Quebecor Inc. swung to a $45.1-million net loss attributable to shareholders in the second quarter due to one-time charges, but saw its adjusted income from continuing operations increase 15 per cent to $52.9 million.
The media company lost 73 cents per share for the period ended June 30, compared to a profit of $1.02 per share or $65.5 million a year earlier.
Excluding unusual items including a $130-million unfavourable non-cash impact of the valuation of financial instruments, adjusted earnings equalled 85 cents per basic share, up from 72 cents per share or $46.1 million in the second quarter of 2012.
Revenues increased $8.6 million to reach $1.09 billion, while EBITDA grew 3.9 per cent to $368 million.
The company reported a four per cent increase in operating income and higher adjusted profits despite suffering the continued impact from a 13.9 per cent drop in advertising revenue in its news business.
“Despite the highly competitive business environment, Quebecor reported improved results, spearheaded by the telecommunications segment’s excellent numbers,” stated chief executive Robert Depatie.
Videotron’s revenues grew by nearly 5% to $678 million as all of its core services grew, particularly Internet access and wireless telephones.
Average monthly revenue per user (ARPU) increased by 5.9% or $6.49 to reach $117.24. It also benefited from wireless price increases and profitability.
The news media segment’s revenues dropped 10% to $229 million, while its EBITDA decreased by more than a third to $24 million.
Drew McReynolds of RBC Capital Markets said the results were slightly below expectations in a seasonally volatile quarter.
Analysts expected $1.1 billion of revenues and $377 million of EBITDA.
“Videotron operating results in line, with revenue and subscriber growth slightly softer in a seasonally volatile quarter,” he wrote in a report.
Quebecor is the majority owner of Quebecor Media, which owns a variety of telecommunication, broadcasting and publishing businesses.
It announced last month the elimination of 360 positions, the closing of eight publications and three free urban newspapers in a move designed to say about $55 million a year. It also plans to eliminate about 90 positions, or 4.5% of the workforce at its TVA Group television network.
The earnings report was issued early Thursday, before a federal regulator issued its ruling on a request from Quebecor’s Sun TV, denying the company’s request to be included among the channels that must be carried by cable and satellite distributors.
On the Toronto Stock Exchange, Quebecor’s shares lost eight cents at $46.77 in Thursday morning trading.
