Quebecor Reports Higher Revenues and Profits in Q3

Quebecor (QBR.B) posted higher profits and revenues in the third quarter as compared to a year ago. The leader in telecommunications, entertainment, culture, and news media services benefited from better performance at its Videotron business.

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Quebecor’s revenue for Q3 2021 came in at C$1.15 billion, an increase of 3.3% versus the prior-year quarter. The Telecommunications segment posted revenue growth of 0.2% to C$939.5 million. Videotron increased its revenues from Internet access services by 5.6% and from mobile telephony by 8% in the third quarter of 2021.

Net income attributable to shareholders rose 22.9% to C$173.1 million (C$0.71 per share) during the three months ended September 30.

Adjusted income from continuing operating activities amounted to C$0.73 per share, up from C$0.69 per share in the third quarter of 2020.

Quebecor president and CEO Pierre Karl Péladeau said, “The continuing reopening of the economy is enabling us to stay on track toward our growth and profitability targets. In addition, our strong financial performance positions us very advantageously to capitalize on our many operational and technological advances and on our potential for cross-Canada expansion.”

Mobile phone services connections increased by 40,900 (2.7%), while Internet access service subscriptions grew by 22,500 (1.2%) in the quarter. (See Insiders’ Hot Stocks on TipRanks)

Wall Street’s Take

On November 3, Scotiabank analyst Jeff Fan reiterated a Buy rating on QBR.B with a C$37 price target. This implies 23% upside potential.

The rest of the Street is bullish on QBR.B with a Strong Buy consensus rating, based on three Buys and one Hold. The average Quebecor price target of C$36.49 implies upside potential of 21.3% to current levels.