Q2 2026 Quebecor Inc Earnings Call

August 6, 2026

Speaker #1: Good day everyone , and thank you for standing by . Welcome to the Quebecor Inc's financial results for the second quarter 2026 conference call .

Operator: Good day everyone, and thank you for standing by. Welcome to the Quebecor Inc.'s financial results for the Q2 2026 conference call. I would like to introduce Hugues Simard, Chief Financial Officer of Quebecor Inc. Please go ahead.

Speaker #1: I would like to introduce Hugues Simard Chief Financial Officer of Quebecor Inc. . Please go ahead

Speaker #2: Ladies and gentlemen , welcome to our conference call . This morning . My name is Hugues Simard . And joining me to discuss our financial and operating results for the second quarter of 2026 .

Hugues Simard: Ladies and gentlemen, welcome to our conference call this morning. My name is Hugues Simard, and joining me to discuss our financial and operating results for the Q2 2026 is Pierre-Karl Péladeau, our CEO. Anyone unable to attend the conference call will be able to access the recorded version by logging on to the webcast available on our website until 4 November. 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 Pierre-Karl.

Speaker #2: Is our CEO anyone unable to attend the conference call will be able to access the recorded version by logging on to the webcast available on our website .

Speaker #2: Until the 4th of November . 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 .

Speaker #2: With the regulatory authorities . Let me now turn the floor to Pascal

Speaker #3: Merci . Merci . And good morning , everyone So I'm happy to report once again , solid operational and financial results for Quebecor in the second quarter of 2026 .

Pierre Karl Péladeau: Merci, Hugues, and good morning everyone. I'm happy to report, once again, solid operational and financial results for Quebecor in the Q2 2026. In all our business sectors, we're continuing to improve our performance quarter after quarter through disciplined execution and rigorous management, resiliently delivering on our expansion plan, growing our wireless market share in all markets across Canada, generating consistently strong cash flows, and maintaining the best balance sheet of the industry. On a consolidated basis in the Q2 2026, Quebecor continued to improve all its key financial indicators. Free cash flow increased by CAD 44 million or 12% to CAD 419 million. EBITDA, excluding stock-based compensation, improved by CAD 62 million or 10% to CAD 691 million. And net income attributable to shareholders grew by CAD 53 million or 24% to CAD 227 million.

Pierre-Karl Péladeau: Merci, Hugues, and good morning everyone. I'm happy to report, once again, solid operational and financial results for Quebecor in the Q2 2026. In all our business sectors, we're continuing to improve our performance quarter after quarter through disciplined execution and rigorous management, resiliently delivering on our expansion plan, growing our wireless market share in all markets across Canada, generating consistently strong cash flows, and maintaining the best balance sheet of the industry. On a consolidated basis in the Q2 2026, Quebecor continued to improve all its key financial indicators. Free cash flow increased by CAD 44 million or 12% to CAD 419 million. EBITDA, excluding stock-based compensation, improved by CAD 62 million or 10% to CAD 691 million. And net income attributable to shareholders grew by CAD 53 million or 24% to CAD 227 million.

Speaker #3: In all our business sectors , we're continuing to improve our performance quarter after quarter through disciplined execution and rigorous management . Resiliently delivering on our expansion plan .

Speaker #3: Growing our wireless market share in all markets across Canada , generating consistently strong cash flows and maintaining the best balance sheet of the industry on a consolidated basis .

Speaker #3: In the second quarter of 2026 , Quebecor continued to improve all its key financial indicators . Free cash flow increased by 44 million , or 12% , to 419 million EBITDA .

Speaker #3: Excluding stock based compensation improved by 62 million , or 10% , to 691 million , and net income attributable to shareholders grew by 53 million , or 24% , to We maintained our net debt to EBITDA ratio at 2.87 .

Pierre Karl Péladeau: We maintained our net debt to EBITDA ratio at 2.87, still the lowest leverage of the Canadian industry by some margin. Ask her, buying back nearly CAD 100 million of our stock in the quarter and investing CAD 174 million in CapEx for growth projects, investment in our core systems, and a continued improvement of our network and best-in-class client experience to fuel our resilient profitable growth. Moreover, we did not issue any hybrid debt or perform any financial engineering of any kind in the quarter or ever as we always manage our balance sheet so as to minimize our interest expenses quarter after quarter.

Pierre-Karl Péladeau: We maintained our net debt to EBITDA ratio at 2.87, still the lowest leverage of the Canadian industry by some margin. Ask her, buying back nearly CAD 100 million of our stock in the quarter and investing CAD 174 million in CapEx for growth projects, investment in our core systems, and a continued improvement of our network and best-in-class client experience to fuel our resilient profitable growth. Moreover, we did not issue any hybrid debt or perform any financial engineering of any kind in the quarter or ever as we always manage our balance sheet so as to minimize our interest expenses quarter after quarter.

Speaker #3: Still the lowest leverage of the Canadian industry by some margin . After buying back nearly 100 million of our stock in the quarter and investing 174 million in capital expenditures for growth projects .

Speaker #3: Investment in our core systems and continued improvement of our network , and best in class , best in class client experience to full to fuel answering our resilient , profitable growth Moreover , we did not issue any hybrid debt or perform any financial engineering of any kind in the quarter or ever .

Speaker #3: As we always manage our balance sheet So as to minimize our interest expenses Quarter after quarter on the strength of these excellent results and considering our comparatively lower payout ratio , as well as in the continuation of our balance sheet and disciplined capital allocation strategy That being continuing to lower our debt and improve our ratios while renewing our annual NCIB stock buyback program and continuing to buy back our stock Quebecor boards of directors have decided to increase our quarterly dividend on both A and B shares from $0.40 to $0.45 a 12% , 12.5% .

Pierre Karl Péladeau: On the strength of these excellent results and considering our comparatively lower payout ratio, as well as in the continuation of our balance sheet and disciplined capital allocation strategy, that being continuing to lower our debt and improve our ratios while renewing our annual NCIB stock buyback program and continuing to buy back our stock. Quebecor boards of directors have decided to increase our quarterly dividend on both A and B shares from CAD 0.40 to CAD 0.45, a 12.5% increase reflecting our strong confidence in our consistently growing cash flows. I will now review our operational results, starting with our Telecom segment. I am very pleased to report a record Q2 for our Telecom segment. In Q2, we delivered adjusted EBITDA of CAD 642 million, up CAD 32 million or 5% over year, the highest quarterly growth we ever recorded for a Q2.

Pierre-Karl Péladeau: On the strength of these excellent results and considering our comparatively lower payout ratio, as well as in the continuation of our balance sheet and disciplined capital allocation strategy, that being continuing to lower our debt and improve our ratios while renewing our annual NCIB stock buyback program and continuing to buy back our stock. Quebecor boards of directors have decided to increase our quarterly dividend on both A and B shares from CAD 0.40 to CAD 0.45, a 12.5% increase reflecting our strong confidence in our consistently growing cash flows. I will now review our operational results, starting with our Telecom segment. I am very pleased to report a record Q2 for our Telecom segment.

Speaker #3: Sorry increase , reflecting our strong confidence in our consistently growing cash flows . I will now review our operational results , starting with our telecom segment .

Speaker #3: I'm very pleased to report a record second quarter for our telecom segment. In the second quarter, we delivered adjusted EBITDA of $642 million, up $32 million, or 5% year over year—the highest quarterly growth we have ever recorded for a second quarter.

Pierre-Karl Péladeau: In Q2, we delivered adjusted EBITDA of CAD 642 million, up CAD 32 million or 5% over year, the highest quarterly growth we ever recorded for a Q2. Our adjusted EBITDA margin was 52%, an improvement of 60 basis points. Total revenues were CAD 1.2 billion, up 4%, driven by an increase of 4.2% in service revenues to CAD 1 billion and 3. Adjusted cash flow from operations reached CAD 474 million, up 3.1%. We're proud of these results, the product of a focused team executing with consistency and discipline quarter after quarter. What makes this quarter particularly meaningful is not just the headline numbers. For the third consecutive quarter, our consolidated mobile ARPU grew CAD 0.86 in the quarter or 2.5% year-over-year to reach CAD 35.62. Let me put this in its proper context.

Speaker #3: Our adjusted EBITDA margin was 52% . An improvement of 60 basis points . Total revenues were 1.2 billion , up 4% , driven by an increase of 4.2% in service revenues to 1 million 1,000,000,003 adjusted cash flow from operational reach 400 and 474 million , up 3.1% .

Pierre Karl Péladeau: Our adjusted EBITDA margin was 52%, an improvement of 60 basis points. Total revenues were CAD 1.2 billion, up 4%, driven by an increase of 4.2% in service revenues to CAD 1 billion and 3. Adjusted cash flow from operations reached CAD 474 million, up 3.1%. We're proud of these results, the product of a focused team executing with consistency and discipline quarter after quarter. What makes this quarter particularly meaningful is not just the headline numbers. For the third consecutive quarter, our consolidated mobile ARPU grew CAD 0.86 in the quarter or 2.5% year-over-year to reach CAD 35.62. Let me put this in its proper context. As our competitors are losing revenue per subscriber, we are improving ours while also expanding our subscriber base. We added 53,200 net mobile subscribers in Q2, a significant acceleration from the 28,800 in Q1.

Speaker #3: We're proud of these results . The product of a focused team executing with consistency and discipline Quarter after quarter . And what makes this quarter particularly meaningful is not just the headline numbers for the third consecutive quarter , our consolidated mobile Rpu grew $0.86 in the quarter , or 2.5% year over year , to reach $35.62 .

Speaker #3: Let me put this in its proper context . As our competitors are losing revenue per subscriber , we are improving ours . While also expanding our subscriber base .

Pierre-Karl Péladeau: As our competitors are losing revenue per subscriber, we are improving ours while also expanding our subscriber base. We added 53,200 net mobile subscribers in Q2, a significant acceleration from the 28,800 in Q1. Although the conventional wisdom in the industry has long been that you must choose between loading and ARPU, we are proving it wrong, consistently, measurably, and concurrently growing our subscriber base and our ARPU rather than sacrificing one to achieve the other. I'd also like to add that our ARPU is clean and honest, without any subtraction or creative calculations that seems to be the norm for our competitors. While Q2 has seen a return to somewhat more disciplined pricing, certainly a pivot away from the aggressive promotional offers that defined Q1.

Speaker #3: We added 53,200 net mobile subscribers in the second quarter . A significant acceleration from the 28,800 in the first quarter . Although the conventional wisdom in the industry has long been that you must choose between loading and rpu , we are proving it wrong consistently , measurably and concurrently growing our subscriber base and our rpu rather than sacrificing one to achieve the other I'd also like to add that our RPO is clean and honest without any subtraction or creative calculations at seems to be the norm for our competitors .

Pierre Karl Péladeau: Although the conventional wisdom in the industry has long been that you must choose between loading and ARPU, we are proving it wrong, consistently, measurably, and concurrently growing our subscriber base and our ARPU rather than sacrificing one to achieve the other. I'd also like to add that our ARPU is clean and honest, without any subtraction or creative calculations that seems to be the norm for our competitors. While Q2 has seen a return to somewhat more disciplined pricing, certainly a pivot away from the aggressive promotional offers that defined Q1. Some competitors still resort to hefty discounting in select channels, automobile clubs being a prime example, which we believe is an inefficient and disingenuous way to build a loyal and durable customer base.

Speaker #3: While Q2 has seen a return to someone more disciplined , pricing certainly a pivot away from the aggressive promotional offers that define Q1 , some competitors still resort to hefty discounting and select channels .

Pierre-Karl Péladeau: Some competitors still resort to hefty discounting in select channels, automobile clubs being a prime example, which we believe is an inefficient and disingenuous way to build a loyal and durable customer base. Our continued ARPU growth is the clearest possible evidence that authentic value creation is a more resilient and ultimately more successful strategy than manufactured promotion or fake employees purchase plans. Building on the successful rollout at Fizz and supporting our ongoing deployment of a common BSS platform across our Videotron and Freedom brands, Quebecor increased its equity interest to a majority position in Etiya, a global software company based in Turkey with more than 1,500 employees and a leading provider of digital Business Support Systems platforms powered by artificial intelligence.

Speaker #3: Automobile clubs being a prime example, which we believe is an inefficient and disingenuous way to build a loyal and durable customer base.

Speaker #3: Our continued output growth is the clearest possible evidence that authentic value creation is a more resilient and ultimately more successful strategy than manufactured promotion or fake employee purchase plans. Building on the successful rollout at Phases and supporting our ongoing deployment of a common base platform across our Videotron and Freedom brands, Quebecor increased its equity interest to a majority position in Asia.

Pierre Karl Péladeau: Our continued ARPU growth is the clearest possible evidence that authentic value creation is a more resilient and ultimately more successful strategy than manufactured promotion or fake employees purchase plans. Building on the successful rollout at Fizz and supporting our ongoing deployment of a common BSS platform across our Videotron and Freedom brands, Quebecor increased its equity interest to a majority position in Etiya, a global software company based in Turkey with more than 1,500 employees and a leading provider of digital Business Support Systems platforms powered by artificial intelligence. This transaction, which doubles down our initial investment in 2021, will also strengthen Etiya's ability to deliver large-scale BSS transformation projects worldwide, a sizable and yet untapped opportunity. As I pause to survey our Telecom performance in H1 of 2026, I see a business executing with remarkable consistency. H1 service revenues improved 4% to CAD 2.1 billion.

Speaker #3: A global software company based in Turkey with more than 1500 employees and a leading provider of digital business support system platforms powered by intelligent artificial intelligence .

Speaker #3: This transaction , this transaction , which doubles down our initial investment in 2021 . We'll also strengthen your ability to deliver large scale BSS transformation projects worldwide .

Pierre-Karl Péladeau: This transaction, which doubles down our initial investment in 2021, will also strengthen Etiya's ability to deliver large-scale BSS transformation projects worldwide, a sizable and yet untapped opportunity. As I pause to survey our Telecom performance in H1 of 2026, I see a business executing with remarkable consistency. H1 service revenues improved 4% to CAD 2.1 billion. Adjusted EBITDA increased 6% to CAD 1.3 billion, and adjusted cash flow from operations reached CAD 963 million, up 7%, showing our continued ability to lower our cost structure and reflecting an investment strategy geared towards long-term growth and lasting performance, not short-term results. Freedom Mobile, our national growth engine, is keeping up its momentum, and Fizz continued to establish itself as the leading digital wireless brand in Canada.

Speaker #3: A sizable and yet untapped opportunity . As I pause to survey our telecom performance in the first half of 2026 , I see a business executing with remarkable consistency .

Speaker #3: First half service revenues improved 4% to 2.1 billion , adjusted EBITDA increased 6% to 1.3 billion and adjusted cash flow from operations reached 963 million , up 7% , showing our continued ability to lower our cost structure and reflecting an investment strategy .

Pierre Karl Péladeau: Adjusted EBITDA increased 6% to CAD 1.3 billion, and adjusted cash flow from operations reached CAD 963 million, up 7%, showing our continued ability to lower our cost structure and reflecting an investment strategy geared towards long-term growth and lasting performance, not short-term results. Freedom Mobile, our national growth engine, is keeping up its momentum, and Fizz continued to establish itself as the leading digital wireless brand in Canada. Three years after the game-changing Freedom acquisition, we are performing ahead of every plan and commitment we made, integrating our operational efficiently and positioning our brands even more strategically. Looking ahead to H2 2026, I am confident in our trajectory. Videotron network leadership in Quebec remains strong.

Speaker #3: Here towards long term growth and lasting performance , not short term results , Friedman mobile , Our national growth engine , is keeping up its momentum and continue to establish itself as the leading digital wireless brand in Canada .

Speaker #3: Three years after the game changing freedom acquisition , we are performing ahead of every plan and commitment we made , integrating our operational efficiently and positioning our brands even more strategically Looking ahead to the second half of 2026 , I am confident in our trajectory .

Pierre-Karl Péladeau: Three years after the game-changing Freedom acquisition, we are performing ahead of every plan and commitment we made, integrating our operational efficiently and positioning our brands even more strategically. Looking ahead to H2 2026, I am confident in our trajectory. Videotron network leadership in Quebec remains strong. Fizz is reaping the rewards of an ever-expanding digital consumer market, and Freedom Mobile national expansion continued to mature in Ontario, with significant opportunities still ahead of us in British Columbia, Alberta, and Manitoba. Furthermore, as our rigorous cost management continued to improve operating leverage and as our 5G and 5G+ investments are delivering the increased speeds, the network differentiation, and best-in-class client experience that will drive ARPU for years to come.

Speaker #3: The network leadership in Quebec remains strong . SES is reaping the rewards of an ever expanding digital consumer market and Freedom mobile national expansion continued to mature in Ontario , with significant opportunity still ahead of us in British Columbia Alberta and Manitoba Furthermore , as our rigorous cost management continue to improve , operating leverage and as our 5G and 5G plus investments are delivering the increased speeds the network differentiation and best in class client experience that will drive our Rpu for years to come .

Pierre Karl Péladeau: Fizz is reaping the rewards of an ever-expanding digital consumer market, and Freedom Mobile national expansion continued to mature in Ontario, with significant opportunities still ahead of us in British Columbia, Alberta, and Manitoba. Furthermore, as our rigorous cost management continued to improve operating leverage and as our 5G and 5G+ investments are delivering the increased speeds, the network differentiation, and best-in-class client experience that will drive ARPU for years to come, we continue to execute on our expansion plan with the confidence of an operator who has already demonstrated it can beat its competitors and grow profitability in any competitive market. Turning to the media segment. I'm also quite happy to report a much improved performance with adjusted EBITDA reaching CAD 27 million in the quarter, up CAD 18 million year over year, driven primarily to our TVA Sports, where the Montreal Canadiens playoff run boosted both advertising and subscription revenues.

Speaker #3: We continue to execute on our expansion plan with the confidence of an operator who has already demonstrated it can beat its competitors and grow profitability in any competitive market .

Pierre-Karl Péladeau: We continue to execute on our expansion plan with the confidence of an operator who has already demonstrated it can beat its competitors and grow profitability in any competitive market. Turning to the media segment. I'm also quite happy to report a much improved performance with adjusted EBITDA reaching CAD 27 million in the quarter, up CAD 18 million year over year, driven primarily to our TVA Sports, where the Montreal Canadiens playoff run boosted both advertising and subscription revenues. Our numerous cost efficiency initiatives throughout all of our media sectors also contributed to our improved financial results, along with higher, I'm sorry, long overdue affiliate rates. On the NHL renewal rights process, we have nothing else to say than we're still to finalize our negotiations.

Speaker #3: Turning to the media segment , I'm also quite happy to report a much improved performance with adjusted EBITDA reaching 27 million in the quarter , up 18 million year over year , driven primarily to our TV .

Speaker #3: As Paul , where the Montreal Canadiens play run boosted both advertising and subscription revenues . Our numerous cost efficiency initiatives throughout all of our media sectors also contributed to our improved financial results , along with our low , low .

Pierre Karl Péladeau: Our numerous cost efficiency initiatives throughout all of our media sectors also contributed to our improved financial results, along with higher, I'm sorry, long overdue affiliate rates. On the NHL renewal rights process, we have nothing else to say than we're still to finalize our negotiations.

Speaker #3: I'm sorry , long overdue affiliate rates on the NHL renewal rights process . We have nothing else to say . Then we're still the finalizing our negotiations In addition to the outstanding Aki performance , TVR must see programs and original product productions including the daily series and find out which remain the most watched drama series in Quebec , with an average of over 1.2 million viewers every day from Monday to Thursday and Revolucion , which climbed to the top spot among entertainment programs across all channels on the spring .

Pierre Karl Péladeau: In addition to the outstanding hockey performance, TVA must-see programs and original productions, including the daily series, "Indéfendable," which remains the most-watched drama series in Quebec with an average of over 1.2 million viewers every day from Monday to Thursday, and "Révolution," which climbed to the top spot among entertainment program across all channels on the spring schedule with an average of 740,000 viewers, helped TVA Group to retain its lead in Quebec with commanding a 44.2% market share. While several challenges persist in the media business, we remain focused on operational discipline and premium content to provide Quebecers with homegrown entertainment, news, and sports content produced by Quebec creators and crews. However, we cannot ignore the structural challenges facing the industry, which remain as daunting as ever.

Pierre-Karl Péladeau: In addition to the outstanding hockey performance, TVA must-see programs and original productions, including the daily series, "Indéfendable," which remains the most-watched drama series in Quebec with an average of over 1.2 million viewers every day from Monday to Thursday, and "Révolution," which climbed to the top spot among entertainment program across all channels on the spring schedule with an average of 740,000 viewers, helped TVA Group to retain its lead in Quebec with commanding a 44.2% market share. While several challenges persist in the media business, we remain focused on operational discipline and premium content to provide Quebecers with homegrown entertainment, news, and sports content produced by Quebec creators and crews. However, we cannot ignore the structural challenges facing the industry, which remain as daunting as ever.

Speaker #3: Schedule , with an average of 740,000 viewers at TVR Group to retain its lead in Quebec , with commanding a 44.2% market share , while several challenges persist in the media business , we remain focused on operational discipline and premium content to provide Quebecers with home grown entertainment news and sports content produced by Quebec creators and crews .

Speaker #3: However , we cannot ignore the structural challenges facing the industry , which remain as daunting as ever . We will continue making our case to government and regulatory bodies since we're building a viable and sustainable model for our entire industries , requiring the involvement of all stakeholders .

Pierre Karl Péladeau: We will continue making our case to government and regulatory bodies since we're building a viable and sustainable model for our entire industry, requiring the involvement of all stakeholders. I will now let Hugues review our detailed financial results. Hugues?

Pierre-Karl Péladeau: We will continue making our case to government and regulatory bodies since we're building a viable and sustainable model for our entire industry, requiring the involvement of all stakeholders. I will now let Hugues review our detailed financial results. Hugues?

Speaker #3: I will now let us review our detail . Financial results . ERG .

Hugues Simard: Merci, Pierre-Karl. On a consolidated basis in Q2 2026, Quebecor recorded revenues of CAD 1.4 billion, up 4% from last year, and EBITDA reached CAD 627 million, up CAD 22 million or 4%, despite a CAD 40 million increase in share-based compensation expense across all of the corporation segments. Excluding share-based compensation, EBITDA is up CAD 62 million or 10%. Free cash flow is up CAD 44 million or 12% to CAD 419 million, and cash flows provided by operating activities increased CAD 32 million to CAD 570 million, up 6% compared to the same Q2 last year. In our telecom segment, total revenues increased 4%. Total service revenues, our primary indicator of recurring revenue momentum, were CAD 1.03 billion, up 4% year over year. Wireless service revenues were CAD 476 million, up 9%, driven by continued subscriber and ARPU growth across our 3 brands.

Speaker #2: FCP account on a consolidated basis in the second quarter of 2026 . Quebec recorded revenues of $1.4 billion , up 4% from last year , and EBITDA reached $627 million , up $22 million , or 4% , despite a 40 million increase in share based compensation expense across all of the corporation's segments .

Speaker #2: Excluding share based compensation , EBITDA is up 62 million or 10% . Free cash flow is up 44 million , or 12% , to 419 million , and cash flows provided by operating activities increased $32 million to $570 million , up 6% compared to the same quarter last year .

Speaker #2: In our telecom segment , total revenues increased 4% . Total service revenues are primary indicator of recurring revenue momentum were $1.03 billion , up 4% year over year .

Speaker #2: Wireless service revenues were $476 million , up 9% , driven by continued subscriber and rpu growth across our three brands . Wireline service revenues were $559 million , up 0.3% , with internet revenue growth of 3.1% , partly offset by the continued structural decline in traditional services .

Hugues Simard: Wireless service revenues were CAD 476 million, up 9%, driven by continued subscriber and ARPU growth across our 3 brands. Wireline service revenues were CAD 559 million, up 0.3%, with internet revenue growth of 3.1%, partly offset by the continued structural decline in traditional services, though television revenues declined only 1.1%, a marked improvement compared to recent quarters. With rigorous cost management, adjusted EBITDA reached CAD 642 million, up 5%, our highest adjusted EBITDA ever recorded for telecom in a Q2. With our adjusted EBITDA margin reaching 52%, a 60 basis point improvement year over year. More critically, our adjusted EBITDA grew at a rate significantly higher than our revenues, which is the natural consequence of the structural efficiency gains embedded in our platform.

Hugues Simard: Wireline service revenues were CAD 559 million, up 0.3%, with internet revenue growth of 3.1%, partly offset by the continued structural decline in traditional services, though television revenues declined only 1.1%, a marked improvement compared to recent quarters. With rigorous cost management, adjusted EBITDA reached CAD 642 million, up 5%, our highest adjusted EBITDA ever recorded for telecom in a Q2. With our adjusted EBITDA margin reaching 52%, a 60 basis point improvement year over year. More critically, our adjusted EBITDA grew at a rate significantly higher than our revenues, which is the natural consequence of the structural efficiency gains embedded in our platform. Operating expenses thus fell to 48% of revenue from 48.6% last year and to 48.5% year to date from 49.3%. This is not a one-time optimization, it has not come from headcount reductions.

Speaker #2: Though television revenues declined , only 1.1% , a marked improvement compared to recent quarters . With rigorous cost management . Adjusted EBITDA reached $642 million , up 5% .

Speaker #2: Our highest adjusted EBITDA ever recorded for telecom in the second quarter . And with our adjusted EBITDA margin reaching 52% , a 60 basis point improvement year over year .

Speaker #2: More critically , our adjusted EBITDA grew at a rate significantly , significantly higher than our revenues , which is a natural consequence of the structural efficiency , efficiency gains embedded in our platform operating expenses thus fell to 48% of revenue from 48.6 last year and to 48.5% year to date from 49.3 .

Hugues Simard: Operating expenses thus fell to 48% of revenue from 48.6% last year and to 48.5% year to date from 49.3%. This is not a one-time optimization, it has not come from headcount reductions. It is the compounding effect of the continued optimization of our cost base while improving the quality of our revenues. We expect AI, including our Etiya BSS platform, to which Pierre-Karl referred earlier, to generate further efficiencies going forward. Telecom CapEx spending, excluding spectrum licenses, was up by CAD 18 million or 12% in the quarter, primarily reflecting the accelerated build-out of our internet infrastructure and the continued 5G and 5G+ rollout, including the expansion of Freedom Mobile's national footprint. We deploy capital where it creates genuine competitive differentiation and lasting network value for our customers and shareholders.

Speaker #2: This is not a one time optimization , and it has not come from headcount reductions . It is the compounding effect of the continued optimization of our cost base .

Hugues Simard: It is the compounding effect of the continued optimization of our cost base while improving the quality of our revenues. We expect AI, including our Etiya BSS platform, to which Pierre-Karl referred earlier, to generate further efficiencies going forward. Telecom CapEx spending, excluding spectrum licenses, was up by CAD 18 million or 12% in the quarter, primarily reflecting the accelerated build-out of our internet infrastructure and the continued 5G and 5G+ rollout, including the expansion of Freedom Mobile's national footprint. We deploy capital where it creates genuine competitive differentiation and lasting network value for our customers and shareholders. Despite these additional investments, quarterly adjusted cash flows from operations still increased by CAD 14 million or 3% to reach CAD 474 million. This sustained cash flow generation gives us the flexibility to keep investing in our networks, expand Freedom Mobile nationally, and create long-term value for our shareholders.

Speaker #2: While improving the quality of our revenues . And we expect AI , including our ATB , SS platform , to which referred earlier to generate further efficiencies going forward .

Speaker #2: Telecom CapEx spending , excluding spectrum licenses , was up by $18 million , or 12% in the quarter , primarily reflecting the accelerated build out of our internet infrastructure and the continued 5G and 5G rollout , including the expansion of Freedom Mobile's national footprint .

Speaker #2: We deployed capital where it creates genuine competitive differentiation and lasting network value for our customers and shareholders . Despite these additional investments , quarterly adjusted cash flows from operations still increased by $14 million , or 3% , to reach $474 million .

Hugues Simard: Despite these additional investments, quarterly adjusted cash flows from operations still increased by CAD 14 million or 3% to reach CAD 474 million. This sustained cash flow generation gives us the flexibility to keep investing in our networks, expand Freedom Mobile nationally, and create long-term value for our shareholders. Our media segment revenues reached CAD 185 million, up 6% or CAD 10.4 million year-over-year, driven by strong advertising sales from the Montreal Canadiens' long NHL playoff run and higher subscription revenues. EBITDA improved by CAD 18 million to CAD 27 million, reflecting this revenue growth, as well as the benefits of our cost reduction initiatives. In sports and entertainment, revenues declined by CAD 3 million to CAD 48 million, with EBITDA down CAD 1.6 million to CAD 3 million.

Speaker #2: This sustained cash flow generation gives us the flexibility to keep investing in our networks , expand freedom Mobile nationally , and create long term value for our shareholders , our media segment revenues reached $185 million , up 6% , or $10.4 million year over year , driven by strong advertising sales from the Montreal Canadiens .

Hugues Simard: Our media segment revenues reached CAD 185 million, up 6% or CAD 10.4 million year-over-year, driven by strong advertising sales from the Montreal Canadiens' long NHL playoff run and higher subscription revenues. EBITDA improved by CAD 18 million to CAD 27 million, reflecting this revenue growth, as well as the benefits of our cost reduction initiatives. In sports and entertainment, revenues declined by CAD 3 million to CAD 48 million, with EBITDA down CAD 1.6 million to CAD 3 million. Quebecor reported a net income attributable to shareholders of CAD 271 million in the quarter, or CAD 1.21 per share, compared to a net income of CAD 218 million or CAD 0.95 per share reported last year. Adjusted net income excluding unusual items came in at CAD 241 million or CAD 1.07 per share, compared to CAD 227 million or CAD 0.99 per share in the same quarter last year.

Speaker #2: Long NHL playoff run and higher subscription revenues . EBITDA improved by $18 million to $27 million . Reflecting this revenue growth as well as the benefits of our cost reduction initiatives in sports and entertainment .

Speaker #2: Revenues declined by $3 million to $48 million , with EBITDA down 1.6% , $3 million . Quebec reported a net income attributable to shareholders of $271 million in the quarter , or $1.21 per share , compared to a net income of 218 , or $0.95 per share .

Hugues Simard: Quebecor reported a net income attributable to shareholders of CAD 271 million in the quarter, or CAD 1.21 per share, compared to a net income of CAD 218 million or CAD 0.95 per share reported last year. Adjusted net income excluding unusual items came in at CAD 241 million or CAD 1.07 per share, compared to CAD 227 million or CAD 0.99 per share in the same quarter last year. Looking at H1 of the year, our revenues rose 4% to CAD 2.8 billion and EBITDA increased 4% as well to CAD 1.2 billion, held back by a CAD 87 million increase in stock-based compensation charges. Excluding SBC, EBITDA would have grown CAD 136 million or 11%. In our telecom segment, EBITDA grew 8%, an improvement of nearly CAD 100 million year-over-year, excluding SBC.

Speaker #2: Reported last year . Adjusted net income , excluding unusual items , came in at 241 million , or $1.07 per share , compared to $227 million , or $0.99 per share , in the same quarter last year Looking at the first six months of the year , our revenues rose 4% to $2.8 billion in EBITDA increased 4% as well to $1.2 billion held back by an $87 million increase in stock based compensation charges .

Hugues Simard: Looking at H1 of the year, our revenues rose 4% to CAD 2.8 billion and EBITDA increased 4% as well to CAD 1.2 billion, held back by a CAD 87 million increase in stock-based compensation charges. Excluding SBC, EBITDA would have grown CAD 136 million or 11%. In our telecom segment, EBITDA grew 8%, an improvement of nearly CAD 100 million year-over-year, excluding SBC. As of the end of the quarter, Quebecor's net debt to EBITDA ratio stood at 2.87x, stable sequentially, still the lowest among all Canadian telecom operators by quite some margin. As we continue to proactively optimize our capital structure, the US $1 billion commercial paper program we established at the start of the quarter is now fully operational, diversifying our funding sources and providing additional flexibility at very attractive short-term rates. We also paid down debt during the quarter.

Speaker #2: Excluding SBC , EBITDA would have grown $136 million , or 11% , in our telecom segment , EBITDA grew 8% , an improvement of nearly $100 million year over year .

Speaker #2: Excluding SBC . As to the end of as of the end of the quarter , Quebec was net debt to EBITDA ratio stood at 2.87 times stable sequentially , still the lowest among all Canadian telecom operators by quite some margin .

Hugues Simard: As of the end of the quarter, Quebecor's net debt to EBITDA ratio stood at 2.87x, stable sequentially, still the lowest among all Canadian telecom operators by quite some margin. As we continue to proactively optimize our capital structure, the US $1 billion commercial paper program we established at the start of the quarter is now fully operational, diversifying our funding sources and providing additional flexibility at very attractive short-term rates. We also paid down debt during the quarter. Videotron repaid the CAD 500 million balance on its term loan tranche maturing in April 2026, and CAD 300 million of the CAD 700 million tranche maturing in April 2027, followed by a further CAD 100 million early repayment on 8 July.

Speaker #2: As we continue to proactively optimize our capital structure , the US $1 billion commercial paper program , we established at the start of the quarter is now fully operational , diversifying our funding sources and providing additional flexibility at very attractive short term rates .

Speaker #2: We also pay down debt during the quarter , Videotron repaid the 500 million balance on the tranche on its on its term loan tranche , maturing in April 2026 , and 300 million of the 700 million tranche maturing in April 2027 , followed by a further 100 million early repayment repayment in on July the 8th .

Hugues Simard: Videotron repaid the CAD 500 million balance on its term loan tranche maturing in April 2026, and CAD 300 million of the CAD 700 million tranche maturing in April 2027, followed by a further CAD 100 million early repayment on 8 July. All in all, we have the best-in-class balance sheet with available liquidity of CAD 926 million at the end of Q2. During H1 of the year, we purchased and canceled 3.1 million Class B shares for a total investment of CAD 185 million. More importantly, upon termination of the August 2026 program, the board of directors has approved the renewal of the program for one additional year.

Speaker #2: All in all , we have the best in class balance sheet with available liquidity of $926 million at the end of the second quarter .

Hugues Simard: All in all, we have the best-in-class balance sheet with available liquidity of CAD 926 million at the end of Q2. During H1 of the year, we purchased and canceled 3.1 million Class B shares for a total investment of CAD 185 million. More importantly, upon termination of the August 2026 program, the board of directors has approved the renewal of the program for one additional year. Finally, in light of these results and our confidence in our growing free cash flow, Quebecor's board of directors declared yesterday a quarterly dividend of CAD 0.45 per share for both Class A and Class B shares, up from CAD 0.40, an increase of 12.5%. We thank you for your attention and will now open the lines for your questions.

Speaker #2: During the first six months of the year , we purchased and cancelled 3.1 million class B shares for a total investment of 185 million .

Speaker #2: And more importantly , upon termination of the August 2026 program , the Board of Directors has approved the renewal of the program for one additional year .

Speaker #2: Finally , in light of these results and our confidence in our growing free cash flow , Quebecor's Board of Directors declared yesterday a quarterly dividend of $0.45 per share for both class A and class B shares , up from $0.40 , an increase of 12.5% .

Hugues Simard: Finally, in light of these results and our confidence in our growing free cash flow, Quebecor's board of directors declared yesterday a quarterly dividend of CAD 0.45 per share for both Class A and Class B shares, up from CAD 0.40, an increase of 12.5%. We thank you for your attention and will now open the lines for your questions.

Speaker #2: We thank you for your attention , and we'll now open the lines for your questions .

Speaker #1: Thank you Ladies and gentlemen , if you'd like to ask a question , please press star one on your telephone keypad . If you'd like to withdraw your question , press star two .

Operator: Thank you. Ladies and gentlemen, if you'd like to ask a question, please press star one on your telephone keypad. If you'd like to withdraw your question, press star two. One moment, please, for your first question. Your first question comes from Sebastiano Petti from JPMorgan. Please go ahead.

Speaker #1: One moment please . For your first question , your first question comes from Sebastiano Petti from J.P. Morgan . Please go ahead

Speaker #4: Hi . Thank you for taking the question . If I could just perhaps ask you in terms of outlook for CapEx and free cash flow for the year .

Sebastiano Petti: Hi. Thank you for taking the question. If I could just perhaps ask you in terms of outlook for CapEx and free cash flow for the year, any updates relative to prior commentary, just given the pacing and phasing of investments that you're making to expand the network and expand the geographic reach of Freedom, as well as your other investments there? Free cash flow, obviously, so stock-based comp was a big benefit last year, I think year to date as well. Just help us think about maybe, I think stability ex stock-based comp is generally how I think we were told to think about it for the year in 2026 relative to 2025. Any reason to think that things would deviate from that? Thank you.

Speaker #4: Any updates relative to prior commentary? Just given the pacing and phasing of investments that you're making to expand the network and expand the geographic reach of Freedom, as well as your other investments there.

Speaker #4: And , , free cash flow , obviously . So stock based comp was a big benefit last year . , I think year to date as well .

Speaker #4: Just help us think about maybe I think stability X stock based comp was generally how I think we were , you know , , told to kind of think about it for the year in 2026 relative to 2025 .

Speaker #4: Any reason to think that things would deviate from that ? Thank you .

Speaker #3: Thank you . Thank you . Sebastiano our last you need to to give you some more details on the numbers . If been talking about Greg .

Pierre Karl Péladeau: Thank you, Sebastiano. I'll ask Hugues to give you some more details on the numbers that you've been talking about. Hugues?

Pierre-Karl Péladeau: Thank you, Sebastiano. I'll ask Hugues to give you some more details on the numbers that you've been talking about. Hugues?

Speaker #2: , yeah . So . Sebastiano . Yeah , I think stability as we've as we've talked and as we've said , , , you know , many times over the last few months , , is the right way to think about it .

Hugues Simard: Yeah. Sebastiano, I think stability, as we've talked and as we've said many times over the last few months, is the right way to think about it. We're quite confident. Our momentum is good. Our execution is good and efficient. As I said, from a balance sheet standpoint, we are continuing to lower our interest expense. I'm generally confident and to a stable, yet maybe slightly better than stable, cash flow generation towards the end of the year. Yeah.

Speaker #2: , we're , you know , we're quite confident our momentum is good . , our execution is , is , is good and efficient .

Speaker #2: And , , as I said , from a , from a finance , from a balance sheet , , we are continuing to , to lower our , our , our interest expense .

Speaker #2: , so I'm , I'm generally confident and , , to a stable yet , , maybe slightly better than stable cash flow generation .

Speaker #2: , towards the end of the year . Yeah

Speaker #4: And then just on CapEx , you , in terms of phasing or balance of the year , I mean , how should we think about it ?

Sebastiano Petti: Just on CapEx, Hugues, in terms of phasing or balance of the year, how should we think about it? Maybe pick up in spend as network investments, maybe perhaps pick up as we think about the geographic reach or-

Speaker #4: Maybe pick up in spend as network investments ? , maybe , perhaps pick up as you think about the geographic reach or any help on phasing ?

Hugues Simard: Yeah

Sebastiano Petti: Any help on phasing? Thank you.

Speaker #4: Thank you

Speaker #2: , you know , Sebastiano was still along with , , you know , the guidance we gave for the year . We're , , there's a bit of timing issue sometimes between quarters .

Hugues Simard: Sebastiano, still along with the guidance we gave for the year, there's a bit of timing issues sometimes between quarters. We're in line, and I would expect to reach our guidance for the year, just like we did last year. You'll see a little bit more CapEx in Q2. There'll be a bit more, and then maybe some timing in Q4. All in all, in line with our guidance for the year.

Speaker #2: , but , , we're , you know , we're in line , and I would expect to , to reach , , our , you know , our , our , our , our guidance for the year , , just like we did last year .

Speaker #2: , and , , so some , you'll see a little bit more CapEx in Q2 . , there may be , , there'll be a bit more and then maybe some timing in Q4 .

Speaker #2: So , , but all in all , in line with our , with our guidance for the year

Speaker #4: Thank you so much

Sebastiano Petti: Thank you so much.

Speaker #1: Your next question comes from Matt , your next question comes from Matt air Yagi from Scotiabank . Please go ahead

Operator: Your next question comes from Maher-

Operator: Your next question comes from Maher.

Pierre Karl Péladeau: Next question, please.

Pierre-Karl Péladeau: Next question, please.

Operator: Your next question comes from Maher Yaghi from Scotiabank. Please go ahead.

Speaker #5: , merci d'avoir . My thank you . I wanted to ask you very strong , obviously very strong rpu growth . , print in the quarter .

Maher Yaghi: Merci. Thank you. I wanted to ask you, obviously very strong ARPU gross print in the quarter. In Q1, I think you guys mentioned that your most sold plans are in the CAD 35 to 40 price range, and your blended ARPU now is CAD 35.62. I was trying to figure out how much more tailwind you have left in your subscriber base that should continue to support your ARPU growth forecast going forward. Are we to expect the same similar type of growth in H2, or any kind of directional view on ARPU metrics going forward? Thank you. I'll have a follow-up after.

Speaker #5: , in Q2 , , I think you guys mentioned that you're most sold plans are in the 35 to $40 price range , and your blended rpu now is 35 , 62 .

Speaker #5: I was trying to figure out how much more tailwind you have left in your subscriber base . , that , you know , should continue to support your growth .

Speaker #5: , you know , growth forecast going forward and are we to expect the same similar type of growth in the back half of the year or any kind of directional , , view on rpu metrics going forward ?

Speaker #5: Thank you . I'll have a follow up after .

Speaker #2: Okay .

Hugues Simard: Okay, well thanks for-

Speaker #3: Well , thank you . , thank you My , , just before , you know , letting , , you know , I would , I would say it's unfortunate , you know , that , you know , we say the usual thing about this , you know , we cannot , , anticipate , you know , what the market will be for the next quarters .

Pierre Karl Péladeau: Thank you, Maher. Just before letting Hugues, I would say it's unfortunate that we say the usual thing about this. We cannot anticipate what the market will be for the next quarters. We will certainly continue to make sure that our brands are getting more solid, our capacity to offer what could be and should be, I'm not going to say a premium, but certainly a value-added type of service should position and continue to position ourselves of growing our customer base without being forced, again, as I mentioned, to get in the trenches of deep discounting. It's always sensitive to talk about this too much because as you know, it's commercially quite important intelligence. We'll remain prudent about the affirmation or the statement we'll make. Hugues, I don't know, something else to say?

Pierre-Karl Péladeau: Thank you, Maher. Just before letting Hugues, I would say it's unfortunate that we say the usual thing about this. We cannot anticipate what the market will be for the next quarters. We will certainly continue to make sure that our brands are getting more solid, our capacity to offer what could be and should be, I'm not going to say a premium, but certainly a value-added type of service should position and continue to position ourselves of growing our customer base without being forced, again, as I mentioned, to get in the trenches of deep discounting. It's always sensitive to talk about this too much because as you know, it's commercially quite important intelligence. We'll remain prudent about the affirmation or the statement we'll make. Hugues, I don't know, something else to say?

Speaker #3: , but we will certainly continue to make sure that , you know , our brands are getting more solid . Our capacity to offer what could be and should be , you know , I'm gonna , I'm not gonna say a premium , but certainly a value added type of service .

Speaker #3: , should position and continue to position ourselves , you know , of growing , , our , our customer base without being forced again , as I mentioned , you know , to , , get , , in the trenches , of deep discounting So , , you know , it's always , , sensitive to , to talk about this too much because as you know , it's , it's commercially , you know , , quite an important intelligence , , so we'll , we'll remain prudent about , you know , the , the affirmation that our , the statement will , will make , you know .

Speaker #3: I don't know , something else to say .

Speaker #2: Well , not really . I mean , I think you've yeah , I think we , we should remain prudent . I think the , the only thing perhaps I would add is that , , you know , we're , we're a very , , we're very satisfied with the , with the loading with the loading that , , that we're getting and , , we , we believe , , that there's still room to grow for us and , , as we did not participate in the crazy , Craziness , I'll call it of Q1 .

Hugues Simard: Well, not really. I think we should remain prudent. I think the only thing perhaps I would add is that we're very satisfied with the ARPU loading that we're getting. We believe that there's still room to grow for us. As we did not participate in the craziness, I'll call it, of Q1 so much, I think that generally should bode well for both loading and ARPU growth going forward.

Speaker #2: So much . I think , , that generally should , , bodes well for both loading and , and , , and rpu growth going forward .

Pierre Karl Péladeau: Yeah, Maher-

Speaker #3: Okay , great . I think that , you know , some , we think that some , , some , , managers at our competitors are , are receiving their bonus by having an upload at the end of quarters because this is the kind of circumstances that we're often meeting , but that's another , ball game .

Hugues Simard: Okay, great.

Pierre-Karl Péladeau: Yeah, Maher, sometimes we think that some managers that are our competitors are receiving their bonus by having an upload at the end of quarters. This is the kind of circumstances that we're often meeting, but that's another ballgame.

Pierre Karl Péladeau: Sometimes we think that some managers that are our competitors are receiving their bonus by having an upload at the end of quarters. This is the kind of circumstances that we're often meeting, but that's another ballgame.

Speaker #5: That's very clear in your results . The financial performance and operating leverage is quite clear in your results . And , you know , kudos to your team , finance team , , but Pierre Karl , in your prepared remarks , you provided some context on the Asia acquisition .

Maher Yaghi: That's very clear in your results, the financial performance and operating leverage is quite clear in your results and kudos to your team, finance team. Pierre-Karl, in your prepared remarks, you provided some context on the Etiya acquisition. Is it possible for you guys to give us some guardrails when it comes to what's the annual run rate on revenue and EBITDA from Etiya pro forma, and also, are you looking for any bolt-on acquisitions to support that business and to continue to grow it, or should we think about this acquisition as a one-time off? Thank you.

Speaker #5: , is it possible for you guys to give us some , , you know , guardrails when it comes to what's the annual run rate on revenue and EBITDA from Aysha pro forma and also , you know , are you looking for any bolt on acquisitions to support that business and grow , grow it , you know , to continue to grow it ?

Speaker #5: Or should we think about this acquisition as a one time off Thank you

Speaker #3: It's an interesting question . , I guess that , you know what we need to do is , you know , try to explain a little bit better .

Pierre Karl Péladeau: It's an interesting question, Maher. I guess that what we need to do is try to explain a little bit better. I'm not sure the conference call is the best place to do it, so I'm sure that Hugues will make his time available to explain. In a nutshell, I would say, BSS and OSS are a significant portion of our cost in the wireless business and also in our legacy business. We look forward to get rid of this legacy, which was on IBM framework. Never forget that we're coming from a cable environment. This is the legacy of the business, and cable was not invited last week. It's been there for 50, 60 years, so we need to make sure that we will migrate on other digital platform that will make our cost more efficient and less costly.

Pierre-Karl Péladeau: It's an interesting question, Maher. I guess that what we need to do is try to explain a little bit better. I'm not sure the conference call is the best place to do it, so I'm sure that Hugues will make his time available to explain. In a nutshell, I would say, BSS and OSS are a significant portion of our cost in the wireless business and also in our legacy business. We look forward to get rid of this legacy, which was on IBM framework. Never forget that we're coming from a cable environment. This is the legacy of the business, and cable was not invited last week. It's been there for 50, 60 years, so we need to make sure that we will migrate on other digital platform that will make our cost more efficient and less costly.

Speaker #3: , I'm not sure , you know , the conference call is the , the best place to do it . So I'm sure that you will , will , , make his time available to explain .

Speaker #3: But in a nutshell , I would say , you know , , BSS and OSS are significant portion of our costs in the wireless business and also in our legacy business .

Speaker #3: , we look forward , you know , to get rid of this legacy , which , you know , was , , on IB , IBM framework , , yeah , you know , never forget that , you know , we're coming from a cable environment .

Speaker #3: This is the legacy of the business and cable was not invited last week . You know , it's been there for 50 , 60 years .

Speaker #3: So we need to make sure that we will migrate , , on other digital platforms that will make our costs more , more efficient and less costly .

Speaker #3: And , you know , we found out , well , and usually it's , you know , the kind of situation that is naturally , you know , the kind that you'll meet , , buying freedom , , we're not saying that the platform was not efficient .

Pierre Karl Péladeau: Well, and usually it's the kind of situation that is naturally the kind that you'll meet. Buying Freedom, we're not saying that the platform was not efficient. In fact, it was. Certainly, costly. By getting the platforms being all together under the same roof, you can easily understand that will generate significant savings. On top of, I know that's a little bit of a buzzword, for the last weeks or months, but artificial intelligence is bringing some significant advantages on those platforms. It will help us significantly, again, to reduce our costs. This is the way that we're looking at it. We saw, and this is one of the reasons of the great success of FIS, because Etiya built the FIS platform, and we're now in the process of migrating our other platforms under Etiya.

Pierre-Karl Péladeau: Well, and usually it's the kind of situation that is naturally the kind that you'll meet. Buying Freedom, we're not saying that the platform was not efficient. In fact, it was. Certainly, costly. By getting the platforms being all together under the same roof, you can easily understand that will generate significant savings. On top of, I know that's a little bit of a buzzword, for the last weeks or months, but artificial intelligence is bringing some significant advantages on those platforms. It will help us significantly, again, to reduce our costs. This is the way that we're looking at it. We saw, and this is one of the reasons of the great success of FIS, because Etiya built the FIS platform, and we're now in the process of migrating our other platforms under Etiya.

Speaker #3: In fact , it was , but certainly , you know , costly . So by getting , , the platforms being altogether under the same roof , you can easily understand that will generate significant savings .

Speaker #3: , on top of , , and I know that's a little bit of a buzzword , you know , for the last weeks or months , but , , artificial intelligence is , , bringing , , some significant advantages .

Speaker #3: , on , on those platforms . , and it will help us significantly again , to reduce our costs . This is the way that we're looking at it .

Speaker #3: And we saw , and this is one of the reasons of the great success of fizz , because it's you built the fizz platform and we are now in the migrating our other platforms , , under Itea .

Speaker #3: So it will make , you know , our business , , even well understand its eternal internally , but , it brings value added and something that we can be a kind of a showcase for other worldwide operators that are facing the same kind of situation .

Pierre Karl Péladeau: It will make our business even more I understand it's internally, but it brings a value added and something that we can be a kind of a showcase for other worldwide operators that are facing the same kind of situation. They're looking to improve their BSS costs on top of which, again, AI should be a significant tool to achieve it. Where this business will grow in the future, can we consider considering acquisitions? As we mentioned, we own 70% now. We are in partnership with the founders, three gentlemen that we appreciate and have been doing a great job. They will continue to be part of it, and we will continue to be with them to grow the business. On top of our brands, Etiya also have significant other customers, large Turkish customers and French customers.

Pierre-Karl Péladeau: It will make our business even more I understand it's internally, but it brings a value added and something that we can be a kind of a showcase for other worldwide operators that are facing the same kind of situation. They're looking to improve their BSS costs on top of which, again, AI should be a significant tool to achieve it. Where this business will grow in the future, can we consider considering acquisitions? As we mentioned, we own 70% now. We are in partnership with the founders, three gentlemen that we appreciate and have been doing a great job. They will continue to be part of it, and we will continue to be with them to grow the business. On top of our brands, Etiya also have significant other customers, large Turkish customers and French customers.

Speaker #3: They're looking to improve their BS costs , on top of which again , a AI should be a significant tool to , achieve it .

Speaker #3: So where this business will grow in the future , , can we consider , you know , , considering acquisitions , , as we mentioned , we own 70% now .

Speaker #3: We are in partnership with the founders, three gentlemen that we appreciate and who have been doing a great job. They will continue to be part of it.

Speaker #3: , and we will continue to be with them to grow the business on top of our brands . It's , you're also have significant other customers , large Turkish French customers .

Speaker #3: And we look forward because of this showcase , you know , to grow this business and have the capacity to increase our revenues in the future .

Pierre Karl Péladeau: We look forward, because of this showcase, to grow this business and have the capacity to increase our revenues in the future. Sorry for the long answer, long response. I don't know, Hugues, if you have anything to add, but I'm sure, again, Hugues will make him available for further details.

Pierre-Karl Péladeau: We look forward, because of this showcase, to grow this business and have the capacity to increase our revenues in the future. Sorry for the long answer, long response. I don't know, Hugues, if you have anything to add, but I'm sure, again, Hugues will make him available for further details.

Speaker #3: Sorry for the long answer . Long response . I don't know if you have anything to hide , but I'm sure again , you know , add , , , it will make him , , available for further details .

Speaker #2: Yeah , I think .

Hugues Simard: Yeah, I think that's.

Speaker #5: That's great . Thank you . , maybe . Maybe if you can give us the run rate , the annual run rate of the business

Maher Yaghi: No, it's great. Thank you, Pierre Karl. Maybe, Hugues, if you can give us the annual run rate of the business.

Speaker #2: Yeah . We'll discuss because it's , , it's a little more complicated than that . I mean , it has , it's a , , you know , it's a , you know , it's basically a more than $100 million revenue company , but then some of it is internal , of course , because it's now it's now part of our of our telecom segment .

Hugues Simard: Yeah, we'll discuss, because it's a little more complicated than that. It's basically a more than CAD 100 million revenue company, some of it is internal, of course, because it's now part of our telecom segment. You need to net out a few things. We'll talk about that in more detail if you want. We always follow up after this call, and I'll make sure that I give you all the important numbers.

Speaker #2: So it's , , you know , you need to net out a few things . So we'll talk about that in more detail .

Speaker #2: If you want , but , , I'll , , I'll , , you know , we , , we always follow up after this call and I'll make sure that I give you all the , , the , , the important numbers

Speaker #5: Great . Thank you .

Maher Yaghi: Great. Thank you.

Speaker #3: And I will , I will , I will finish my to , to say . And I , I think this is a great asset , you know , controlling our BSS is something that makes a difference .

Pierre Karl Péladeau: Colin, I will finish to say, and I think this is a great asset. Controlling our BSS is something that makes a difference, because we all know that we need to be agile. Agile is not just a word, is also an action, is also an attitude. When you're controlling the tool that you're working with, you're certainly in one of the best situation to remain agile and looking forward to get the full picture of where your BSS will go in the future.

Pierre-Karl Péladeau: I will finish to say, and I think this is a great asset. Controlling our BSS is something that makes a difference, because we all know that we need to be agile. Agile is not just a word, is also an action, is also an attitude. When you're controlling the tool that you're working with, you're certainly in one of the best situation to remain agile and looking forward to get the full picture of where your BSS will go in the future.

Speaker #3: Because we all know that we need to be agile . And agile is not just a word . It's also an action . It's also , you know , an attitude .

Speaker #3: And when you're controlling the tools that you're working with , you're certainly in one of the best situations to remain agile and looking forward to get the full picture of where your BSS will go in the future

Speaker #5: Merci

Hugues Simard: Merci.

Speaker #1: Your next .

Operator: Your next que-

Pierre Karl Péladeau: Thank you. We'll take the next question.

Pierre-Karl Péladeau: Thank you. We'll take the next question.

Speaker #3: Question . Take the next question .

Speaker #1: Your next question comes from Vince Valentine from TD Cowan . Please go ahead

Operator: Your next question comes from Vince Valentini from TD Cowen. Please go ahead.

Speaker #6: Hey , thanks very much . let me hey . Good morning .

Vince Valentini: Hey, thanks very much. Let me-

Vince Valentini: Hey, thanks very much.

Hugues Simard: Hey, good morning, Mr. Valentini.

Speaker #2: Mr. Valentine

Speaker #6: Thank you , Mr. Hue . , the , , , stick on it for a second . Just to clarify something . The any revenue you do include , I'm assuming , Hugh , if that's looking at your supplemental disclosure page .

Vince Valentini: Thank you, Mr. Hugh. Stick on ATA for a second just to clarify something. Any revenue you do include, I'm looking at your supplemental disclosure page, I'm assuming it's part of the CAD 54 million of other revenue within the telecom segment? I assume that's already net of intersegment eliminations for the stuff that they're selling to you.

Speaker #6: I'm assuming it's part of the $54 million of other revenue within the telecom segment. And I assume that's already net of intersegment eliminations for the stuff that they're selling to you.

Speaker #2: Yes , yes to both questions . Yes .

Hugues Simard: Yes. Yes to both questions. Yes.

Speaker #6: Okay . And just to clarify , I assume there was some small revenue contribution in this quarter , given you , you bought it in April , but was .

Vince Valentini: Okay. Just to clarify, I assume there was some small revenue contribution in this quarter, given you bought it in April, but was there any meaningful impact to your telecom segment EBITDA this quarter from that acquisition?

Speaker #6: Was there any meaningful impact to your telecom segment ? EBITDA this quarter from that acquisition

Speaker #2: No , no , nothing material . This quarter . I'll , , I'll , I'll , I'll guide you a bit more going forward .

Hugues Simard: No. Nothing material this quarter. I'll guide you a bit more going forward, but this quarter, because of the acquisition and some timing noise, there's honestly no material EBITDA contribution.

Speaker #2: But this quarter , because of the acquisition and some noise , , some timing noise , , there's , there's honestly , , no , , no material EBITDA contribution

Speaker #7: Okay .

Vince Valentini: Okay. That's good. Also, maybe just clarify a bit on the wireless ARPU. I know you don't like giving predictions, I want to ask about something that is probably already happening today and just get your sense as to how big it is and how you think it may continue to trend. That's the step-ups. As you know, after you bought Freedom for a long time, you had pricing oftentimes at CAD 35, the customer contract would say it steps up after typically 18 months. Sometimes it was a slightly different timeframe. It typically would go up by CAD 5. For a while, it didn't look like you could do those step-ups because the market pricing was too low, especially in Q1 of this year, it seemed like those step-ups wouldn't be accepted and customers would revolt.

Speaker #6: That's good . And , , also maybe just clarify a bit on the wireless rpu . I know you don't like giving predictions , but I want to ask about something that is probably already happening today and just get your sense as to how big it is and how you think it may continue to trend .

Speaker #6: And that's the step ups . As you know , you know , after you bought freedom for , , a long time , you had pricing like oftentimes at $35 , but the customer contract would say it , it steps up after typically 18 months , sometimes it was slightly different time frame .

Speaker #6: It typically would go up by $5 for a while . It didn't look like you could do those step ups because the market pricing was too low , especially in the first quarter of this year .

Speaker #6: It seemed like those step ups wouldn't be accepted . And customers would would revolt . , but are you now seeing that actually starting to come through and is it any sort of meaningful contributor to your , your wireless revenue growth in Rpu

Vince Valentini: Are you now seeing that actually starting to come through, is it any sort of meaningful contributor to your wireless revenue growth and ARPU?

Speaker #3: , thank you Vince . , just I'll start again . , you follow or you add . , I think that , you know , one differentiating factor that , , had been very strong for freedom was that it's a price freeze .

Pierre Karl Péladeau: Thank you, Vince. Just I'll start, Hugues, then you'll follow or you add. I think that one differentiating factor that has been very strong for Freedom was that it's a price freeze. We built significant campaign on this. To the opposite of our competitors, which are saying that they'll enjoy a very low price, they've been facing quite quickly then, increases. You call that step-up, I guess that the customer or the subscriber consider that as a price increase, which we do not make. We consider that the only increase, if increase there is, will be because you're changing your package. If you were to change your package, obviously you will migrate in another one. If you remain with the same package, your price is freeze. That's a promise that we are respecting.

Pierre-Karl Péladeau: Thank you, Vince. Just I'll start, Hugues, then you'll follow or you add. I think that one differentiating factor that has been very strong for Freedom was that it's a price freeze. We built significant campaign on this. To the opposite of our competitors, which are saying that they'll enjoy a very low price, they've been facing quite quickly then, increases. You call that step-up, I guess that the customer or the subscriber consider that as a price increase, which we do not make. We consider that the only increase, if increase there is, will be because you're changing your package. If you were to change your package, obviously you will migrate in another one. If you remain with the same package, your price is freeze. That's a promise that we are respecting.

Speaker #3: , we built significant campaign on this . , so , , to the opposite of our competitors , which are saying that , you know , they'll , they'll enjoy a very low price .

Speaker #3: They've been facing quite quickly . Then , you know , increases you call that step up . But I guess that the customer , , or the subscriber consider that as a price increase , , which we do not , , make , we consider that the only increase if increase there is will be because you're changing your package .

Speaker #3: So if you were to change your package , obviously you will migrate in another one . But if you remain with the same package , your price is freeze .

Speaker #3: And that's a promise that we are , we are respecting and certainly , you know , that gives gives us credibility in the marketplace for our subscribers and our customers .

Pierre Karl Péladeau: Certainly, that gives us credibility in the marketplace for our subscribers and our customers. We remain focused on this because at the end of the day, credibility in front of our customer is part of customer service, and therefore, there's no reason why we should change our strategy since it's been working pretty well. I don't know, Hugues, if you have anything else to say.

Pierre-Karl Péladeau: Certainly, that gives us credibility in the marketplace for our subscribers and our customers. We remain focused on this because at the end of the day, credibility in front of our customer is part of customer service, and therefore, there's no reason why we should change our strategy since it's been working pretty well. I don't know, Hugues, if you have anything else to say.

Speaker #3: And we remain focused on this because at the end of the day , credibility in front of our customer is part of customer service .

Speaker #3: And therefore , there's no reason why we should change our strategy since it's been working pretty well . I don't know , , if you have anything else to say .

Speaker #2: , well , maybe just specifically to you were referring to the $5 . , just Vince just a specific on this . Yeah .

Hugues Simard: Well, maybe just specifically to, you were referring to the CAD 5. Vince, just specific on this. Yeah, some impact there because we had 18 months before, so yeah. We do see somewhat of an impact. Other than that, I'll stick to Pierre Karl's answer. Yeah.

Speaker #2: Some impact there because we had 18 months before . So we can . So yeah , I mean , we , we , we , we do see somewhat of an impact , but , , you know , other than that , I'll , I'll stick to , , , , to answer .

Speaker #2: Yeah .

Speaker #7: Okay .

Vince Valentini: Okay. Fair enough. Maybe I'll follow up with you. One last question, just internet revenue, up 3.1%. There's nothing wrong with that. It's still a good result, but it was slightly better growth in Q1. I just wonder, is this just sort of slight timing differences from quarter-to-quarter that are irrelevant and rounding error, or have you seen some sort of re-acceleration in promotional intensity or competitive intensity from the telcos that has caused internet promo pricing to start to get worse again?

Speaker #6: , fair enough . Maybe I'll follow up with you , but one last question . Just internet revenue . , up 3.1% . There's nothing wrong with that .

Speaker #6: It's still a good result , but , , it was slightly better growth in the first quarter . I just want is this just sort of slight timing differences from quarter to quarter that are irrelevant .

Speaker #6: Is it just a rounding error, or have you seen some sort of re-acceleration in promotional intensity or competitive intensity from the telcos that has caused internet promo pricing to start to get worse again?

Pierre Karl Péladeau: Hugues?

Pierre-Karl Péladeau: Hugues?

Speaker #2: , no . Nothing like that . , Vince , you know , by the way , Vince , I mean , I , I'm , , I , I have to say , you know , going from you in your note and you and you just said it again , going from 3.2 to 3.1 , you say is a decline .

Hugues Simard: No, nothing like that, Vince. By the way, Vince, I have to say, in your note, and you just said it again, going from 3.2 to 3.1, you say is a decline. I mean, come on. There used to be a time I used to call that stable, and I would still call that stable, wouldn't you? I think you're being tougher on us. What's going on here? No, I

Speaker #2: I mean , come on . I mean , there used to be a time I used to call that stable and I would still call that stable , wouldn't you .

Speaker #2: I think you're being tougher on us . I mean , what's going on here ? No , I meaningful .

Vince Valentini: Not a meaningful. Yeah, I agree it's not a meaningful decline. I just want to make sure it's not a symptom of competitive pressures.

Speaker #6: Yeah I agree it's not a meaningful decline . I just want to make sure it's not a symptom of competitive pressures . And it's just yeah .

Hugues Simard: Yeah, no.

Vince Valentini: It's just Yeah. Okay. No, if that's the answer, that's all I need.

Vince Valentini: It's just yeah. Okay. [crosstalk] that's all I need.

Speaker #6: Okay . Well if that's the answer , that's all I need .

Speaker #2: Yeah . There's no material change in the market . It's , , I think we're continuing to execute well . And I think 3.1% is pretty good in internet for the quarter .

Hugues Simard: Yeah, there's no material change in the market. I think we're continuing to execute well, and I think 3.1% is pretty good in internet for the quarter and continuity over Q1. Yeah.

Hugues Simard: Yeah, there's no material change in the market. I think we're continuing to execute well, and I think 3.1% is pretty good in internet for the quarter and continuity over Q1.

Speaker #2: And continuity over over Q1 . Yeah .

Speaker #3: And may I add also , Vince , I think , you know , our products is improving every day and we continue to invest .

Pierre Karl Péladeau: May I add also, Vince, I think our product is improving every day. We continue to invest in our networks in Quebec on the video side. Cable certainly had an edge many years ago. We lost that edge, and we are realistic about it. We don't consider ourselves fools. We know and we knew that we need to invest to make sure that we'll catch the speed being offered to our customer by our competitors, and this is what we're doing. We will continue to do so to have as good or par quality service than our competitor. We look forward also to have our fixed wireless capacity. We're moving forward, certainly slowly, but surely. Fixed wireless is certainly for us a consideration that will keep live in our mind and consider it as an opportunity also in the future.

Pierre-Karl Péladeau: May I add also, Vince, I think our product is improving every day. We continue to invest in our networks in Quebec on the video side. Cable certainly had an edge many years ago. We lost that edge, and we are realistic about it. We don't consider ourselves fools. We know and we knew that we need to invest to make sure that we'll catch the speed being offered to our customer by our competitors, and this is what we're doing. We will continue to do so to have as good or par quality service than our competitor. We look forward also to have our fixed wireless capacity. We're moving forward, certainly slowly, but surely. Fixed wireless is certainly for us a consideration that will keep live in our mind and consider it as an opportunity also in the future.

Speaker #3: , in our networks in Quebec on the Videotron side , , cable certainly had an edge , you know , many years ago , , we lost that edge and we , we are realistic about it .

Speaker #3: You know , we don't consider ourselves fools . So we knew , we know , and we knew that we need to invest to make sure that , you know , we'll catch the speed being offered our customers by our competitors .

Speaker #3: And this is what we're doing . And we will continue to do so to have as good or par , , quality service , , than , than our competitor .

Speaker #3: We look forward also , you know , to have our fixed wireless capacity . We're moving forward . Certainly slowly but surely , you know , fixed wireless is certainly for us a consideration that , you know , will keep , , live in our mind and consider as an opportunity also in the future .

Speaker #7: Thank you

Vince Valentini: Thank you.

Speaker #3: Thanks , Vince .

Hugues Simard: Thanks, Vince.

Pierre-Karl Péladeau: Thanks, Vince.

Speaker #1: Your next question comes from Jerome W. from Desjardins. Please go ahead.

Operator: Your next question comes from Jérôme Dubreuil from Desjardins. Please go ahead.

Jérôme Dubreuil: Bonjour, tout le monde. Thanks for taking my question. First one is on free cash flow. Hugues, just want to clarify what you said on the free cash flow comment earlier on the call in answer to Sebastiano. You said something like stable or slightly better than stable for free cash year over year. Last year, we had CAD 1,426. Just confirming that. Is this the new base level of free cash flow generation we should be expecting going forward, or maybe there's some working cap items that are boosting the near-term numbers? Thank you.

Speaker #8: Thanks for taking my question . First one is on free cash flow . , I just want to clarify what you what you said on the free cash flow comment earlier on the call and answer to Sebastiano .

Speaker #8: , you said something like stable or slightly better than stable for for free cash year over year . Last year we had 1426 , , that just confirming that .

Speaker #8: And then is this the , a kind of a new , , base level of free cash flow generation ? We should be expecting going forward or maybe there's , there's some working cap items that are , that are boosting the , the near-term numbers .

Speaker #8: Thank you

Speaker #2: , merci . Jerome . , no , on on on free cash flow . Let me be clear what I was telling , , my answer to Sebastiano , , he was asking whether he's still working on the hypothesis that are , free cash flow will be stable year over year .

Hugues Simard: Merci pour ta question, Jérôme. No, on free cash flow, let me be clear. My answer to Sebastiano, he was asking whether he's still working on the hypothesis that our free cash flow will be stable year over year, and I said that's probably the best way to look at it. That being said, I added that we are confident. You'll see that we keep generating very strong free cash flows quarter after quarter to your last point, without any unusual or timing-related adjustments or pickups or influences or impacts. I'm still confident with being stable, slightly ahead of stable year over year.

Speaker #2: And I said , that's , , that's , that's , that's probably the best way to look at it . That being said , I added that we , we are confident you'll see that we keep generating very strong free cash flows quarter after quarter without any , , to your last point , without any , other unusual or timing related , , adjustments or pickups or , or influences or impacts .

Speaker #2: So I'm , you know , I'm still confident with , , with being , , being , stable slightly ahead of stable year over year

Speaker #8: That's great . , and second question for me , , you launched 5G plus recently , in the past , you were talking about having to close the network performance gap before closing the pricing gap .

Jérôme Dubreuil: That's great. Second question from me. You launched 5G Plus recently. In the past, you were talking about having to close the network performance gap before closing the pricing gap. Not going to ask specifically about the pricing gap here, but do you think you are getting closer to closing the network performance gap? Where do you see your network versus the others? Thank you.

Speaker #8: I was going to ask specifically about the pricing gap here, but do you think you are getting closer to closing the network performance gap?

Speaker #8: Where do you see your network versus the others ? Thank you

Pierre Karl Péladeau: It's an interesting question. I guess that some of our competitors are building on the fact that 5G will change or dramatically change the landscape. We were not of this opinion. Instead of emphasizing and, I'm not going to say go crazy, but certainly aggressively building a 5G and a 5G Plus network. We did it as we've been doing other kind of investment in our other businesses. We did the same in cable. We call that modernization. For the last 20 years, we've been improving our product. This is what we've been following as our investment strategy. We can say that, and the numbers are there to prove them, that we were not impaired by this strategy. From 5G, from 5G Plus, we consider, we don't play that game.

Pierre-Karl Péladeau: It's an interesting question. I guess that some of our competitors are building on the fact that 5G will change or dramatically change the landscape. We were not of this opinion. Instead of emphasizing and, I'm not going to say go crazy, but certainly aggressively building a 5G and a 5G Plus network. We did it as we've been doing other kind of investment in our other businesses. We did the same in cable. We call that modernization. For the last 20 years, we've been improving our product. This is what we've been following as our investment strategy. We can say that, and the numbers are there to prove them, that we were not impaired by this strategy. From 5G, from 5G Plus, we consider, we don't play that game.

Speaker #3: , it's an interesting question . You know , I guess that , you know , some of our competitors are building on the fact that , you know , 5G will change or dramatically change the landscape .

Speaker #3: , we were not of this , , opinion , , so instead of , you know , , you know , emphasizing and I'm not going to say go crazy , but , , certainly aggressively , you know , building 5G and a 5G plus network , we did it , you know , as we've been doing other kind of investment in our , our other businesses , you know , we did the same in cable .

Speaker #3: We call that modernization . , and for the last 20 years , we've been improving our product . So this is , you know , what ?

Speaker #3: We've been following as our investment strategy . , I'm , it's , we can't say that , you know , and the numbers are there to prove them that we didn't , we were not impaired by this strategy .

Speaker #3: So , you know , from 5G , from 5G plus , , we consider and we don't , we don't play that game .

Speaker #3: You know , I don't remember what's the name of the organism of the company or the , the , the study , , that give , , you know , well , this is the best speed in this area .

Pierre Karl Péladeau: I don't remember what's the name of the company or the study that gives, well, this is the best speed in this area. That's interesting, but certainly not considering things that our customers will follow on a day-to-day basis. We still continue to consider our other features, once again, customer services, credibility, quality of the product, as the key elements to move forward and continue to maintain and sustain our growth.

Pierre-Karl Péladeau: I don't remember what's the name of the company or the study that gives, well, this is the best speed in this area. That's interesting, but certainly not considering things that our customers will follow on a day-to-day basis. We still continue to consider our other features, once again, customer services, credibility, quality of the product, as the key elements to move forward and continue to maintain and sustain our growth.

Speaker #3: , that's , that's interesting . But you know , certainly not , you know , the , the considerate thing considering things that are customers will follow on a day to day basis .

Speaker #3: And we still continue to consider our other features once again , customer services credibility , , quality of the product as the key elements , you know , to move forward and continue to , to , to , to , to maintain and sustain our growth

Jérôme Dubreuil: Merci beaucoup.

Hugues Simard: Merci, Veron.

Pierre-Karl Péladeau: Merci, Jérôme.

Speaker #1: Year . Next question comes from Stephanie Price from CIBC . Please go ahead .

Operator: Your next question comes from Stephanie Price from CIBC. Please go ahead.

Speaker #9: Good morning with the Aditya acquisition . The dividend increase and the renewed NCIB . Just curious if you could give us your updated thoughts on capital allocation here

Stephanie Price: Good morning. With the Etiya acquisition, the dividend increase, and the renewed NCIB, just curious if you could give us your updated thoughts on capital allocation here.

Pierre Karl Péladeau: Yeah. Good morning, Stephanie. Yes, to my prepared notes, I refer to them, I think it's worth for Hugues to tell you maybe in more details the way that we consider that we will continue to operate in the future.

Pierre-Karl Péladeau: Yeah. Good morning, Stephanie. Yes, to my prepared notes, I refer to them, I think it's worth for Hugues to tell you maybe in more details the way that we consider that we will continue to operate in the future.

Speaker #3: , yeah . Hi . Good morning Stephanie . , yes . , I , you know , to my prepared notes , I refer , you know , , to them , , but I think it's worth , you know , for , for you to tell you , , maybe in more you know , the way that we consider that we will continue to operate in the , in the future .

Speaker #2: , yeah . Stephanie . Just as you see , , we've announced , , a to , as to capital allocation , I just want to make sure I heard because your question wasn't terribly clear , but you , you were asking about how we intend to , to continue on our capital allocation strategy .

Hugues Simard: Yeah, Stephanie, as you see, we've announced as to capital allocation. I just want to make sure I heard, because your question wasn't terribly clear, but you were asking about how we intend to continue on our capital allocation strategy. Is that right?

Speaker #2: Is that right ?

Speaker #9: Yeah . Just curious about uses of capital here . When you you know , you've got the dividend increase , the renewed Ncbi and , and , , the acceleration is curious how you kind of think about capital allocation and what the top priorities are here .

Stephanie Price: Yeah, just curious about uses of capital here. You've got the dividend increase, the renewed NCIB, and the Etiya acquisition.

Hugues Simard: That's right. Yeah.

Hugues Simard: That's right.

Stephanie Price: Just curious how you think about capital allocation and what the top priorities are here.

Speaker #2: Well , as you know , you know , for a number of years , , I capital allocation has been , has been quite balanced .

Hugues Simard: Well, as you know, for a number of years, our capital allocation has been quite balanced, I would put it, in terms of debt reduction to improve our ratios, stock buybacks, and modest increases in our dividends. As we continue to churn out very reliable and very resilient cash flows, the board of directors has decided on the base of that confidence to raise the dividend a little bit. I'm sure you'll agree that it's not our intention to become a dividend stock in any way, shape, or form. Certainly, our intent going forward is to remunerate our shareholders a little better as we have the opportunity to do it with our growing cash flows. Also the fact that our payouts and our yields are way at the bottom of the fort that we had given out.

Speaker #2: I would put it in terms of , , you know , debt reduction to improve our ratios , , stock buybacks and modest , , increases in our dividends .

Speaker #2: , as we are , as we continue to churn out , , very reliable and very resilient cash flows . , we have decided or the board of directors has decided on the , on the basis of that , that , that confidence , , to raise the , , the dividend a little bit .

Speaker #2: I mean , I'm sure you'll agree that we're , I mean , it's not our intention to become a dividend stock in any way , shape or form , but certainly our intent going forward is to remunerate our , our shareholders , , a little better as we have the opportunity to do it , , with our growing cash flows and also the fact that , you know , our payouts and our yields are , are , , way at the , you know , the bottom of the , of the , , of the fort that we had given out .

Speaker #2: , so , , I , I think in terms of capital allocation going forward , more of the same , , with a swipe , a slight tweak in , in favor of , of continuing , , buybacks and increasing dividend a little bit while still continuing to invest in the network .

Hugues Simard: I think in terms of capital allocation going forward, more of the same, with a slight tweak in favor of continuing buybacks and increasing dividend a little bit, while still continuing to invest in the network. Our CapEx, as you see, are solid, and they will keep covering our network extensions and our growth-related projects. There will be cash allocated as well. There'll be extra cash allocated to continuing to delever beyond the 2.86 where we're at.

Speaker #2: Our CapEx , as you see our , our , , , are solid and they will keep , , they will keep covering our network extensions and our growth related projects .

Speaker #2: And , , there will be cash , , allocated as well . They'll be , , extra cash allocated to continuing to deliver , , beyond the 2.86 where we're at .

Speaker #9: Thanks for the call .

Stephanie Price: Thanks for the color.

Pierre Karl Péladeau: May I add, Stephanie, just quickly and refer to that, but I think it's worth to mention it, commercial paper and our capacity to reduce our debt. If you look from one quarter to the previous ones and the other previous one, you'll see a decrease in terms of interest expenses that we face or we incur. This improvement, I think that it should be considered. This is certainly one matter that was raised at the board as a possibility to reallocate this portion of improvement to the shareholders, because at the end of the day, they are the ones that is able to enjoy this balance sheet being improved and financial conditions also being improved.

Pierre-Karl Péladeau: May I add, Stephanie, just quickly and refer to that, but I think it's worth to mention it, commercial paper and our capacity to reduce our debt. If you look from one quarter to the previous ones and the other previous one, you'll see a decrease in terms of interest expenses that we face or we incur. This improvement, I think that it should be considered. This is certainly one matter that was raised at the board as a possibility to reallocate this portion of improvement to the shareholders, because at the end of the day, they are the ones that is able to enjoy this balance sheet being improved and financial conditions also being improved.

Speaker #3: May I add , Stephanie ? May I add just quickly , , and , , refer to that , but I think it's worth you , not to mention it , you know , commercial paper and our capacity to reduce our debt .

Speaker #3: , if you look , you know , from quarter from one quarter to the , the previous ones and the other previous one , you'll see , you know , a decrease in terms of interest , expenses that , you know , we , we face or we , we incur and this improvement , I think that should be considered .

Speaker #3: This is certainly , you know , one matter that was raised at the board as a possibility , you know , to reallocate , you know , this portion of improvement to the shareholders because at the end of the day , they are the ones that , , is able to enjoy this , this balance sheet being , being improved and financial conditions also being improved .

Speaker #9: Thanks for the color . And then maybe just switching over to the wireless . , environment . Pierre , you gave some good insight in the beginning of the call , but just curious what you're seeing about the start of back to school and how it compares to what you saw last year .

Stephanie Price: Thanks for the color. Maybe just switching over to the wireless environment. Pierre, you gave some good insight in the beginning of the call, but just curious what you're seeing about the start of back to school and how it compares to what you saw last year at the same time period here.

Speaker #9: At the same time period here

Speaker #3: Well , you know , at this time of the year , in a few days to come , , we should see , , how the market will , will , will move or react .

Pierre Karl Péladeau: Well, at this time of the year and the few days to come, we should see how the market will move or react. Do we have, at this stage, a little bit of color? I would say that would be dangerous to answer that without doubt. I think that, again, as we mentioned, we will remain prudent. We know that we're always the best position, and there is no reason why we should change. If the market was to change dramatically or not completely dramatically, but to change significantly, we will certainly react accordingly.

Pierre-Karl Péladeau: Well, at this time of the year and the few days to come, we should see how the market will move or react. Do we have, at this stage, a little bit of color? I would say that would be dangerous to answer that without doubt. I think that, again, as we mentioned, we will remain prudent. We know that we're always the best position, and there is no reason why we should change. If the market was to change dramatically or not completely dramatically, but to change significantly, we will certainly react accordingly.

Speaker #3: , we have at this stage , , a little bit of color . , I would say that the , that will be , , dangerous to , , to answer that , you know , without , , without doubt , I think that again , as we mentioned , , we will remain prudent .

Speaker #3: , we know that , you know , we're , always , , the best position . , and , and there is no reason why we should change .

Speaker #3: , if the market was to change dramatically , , or not completely dramatically , but to change significantly . , we will certainly react accordingly

Speaker #9: Thank you very much

Stephanie Price: Thank you very much.

Speaker #1: Your next question comes from Matthew Griffiths from Bank of America . Please go ahead .

Operator: Your next question comes from Matthew Griffiths from Bank of America. Please go ahead.

Speaker #10: Good morning . taking the question . , just wondering if you could make any commentary on wireless churn . This quarter and what you're seeing and what you've what you're experiencing kind of on a year over year basis , obviously , with the improvements to the network , as you continue investing , you know , one would expect , I guess , a decline and just how that expectation may have played out , given the competitive dynamics in the market , that may be , you know , pushing in the other direction .

Matthew Griffiths: Good morning. Thanks for taking the question. Just wondering if you could make any commentary on wireless churn this quarter and what you're seeing, what you're experiencing on a year-over-year basis. Obviously, with the improvements to the network as you continue investing, one would expect, I guess, a decline and just how that expectation may have played out given the competitive dynamics in the market that may be pushing in the other direction. Secondly, if I could, you've commented on the past about areas where you have completed a network build. I'm thinking of the Chatham example, for instance. Are there any other areas that you can call out that you've made an investment to bring the network to a net new area? That would be interesting to hear that type of progress. Thanks.

Speaker #10: And then secondly , if I could , , you've commented on the past about areas where you have completed a network build . I'm thinking of like the Chatham example for , for instance .

Speaker #10: , are there any other areas that you can call out that you've made an investment to bring the network to a net new area ?

Speaker #10: , that would be interesting to hear that type of progress . Thanks

Speaker #3: Thank , thank you . Matthew . , I'll , I'll answer the second part of the your question . , and I'll ask you , to do the first , , so , , you know , again , you know , if we refer to , , what Stephanie was , , asking earlier and what we also , , refer in our prepared remarks and capital allocations of is of importance .

Pierre Karl Péladeau: Thank you, Matthew. I'll answer the second part of your question. I'll ask Hugues to do the first. Again, if we refer to what Stephanie was asking earlier and what we also refer in our prepared remarks, capital allocations is of importance. We know that each time that we're investing in our wireless network, we have the capacity to improve our cost because of roaming expenses going down. We always consider, because we are a facility-based legacy cable operator, that there's nothing more paramount than running your own network with the best quality possible. We will not change our philosophy. We will not change our mind. We know that. On top of that, we have obligation in front of ISED. We will respect our obligations, that building our network and using properly our spectrum is of importance.

Pierre-Karl Péladeau: Thank you, Matthew. I'll answer the second part of your question. I'll ask Hugues to do the first. Again, if we refer to what Stephanie was asking earlier and what we also refer in our prepared remarks, capital allocations is of importance. We know that each time that we're investing in our wireless network, we have the capacity to improve our cost because of roaming expenses going down. We always consider, because we are a facility-based legacy cable operator, that there's nothing more paramount than running your own network with the best quality possible. We will not change our philosophy. We will not change our mind. We know that. On top of that, we have obligation in front of ISED. We will respect our obligations, that building our network and using properly our spectrum is of importance.

Speaker #3: , and we know that , you know , each time that we're investing in our , , net wireless network , you know , we have the capacity to improve our cost because of roaming expenses .

Speaker #3: , going down . , we always considered because we are a facility based legacy cable operators that , , there's nothing more paramount than running your own network with the best quality and possible .

Speaker #3: So , , we will not change our philosophy . We will not change our mind . , we know that , you know , and on top of that , you know , we have obligation in front of us .

Speaker #3: I said , and we will respect our obligations . , that building , our network and using properly our spectrum is of importance mentioning , , specifically areas , , where we will focus , you know , from one to the other .

Pierre Karl Péladeau: Mentioning specifically areas where we will focus from one to the other could be considered as commercially sensitive. We know that we have room to grow significantly in Alberta and in BC. We consider those markets of great interest, where we have the possibility to increase our market share, to increase the way that we operate. This is just almost an evidence. Therefore, we will do what is appropriate to be able to piggyback as much as possible to those areas. I will let Hugues answer the first part of your question, Matthew.

Pierre-Karl Péladeau: Mentioning specifically areas where we will focus from one to the other could be considered as commercially sensitive. We know that we have room to grow significantly in Alberta and in BC. We consider those markets of great interest, where we have the possibility to increase our market share, to increase the way that we operate. This is just almost an evidence. Therefore, we will do what is appropriate to be able to piggyback as much as possible to those areas. I will let Hugues answer the first part of your question, Matthew.

Speaker #3: , could be considered as , , you know , commercially sensitive , , we know that , you know , we have a room to grow significantly in Alberta and in , , BC , , we consider those markets of great interest where we have the possibility , you know , to increase our market share , to increase , you know , the way that we , we operate , , this is just , you know , , almost an evidence , , and then therefore will do what is appropriate , you know , to be able to piggyback as much as possible to those areas .

Speaker #3: So , , I will let her answer the first part of your question , Matthew .

Speaker #2: , yes . As to churn . Matt . , improving our turns , improving in the quarter . , , a number of things .

Hugues Simard: Yes. As to churn, Matt, improving. Our churn's improving in the quarter. A number of things. Of course, the performance and the quality of our networks are. We're continuing to invest, and it's continuing to improve quarter after quarter. There's also obviously a more rational market environment in which we are evolving. Also globally, an improving, what I would call customer experience. That's not just due to a better network, but also our everyday low price pricing approach is increasingly well received by clients. We give a lot of value in the packages that we sell at low prices. People are recognizing this and are increasingly coming to us, as opposed to going from promotion to promotion, as is the case for our competition.

Speaker #2: I mean , of course , our , the performance and the quality of our networks are , you know , we're continuing to invest and it's , it's , , it's continuing to improve quarter after quarter .

Speaker #2: , there's also obviously a more rational market environment , , in which we are evolving . , and also globally , a more , a , an improving what I would call customer experience .

Speaker #2: That's not just due to a better network , but also , , you know , our everyday low price pricing approach is increasingly well received by , by clients .

Speaker #2: , we give a lot of value for the , in the packages that we , that we sell at low prices . , and people are recognizing this and , , are increasingly coming to us , , as opposed to going from promotion to promotion , , as is the case for our competition , I think there increasingly relying on our , , on our approach and , , having more confidence in our , in our networks and our experience and our just overall , , you know , quality of our , , of our service .

Hugues Simard: I think they're increasingly relying on our approach and having more confidence in our networks, in our experience, and our just overall quality of our service. Churn is, after a bit of a setback in Q1, I think that was probably the case for the entire industry, it's back on track, improving.

Speaker #2: So churn is , , is , you know , after a bit of a setback in Q1 and I think that was probably the case for the entire industry .

Speaker #2: It's back on track, improving.

Speaker #10: That's great. Thank you so much.

Matthew Griffiths: That's great. Thank you so much.

Speaker #3: Thank you . Matthew . We'll take the next question .

Pierre Karl Péladeau: Thank you, Matthew. We'll take the next question.

Pierre-Karl Péladeau: Thank you, Matthew. We'll take the next question.

Speaker #1: Your next question comes from Tim Casey from BMO . Please go ahead .

Operator: Your next question comes from Tim Casey from BMO. Please go ahead.

Speaker #11: Thanks . Good morning . , I wanted to hear , Carl , if you could talk a little bit about the wireless strategy with respect to building out the network and capturing ownership economics , which I think you followed kind of a success based model that as you have density in a certain area , there's obviously incentives to build there .

Tim Casey: Thanks. Good morning. I wanted to, Pierre-Karl, if you could talk a little bit about the wireless strategy with respect to building out the network and capturing ownership economics, which I think you followed kind of a success-based model that as you have density in a certain area, there's obviously incentives to build there. Could you talk a little bit about your MVNO arrangements? How are those contracts set up as they age in time? Are there potential cost increases in terms of those carriage arrangements that further incent you? To build your own network, or are you protected as you grow your volume of MVNO subscribers? Could you just talk to us about how you're thinking about the balance between build-out versus MVNO costs?

Speaker #11: But could you talk a little bit about your arrangements ? Are how are those contracts set up as they age in time ? Do .

Speaker #11: Are there potential cost increases in terms of those carriage arrangements that further incent you to build your own network ? Or are you protected as you grow your your volume of MVNO subscribers ?

Speaker #11: Could you just talk to us about how you're thinking about the balance between build out versus MVNO costs

Speaker #3: And with the . Yeah , yeah , yeah . Good morning Tim . It's with pleasure . I'll do that . MDNO , it's it's not completely MVNO where it's more of a our roaming agreements , , with colleagues industry , , so , , we've been seeing and this is a significant trend worldwide , , and roaming is not only domestic in , in Canada .

Pierre Karl Péladeau: Yeah. Good morning, Tim. With pleasure, I'll do that. MVNO, it's not completely MVNO where it's more of our roaming agreements with colleagues in the industry. We've been seeing. This is a significant trend worldwide. Roaming is not only domestic in Canada. I'll come back to that because, again, we have obligation that we intend to respect. Roaming is also a worldwide business. We roam with French Op, with Italian, French, British, everywhere. In fact, also, as you probably, and we emphasize on this, Freedom offer more location with roaming prices that are part of our commercial offers. I will repeat, that been seeing prices per GB being reduced. We see the same in Canada.

Pierre-Karl Péladeau: Yeah. Good morning, Tim. With pleasure, I'll do that. MVNO, it's not completely MVNO where it's more of our roaming agreements with colleagues in the industry. We've been seeing. This is a significant trend worldwide. Roaming is not only domestic in Canada. I'll come back to that because, again, we have obligation that we intend to respect. Roaming is also a worldwide business. We roam with French Op, with Italian, French, British, everywhere. In fact, also, as you probably, and we emphasize on this, Freedom offer more location with roaming prices that are part of our commercial offers. I will repeat, that been seeing prices per GB being reduced. We see the same in Canada.

Speaker #3: , and I'll come back to that because again , you know , we have obligation that intend to respect , but is also a , a worldwide business .

Speaker #3: So we roam on , on , in with , , with French . And Italian , French , British , everywhere . In fact , also , , as you probably , and we emphasize on this freedom offer more location with roaming prices that are part of our commercial offers .

Speaker #3: So I will repeat , you know , that's , that's a trend that's been seeing prices , , per gig , , being reduced .

Speaker #3: We see the same , , in Canada , , certainly roaming was a large part . And you guys probably know that more than I do because you have the capacity to talk with our other , the other operators .

Pierre Karl Péladeau: Certainly, roaming was a large part, and you guys probably know that more than I do because you have the capacity to talk with the other operators. That was a significant portion of the revenues before. Which is quite different today because, again, domestic prices are in a more competitive landscape and seeing Freedom and Videotron and Fizz being an interesting customers for them, they would see us as a quite object of adding revenues to their top line. This is the way that they act. This being said, again, and I think it's important to repeat, that we are a facility-based operator on top of which we have obligation, and we prefer to build our network, assume the one-time cost of building it, and enjoy running on it without being forced to pay for using it.

Pierre-Karl Péladeau: Certainly, roaming was a large part, and you guys probably know that more than I do because you have the capacity to talk with the other operators. That was a significant portion of the revenues before. Which is quite different today because, again, domestic prices are in a more competitive landscape and seeing Freedom and Videotron and Fizz being an interesting customers for them, they would see us as a quite object of adding revenues to their top line. This is the way that they act. This being said, again, and I think it's important to repeat, that we are a facility-based operator on top of which we have obligation, and we prefer to build our network, assume the one-time cost of building it, and enjoy running on it without being forced to pay for using it.

Speaker #3: That was a significant portion of the revenues before , , which is , , quite different today because again , , domestic prices are in a more competitive landscape and , , seeing freedom and Videotron and Fizz being an interesting customer for

Speaker #5: M , they would see us as a quite , , , object of adding revenues to their , to , , top line And this is the way that they act .

Speaker #5: This being again , and I think it's important to repeat , , that we are a , , we are a facility based operator on top of which we have obligation and we prefer , , to build our network and assume the cost , the one time cost of building it and enjoy running on it without being forced to pay for using it Obviously , to the exceptions of maintaining , , our networks accordingly to the , requirements of our customers to move forward Would you say , , would you have other things to add on this

Pierre Karl Péladeau: Obviously, to the exceptions of maintaining our networks accordingly to the requirements of our customers to move forward. Hugues, would you have other things to add on this?

Pierre-Karl Péladeau: Obviously, to the exceptions of maintaining our networks accordingly to the requirements of our customers to move forward. Hugues, would you have other things to add on this?

Speaker #4: No , no , no , I think that's , , I think that's fine . That's what we've been , , you know what you just said , Tim ?

Hugues Simard: No, I think that's fine. What you just said, Tim, I think it's something you and I have talked about in the past. Where it's logical, and where it makes sense for our business, where we've built a significant market share and business, we obviously believe in building and running our own network. Where it doesn't so much, then we will have some decisions to make. Yeah, I think that's all I'd say. Yeah.

Speaker #4: I think it's something you and I have talked about in the past . You know , where it's logical . , and where it makes sense for our business , where we've built a significant market share in business .

Speaker #4: We , we obviously believe in building and running our own network , , where it doesn't so much , then we will have some , , some , some decisions to make .

Speaker #4: So yeah , I think , , I think that's , that's , , yeah , that's all I'd say . Yeah .

Speaker #3: Thank .

Tim Casey: Thank you.

Speaker #12: You .

Speaker #5: Thank you . Tim . , I think that will take the last question Operator .

Pierre Karl Péladeau: Thank you, Tim. I think that we'll take the last question, operator.

Pierre-Karl Péladeau: Thank you, Tim. I think that we'll take the last question, operator.

Speaker #1: Thank you . Your next question comes from Drew McReynolds from RBC . Please go ahead .

Operator: Thank you. Your next question comes from Drew McReynolds from RBC. Please go ahead.

Speaker #6: Yes . Thank you for squeezing me in here . Two for me . , mainly follow ups here just on the expansion in Western Canada .

Drew McReynolds: Yes, thank you for squeezing me in here. Two for me, mainly follow-ups here. Just on the expansion in Western Canada. Just wondering if, I know you've publicly talked about obviously first network build and enhancement and then followed by clearly what will be a marketing and sales push, just to build the brands out in the West. Wondering on the network side, just the status of that, and then just to level set expectations, all of the commentary you've had around just the positive trends, obviously in the core telecom business and the operating leverage. Once you start that Western Canadian push, do you see one step back in some of that, or can all of this be absorbed within largely the trajectory you're on? Then second question, and probably for you, Pierre Karl. Thanks for the update on all the capital allocation. Great to see the dividend increase.

Speaker #6: , just wondering if I know you've publicly talked about obviously first network build and enhancement and then followed by , you know , clearly what will be a marketing and sales push , , just to build the brands out in the West , , wondering kind of on the network side , just the status of that .

Speaker #6: And then just to level set expectations , all of the commentary you've , , had around just the positive trends , obviously in , in the core telecom business and the operating leverage .

Speaker #6: Once you start that Western Canadian push , do you see kind of , you know , one step back in , in some of that or can all of this be absorbed , you know , within , , largely the trajectory you're on ?

Speaker #6: And then second question , and probably for you , Pierre , Karl . , thanks for the update on all the capital allocation .

Drew McReynolds: Thanks for the update on all the capital allocation. Great to see the dividend increase. It's the opinion of some, including myself, that there's some further consolidation that's required, in what looks like a maturing telecom industry. I'm just wondering how your position in Quebecor for maybe future industry consolidation and how that impacts your target leverage and frankly your payout ratio, just to make sure the company's prepared to be opportunistic. Thank you.

Speaker #6: Great to see the dividend increase . , it's the opinion of , of some , including myself , that there's some further consolidation that's required , , in what's kind of looks like a maturing telecom industry .

Drew McReynolds: It's the opinion of some, including myself, that there's some further consolidation that's required, in what looks like a maturing telecom industry. I'm just wondering how your position in Quebecor for maybe future industry consolidation and how that impacts your target leverage and frankly your payout ratio, just to make sure the company's prepared to be opportunistic. Thank you.

Speaker #6: So I'm just wondering , , you know , how your position in Quebec or for maybe future industry consolidation and how that impacts kind of your target leverage and frankly , your payout ratio , , just to make companies prepared to be opportunistic .

Speaker #6: Thank you

Speaker #5: Thank you . Drew . , well , that's , , that's interesting questions . Certainly the second one , , maybe I should start with it .

Pierre Karl Péladeau: Thank you, Drew. Well, that's interesting questions. Certainly the second one. Maybe I should start with it. Well, having a good balance sheet is certainly something that we've been working on for many years. I remember when we started buying Vidéotron in 2000. I guess I'm probably one of the oldest CEOs in this industry now. We had 7 times debt EBITDA ratio. We, throughout the years, reduced. Well, first of all, we bought all the Caisse de dépôt position, the 45% they hold. We did it in 3 installment through the year, but increasing the leverage during the first or the second year of the purchase. We had the Freedom deal, which also brought our ratio a little bit higher. Always saying that we will continue to work on it and reduce it. Again, we did.

Pierre-Karl Péladeau: Thank you, Drew. Well, that's interesting questions. Certainly the second one. Maybe I should start with it. Well, having a good balance sheet is certainly something that we've been working on for many years. I remember when we started buying Vidéotron in 2000. I guess I'm probably one of the oldest CEOs in this industry now. We had 7 times debt EBITDA ratio. We, throughout the years, reduced. Well, first of all, we bought all the Caisse de dépôt position, the 45% they hold. We did it in 3 installment through the year, but increasing the leverage during the first or the second year of the purchase. We had the Freedom deal, which also brought our ratio a little bit higher. Always saying that we will continue to work on it and reduce it. Again, we did.

Speaker #5: , well , you know , , having a balance sheet , , a good balance sheet is certainly something that we've been , , on , , for many years .

Speaker #5: I remember , you know , when we started buying , a Videotron in 2000 , I guess that probably one of the oldest CEO in this industry now , , , you know , we had seven times debt EBITDA ratio .

Speaker #5: , and , , we , , you know , throughout the years , , reduce , , well , first of all , we bought all the Caisse de dépot position , you know , the 45% they hold , , we , they did in three installments through the year , increasing the leverage during the first or the second year of the purchase .

Speaker #5: , and then , you know , we had the freedom deal , which , you know , also brought our , , our ratio a little bit higher .

Speaker #5: , but always saying that , you know , we will continue to work on it and reduce it . And again , you know , we delivered and I think that this is a strong sign of credibility .

Pierre Karl Péladeau: We delivered. I think that this is a strong sign of credibility to the debt market, which we have the capacity to get very quickly at. Well, we emphasized on earlier also at very interesting conditions without being forced to be creative and issue hybrid debt for a ratio purpose. Our ratio is pure and clean. There's no other debt than clean debt in our balance sheet. We are at 2.87. It's always a question from the directors, the board, and the management, where do we want to go? Do we want to go to 2 times, to one time and a half? Is it logic to go there? Is it the best things to do or use the balance sheet to provide tools to get the proper allocation between dividend, buyback, and debt reduction? One portion could move from one to the other.

Pierre-Karl Péladeau: We delivered. I think that this is a strong sign of credibility to the debt market, which we have the capacity to get very quickly at. Well, we emphasized on earlier also at very interesting conditions without being forced to be creative and issue hybrid debt for a ratio purpose. Our ratio is pure and clean. There's no other debt than clean debt in our balance sheet. We are at 2.87. It's always a question from the directors, the board, and the management, where do we want to go? Do we want to go to 2 times, to one time and a half? Is it logic to go there? Is it the best things to do or use the balance sheet to provide tools to get the proper allocation between dividend, buyback, and debt reduction?

Speaker #5: To the debt market , which , , we have the capacity to get very quickly at , , we meant well , we , we emphasize on , , earlier also at the very interesting conditions without being forced , you know , to be creative and issue hybrid debt .

Speaker #5: , for , for , for ratio purpose , our ratio is , is pure and clean . There's no other debt than clean debt in , in our balance sheet .

Speaker #5: So we are at 2.87 , , it , you know , and it's always a question , , from the directors , the board and the management , where do we want to go ?

Speaker #5: , do we want to go to two times to one time and a half ? , and is it logic to go there ?

Speaker #5: Is it , you know , the best things to do or use ? , the balance sheet to provide , tools , you know , to get the , the proper allocation between , , dividend buyback and that reduction , , one portion could move from one to the other , , and if that was continued to reduce significantly as we've been able to do , maybe , you know , the allocation for debt reduction will be reduced and provide additional fuel for the two others .

Pierre-Karl Péladeau: One portion could move from one to the other. If debt was continued to reduce significantly as we've been able to do, maybe the allocation for debt reduction will be reduced and provide additional fuel for the two others. I don't want to make any projections. I'm just talking theoretically about what could happen in the future. This is the kind of things that we ask ourselves moving forward. On the consolidation side, this, I really don't know. We've been facing consolidation taking place in the cable business, Shaw-Rogers, that gave us opportunity to get the Freedom asset. We've been doing things acquisition-wise with Etiya on the BSS business that also could be considered a direction for improving or getting our capacity to grow our business differently.

Pierre Karl Péladeau: If debt was continued to reduce significantly as we've been able to do, maybe the allocation for debt reduction will be reduced and provide additional fuel for the two others. I don't want to make any projections. I'm just talking theoretically about what could happen in the future. This is the kind of things that we ask ourselves moving forward. On the consolidation side, this, I really don't know. We've been facing consolidation taking place in the cable business, Shaw-Rogers, that gave us opportunity to get the Freedom asset. We've been doing things acquisition-wise with Etiya on the BSS business that also could be considered a direction for improving or getting our capacity to grow our business differently. I don't think there's any more to say on this. What is it, Hugues?

Speaker #5: I don't want to make any projections . I'm just , you know , talking theoretically , you know , about what could happen in the future .

Speaker #5: And this is the kind of thing that we ask ourselves , , moving forward , , on the consolidation , , side , this , you know , , I really don't know , , we , we've been facing , you know , consolidation taking place in the cable .

Speaker #5: Rogers , , that gave us opportunity , you know , to get the , the freedom asset , , , , we , we've been doing things acquisition wise with its on the BS business that also could be considered a , a , a direction , you know , for improving or , , getting our capacity to grow our business differently .

Speaker #5: And , you know , I don't think there's any more to say on this So , , what is .

Pierre-Karl Péladeau: I don't think there's any more to say on this. What is it, Hugues?

Speaker #4: Yeah , yeah , I was just going to cover his , , first question or drew , your first question with respect to the West , , so in , in short , yeah .

Hugues Simard: Yeah, I was just going to cover Pierre Karl, his first question, or Drew, your first question with respect to the West. In short, yeah, we said it in our prepared remarks, lots of opportunity out west. Our market shares are lower. We are actively working on improving the network. We were facing performance and quality issues in some areas. We're actively working on that. We also have a plan to be more commercially aggressive out west because it is an area where there's no reason for us, or we can't be as successful in the West as we were in Ontario and in Quebec before that. For us it's just a huge runway ahead of us. Yes.

Speaker #4: I mean , we said it in our prepared remarks , , lots of opportunity out west . Our market shares are lower . , we are , actively working on improving the network .

Speaker #4: We , we were facing , , we were facing performance and quality issues . , in some areas , , we're , , we're , we're actively working on that , , we also have a plan to , , to , to be more , , commercially aggressive out west because it is , , it is an area where there's no reason for us to where we can't be as successful in the West as we were in Ontario and in Quebec before that .

Speaker #4: , and , , this is , I mean , for us , it's a , it's just , , you know , a huge runway ahead of us .

Speaker #4: Yes .

Speaker #5: And I would add to that also , , and maybe we , and we , maybe we can finish , , on this .

Pierre Karl Péladeau: I would add to that also, and maybe we can finish on this, Drew. We increase our presence in BC and in Alberta. I think it's important. Freedom brand is more present than ever. We had this wonderful venue in Vancouver, which we recently inaugurate, and that was a lovely and funny, and there were a lot of people there. We are still present at the Stampede in Calgary, with this cool brand called Freedom. It fits very well in this landscape, and we will continue to be highly positioned in terms of marketing our brand and advertising them with the proper offers in those specific areas.

Pierre-Karl Péladeau: I would add to that also, and maybe we can finish on this, Drew. We increase our presence in BC and in Alberta. I think it's important. Freedom brand is more present than ever. We had this wonderful venue in Vancouver, which we recently inaugurate, and that was a lovely and funny, and there were a lot of people there. We are still present at the Stampede in Calgary, with this cool brand called Freedom. It fits very well in this landscape, and we will continue to be highly positioned in terms of marketing our brand and advertising them with the proper offers in those specific areas.

Speaker #5: Rule , you know , we increase our presence BC and in Alberta , , I think it's important freedom brand is , you know , more present than ever .

Speaker #5: You know , we had this wonderful venue in Vancouver , , which we , , recently , , inaugurate , , and , , that was , , a lovely and funny , , move and there were a lot of people there , , we , , are still present at the stampede in Calgary , , with this cool brand called freedom .

Speaker #5: It fits very well , you know , in this landscape . And we will continue to be , you know , , I , li , , position in terms of marketing , our brand and advertising them , , with the proper offers and this , those specific areas .

Speaker #6: Okay . That's great . Thank you both

Drew McReynolds: Okay. That's great. Thank you both.

Speaker #5: Thank you . Drew . And , , that is ending is ending . Our conference call . I'd like to thank you all .

Pierre Karl Péladeau: Thank you, Drew. That is ending our conference call. I'd like to thank you all joining us. I understand that, unfortunately, we didn't have a, would you say that, Hugues?

Pierre-Karl Péladeau: Thank you, Drew. That is ending our conference call. I'd like to thank you all joining us. I understand that, unfortunately, we didn't have a, would you say that, Hugues?

Speaker #5: , joining us . , I understand that , fortunately , you know , we didn't , , , have a , , a a not yet .

Speaker #5: Now , would you say that , , .

Hugues Simard: An overrun? A little bit of an overrun.

Speaker #4: An overrun—a little bit of an overrun?

Speaker #5: Yeah , an overrun on our colleague previous , , conference call . Maybe we should make sure that , you know , we're , we're going to continue to make sure that you guys are available and not , , being forced to pick one , , instead of the other .

Pierre Karl Péladeau: Yeah, an overrun on our colleague previous conference call. Maybe we should make sure that we're going to continue to make sure that you guys are available and not being forced to pick one instead of the other. We'll make sure that always to make sure that we have the capacity to talk and to share with you guys. In the meantime, I will wish you a nice end to the summer, and we'll talk to each other at the Q3 conference call. Thank you very much, and have a nice day.

Pierre-Karl Péladeau: Yeah, an overrun on our colleague previous conference call. Maybe we should make sure that we're going to continue to make sure that you guys are available and not being forced to pick one instead of the other. We'll make sure that always to make sure that we have the capacity to talk and to share with you guys. In the meantime, I will wish you a nice end to the summer, and we'll talk to each other at the Q3 conference call. Thank you very much, and have a nice day.

Speaker #5: So , , we'll make sure that , , always , , to make sure that we have the capacity to talk and to share with you guys .

Speaker #5: So in the meantime , I will wish you a nice end to the summer , and we'll talk to each other at , , Q3 conference call .

Speaker #5: Thank you very much . And have a nice day .

Operator: Ladies and gentlemen, this concludes the Quebecor Inc.'s financial results for the Q2 2026 conference call. Thank you for your participation and have a great day.

Q2 2026 Quebecor Inc Earnings Call

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