what we've seen in the past.
Maybe on the, I don't know. Um, if you have other things to say, uh, and address regarding, you know, the what we've been asking regarding the the cable pricing.
Um, no nothing. I think you've covered. I mean you know the uh the the the Improvement in stability is is is is certainly there. I mean, we don't know. As we've said, um,
How, um, how the rest of the year will share in Wireless as we're entering. You know, we are, I'm, I'm sure my, you know, we are entering the, the end of, uh, the second half of the year, which is traditionally, uh, more competitive. We'll have to see how competition, reacts on this. We certainly, as we have said, many times, do not have the, uh, the intention to, to become more more competitive.
Um, but we will, we will continue to to react to um, how the, how the our competitors will um uh, will go through back to school and then Black Friday in the end of the year. Uh, in terms of cable, um, the situation is is is continuing. We've we've said this many times, you know, Belle continues to be uh, extremely aggressive uh, on price, uh, in cable and internet and Quebec.
um,
And, uh, we we are, we are maintaining our, uh, response which we've been, uh, which we've adopted quite some time ago of, um, not responding, mostly not responding. Um,
And, uh, that's what we intend to continue to do because we just believe that when you run the map, um, it it it makes no sense collectively for, uh, for uh, for bail and ourselves, uh, to continue to be as aggressive in the market. Um, in the wild line Market in Quebec, uh, as they're continuing to
Okay, maybe so, um, on wireless if I can ask the question differently, how, how much of the 3% are put, the client is coming from repricing of the base versus lower prices for new.
Entrance entering, you know, customers in in your front bookie how much, you know, has a has most of your subscribers repriced at the lower current prices or there's still more to go.
There's still.
Obviously there's a lot and the numbers are showing mild that there's a lot less repricing. Um, and we are coming to that neutral point that we had been, um, talking about or maybe hoping for, uh, which is again, as we said encouraging, but, um, it has to it has to continue for, uh, you know, for the rest of the year to be uh, to be going towards. What we're you know, what you're talking about.
um,
See how it, um, how it continues to evolve, uh, as we said, for back to school and the rest of the year.
Good to hear. Thank you.
Hey, I had something there. You know, you know, we we refer earlier as being disciplined, um, but something I think that we should have, you know, we will always remain very disciplined on the cost side. Uh, making sure again, that, you know, we're looking and all what we can consider being, uh, something that we cannot optimize. We've been working like this, as you probably know, you know, for for a very long time and you do not intend to change our strategy regarding this side of the equation.
Next question, please.
Your next question comes from Matthew Griffith with Bank of America, your line is now open.
Hi, thank you for taking the question. So, you mentioned the expansion of the Giga internet service and, um, I think it was the, the symmetrical, uh, multigig Service as well. Can you comment on, you know, is is this done, um, as a response? Uh, competitively. Or is this something that you're seeing consumers now? Um, you know, demand these type of of speeds. Whereas in the past, uh, you know, their usage was Satisfied by kind of a much lower, you know, speed a lot and then just on
Wireless churn. Um, if I heard correctly, I think you said that in the quarter, you had the lowest churn among the wireless providers.
And I just was wondering, is that on a blended basis that you're comparing against the others? So if you look at Telus, for instance, they have like 1.06 churn, if I'm not mistaken, in Q2. So am I to understand that churn?
Right now is below 1.06, is that what you're communicating or is it for like a different? Is it on a different basis? It would just be helpful to level set that Congress.
I'll take the first part of the question and maybe on the turn side you can uh you can um, come in um, on the on the internet access. Um, we've been as the cable provider, you know, always in front of Technology, we've been offering a lot of the services
For different type of uh the market is more and more segmented. Certainly you know, people don't need as capacity and speed and others are asking for more. So you know, we need to make sure that you know, our product fit how the market segmentation works. And then therefore we've been seeing a trend where you know, capacity bandwidth and speed um is of
Something, which is in been asked so therefore, you know, we're making sure that, you know, we'll be able to service them with the kind of product that they're looking for.
and on um, on the churn on wireless churn Matt, um,
really on the Consolidated basis. We are now and that's why we're very proud and that's why we keep saying it. We, we are now amongst the lowest of the industry and very close to the lowest of the industry. And when we say, we are the lowest, we are referring to post pay, uh, but globally I think what, what what's coming out of this is, don't forget that we started not very, not very long ago, uh, with the highest, uh, Wireless churn in the industry by quite some margin. And, uh, are now very proud due to all of the factors that we've talked about many times, they improve of of our Network performance of our, uh, client experience, uh, of the agility of our marketing, uh, development etc, etc. Now we are uh, keeping our customers longer and uh, and uh, very, very close to, on a Consolidated basis. And, and uh, and very competitive on a, on a post-paid turn basis.
Okay, great. That's very helpful. And if I could sneak one other one in, um, Pierre, Carl, I think you mentioned about the financing that are going on across the industry. And so I wanted to ask specifically about the kind of, um, partial divestment of towers.
If this helps you in any way.
Well, you know what I was?
reading too, I guess that, you know,
We've been seeing, you know, competitors trying to reduce their their, uh, their leverage, their ratio, uh, with their operational, um, capacity.
Uh, and we've been seeing them not being able to do it.
Um, so you know, what? We can expect is that, you know, doing those transactions is actually provide them, the capacity of doing so, but only with financial engineering, not sure that, you know, this is the right thing to do, um, and it comes with a cost.
You know, there's so much a man can do and you know, you're going to have Financial interests, much more important in the future as we've been seeing, in fact with the numbers uh recently disclosed by our competitors and which are going completely the opposite of what we're showing we've been able, you know, to reduce our debt and at the end of the day certainly you know also reducing significantly the amount of uh interest that we're paying on an absolute basis. So I guess that if you don't need to do that and we're not, I don't think that, you know, we need to do it other than to impair.
Our capacity of generating better free cash flows in the future. Uh and this is not precluding us, you know, to continue to invest. We are generating enough cash to continue to expand, to continue to pay our dividend to continue to pay to, uh, entertain our share buyback program, and to continue, also, to reduce our debt
Okay, great. Thank you.
Your next question comes from your line is now open.
Thanks for taking my question. Um, first 1, um, just want to maybe be try again. Uh, on Matthew's question. Uh, basically, is it easier to deploy a network outside of Quebec, uh, with Telus, having opened its, uh, infrastructure
Um, thanks. Um
Um, well.
You know, we we, we should be honest here, right? Um, as you know, Freedom started, uh, in Ontario and, you know, they, they've been able, you know, to to grow their, their customer base, uh, strongly there, Alberta and British Columbia, which is, you know, the historical footprint of Telus. As we all know, had been second markets that had been um,
Next in line to uh where freedoms started. So our penetration there is is lower than what it is in Ontario. Uh, we always said and we're looking and we continue to look forward, you know to be able to package other Telecom Services. We've been doing it in Ontario and we're looking to do it, also in Alberta and British Columbia. I need to refer uh, to what I said earlier, in my prepared remarks, we don't see because at this stage, this is the situation why? Well, fiber.
Pricing.
Is higher in DC and Alberta.
And they are in Ontario.
so this is, you know what we've been
mentioning in front of the crdc, these are the representation we've been making for a while and we don't seem why this is taking place.
And again.
why Western Canadians will not going to be able to enjoy uh a competitive
Landscape as the 1 other Canadians, are able, you know, to see. So we're going to continue to fight there and we will continue, you know, to improve our positioning and proposed additional services on a bundling basis.
Well, uh, you egg on a aali. I talked about it a little bit earlier, you know? Yeah. Certainly, you know, I still competitive certainly, you know what, we're proposing to our customers is a sir, a very good product as you probably know. Also, you know, we went on a rental, uh, model, which was not there previously. So, we have the capacity of offering something of great interest for our customers. Um, we obviously, you know, not out of the general Trend in North America regarding, you know, cable shaving, and cable, cutting or cable, never, um, but we will continue to push forward with our product, uh, and mentioning that, you know, we are bringing value added with all the French channels that we're able to deliver with our cable products.
Messi.
Your next question.
Would you be calling your line is now open?
Hey, thanks very much. Um first let's clarify a couple things so your postpaid mobile churn is lower than anybody else in the industry Hugh. So tell us put up 0.9% this quarter and just your postpaid set of customers would have churn below that.
We are um as we didn't put the number in the results. I'm not going to give it to you now, Vince, but good try.
I'll stick to my point Vince that we, yes, we are it. It's come down a lot. We are, you know, quarter after quarter among the lowest and if you look at postpaid and Consolidated and I think the important Point Vince is that it's continuing to come down and it's continuing due. To all the things we've talked about are, we're keeping our customers longer and our church keeps getting better every quarter, uh, which is, uh, which is, uh, very encouraging for us and it proves that we're doing um, all the right things and uh, you know, whether we're slightly above or slightly below uh, at these numbers. Believe me. It's a, it's rounding errors, really, to be honest.
Fair enough.
Um,
second you I know you don't want to give us Wireless ebit da anymore because it comes down to some allocations of shared costs. But directionally speaking, if you know Wireless revenues up 6% cable revenues down 4%, is it fair to assume that cable segment? EBA was, was somewhat negative this quarter and and all of the ebit dog, growth would be attributed to wireless.
Yes, that's correct. Yes, that's that. That that's fair. Yeah. Absolutely.
Okay.
Another clarification bid on capex, your capex remains quite low, um, this quarter, but you're talking about some delivery issues on equipment, but in the release it sort of suggests. You've already done this.
Expansion of cable homes is covered in parts of Quebec. You've already stated that you're well into deploying 3.5 Gbps Spectrum on the mobile network. Is that maybe overstating it a bit? Perhaps those projects are just in the early stages, and there's more capex involved.
To come. And that's part of the reason why Q2 was a bit lighter.
Um, um, this yeah, was the was yeah, I was gonna say it is so yeah, it it is in. Uh, you know, it has been started. It's not by any means completed. So if it's in the works, there are timing issues. I referred in my, in my, uh, in my prepared remarks, Vince, uh, to the fact that, you know, there are sometimes you you receive equipment or you install equipment, a little bit late or a little bit earlier. So, uh, uh,
Uh, from a capex standpoint or a timing issues from 1 from 1 quarter to the next. And that's why I said that we expect to uh to increase capex, a little bit uh towards the latter part of the year. Uh, but basically, to answer your question, these these programs are well in well in, uh, in the works. And, um, the investment continues.
Okay.
Pure Carl, the last 2, you you can probably want to chime in is, um, the freedom home internet product, that you're already marketing, can you clarify do? Do you actually use the fiber access on the Bell or tell us networks to do that in any meaningful way? Right, right now or is the vast majority of Freedom home internet, still on a cable based Broadband Network.
these things are as you probably imagine, you know, easily, it's uh, quite
On a competitive basis, it is not something that you know we will reveal to our competitors, which we use in their networks. So, sorry about this.
Yeah, okay. I don't fully understand that because anybody, you're reselling isn't going to know if you're doing it. But, but we can move on the last 1 that beer, girl, for you, is on on media. Look, I hear you every quarter the same message. I, I fully agree with you for what it's worth. The system needs to be changed and there's only so much cost cutting you can do and you can't keep ahead of it but it just doesn't seem like anything's happening. I mean the CBC being blocked from selling ads or getting you know, no tax deduction on ads, placed on us platforms, these, they're great things to talk about, but I mean assuming these don't happen and there's no evidence. They are what's next? I mean, do you have to start shutting down material parts of your media business like turning down stations and including TVA Sports? Perhaps depending on what what rights costs do in the future or or do you just keep trying to cut costs and keep your head above water?
Um, yeah. Well, you know, we will continue to reduce our expansion. Our expenses optimization is certainly something that you know, was not completely completed. Um, so, you know, we will continue to work on this, uh, and, um, you know, if we have to, uh, to, um close, um, some specialty channels, we'll do, uh, we are certainly, you know, moving in different directions. Uh, the streaming is certainly, you know, as you know, a big business, a big business. It's a business that we should continue to move. Uh, is the conventional broadcasting will, uh, morph um, in different ways in the future. These things are taking place elsewhere. In fact, you know, we are already moving in this direction by providing a more content in our streaming services.
Maybe we should intend, you know, to, to go even further in this direction. So there's no final decision. There's no Final Solution. Um, we will continue to to work closely with what we consider being a significant asset to Quebec Court.
Thank you.
Your next question comes from Stephanie Price with CIBC. Your line is now open.
Thank you.
Kuba launched some new roaming perks in the quarter, just curious, if you could talk a little bit about the uptake so far and maybe more broadly, how your theme of positioning, Freedom versus the incumbents as you head into back to school. Um, as you know, to just given the price stabilization in the market.
You'll take this 1.
Yeah, the roaming is uh the the reception has been uh, has been has been really uh, you know, has been really good. Um as you've seen, as you mentioning, you know, we're offering different, you know, uh, different packages.
Um, uh, you know, if you know, how's the, how's the uptick? I mean, we, you know, more people more people, uh, are are, are, are taking advantage of this. And, um, you know, we're quite I think our position would be. We're, we're quite satisfied. And we're quite, uh, encouraged by, by the, uh,
By the what I would call the reception uh, to these to these things. Was that your question? I'm, I'm I just want to make sure I answer your question.
Yeah, no, that was the question. I was also just asking more about how you think about back to school in a period of pricing stabilization, just in terms of the perks you could be offering. And then mobile equipment sales were also up a little bit year-over-year. Just curious how you think that device financing is heading into back to school as well.
Well, we're back to school. As we've said, you know, we're not going to draw for his blood. We're not going to be, you know, we're not going to be more, more, um, uh,
More competitive or more aggressive. That being said um, you know, if our and we'll say this again, if if competition decides to uh um to to take this, uh, this
Somewhat stable environment. And, um,
Uh, uh, we have other things such as, you know, our data packages and the richness of our plans that we referred to, in our in our remarks is, uh, is also, uh, a competitive advantage that we'll continue to use, uh, and our differentiation. You know, we're often the first 1 to, to come up with uh, different, uh, different packages, different plant where we add, uh, things, um, and that continues to work well for us. Um, that being said and it's being pointed out to me that, uh, as we're speaking, Pho is already starting to, uh, we're seeing a $55, uh, package that's, uh, that's that's just out there. So, you know, this is real time Market, uh, Market Market intelligence for you, uh, Stephanie
Great, thank you. Um, maybe just 1 more for me in terms of wire line in Quebec. Um, obviously Belle remains very competitive, but just curious, if you're seeing any impact from other incumbents as they use tpia in Quebec,
Or fixed Wireless.
Um, yeah, uh Rogers is, um, has stepped up, um, uh, their, their level of, um, um, I wouldn't call it aggression. I think the word is to is too strong, but they certainly have, uh, moved up the intensity. I would say. Um, so tpia fixed Wireless is um,
Uh, is out there, it is. Uh, it it's not. Um, as we've said before and it I I don't think it's changed materially from what we've said before, in the sense that it is not, um, ah, ah, consider a considerable threat. I would say at this point but I think it would be imprudent on our part to, um,
To say that it will not become, at some point, perhaps a more material threat.
Thank you. And that be yes, of course, we always don't, don't forget that, you know, any material threats for us, because, uh, an even larger opportunity for us, uh, outside of Quebec. Obviously, since we have capacity in our network, we can, uh, obviously take advantage of, uh, fixed wireless, uh, outside of Quebec.
Thanks for the caller.
Your next question comes from David McFadden with Core Mark. Your line is now open.
All right. Yeah, a couple of questions. Um,
so just looking at the uh, service Revenue growth and the wireless side, you know, as you pointed out uh is up nicely in the corner, definitely a big Improvement, I guess. Most of that is really being driven by a lower rpu decline, right? I mean that's why I'm obviously then that adds as well but seems like the wireless operator client is really helping. Um so given that uh I'm just wondering what
With your priority be, would it be net ads or achieving stable to growing? Our
Uh, well David, it's both right.
I mean, uh, you know, we, we, we are helped by, uh, by net and we were in an expansion mode. As, you know, we will continue uh, to uh, uh, to favor picking up market, share continuing to pick up market share. We're nowhere near where we want to to be. I think there's a lot of opportunity in a Runway ahead of us in terms of of net ads and and and market share
Uh, but obviously pricing is uh, is also contributing now that we we've talked about to uh, in in response to an earlier question with uh, most of the repricing be being but being defined us. Um, and now having turned that
That that corner so to speak. Um, I think that's certainly is, uh, is it should become um, should should should the the the context and the the environment remain stable, it should become an even more, an even bigger contributor to our service revenues growing and um so we're quite encouraged by that.
Okay, so if you look at your, um, wireless net adds, uh, just wondering how the performance is in Quebec, say, and then outside of Quebec in Ontario, maybe western Canada. Can you give us any?
Just sort of indications as to relative performance in the various regions.
Um,
The all regions are performing well. Uh, David, to be honest. Uh, Freedom continues to perform uh.
Work very well. You know, it depends on the quarter, some or on the, on the, on the time of year, where sometimes Fizz performs a little better and sometimes video Trump performs a little better. But I think at the end of the day, the the importance is is, is that we maintain an optimal positioning of our 2 Brands to make sure that we're as, uh,
Uh, uh, as um, as efficient as possible.
Okay, and then lastly um so you indicated maybe a lot a lot of higher capacity and you just update us on what you your capex expectations are for this year.
Oh, it's the same but what I was saying David is that we expect to be on uh on on guidance. Uh, for gappx for the year despite the fact that we we've been a little bit lower this quarter. But uh as I said, this is mostly due to the timing uh timing of Investments and and programs and uh uh and uh the execution of projects. So we should be, you know, by the end of the year, we should be in line with our with our forecast.
Okay, all right. Thank you.
And our last question comes from Drew MC Reynolds with RBC, your line is now open.
Yeah, thanks very much, good morning. Um, if you just to follow up on, um, your comments on wireless, our our Pooh and and getting closer to neutral, um, assuming the price discipline continues in the back half,
uh, in terms of taking price out and just looking at your loading mix and hearing, you know, your your answer to to David's question, um, it it seems like that mix is much less our poo diluted
um, obviously with kind of Fizz uh launched in market for for a while and of course you alluded to Freedom at 39 being accredited to our P. So just wondering kind of your mixed headwind with respect to our poo, how that's evolved and and what do you expect, uh, you know, through through the next year.
Well, uh, you know, it's it's it's hard to answer. Um, uh, if it continues, if, if current um, conditions continue, you know what we've said? Uh, uh,
remains true. I mean,
At at Freedom 39. It is a creative. So um are we going to stay at that at that entry level or or or not the towards the end of the year? So you know it's hard for us to um to give you more uh
Uh, you know, more guidance on this, um, as we don't operate in a vacuum in this obviously. Competition, and then we are entering the most competitive, or historically the most competitive, part of the year. You know, so it's difficult for us to, uh.
Uh, it's difficult for us to see that. That being said, and I'll repeat it: what's encouraging is that the repricing is behind us.
and we are seeing that our competitors are increasingly, uh,
How would I say not understanding because they've always understood it but uh um our increasingly reacting to the to that uh to that to that repricing phenomenon and seemed to be uh taking a more disciplined approach, which Alice said uh, already we will We intend to maintain unless unless you know somebody goes.
Uh, a little crazier. And then hopefully, the video example I was referring to is, uh, a short term or a one-off, but we'll just have to see.
And and if you've got that, if you take out, just back to school, promotional activity and and not to be little, you know, you you flagging Pho this morning. But more broadly, you've talked about repositioning Freedom not as you know, the discount brand but but more um I guess more more premium or or skewing better than kind of the discount positioning. Um,
And and presumably that, you know, is really driven by just all the investment you're putting behind it. So, you know, is there a propensity for you to rise above 39 bucks and kind of begin to price? It less as a discount brand and more as a
Premium brand.
Well.
um,
Our clients and potential clients and improve, uh, performance improve improve client experience. Etc. Etc. Uh, be more, uh, improved the the richness of our of our plans etc, etc. And as we are doing that over time, um, it it, it is our intent to move, you know, to move Freedom up market, so to speak.
That being said, uh, it's it, it, it it takes time to do that. So, as we've said many times, it's, it's 1 thing to do all the right things. It's quite another 1 to change that perception and uh, and that can only be affected over time and uh, we still have a lot. I mean, we're we're still a lot of opportunity ahead of us. We're still far from what we ultimately want to be. Uh but you know what? Rome wasn't built in 1 day. As we say we've been at this for Just 2 years, you know? So I think we've we're doing pretty well just turn as we've said many times is is now 1 of the lowest of the industry and it's still coming down. So I think we're all doing the right things. Uh now let's you know I think you should give us a little time.
Yeah, no, listen. I understand.
Why I may be, um, this I do that. Um,
you know, we we, uh,
Look at, you know what? We've been doing in the wireless. Never forget that. You know, we're, we're not an incumbent, you know, we were 1 of the only, uh, new wireless operator we built from scratch, you know, starting from zero, um, customers to, um, you know, a significant portions of of the market in Quebec. Uh, and we intend, you know, to do the same with the with freedom. We did start from scratch, but we certainly have all the assets available and the expertise um uh, to make a freedom, the big success that we've been able to enjoy with the the and v in Quebec.
Yeah, yeah, no thanks. Dear Carl. Um, yeah. Okay. Uh, in my last one here, if I could just squeeze it in, uh, on the internet, add front.
Um, I think Q2 is still a moving season dynamic. I'm not sure whether that's a thing. You know, whether that's how you report Internet ads, um, and whether there's the Q3 rebound. But can you just maybe hear talk to that dynamic? But as well, the 350,000.
Uh, footprint expansion. Um, like I'm assuming this isn't just kind of turned on here. Um, just wondering how to put that into context with respect to how internet net ads and penetration kind of trend going forward.
Um, so on the moving season. Yeah. That that is still, uh, that is still happening. Uh, and and still has I I know we didn't specifically point to it this year, um, but, um, it it is still the case that uh, uh, in a, uh, in a bit of an, uh, odd situation that in Quebec, there is, uh, a large proportion of of moves that happen on the 1st of, of, of July. So, yes. Um, there should be this year again, um, a little bit of a, of a rebound in Q3, as we've said, in the past. Uh, that being said,
You know, over time it, it, it, it, it's probably fair to say that it's, it's becoming less of a, you know, less of a factor than than it used to be. But, but yes, directionally, you're, you're, you're, you're, you're still write about that, um, on the 350,000, new, uh, potential homes,
um,
You know, this adds to our, uh, to our, uh,
Opportunity, uh, going forward and should. Yes, are are, are we encouraged? And are we confident that we can uh, continue to grow? Uh, internet, uh, Subs? Yes, by all means. And I think we are investing in the network, um, in terms of performance. Uh, and in terms of reliability, um, to make sure that we keep, uh, providing the best-in-class experience, and that we can turn the tide a little bit on the, uh, on both cable. And, uh, what will not not turn the time on cable, but turn the tide on, on global W line. Uh, net adds to favor, uh, renewed growth in Internet.
Okay, thanks. Uh, thanks very much.
Thank you.
Thank you for all of you. Uh, we, uh,
and appreciate, you know, this meeting and, uh, wish you nice summer ending and talk to you at the few tree conference call.
Thanks.
Ladies and gentlemen, this concludes the Quebecor Inc. financial results for the second quarter 2025 conference call. Thank you for your participation. Have a nice day.