Quebecor Inc. Announces Videotron Ltd.'s 2011 Full Year and Fourth Quarter Results
Quebecor Inc. Holds a 54.7% Interest In Quebecor Media Inc., of Which Videotron Ltd. is a Wholly Owned Subsidiary
(firmenpresse) - MONTREAL, QUEBEC -- (Marketwire) -- 02/29/12 -- Quebecor Inc. ("Quebecor")(TSX: QBR.A)(TSX: QBR.B) today reported Videotron Ltd.'s ("Videotron") 2011 full-year and fourth quarter financial results.
Videotron's results are being released ahead of schedule due to certain reporting requirements in Canada and the United States. The financial year-end process and audit for Quebecor's other business segments are in progress and have not yet been completed. Quebecor plans to release its audited consolidated financial results for 2011 on March 15, 2012.
Quebecor and Videotron adopted International Financial Reporting Standards ("IFRS") on January 1, 2011. Videotron's 2011 full-year and fourth quarter consolidated financial statements have therefore been prepared in accordance with IFRS and comparative data for 2010 have been restated. Fore more information, refer to "Transition to IFRS" below.
2011 highlights
Fourth quarter 2011 highlights
2011 operating results
Revenues: $2.43 billion in 2011, an increase of $201.9 million (9.1%).
Average monthly revenue per user(3) ("ARPU"): $103.28 in 2011 compared with $95.73 in 2010, an increase of $7.55 (7.9%).
Customer statistics
Revenue-generating units - As of December 31, 2011, the total number of revenue-generating units stood at 4,689,900, an increase of 375,800 (8.7%) from the end of 2010 (Table 1). The net increase in revenue-generating units in 2011 was 39.3% greater than in 2010 and constituted the largest annual increase, in absolute terms, in three years. This solid performance was due to the effective strategy of marketing bundled services, including mobile telephony service, at a time of technological change in television broadcasting. The number of revenue-generating units had increased by 269,700 in 2010.
Cable television - The combined customer base for all of Videotron's cable television services increased by 49,900 (2.8%) in 2011 (Table 1), compared with an increase of 34,600 in 2010. As of December 31, 2011, Videotron had 1,861,500 customers for its cable television services, a household penetration rate of 70.1% (number of subscribers as a proportion of total homes passed by Videotron's network, i.e., 2,657,300 homes, as of the end of December 2011), compared with 69.3% a year earlier.
Cable Internet access - The number of subscribers to cable Internet access services stood at 1,332,500 as at December 31, 2011, an increase of 80,400 (6.4%) from year-end 2010, compared with an increase of 81,500 in 2010 (Table 1). As at December 31, 2011, Videotron's cable Internet access services had a household penetration rate of 50.1%, compared with 47.9% a year earlier.
Cable telephony service - The number of subscribers to cable telephony service stood at 1,205,300 as at the end of December 2011, an increase of 91,000 (8.2%) from year-end 2010, compared with an increase of 100,300 in 2010 (Table 1). As at December 31, 2011, the IP telephony service had a household penetration rate of 45.4%, compared with 42.7% a year earlier.
Mobile telephony service - As of December 31, 2011, the number of subscriber connections to the mobile telephony service stood at 290,600, an increase of 154,500 (113.5%) from year-end 2010, compared with an increase of 53,300 connections in 2010 (Table 1). At December 31, 2011, there were 3,100 connections to the MVNO network.
Operating income: $1.10 billion, an increase of $51.5 million (4.9%).
Net income attributable to shareholder: $469.0 million, a $35.1 million (-6.9%) decrease.
Fourth quarter 2011 operating results
Revenues: $634.8 million, an increase of $43.6 million (7.4%), essentially due to the same factors as those noted above under "2011 operating results."
ARPU: $106.90 in the fourth of quarter 2011, compared with $98.85 in the same period of 2010, an increase of $8.05 (8.1%).
Customer statistics
Revenue-generating units - 101,800 (2.2%) unit increase in the fourth quarter of 2011, 20.0% more than the 84,800 unit increase in the same period of 2010.
Cable television - 17,300 (0.9%) increase in the combined customer base for all cable television services in the fourth quarter of 2011, compared with an increase of 9,600 in the same quarter of 2010.
Cable Internet access - 26,100 (2.0%) increase in the fourth quarter of 2011, compared with 18,300 in the same period of 2010.
Cable telephony - 25,900 (2.2%) subscriber increase in the fourth quarter of 2011, compared with 16,200 in the same period of 2010.
Mobile telephony service - 32,500 (12.6%) increase in subscriber connections in the fourth quarter of 2011, compared with 40,700 in the same period of 2010.
Operating income: $294.7 million, an increase of $31.5 million (12.0%).
Net income attributable to shareholder: $161.9 million, an increase of $66.0 million (68.8%).
Financing activities
Detailed financial information
For a detailed analysis of Videotron's 2011 full year and fourth quarter results, please refer to the Management Discussion and Analysis and consolidated financial statements of Videotron, available on Quebecor's website at .
Transition to IFRS
On January 1, 2011, Canadian Generally Accepted Accounting Principles ("GAAP"), as used by publicly accountable enterprises, were fully converged into IFRS. Prior to the adoption of IFRS, for all periods up to and including the year ended December 31, 2010, Videotron's consolidated financial statements were prepared in accordance with Canadian GAAP. IFRS uses a conceptual framework similar to Canadian GAAP, but there are significant differences related to recognition, measurement and disclosures.
The date of the opening balance sheet under IFRS and the date of transition to IFRS is January 1, 2010. The financial data for 2010 have therefore been restated. Videotron is also required to apply IFRS accounting policies retrospectively to determine its opening balance sheet, subject to certain exemptions. However, Videotron is not required to restate figures for periods prior to January 1, 2010 that were previously prepared in accordance with Canadian GAAP.
The new significant accounting policies under IFRS are disclosed in Note 1 to Videotron's consolidated financial statements for the year ended December 31, 2011. Note 27 describes the adjustments made by Videotron in preparing its IFRS opening consolidated balance sheet as of January 1, 2010 and in restating its previously published Canadian GAAP consolidated financial statements for the year ended December 31, 2010. Note 27 also provides details on exemption choices made by Videotron with respect to the general principle of retrospective application of IFRS.
DEFINITIONS
Operating Income
In its analysis of operating results, Quebecor defines operating income, as reconciled to net income under IFRS, as net income before amortization, financial expenses, gain (loss) on valuation and translation of financial instruments, charge for restructuring of operations and other special items, and income tax. Operating income as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to other financial operating performance measures or to the statement of cash flows as a measure of liquidity. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Management believes that operating income is a meaningful measure of performance. Quebecor uses operating income in order to assess the performance of its investment in Quebecor Media. Quebecor's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of its operating segments. This measure eliminates the significant level of depreciation and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of Quebecor and its segments. Operating income is also relevant because it is a significant component of the Quebecor's annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the periodic costs of tangible and intangible assets used in generating revenues in Quebecor's segments. In addition, measures like operating income are commonly used by the investment community to analyze and compare the performance of companies in the industries in which Quebecor is engaged. Quebecor's definition of operating income may not be the same as similarly titled measures reported by other companies.
Table 2 below provides a reconciliation of operating income to net income as disclosed in the consolidated financial statements.
Average Monthly Revenue per User
ARPU is an industry metric that Videotron uses to measure its monthly cable television, Internet access, cable telephony and mobile telephony revenues per average basic cable customer. ARPU is not a measurement that is consistent with IFRS and the Videotron's definition and calculation of ARPU may not be the same as identically titled measurements reported by other companies. Videotron calculates ARPU by dividing its combined cable television, Internet access, cable telephony and mobile telephony revenues by the average number of basic customers during the applicable period, and then dividing the resulting amount by the number of months in the applicable period.
Forward-Looking Statements
The statements in this press release that are not historical facts are forward-looking statements and are subject to significant known and unknown risks, uncertainties and assumptions that could cause Quebecor's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements may be identified by the use of the conditional or by forward-looking terminology such as the terms "plans," "expects," "may," "anticipates," "intends," "estimates," "projects," "seeks," "believes," or similar terms, variations of such terms or the negative of such terms. Certain factors that may cause actual results to differ from current expectations include seasonality (including seasonal fluctuations in customer orders), operating risks (including fluctuations in demand for Quebecor's products and pricing actions by competitors), insurance risk, risks associated with capital investment (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, risks associated with commodities and energy prices (including fluctuations in the cost and availability of raw materials), credit risk, financial risks, debt risks, risks related to interest rate fluctuations, foreign exchange risks, risks associated with government acts and regulations, risks related to changes in tax legislation and to changes in the general political and economic environment. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause Quebecor's actual results to differ from current expectations, please refer to Quebecor's public filings available at and including, in particular, the "Risks and Uncertainties" section of Quebecor's Management Discussion and Analysis for the year ended December 31, 2010.
The forward-looking statements in this press release reflect Quebecor's expectations as of February 29, 2012 and are subject to change after that date. Quebecor expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
The Corporation
Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) is a holding company with a 54.7% interest in Quebecor Media Inc., one of Canada's largest media groups, with more than 16,000 employees. Quebecor Media Inc., through its subsidiary Videotron Ltd., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephone services and mobile telephone services. Through Sun Media Corporation, Quebecor Media Inc. is the largest publisher of newspapers in Canada. It also operates Canoe.ca and its network of English and French language Internet properties in Canada. In the broadcasting sector, Quebecor Media Inc. operates, through TVA Group Inc., the number one French language general interest television network in Quebec, a number of specialty channels and the SUN News English language channel. Another subsidiary of Quebecor Media Inc., Nurun Inc., is a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia. Quebecor Media Inc. is also active in magazine publishing (TVA Publishing Inc.), book publishing and distribution (Sogides Group Inc. and CEC Publishing Inc.), the production, distribution and retailing of cultural products (Archambault Group Inc. and TVA Films), video game development (BlooBuzz Studios, L.P.), DVD, Blu-ray disc and videogame rental and retailing (Le SuperClub Videotron Ltd), the printing and distribution of regional newspapers and flyers (Quebecor Media Printing Inc. and Quebecor Media Network Inc.), news content production and distribution (QMI Agency), multiplatform advertising solutions (QMI Sales) and the publishing of printed and online directories, through Quebecor MediaPages™.
Contacts:
Jean-Francois Pruneau
Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
514 380-4144
J. Serge Sasseville
Vice President, Corporate and Institutional Affairs
Quebecor Media Inc.
514 380-1864
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Datum: 29.02.2012 - 07:46 Uhr
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