Q3 2025 Quebecor Inc Earnings Call

Day, everyone, and thank you for standing by. Welcome to the Capricorn incs Financial results. For the third quarter, 2025 conference call,

I will now like to introduce ugma Chief Financial Officer of Quebec Court Inc. Please go ahead.

Ladies and gentlemen, welcome to this Quebec core conference call. My name is, I'm the CFO and joining me to discuss our financial and operating results. For the third quarter of 2025 is pakal pedu, our president and chief executive officer. Anyone unable to attend the conference call will be able to access the reported version by logging on to the webcast available on Quebec course, website until January the 5th.

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 Pascal.

Again, good morning everyone.

Uh, so um, more than 15 years ago, recognizing a huge opportunity in Quebec and across Canada.

Quebec was set out on a growth strategy, based on worlds.

First launching at the mvno, then the building our own network and further acquiring Freedom mobile.

We have never wavered in our resolve or direction we invested wisely and established ourselves as a better alternative to the league 3.

A solid market disruptor with the best growth momentum, and the strongest balance sheet in the Canadian Telecom industry.

As proof that our strategy is paying off. We continue to outperform our competitors.

And I'm proud to report our strongest quality wireless service Revenue growth since the acquisition of Freedom mobile.

As well as an impressive. Loading performance of 114,000 net additions in the quarter with more than 323,000, new lines year-over-year.

And fizz.

Now have over 4 million 328,000 mobile active lines. A significant Milestone achieved in quite a short time in a competitive market

Each of our 3 Brands continue to improve its performance. Quarter after quarter, there's an adding more and more with Canadians across the country with Innovative and affordable, product and services.

All the while, improving our profitability growing cash flow and continuing to reduce our leverage to maintain the lowest ratio in the Canadian Telecom industry.

We will spare no effort as we press on with our strategy of sustainable.

Profitable Wireless market. Share growth.

I will now review our operational results.

Starting with our Telecom sector.

Continue to deliver strong operational and financial results.

Both in Wireless and Broadband reflecting the discipline execution of our growth initiatives.

The strength of our brand portfolio and our commitment to provide innovative and reliable services to our customers.

Our service revenues are up for a second consecutive quarter at 2%.

Fuel by 6.4%, increase in Mobile and 1.1% in Internet.

Our mobile service Revenue.

Grew by 27 million in the quarter.

Surpassing our Q2 performance and our best sense. We completed the integration cycle of Freedom mobile results.

This resolved from our adding 323,000 new net line over the last year.

Despite a Canadian Market affected by lower immigration levels and organic growth but also from our effective pricing strategy, with a balance and cohesive positioning of our brand.

Our konsulatet Consolidated mobile art, who continue to improve its performance.

Recording its best, since the acquisition of Freedom mobile.

Which both Wells for the next few quarters. Despite a market that remains on predictable and highly competitive, especially in Quebec. Were discounting is comparatively, and in our view irrationally,

Empty.

At this point, we expect your market conditions to continue to the upcoming holiday seasons promotional period.

But we intend to maintain our discipline approach.

Focusing on the quality of our products while continuing to rapidly improve our Network.

Specifically on R2.

We are very pleased with our second. Sequential quarterly increase.

Reaching 35 and 5 cents compared to 34 and 76 76 cents. Last order uh 29 cents, gain in the 3 months.

Our year-over-year performance continued to improve with a 66 cents. Decreased this quarter compared to a drop of 2.30 cents in Q2 as compared to the same period last year.

Our effective mitigation of the dilutive impact of the prepaid services of Fizz and freedom was an important contributor.

As you will have noticed.

We adjusted our wireless subscriber Base by 51,000, to eliminate zero Revenue accounts.

Which translated into an approximately 40 cents, our poop pickup?

to be completely transparent and contrary to our

Competitors. We adjusted our our put numbers retroactively.

With our ever improving Network quality and seller, customer service more and more Canadians, enjoy the richness and peace of mind.

Of our plans.

Which continues to strengthen our Market position and share.

Freedoms marketing plans are honest and transparent.

Without any fake employee purchase programs. New, customers only or B2B offers

we have been upfront with all Canadians since day 1.

Offering them better services at everyday best prices.

Canadians. Have clearly embraced our approach as evidenced by our significant turn Improvement.

Our proof and market share growth.

Of you do at home.

We are very proud to have successfully transpose the key contributors of our great success in our own Market, to the other regions of Canada.

In terms of new apps as I alluded to at the beginning of my address.

We delivered, 114,000 new net lines to our Mobile customer base in the third quarter.

A strong growth considering the softer Market this year.

This performance is also attributable to our effective retention strategy, which kept our consolidator churn among top of the industry and thus helped to defend. If you do it on solid Market position in Quebec and to continue to improve Freedom performance,

in warland, our service revenues continue to improve as we recorded for a second, a second consecutive quarter.

Our lowest decline in year-over-year.

By internet Revenue growth of 3.3 million and net additions of 10,500 in the quarter.

these results are a very encouraging as we are only still scratching the surface of the opportunity with new services, like freedom on internet and since TV

We are also counting on the expansion, our elex Technology based internet, and Television services in new territories.

Where they will complement. Our wireless Services already available.

Since the end of the second quarter of 2025,

As announced the expanded coverage of more than 180,000 new households in, Drummondville mg the hummus key.

Stia science as well in many cities in the Saga region.

Customers will now be able to benefit from a full complement of telecommunication services in competitive packages.

We intend to enter these new markets with a disciplined pricing strategy in line with our pricing elsewhere in Quebec, counting on state-of-the-art elex Solutions, and our second to none client experience to make ourselves a strong contenders in this territory.

In addition to our W line footprint, we are also expanding our wireless coverage and services areas in the region in partnership with ekel. And with the support of the Konnect government,

this will significantly improve mobile Communication in this region of Quebec. Making it possible for more than 10,000 residents, who subscribe to do it home mobile services and enhancing connectivity along several highways.

Freedom mobile is also continuing to increase its service coverage. Now in the Ontario region of chattan, Kent where the resident of this large and growing region can now access our fast and reliable wireless network.

These expansions reflect our continued progress in, delivering on our ongoing commitment, to always, give our customers more with state-of-the-art Advanced Technologies.

this is,

But 1 reason why we do at home was ranked as Quebec quebecers preferred. Telecommunication providers in a recently serving

Send out for its remarkable results. Confirming its position, as a Undisputed leader in customer service, among telecommunication providers in Quebec. While the recognized as the most reliable and trustworthy telecommunication company in Quebec.

Turning now to our media segment.

Tibia group.

Generated ibida of 18.5 million in the third quarter of 2025 an increase of 6 million, compared them to the same period in 2024.

This favorable variance is primarily attributable to the impact of streamlining initiatives, undertaken, over the past 2 years.

Bickering, we do active adjustments.

These measures are helping but are in no way sufficient to mitigate the impact of the structural crisis, threatening the sustainability of Quebec television industry.

Particularly due to the accelerated decline in advertising revenues compounded by the negative impact on the absence of pouring Blockbusters in male Studios.

Having acted recently and responsibility responsibly over the years by implementing numerous measures.

And a number of major restructuring plans to address the crisis.

India group has done its part.

It is time for our governments to take the necessary action on their end.

After countless advocacy efforts hearing and meetings with successive crtc chairpersons.

Canadian Heritage Minister and Quebec culture Minister over the years. We can only repeat yet again that we urgently need real action and long-term solutions to protect our industry.

It was particularly disappointing that the federal government in its budget deposited. This Tuesday completely ignore our industry and turn a blind eye to the crisis that it is iting television broadcasting so hard

There is no tax credit for television journalism.

No tax incentive for advertising in Quebec and Canadian media.

And no information about when the Digital Services tax already, paid by private broadcaster will be refunded.

Furthermore CBC Radio Canada, annual funding had been increased by 150 million without any requirement to eliminate advertising on its platform. And to curb, its unfair commercial competition with Canada, private television broadcasters,

We got a regrettably, this new government as miss an opportunity to support an industry facing ever growing challenges and job losses.

At the alarming rate.

Regarding the Quebec government. We reiterate that it must quickly introduce concrete measures to implement the recommendations. In the report of his task force of the future of Quebec audio visual industry file in October 2025.

I will now let her review our detail Financial results.

On a Consolidated basis. In the third quarter of 2025 Quebec were reported revenues of 1.4 billion dollars up. 1% EPA of 628, million up, 34 million or 6% resulting from improvements, across all of the corporation's business segments. Cash flows from operating activities increased 36 million to 582 million for f or 7% compared to the same quarter last year.

In our Telecom segment, total revenues grew by 1% or 13 million. A first favorable variance, since q1 of last year when we completed the integration cycle of Freedom mobile results,

This positive delivery is largely attributable to our strongest mobile service Revenue, growth of 6.4%, fueled by significant customer growth, but also by the favorable Improvement of our Mobile rpu in the last quarter, resulting from strategic Market, positioning of our multiple Brands and our pricing strategies.

This quarter mobile revenues were offset by our lower lowest wiring Services Revenue declines and more than a year.

Resulting from our effective strategies and mitigating the impact of organic declines of these services.

Combined with rigorous cost management. Initiatives are i-bidder reached 602 million and a half dollars, increasing by 16.6 million or 2.8%. Our highest epid dog growth. Since q1 2024

As a result or even damn margin improved by 0 8% ending at 49.5% compared to 48.7% of the same period last year.

They come capex spending was up by 13 million in the quarter.

Regulating the timing difference explained in Q2 for wireless equipment, deliveries required for our 5G and 5G Plus network expansions and subscriber equipment rentals.

Improving our mobile network.

Accounting for these Investments, our quarterly adjusted cash flows from operations increased million dollars or almost 1% due to our solid epidural.

Our media segment recorded revenues of $152 million, representing a 2% decrease. However, there was a favorable variance of $23 million and $9 million compared to the same quarter last year.

Our sports and entertainment segment, revenues increased by 7% to 68 million and I was up by 28% to 15 million.

We reported a net income attributable to shareholders of 236 million in the quarter or 1 dollar and 3 cents per share compared to a net, income of 189 million or 81 cents per share reported in the same quarter last year.

Adjust the net income, excluding unusual items and losses. On valuation of financial instruments came in at 242 million or 1 dollar 5 cents per share compared to an adjusted net, income of 100 192 million or 82 cents per share the same quarter last year.

For the first 9 months Quebec was revenues, were down by 0.3% to 4.1 billion dollars and IB was up by 4 million dollars. To 1.8 billion dollars, partly impacted by a 44 million increase in stock-based compensation charges

Excluding this Factor ibida would have increased by 48 million or 3% ibida from our Telecom segment grew 2% and Improvement of 38 million over last year, excluding the impact of stock-based compensation.

At the end of the quarter Quebec War's net debt. Toea ratio decreased to 3.03 times, still the lowest of all our Telecom competitors in Canada.

We remain committed to further deleveraging in the coming quarters and intend to continue operating in this low 3 range consistent with our current Financial strategy.

Our balance sheet remains very strong with available, liquidity of over a billion dollars at the end of the third quarter.

I would also like to highlight the success of our recent refinancing where video Tron issued 800 million of senior notes yielding 3.95%.

This demand, the high demand from investors, was very strong, with a book more than 3 times over subscribed. We were able to negotiate very favorable conditions. Most notably, the lowest 7-year credit spread seen in the Canadian telecommunications sector. This is a convincing testament to the strength of our financial foundation, our disciplined management, and our growth prospects.

The net proceeds will be used for the Redemption of our or video trans rather 5.125% senior notes maturing on April 15th 2027.

During the first 9 months of the year, we also purchased and canceled 3.7 million Class B shares, for a total investment of 140 million.

We thank you for your attention and will now open the lines for your questions.

Thank you, sir. Ladies and gentlemen, if you do have any questions, please press star followed by 1 on your touchtone phone.

You will hear a prompt that your hand has been raised.

Decline from Napoleon process, please press star followed by 2. And if using a speaker phone, you will need to lift the handset. First before pressing any keys, please go ahead and press star 1. Now, should you have any questions?

First, we will hear from the heart yagi at Scotia Bank. Please go ahead.

I would like to first ask you, uh, you know, the strong performance and wireless, uh, you mentioned, uh, that it came from lower churn and also improved, uh, gross loading, can you maybe dissect a little bit more? What drove, that strong performance in the quarter? Uh, Q3 usually is a strong quarter for freedom but uh, you know, how are you thinking about Q4 so far? And, uh, you know, which

Markets, which sub-markets and wireless, uh, you still haven't been able to gain market, share from that you think over time could provide you, uh, more growth down the down the line.

Uh, thanks Maya. Um, so in Wireless. Um, yeah, I mean, as you said yourself, I'm the first, the, the Q3 and the back to school period is is uh, historically. Uh, has historically been a very strong quarter for us.

Uh, these are the target markets that we that particularly resonate well with us.

Uh, we've been able to uh, we've been able to maintain our our performance. And why have we been able to maintain our performance? It is because we are increasingly resonating with other cohorts. Uh, whereas you know, the freedom of the of the past used to be very strong with the first time buyers and uh, immigrants and people looking for a deal or the the cheapest, uh, deal. We are now able to uh, attract and retain, uh, customers that are willing to that are that want a bit more that want better performance. Uh, we have increased, an increasing number of 5G plus customers because we've been expanding, uh, the access, uh, to 5G plus to many more, uh, of our customers. Uh, fifth is also continuing to perform increasingly, well, uh, quarter after quarter, uh, which should not be a surprise because you will remember, us telling you. The Fizz was created, uh, with a very specific

Objective with very specific objectives in mind. Uh, and that was to, um, to go after and to Target, uh, the younger more urban more digital Savvy Generations, which are representing the future. And I think we are showing that, uh, that we're better than, than our competitors that at reaching out, to these people, to these to these customers. Um, you know, in terms of going forward, uh, in in, in, in the following quarters, um, in

I I think you will see if you look back that we are um very well not stable but very consistent in our um in our penetration in our growth.

Uh we are continuing uh to retain our our customers more uh longer so turns down um our rpu is uh is going up.

um,

So, you know, this is, uh, this is really the story in this month. Look at our wireless service revenues, 27 million more, uh, in the quarter, uh, which slows down to, uh, to margin with, uh, considering our, our very, um, disciplined cost, uh, containment.

Um,

that's, that's basically how I would call the story of the wireless story of of the quarter, which boats, as we said in our scale said, in his note B, B B very well for, uh, the historically competitive, uh, Q4

Where we intend to continue to perform very well. That's a pretty good answer, isn't it? Yeah. Well,

it's a very good story for sure. Uh, very good story, uh, maybe maybe just want to may I add just 1 Thing, ma'am. Um, is, um, well, now we all know that, you know, when when the freedom was was, uh,

Under the the previous ownership, for whatever reason. I mean, and historically, you know, the weakness was the network, the quality of the network. And, um, I think it's important to mention that, you know, we are investing in the network and we've been always, um, if you do a call as an Enterprise culture, you know, considering that, you know, we need the the deliver, the best product in, uh, in our available customers. Uh, so we inherit, um, a, uh, a good brand. Uh, um, and certainly also, you know, some very good people in this organization. Um, but now, you know, uh, I think that, you know, we we've been doing what is appropriate to to to

improve.

Our product, by investing in the network, we will continue to do so, and we will continue to do it on a disciplined basis as we've been doing, you know, obviously in Quebec for the last 15, almost 15 years now.

Yes. Thank you. And, and, and maybe just a touch on on, uh, on Improvement in the cable segment, Revenue growth rate, uh, with the, with the pricing that you passed. But last December starting to really kick in. But, you know, I I'm trying to, uh, gauge that with, uh, Kal's. You know, you you're prepared the marks. You, you you

Specifically, called out the very aggressive pricing competition happening in in Montreal and in Quebec, in General, on the, you know, on the combo plans, very low prices, is it easy to pass another price increase this year, like you did last year, uh, amidst, a, the competition that we're seeing right now in the marketplace.

Going to have an answer for that, but I'll tell you, um, you know, we use to that we're, we're, we've been always, you know, uh, and and the same kind of environment. So there's nothing new for us and what we're doing to make sure that, you know, we're for this situation is by being as much as discipline as possible watching our our cost and, uh, we've always, you know, been in that kind of a business and you'll continue to do so, um, historically, you know, pricing between Quebec and all the other areas in Canada for whatever product. You know, it was the same for cable at the same for wireless had been lower. So,

Is our competitor, our main competitor. You know the the blue guys. Um have been, you know, trying to get market share.

by adding the, uh,

Lower prices and elsewhere. Um, they certainly in the past being able to benefit from from a higher margin elsewhere, are they using this, you know, to compete even more aggressively in Quebec? It's not impossible but they can do whatever they want at the end of the day. You know, we're going to continue, you know, to be um the preferred supplier of quebecers for many reasons 1 of which is that we're offering, you know, better customer service and our products are

Of higher quality.

Okay, thank you.

Please a pleasure.

Question will be from Stephanie Price at CIBC please. Go ahead.

Hi, it's Sam Schmidt on for Stephanie Price. Um, I wanted to ask a question about ARPU. The declines have been improving sequentially for the last few quarters. How do you think about the timeline to a return to our progress? Um, and it was strong in this quarter; any one-time items to call out there? Thanks.

Uh, I I'm sorry. I I missed your first name. Your place you're replacing Stephanie Wright.

Yes, sorry, it's Sam Schmidt on for Stephanie Price. Um, my first question was just around the rpu declines that have been improving sequentially for the last few quarters and how you're thinking about a timeline to return to our pug growth.

Yeah. Um, it's you saw our performance uh, we're very confident. Um, our view is um, is is turning the corner, um, and I would expect that corner to be very, very soon.

And then just 1.

For me, on mobile equipment revenues. How are you thinking about device, financing heading into Black Friday?

um,

with discipline.

How would I say? Um,

Continue disciplined, reasonable offers. We've said this in the past that Black Friday is a time of the year where we can easily go crazy.

And lose our shirt as we say, um, on equipment devices.

On on equipment or device subsidies, and we certainly do not intend to do that and to continue to be, as I said, disciplined and reasonable in our, uh, equipment offers, uh, for the rest of the year.

Caller. Thanks, I'll pass the line.

Thank you. Next question, will be from Matthew Griffiths at Bank of America. Please go ahead.

All right, thank you for taking the question. Um, just on churn firstly. If I could, um, it seems as though across the industry, everyone's reporting, uh, churn being lower this quarter, uh, on a year-over-year basis. Um, I was wondering if you had any comments uh, about how much of your turn benefit in the quarter is just kind of that halo effect of Industry, turns falling, or were there things that you were doing that you kind of can see that. There's uh that would would

Have been responsible on your side for reducing the trend and then secondly, if you can make any comments on the kind of decision and how you evaluate the network expansion, um, question, specifically you mentioned this quarter, um, you know, expanding the wireless network into the chatam Kant area. So if you could share kind of just how you evaluate it um you know how many more opportunities you see for this? Um, going forward, it would just be uh, helpful on our side. Thank you.

Uh Matt uh, thanks for your question, Matt.

to be fair, uh, our churn as you know, uh, starts from very high with freedom,

the highest in the industry by far and has now uh,

Is not fairly equal to the lowest of the industry and that was mostly due to the improvements to our Network, its performance, its coverage, its reliability, uh, roaming uh, packages, uh, marketing agility. Uh, customer experience, I mean, it's a, who knows bundling opportunities, there there, there are so many factors that collectively, uh, contributed to this lowering, or this decrease in, in our churn, uh, now that it has reached. Uh, as, as I said, a a very, uh, very competitive level,

then obviously, it becomes naturally a little bit more, uh, affected or, or more influenced by

maybe more Market related, uh,

Metrics.

Um, and it is our goal to manage to to maintain uh that that uh that churn through the the various improvements. I mean, we're we're nowhere done. I mean, it's not as if we're, we're, we're at the end of the, uh, of our plan here in terms of improving everything that I talked about and going after, uh, different cohorts. As we said, uh, earlier,

um, and as as our as our experience keeps,

Getting better with our customers.

I think we're very confident on the turn level that, uh, we have not only reached

the industry's best but that we will that we will maintain the industry's best

Uh, of course, there are the Investments, uh, that Jal talked about that will continue, but we're taking this, uh, very, very seriously when we realize when we bought and relaunched freedom. Uh, we said very clearly that we went about very diligently about fixing, all the pain points, and making sure that uh, the experience, um, uh, was was quickly very much better. And we we still have uh, work to do. This is a never-ending

Work. And we certainly intend to, as said, continue to invest in our in our networks uh and also in our in our marketing uh agility to make sure that we continue to resonate with Canadian uh customers as to the network expansion. Um, this is, uh, the these decisions are made, uh, on on a, um, it's a bit of a of. Um, how would I say? It's a bit of a balance between going after. Um,

Uh, strong and interesting regions uh, with and balancing it with the Investments needed um, in these in these regions. So this is uh, something we, we have a plan and we're continuing to, to be very diligent, very disciplined about our, our Network expansions,

Uh, going forward, uh, focusing on the mvno areas where we're starting to resonate, well, where we're building the business. You will remember us saying that, you know, we're not going to build and hope that people come, uh, we will launch mvnos and where it will make sense for us. We will prioritize Network Investments and I think that's the the the good business way to do it and um, that's still what we intend to continue to do.

All right, that's helpful. Thank you.

You next, next question will be from zero. Please. Go ahead.

Thanks for taking my questions. The first 1, uh, is on the free cash algorithm, uh, you know, we we're seeing a bit of ether growth, but also, uh, capex increases. So, I'm, I'm wondering if you're, you're seeing a potential for free, cash growth in the coming year, or if value is going to be created more through the leveraging and BuyBacks. Appreciate it with the the share base comp situation, uh, this year. Uh, but essentially we'll absolute deep in the growth.

Both outpace capex growth in the next few years.

Uh, thank you.

Uh I think you're seeing it in the numbers. We look at our uh performance in terms of generating margin generating cash.

From I think you will remember again, saying from the beginning of the year, or even last year that we were going to maintain, uh, very strong stable cash flow. Uh, even though we were intending to invest more, uh, in our Network.

so, um, you know, in terms of BuyBacks as, you know, we we, we flexed in the past on this and we will, uh, we will continue to do so and, uh, dividends will be, um, we will continue, uh,

Stay stay true to our dividend increase reasonable increase.

That, that we've had in the past, we're still in the soft, you know, in the, in the not in the south in the, in the, in the best spots that that we'd announced between 30 and 50, 50% of our of our payouts. So, um, you know, we feel pretty, uh, pretty comfortable with our continued, uh, capability to generate cash, a very strong cash flows. Um, that then give us the, uh, the leeway to continue to invest in, uh, in in the network and the eventually in the network builds.

Great. I'm I'm just going to push a little bit on the, on the capital allocation Point here. You know, you're you you send the preferred remarks that uh, that you are probably happy with with leverage in the lower 3s. It it seems like you're getting real close to to destination here on the on the balance sheet side. So does that mean that that we should be expecting a ramp up in, in the BuyBacks?

Probably or this? Is that a fair assumption?

And I think that we should say, it's a prerogative of the board of directors.

Uh, and well, yeah, look at that. The sequence, you know, previously, uh, where we've been changing, our balance sheet policies. Uh, I guess that, you know, we should

That would be a good example or a good illustration of. You know, what we can expect being the situation in the future.

Understood Messi.

Their 2.

Next question will be from Vince Valentini. A TD Cowen. Please go ahead.

Hey, thanks very much. Um, let me spin that free cash. Flow question, just more specifically to the near-term. Uh, huge. You've done

1.06 billion of free cash flows through the first 9 months of the year in the fourth quarter of last year, you did over 300 million in free, cash flow. Is there something material in terms of timing issues we should be thinking about for the fourth quarter or, or you're going to like, you're going to smash through 1.2 or 1.3 billion in a free cash flow for the year?

No, hi Vince. Um, no. We we we've talked about this. I think last quarter, there's there are some timing issues, our, our capex did increase, uh, a little bit in in Q3 as you've seen. But uh, there still is some, uh, some timing ahead of us. Timing issues ahead of us, in terms of capex, which, uh, you should expect to be higher in Q4. So I I wouldn't um, uh, I wouldn't go all out and our expectations of us Breaking the Bank in terms of uh cash. It will be a very strong cash flow and we will more than deliver. What we had said, we would deliver events but uh, but uh, yes, there are definitely going to be a catch up in in capex, towards the end of the year, Well, between now and and the end of the year. Yeah.

But you would definitely expect to have positive free cash flow in the fourth quarter.

Oh, for sure, for sure. Yes, yes.

Okay.

Thank you. The second thing, um, your Internet ads were a bit better than I expected is, is this in Quebec in your core video, tone, business or, or you starting to see some benefit from Freedom, internet in the rest of the country using TPI,

Well, a little bit of both. Um, it isn't, it isn't Quebec. Uh, but it is also in, um, in Freedom, home internet is, is performing well, Fizz internet is performing well. Um, so it's, uh, we are in a very competitive, uh, situation and then ever increasing competitive situation, uh, in, in, in Quebec. But, um, we've talked about the quality of our, uh, of our services and, and, and network. And, um, so we've been, um, we've been performing well,

essentially everywhere, in terms of broadband,

Roaming SIM cards that you guys have and people on other carriers are allowed to use them when they're traveling.

Subscriber.

In the third quarter sub ads.

no no no they're not uh know they're not in a sub if if you if you've turned on uh that SIM card as I know for a fact that you were finally successful in doing things

After some help. But, um, um, you, you are not counted as a subscriber know.

So that is actually it is obviously service Revenue. So it's going to be helping your rbu, even even more than just the underlying Trends in the business going forward.

That's correct.

Awesome. That's all for me.

Okay. And by the way, it's high time that you do become a customer. Since I'm we're counting on you.

I'm waiting for your Black Friday offer.

Thank thanks for your business, Vince.

Thank you. Next question, will be from arvinda galloupes at canaccord during please. Go ahead.

Good morning. Thanks for taking my question. Um, just a couple quick ones from me. Um, uh, who you mentioned that, uh, you know, the 1 of the reasons for the success, uh, of Freedom sub Trends is because you're kind of going into other cohorts, that the, the old Freedom did not? I mean, should we translate that comment as suggesting as speaking to sort of the prepaid postpaid, mix. Um, any comment around how that mixes changed, as you sort of progressed with uh, gains on the subscriber front and then secondly, just a small follow up. Um, the, the, the the wireless rpu redefinition. Can you just clarify what that was? Thank you.

Um, as to your first question aravinda, um, you know, post page and and prepaids for us, we're continuing to perform well on both. Um, we have um,

You know, we're a bit agnostic, to be honest, um, and uh, have continued to to work. Well, so the, the, the quote, on all the course that I talked about, I think that was more of a general comments, applying to both, uh, you know, to both both state and and, and, and 3B.

Um, not specifically a move from 1 from 1 to the other, but we to be quite transparent. We're continuing to perform well on on postpaid.

Uh, and your your second question. Sorry. And I've forgotten it was, uh, was to do with 1 the rpu, uh, redefinition. I think it was just a small definition change of 40 cents. Oh yeah. Uh, yeah.

Yeah, it's about 40 cents, we've uh, restated it. Uh, but as those were zero dollar um accounts, you'll see that it's it's almost consistently 40 cents over the last uh, you know, uh so many quarters that we restate them.

Okay. Okay, got it. Okay, thank you.

Thank you. Thank you.

Next question will be from Drew MC Reynolds at RBC. Please go ahead.

Yeah, thanks. Excuse me. Thanks very much. Um, so I have a couple of questions for you regarding the capex.

Trajectory in telecom. Um, you know, it looks like you're running a little hotter than the initial kind of $650 million or so of capex. Just wondering, uh, and I think your commentary from Q4 would say, you know, you come in above that. Is there any kind of change overall to the kind of medium-term trajectory on capex from your perspective? And then just tied to that, um, we are seeing.

Uh, pretty efficient kind of cable capex intensity. Come down from with some of your cable peers, just wondering your cable capex. Um, how you expect that to Trend again, through the medium term?

Uh, thanks Drew. Um, so on medium-term capex both uh, Wireless and Wireline. Uh we will um as as I said earlier, we will uh, in Q4 uh, be a little bit higher.

uh, that doesn't necessarily change our midterm uh,

Nothing again, gradual nothing. Uh, you know, no capex wall. I have some of your colleagues. Unfortunately, use the term in in the past.

I don't think there's anything to be to be worried about, but just a very reasonable and very, uh, sensible Investments, uh, and both of our marine and wireless network going forward. So, no change to our

to, um, to our tragic, uh, midterm, uh, CapEx trajectory.

Okay, so that's, uh, thanks for that clarification. Crystal clear. Um, just in the, uh, MDNA, you alluded to some favorable kind of provisioning in Q3 within Telecom. I'm assuming, you know, the 2.8% year-over-year Telecom, even the dog gross X. The provisioning is still, um,

you know, a reasonably good, good growth rate. Uh, can you just comment on quantifying those provisional favorable provisions?

Well, I I I won't give you the number obviously, Drew. But uh, it's no I think your your statement is, is there? There's no. Yeah, there was some provision adjustments as we do in, in, in a number of quarters and almost all quarters and as everybody does, but it's not material enough to impede or to change the, uh, the conclusion, our on our increase in profitability for the quarter.

Okay. No, that's great and last month, uh, for me, just, uh, the usual fixed Wireless, uh, impact, uh, in in Quebec. Uh, just, you know how how that's kind of contributing to the competitive environment if, if at all. Um, and that's it for me. Thank you.

uh, to be honest, nothing

Uh, significant.

Uh, it is, uh, and by that, don't misread us. We're not saying that this is, this is something to be dismissed. As we said, in the past fixed Wireless, is that? We're not saying it's not a thing. It it, it may, it may very well become a thing. And we are certainly, uh, in our own shop. Looking at opportunities for fixed Wireless. Uh, but certainly to your, in response in answer to your question. Um, so far the impact on us has been has been very limited in in our home, in our home turf of Quebec. Uh, but we are definitely and we've got the teams already lined up to start uh, reflecting on how we will, um, turn that into an opportunity for us.

Uh, in our various markets outside of Quebec.

Okay. Thanks very much and, uh, again, congrats on uh, great Wireless results.

Thank you. Thank you drew.

Our last question will be from Tim Casey at Beimo. Please go ahead.

Thanks for setting me in. Uh, Hugh just 1 modeling question and a couple others. Um, working capital is running, uh, very positive so far this year. Should we expect a reversal in Q4, um, or in maybe into q1 next year? And, and what's driving that is that cast management, or is it just timing?

Uh, hi, Tim. Um, no, you should have answered your question there. It should not be. I don't see any material difference in Q4 or Q1 of next year in terms of working capital. To be honest, that is something, uh, that we've been focusing on for the past year or so, a year and a half.

uh,

where we recognized. I think sometimes we have to be, you know, you have to question yourself on, uh, on on various occasions. And we, we weren't as, as efficient, uh, in in, uh, in working in gen in, uh, in managing our working capital, as we should have been in the past. And we've tightened a lot of things. And, um, I think it's showing

Uh but we certainly intend to continue to perform well on on working cap. And um I wouldn't expect uh I mean there's no uh uh there's no bump either way that you should expect in the next quarters know.

Are poo, uh, on the wire on the wire line side. Thank you.

Uh, Tim, so your first question, uh, the 50,000 or 51,000? Uh, we're we're 0 accounts. It it's basically people who had, um, opened an account, but never or had a SIM card mostly from before the acquisition, uh, and who never really, uh, bought a package. So they we had them as a as an account, but they weren't active and they weren't, uh, generating any Revenue. So we just took them out.

Um,

in terms of our out of footprint, wiring we again, our intent is to, is to remain very disciplined. And very I, I think that was your question. If I'm not answering the right questions,

Certainly, as we've said in our notes today, most people can and I we intend to, uh, you know, whether it's out of, uh, out of footprint wiring, or eventually fixed trials or whatever it is. Our intent to remain very disciplined. Um, and, and I think if I may make the point right now, uh, we have been, and for quite some time, been very disciplined, and very predictable in our approach. We do, we say what we're going to do and we do but we've said we were going to do, uh, which I don't think can be said for everybody, in Telecom, in Canada, but we certainly in terms of our alliance and

Intend to continue to apply that.

Philosophy, if I can call it that.

Thank you.

So we would like to thank you all uh being attending this uh this conference call and expect the same for our next quarter. That will be our un Sol.

Don't miss Appleton game. Yeah, the tiger, well, the ls against the Tiger Cats on Saturday and you said routes for the yellows, right? So

Thank you very much, and have a nice day.

Thank you, ladies and gentlemen, this concludes the Inc Financial results for the third quarter. 2025 conference call. Thank you for your participating for your participation and have a good day.