Fourth quarter 2012
-- Revenues down $5.6 million (-0.5%) from the fourth quarter of 2011 to $1.14 billion.-- Operating income up $1.6 million (0.4%) to $370.8 million. Videotron's operating income up $15.7 million (5.3%).-- Net income attributable to shareholders: $9.2 million ($0.15 per basic share), down $76.2 million ($1.19 per basic share) from $85.4 million ($1.34 per basic share) in the fourth quarter of 2011.-- Adjusted income from continuing operations: $56.0 million in the fourth quarter of 2012 ($0.89 per basic share), up $0.4 million ($0.02 per basic share) from $55.6 million ($0.87 per basic share) in the same quarter of 2011.-- Videotron's revenue generating units up 59,400 in fourth quarter 2012, also the largest increase among Canadian cable operators.-- On November 13, 2012, Sun Media Corporation announced new restructuring initiatives designed to streamline its organizational structure to support better execution of business processes while improving cost effectiveness. These initiatives are expected to yield total annual savings exceeding $45.0 million.
"Quebecor's results for the 2012 financial year reflect the reliability of the investment strategy we have been pursuing in recent years, primarily entailing capital expenditures for mobile telephony, modernizing Videotron's network, and developing attractive new products, including illico TV new generation, which was launched in 2012," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Despite continuing strong competition in most of its lines of business, the Corporation ended 2012 with a revenue increase of 3.5% compared with 2011, and an operating income increase of 4.6%. The Telecommunications segment continued to be a powerful driver of growth."
"Videotron had a solid year in 2012," said Robert Depatie, President and Chief Executive Officer of Videotron. "Revenues were up for all of our main services, generating overall revenue growth of 8.4% in the segment. Operating income grew by $126.2 million, an 11.5% increase over the previous year. Videotron recorded a net increase of 221,800 revenue generating units and an $8.29 or 8.0% increase in average monthly revenue per user, compared with 2011. Subscriber additions to the mobile network launched in September 2010, which totalled 154,500 in 2011 and 112,000 in 2012, contributed to the customer growth and the increase in profitability. Meanwhile, the cable Internet access and cable telephony services added 55,200 and 59,600 customers respectively in 2012, and the illico TV new generation service passed the half-million subscriber mark, reflecting the success of our business strategy based on marketing bundled services and satisfying customer needs with respect to product development and service quality.
"Also, at the end of February 2013, Videotron launched illico Club Unlimited, a new subscription video on demand service that carries the largest selection of unlimited on-demand French-language titles in Canada. It is a product developed by Quebecers to meet customer needs, in keeping with Videotron's commitment to continuously improve the customer experience it provides."
"The News Media segment's results were down significantly in 2012 compared with the previous year," said Pierre Karl Peladeau. "The upheavals in the traditional print media industry, combined with a stagnant economy, negatively affected the profitability of our publications. The impact of the investments made to generate new revenue streams and the large fixed component of the segment's operating costs were also important factors. The News Media segment needs to adapt its business model and streamline its cost structure. To continue meeting this challenge, the segment launched another reorganization of its newsgathering, editorial, advertising and industrial operations in 2012, with the goal of streamlining its organizational structures and accelerating decision-making. The organizational changes are expected to yield estimated annual savings of $45.0 million."