Quebecor (TSE:QBR.A) reported higher third-quarter revenue and earnings as wireless service growth and cost controls lifted its telecommunications business, while a reduction in stock-based compensation expenses also boosted consolidated earnings.
The company said revenue rose 4% from a year earlier to CAD 1.45 billion. EBITDA increased 13% to CAD 707 million, while net income attributable to shareholders climbed to CAD 296 million, or CAD 1.33 per share, from CAD 236 million, or CAD 1.03 per share.
Adjusted net income was CAD 294 million, or CAD 1.32 per share, compared with CAD 242 million, or CAD 1.05 per share, a year earlier. Free cash flow fell 5% to CAD 422 million because of a lower working capital adjustment, even as cash flow from operating activities increased 2% to CAD 593 million.
Chief Financial Officer Hugues Simard said consolidated EBITDA benefited from a CAD 32 million year-over-year reduction in stock-based compensation expense. Excluding stock-based compensation, EBITDA rose CAD 47 million, or 7%.
Wireless Growth and Pricing Strategy
Telecommunications revenue rose 4.2% to CAD 1.3 billion, with wireless service revenue increasing 10% to CAD 492 million. Adjusted EBITDA for the segment rose 7.5% to CAD 648 million, and its adjusted EBITDA margin improved by 160 basis points to 51%.
President and CEO Pierre Karl Péladeau said Quebecor added 100,700 net mobile lines during the quarter across its Videotron, Freedom Mobile and Fizz brands. He described the result as a company record, but also said it surpassed the 130,800 lines added in the third quarter of 2025—a higher figure than the one he cited for the latest quarter. The transcript did not resolve that discrepancy.
Mobile average revenue per user increased to CAD 36.08 from CAD 35.05 a year earlier, marking the fourth consecutive quarter of year-over-year growth. Péladeau attributed the improvement to customers choosing richer plans and staying longer, rather than price increases for existing customers.
Analysts questioned whether Quebecor could sustain its subscriber gains if competitors responded to its lower prices. Péladeau said the company was monitoring competitors but saw no reason to change a strategy that was delivering results. “If it is not broken, don’t fix it,” he said.
Simard said Quebecor’s market share in Western Canada remained in the single digits, leaving room for growth. He estimated the company accounted for almost 8% of Canadian wireless service revenue over the previous 12 months, up from slightly more than 7% a year earlier.
Quebecor also added 8,600 internet customers in the quarter, and internet revenue grew 3%. Simard described the Quebec broadband market as competitive but rational, saying the company had returned to revenue growth after a difficult period.
Network Investment and Capital Allocation
Freedom Mobile expanded its 5G+ network in Ontario, Alberta and British Columbia during the quarter, bringing enhanced connectivity to more than 500,000 additional Canadians, Péladeau said. He described the rollout as an ongoing process rather than a one-quarter effort.
Asked why Quebecor was not accelerating network spending more aggressively, Péladeau said the company would remain disciplined and that roaming helped it provide service. He said network construction was progressing well in Alberta but was more difficult in parts of British Columbia, where finding experienced workers was also a challenge.
Simard said fourth-quarter capital spending was expected to increase as the timing of certain investments catches up, while remaining consistent with annual guidance. He did not expect a short-term change in the company’s capital allocation strategy, which includes dividends, debt repayment and share buybacks.
Quebecor reduced net debt by more than CAD 220 million during the quarter, lowering its net debt-to-EBITDA ratio to 2.69 from 2.87 in the prior quarter. Videotron repaid CAD 200 million of a term loan related to the Freedom acquisition during the quarter and another CAD 100 million after quarter-end, leaving CAD 100 million outstanding on that tranche. Quebecor had more than CAD 900 million in available liquidity at quarter-end.
Media Earnings Improve
Media segment revenue rose 1.4% to CAD 154 million, while EBITDA increased CAD 16 million to CAD 40 million. Péladeau attributed the improvement primarily to cost reductions, higher TVA Sports subscription revenue, a new affiliation agreement and estimated support from a Quebec tax credit for news media.
Quebecor also reached a 12-year sublicensing agreement with Rogers for French-language NHL broadcast rights through the 2037–2038 season. Games will also be available on streaming service illico+. Péladeau said the rights would support the company’s television and streaming offerings; he did not disclose the price of the agreement.
About Quebecor (TSE:QBR.A)
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.
