Quebecor (TSE:QBR.A – Get Free Report) issued its quarterly earnings data on Thursday. The company reported C$1.32 earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$1.45 billion for the quarter. Quebecor had a return on equity of 37.44% and a net margin of 12.99%.
Here are the key takeaways from Quebecor’s conference call:
- Quebecor reported solid consolidated results: revenue rose 4%, EBITDA increased 13% to CAD 707 million, and net income grew 26%. The EBITDA increase included a CAD 31 million year-over-year benefit from lower stock-based compensation; excluding that effect, EBITDA rose 7%, while free cash flow declined 5% to CAD 422 million.
- Telecom delivered record quarterly EBITDA of CAD 648 million, up 7.5%, with a 51% margin, while service revenue grew 4.4%. The company added 100,700 mobile lines—its strongest quarter to date—and mobile ARPU rose for a fourth consecutive quarter to CAD 36.08.
- Management said cost discipline is driving operating leverage, with telecom operating expenses falling to 48.9% of revenue from 50.5% a year earlier. Net debt fell by more than CAD 220 million during the quarter, and leverage improved to 2.69 times EBITDA, which the company described as the lowest among Canadian telecom operators.
- Media segment EBITDA rose CAD 16 million to CAD 40 million, helped by cost reductions, higher TVA Sports subscription revenue, and estimated support from a Quebec news-media tax credit. Management cautioned that advertising remains challenging, while also highlighting a new NHL French-language rights agreement with Rogers through the 2037–38 season.
- Quebecor plans to continue network investment but emphasized a disciplined, gradual build-out; its wireless market share in Western Canada remains in the single digits, and deployment in parts of British Columbia is progressing more slowly than desired. The CFO also expects a Q4 capital-spending pickup, although full-year spending remains within guidance.
Quebecor Price Performance
Shares of TSE QBR.A opened at C$70.94 on Friday. Quebecor has a 1 year low of C$46.24 and a 1 year high of C$71.89. The company has a debt-to-equity ratio of 363.97, a current ratio of 1.01 and a quick ratio of 0.35. The company’s 50-day moving average is C$64.28 and its 200 day moving average is C$61.88. The stock has a market capitalization of C$15.85 billion, a P/E ratio of 17.39, a P/E/G ratio of 1.44 and a beta of 0.67.
Analysts Set New Price Targets
QBR.A has been the subject of a number of recent analyst reports. National Bank Financial decreased their target price on Quebecor from C$74.00 to C$71.00 and set an “outperform” rating for the company in a report on Wednesday, October 14th. Raymond James Financial set a C$72.00 price target on Quebecor and gave the stock a “market perform” rating in a research note on Thursday, July 16th. Finally, Desjardins cut their price target on shares of Quebecor from C$76.00 to C$74.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Two investment analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of C$71.50.
View Our Latest Analysis on QBR.A
About Quebecor
Quebecor, a Canadian leader in telecommunications, entertainment, news media and culture, is one of the best-performing integrated communications companies in the industry. Driven by their determination to deliver the best possible customer experience, all of Quebecor’s subsidiaries and brands are differentiated by their high-quality, multiplatform, convergent products and services. Quebec-based Quebecor (TSX: QBR.A, QBR.B) employs more than 11,000 people in Canada. A family business founded in 1950, Quebecor is strongly committed to the community.
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