The following is a summary of the Quebecor Inc. (QBCRF) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Quebecor reported Q3 2024 revenues of $1.4 billion, down 1.8%, with overall EBITDA decreasing by $30 million, attributed mainly to a $26 million negative variance due to stock-based compensation.

• Wireless revenues increased by 5% to $600 million, and wireless EBITDA grew by 17%, reaching $271 million, improving the margin from 40% to 45% year-over-year.

• Wireline revenues experienced a decline, largely due to transitioning Helix boxes from purchase to rental model and no annual price increases at the beginning of the year.

• Adjusted cash flow from operations decreased by $47 million to $435 million due to increased CAPEX, while free cash flow increased by $50 million or 10.1% to $546 million, benefiting from lower interest costs and disciplined cash management.

Business Progress:

• Wireless loading performance was significant with a record 132 net additions for the quarter and an impressive year-over-year addition of 352,000 new lines.

• Expansion noted in areas such as British Columbia, Alberta, Manitoba, Ontario, and Quebec with Fizz extending its digital reach to an additional 2.2 million Canadians and new wireless service areas in Gaspésie, Côte-Nord, and the Bas-Saint-Laurent region for Videotron.

• Launched illico+, a unified video streaming service, expected to offer more than 8,500 titles with plans for further expansion in 2025.

Opportunities:

• Regulatory decisions on wholesale roaming rates provide an opportunity for supporting continued business expansion at more competitive rates.

• Aggressive market practice by competitors in Quebec offers the potential for Quebecor to capitalize on offering superior customer service as a differentiator and strategic advantage.

Risks:

• Regulatory defeat in achieving favorable rates for fiber Internet could limit service expansion potential and impede competitive pricing offerings against incumbents.

• Wireline side continues to face revenue deterioration due to aggressive price wars initiated by competitors, potentially affecting long-term profitability.

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