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Operating income: $1.40 billion, an increase of $61.9 million (4.6%).
-- Operating income increased in Telecommunications ($126.2 million or 11.5% of segment operating income) and Interactive Technologies and Communications ($1.9 million or 24.1%).-- Operating income decreased in News Media ($35.0 million or -23.3%), Leisure and Entertainment ($13.5 million or -50.8%), Broadcasting ($12.4 million or -24.6%), and Head Office ($5.3 million). The decrease at Head Office mainly reflects the unfavourable variance in the fair value of stock options.-- The change in the fair value of Quebecor Media stock options resulted in a $10.4 million unfavourable variance in the consolidated stock-based compensation charge in 2012 compared with 2011. The fair value of the options increased in 2012, whereas it decreased in 2011. The change in the fair value of Quebecor stock options resulted in an $11.3 million unfavourable variance in the Corporation's consolidated stock-based compensation charge in 2012.
Net income attributable to shareholders: $167.7 million ($2.65 per basic share), down $33.3 million ($0.49 per basic share) from $201.0 million ($3.14 per basic share) in 2011.
-- The decrease was mainly due to: -- $201.5 million charge for impairment of goodwill and intangible assets recorded in 2012; -- $88.1 million increase in amortization charge; -- $61.1 million unfavourable variance in loss on debt refinancing; -- $11.7 million increase in financial expenses. Partially offset by: -- $142.9 million favourable variance in gain on valuation and translation of financial instruments; -- $61.9 million increase in operating income.
Adjusted income from continuing operations: $196.1 million in 2012 ($3.10 per basic share), compared with $191.5 million ($2.99 per basic share) in 2011, an increase of $4.6 million ($0.11 per basic share).
2012/2011 fourth quarter comparison
The fourth quarter of the 2011 financial year contained an additional week in the News Media, Broadcasting, Leisure and Entertainment, and Interactive Technologies and Communications segments.
Revenues: $1.14 billion, a decrease of $5.6 million (-0.5%).
-- Revenues decreased in News Media ($31.1 million or -11.3% of segment revenues), Leisure and Entertainment ($16.7 million or -15.7%) and Broadcasting ($2.7 million or -2.1%).-- Revenues increased in Telecommunications ($43.5 million or 6.9%).
Operating income: $370.8 million, an increase of $1.6 million (0.4%).
-- Operating income increased in Telecommunications ($15.7 million or 5.3% of segment operating income) and Interactive Technologies and Communications ($0.9 million or 36.0%).-- Operating income decreased in News Media ($8.4 million or -17.9%), Broadcasting ($3.4 million or -16.5%), and Leisure and Entertainment ($2.6 million or -34.2%).-- The change in the fair value of Quebecor Media stock options resulted in a $3.1 million unfavourable variance in the consolidated stock-based compensation charge in the fourth quarter of 2012 compared with the same period of 2011. The change in the fair value of Quebecor stock options resulted in a $3.7 million unfavourable variance in the Corporation's consolidated stock-based compensation charge in the fourth quarter of 2012.
Net income attributable to shareholders: $9.2 million ($0.15 per basic share) compared with $85.4 million ($1.34 per basic share) in the fourth quarter of 2011, a decrease of $76.2 million ($1.19 per basic share).
-- The unfavourable variance was due primarily to: -- $126.5 million unfavourable variance in gains and losses on valuation and translation of financial instruments; -- recognition of a $60.4 million loss on debt refinancing; -- $29.2 million increase in amortization charge; -- $17.7 million increase in financial expenses. Partially offset by: -- $10.6 million decrease in charge for restructuring of operations, impairment of assets and other special items.
