Quebecor (TSE:QBR.A) reported higher second-quarter revenue, earnings and free cash flow, driven by growth in its telecommunications operations and an improved media performance tied in part to the Montreal Canadiens’ NHL playoff run.
Chief Executive Officer Pierre Karl Péladeau said the company continued to expand wireless market share across Canada while maintaining what management described as the lowest leverage ratio among Canadian telecom operators. The board increased the quarterly dividend for both Class A and Class B shares to C$0.45 from C$0.40, a 12.5% increase, and approved the renewal of its normal course issuer bid after the current program ends in August 2026.
Consolidated Results and Capital Allocation
Free cash flow increased C$44 million, or 12%, to C$419 million, while cash flows from operating activities rose 6% to C$570 million. Net income attributable to shareholders was C$271 million, or C$1.21 per share, compared with C$218 million, or C$0.95 per share, a year earlier. Adjusted net income, excluding unusual items, totaled C$241 million, or C$1.07 per share, versus C$227 million, or C$0.99 per share, in the prior-year period.
For the first half of 2026, revenue increased 4% to C$2.8 billion and EBITDA also rose 4% to C$1.2 billion. Excluding stock-based compensation, first-half EBITDA would have increased C$136 million, or 11%, according to Simard.
Quebecor ended the quarter with a net debt-to-EBITDA ratio of 2.87 times, unchanged sequentially. The company said it had C$926 million of available liquidity at quarter-end and that a US$1 billion commercial-paper program established at the start of the quarter was fully operational.
During the quarter, Vidéotron repaid the remaining C$500 million balance of a term loan maturing in April 2026, repaid C$300 million of a C$700 million tranche maturing in April 2027, and made a further C$100 million early repayment on July 8. Quebecor also bought back nearly C$100 million of stock in the quarter. Over the first six months, it repurchased and canceled 3.1 million Class B shares for C$185 million.
Telecom Segment Posts Record Second-Quarter EBITDA Growth
Telecom revenue increased 4% to C$1.2 billion, including service revenue of C$1.03 billion, up 4.2%. Adjusted EBITDA rose C$32 million, or 5%, to C$642 million, which management described as its highest second-quarter telecom EBITDA result. The adjusted EBITDA margin improved by 60 basis points to 52%.
- Wireless service revenue rose 9% to C$476 million.
- Wireline service revenue increased 0.3% to C$559 million.
- Internet revenue grew 3.1%.
- Television revenue declined 1.1%, an improvement from declines in recent quarters.
- Adjusted cash flow from operations increased 3.1% to C$474 million.
Quebecor added 53,200 net mobile subscribers during the quarter, accelerating from 28,800 net additions in the first quarter. Consolidated mobile average revenue per user rose C$0.86, or 2.5% year over year, to C$35.62. Péladeau said the company was growing both its subscriber base and ARPU while avoiding what he characterized as aggressive promotional pricing.
Simard said operating expenses fell to 48% of telecom revenue from 48.6% a year earlier, attributing the improvement to ongoing cost optimization rather than headcount reductions. He said the company expects artificial intelligence, including its Etiya digital business support system platform, to create further efficiencies.
Telecom capital expenditures, excluding spectrum licenses, increased C$18 million, or 12%, as Quebecor accelerated internet infrastructure buildouts and continued 5G and 5G+ deployment, including Freedom Mobile’s national expansion. Management said capital spending remains in line with its full-year guidance, although quarterly timing could result in additional spending later in the year.
Etiya Investment and Western Expansion
Quebecor increased its equity interest in Turkish software company Etiya to a majority position. Péladeau said Etiya, which has more than 1,500 employees, provides artificial intelligence-powered digital business support system platforms and has helped build the Fizz platform. Quebecor is migrating other platforms to Etiya’s systems as part of an effort to reduce costs and improve operational agility.
Simard said Etiya is a company with more than C$100 million in revenue, though some revenue is internal to Quebecor’s telecom operations. He said the acquisition did not make a material EBITDA contribution in the second quarter because of acquisition-related and timing factors.
Management also highlighted opportunities for Freedom Mobile in British Columbia and Alberta, where it said market shares remain lower than in Ontario and Quebec. Simard said Quebecor is improving network quality in western markets and plans to be more commercially aggressive there. Péladeau said the company prefers to build and operate its own network where it has sufficient business scale, while using roaming arrangements where network construction does not yet make economic sense.
Media EBITDA Improves on Sports and Cost Measures
Media revenue rose C$10.4 million, or 6%, to C$185 million. EBITDA improved C$18 million to C$27 million, aided by advertising and subscription revenue associated with the Montreal Canadiens’ playoff run, as well as cost-reduction initiatives and higher affiliate rates.
Péladeau said TVA Sports benefited from the Canadiens’ postseason performance. He also pointed to TVA programming including Indéfendable, which he said averaged more than 1.2 million viewers each day from Monday through Thursday, and Révolution, which averaged 740,000 viewers during the spring schedule. TVA Group retained a 44.2% market share in Quebec, according to the company.
Quebecor said negotiations regarding NHL renewal rights were still ongoing and provided no further update. In the sports and entertainment segment, revenue declined C$3 million to C$48 million, while EBITDA fell C$1.6 million to C$3 million.
Looking ahead, Simard said the company remains confident that full-year free cash flow can be stable to slightly better than stable compared with 2025, supported by continued operating momentum, cost management and lower interest expense.
About Quebecor (TSE:QBR.A)
Quebecor primarily provides mobile and fixed-line telecom services in Quebec where it is the leading telecom provider. With more than 1.8 million internet subscribers Quebecor provides internet service to more than 60% of the homes its network passes. It also has about 1.6 million mobile subscribers representing more than 20% wireless market share in Quebec. In addition to the quadruple-play services Quebecor offers a French-language subscription video on demand service and has a media segment that owns and operates television stations publishes newspapers and magazines and produces and distributes films and television shows.
