Quebecor Inc. has reported a sharp drop in first-quarter net income, although revenues remained stable overall, falling less than one per cent.
The Quebec-based majority owner of Quebecor Media Inc., says net income attributable to shareholders was $35.6 million compared with $71.4 million in the first quarter of 2012.
Consolidated revenue fell $9.5 million, or 0.9% to $1.05 billion.
Adjusted income from continuing operations was $33.1 million, down from $37.8 million in the prior-year period.
Quebecor Media Inc., through its subsidiary Videotron Ltd., is an integrated communications company engaged in cable television, internet and mobile telephone services. Through Sun Media Corp, it is the largest publisher of newspapers in Canada.
Robert Depatie, who is taking over from president and CEO Pierre Karl Peladeau, said the company was “very satisfied” with results at Videotron, which showed “healthy improvement” in the quarter.
“Our revenues rose by $23 million and our operating income grew by $14.3 million, increases of 3.6% and 4.7% respectively in comparison with the first quarter of 2012,” said Depatie, who has headed Videotron since 2003.
Revenues from all of Videotron’s main services were up, led by the mobile telephony service, which increased revenues by $12.4 million from the same quarter of 2012. Videotron’s average monthly revenue per user increased by $5.31 to $114.49.
“In the first quarter of 2013, a little more than two years after its launch, the mobile service passed the break even point, based on operating income, a very strong performance given the highly competitive environment,” he said.
“Unfortunately, in the News Media segment, the latest cost-containment initiatives did not make up for the decrease in revenues during the quarter, which was more significant than in previous periods,” Peladeau added.
“In addition to intense competition from new media, traditional newspapers are also facing large reductions in advertising spending by local and national advertisers.”
