MONTRÉAL, Aug. 6, 2026 /CNW/ -- Quebecor Inc. ("Quebecor" or "the Corporation") today reported its consolidated financial results for the second quarter of 2026.
Second quarter 2026 highlights
-- In the second quarter of 2026, Quebecor's free cash flows1 were up
$43.8 million (11.7%) compared with the same quarter of 2025 to
$418.7 million, revenues were up $59.8 million (4.3%) to $1.44 billion,
and adjusted EBITDA2 was up $22.3 million (3.7%) to $627.4 million.
Excluding the $39.5 million unfavourable impact of the stock--based
compensation expense, adjusted EBITDA increased by $61.8 million (9.8%).
-- The Telecommunications segment increased its adjusted EBITDA by $32.2
million (5.3%), adjusted cash flows from operations3 by $14.2 million
(3.1%), and revenues by $47.8 million (4.0%), including revenue increases
of $40.2 million (9.2%) from mobile services and $9.6 million (3.1%) from
Internet access services. Average monthly mobile revenue per user
("mobile ARPU")4 was up 2.5%, the third consecutive quarterly increase.
-- The mobile telephony service posted a net increase of 53,200 subscriber
connections (1.2%).
-- Quebecor's net income attributable to shareholders was $270.9 million
($1.21 per basic share), an increase of $53.2 million ($0.26 per basic
share) or 24.4%.
-- Adjusted net income5 was $241.3 million ($1.07 per basic share), an
increase of $14.5 million ($0.08 per basic share) or 6.4%.
-- The consolidated net debt leverage ratio6 was stable at 2.87x, still the
lowest among Canada's major telecommunications providers.
-- The quarterly dividend on the Corporation's Class A Multiple Voting
Shares ("Class A Shares") and Class B Subordinate Voting Shares ("Class B
Shares") was increased by 12.5% from $0.40 to $0.45.
-- The normal course issuer bid was renewed until August 14, 2027.
-- Building on its success with Fizz over the past several years, Quebecor
increased its stake in Etiya, in which it has held an equity interest
since 2021, to 70% on April 21, 2026, to support the ongoing rollout of a
unified business support system (BSS) platform for its Videotron and
Freedom Mobile ("Freedom") brands. Turkey--based Etiya is a global
software company with more than 1,500 employees that is a leading
provider of digital BSS platforms powered by artificial intelligence.
This transaction will also strengthen Etiya's ability to deliver
large--scale BSS transformation projects worldwide.
-- On June 23, 2026, Quebecor was named one of Canada's Best 50 Corporate
Citizens, according to Corporate Knights' rankings for 2026. Quebecor was
placed 19th in recognition of its overall environmental, social and
governance $(ESG)$ record. Quebecor's commitment is reflected, in
particular, in concrete initiatives on climate action, the circular
economy and environmentally responsible production.
-- During the second quarter of 2026, Videotron Ltd. ("Videotron") repaid
the full $500.0 million outstanding under the second tranche of its term
credit facility and $300.0 million of the $700.0 million outstanding
under the third tranche. On July 8, 2026, Videotron made an additional
repayment of $100.0 million under its term credit facility.
______________________
(1) See "Free cash flows" under "Definitions."
(2) See "Adjusted EBITDA" under "Definitions."
(3) See "Adjusted cash flows from operations" under
"Definitions."
(4) See "Average monthly mobile revenue per unit"
under "Definitions."
(5) See "Adjusted net income" under "Definitions."
(6) See "Consolidated net debt leverage ratio" under
"Definitions."
Comments by Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor
Quebecor delivered another strong performance in the second quarter of 2026, driven by disciplined operational and financial execution. Free cash flows increased by 11.7%, revenues by 4.3% and adjusted EBITDA by 3.7%, or 9.8% when excluding the impact of the stock--based compensation expense. The Telecommunications segment continued to perform solidly during the quarter, with increases of 5.3% in adjusted EBITDA, or 7.0% excluding the stock--based compensation expense, 9.2% in mobile telephony service revenues, 4.0% in total revenues and 3.1% in adjusted cash flows from operations.
Our mobile subscriber base has expanded steadily over the past 12 months, adding 269,700 lines, a 6.4% increase, including 53,200 lines in the second quarter. Combined with an $0.86 or 2.5% increase in our mobile ARPU, this growth underscores the appeal of our offering and our competitive positioning and demonstrates our ability to simultaneously grow our subscriber base, revenues and profitability.
These strong results reflect the tangible payoffs of our strategic investments, advantageous network agreements and robust growth model. In Québec and Ontario, Videotron continues to upgrade its networks and enhance its Internet and mobile services with faster speeds and new integrated solutions for both consumers and businesses. Meanwhile, Freedom is pressing ahead with its expansion in Western Canada, while Fizz is accelerating its rollout and establishing itself as the Canadian leader in the digital marketplace, a rapidly growing sector that is poised to define the future of telecommunications services.
We also continue to invest in the technologies that will shape the telecommunications industry of tomorrow. Quebecor has fortified its strategic position by acquiring a majority stake in Etiya, a leading provider of AI--powered digital business support systems. Etiya will help accelerate the rollout of a unified platform across our Videotron, Freedom and Fizz brands, while also positioning itself in the high--potential global market for large--scale BSS transformation projects.
In the Media segment, TVA Group Inc. ("TVA Group") reported adjusted EBITDA of $23.3 million, up $21.6 million from the second quarter of 2025. This performance was driven in part by the excellent results of the TVA Sports channel, fuelled by the NHL playoffs and the Montréal Canadiens' extended postseason run, which boosted advertising and subscription revenues for the channel and its "TVA Sports Direct" platform. TVA Sports grew its market share to 8.6% in the second quarter, a substantial 3.0--percentage--point gain. Canadiens games drew up to two million viewers for a nearly 50% market share. The restructuring initiatives implemented over the past few years, along with the long--awaited increase in specialty channel carriage rates, also contributed to TVA Group's improved profitability.
Our original productions also continued to outperform in the second quarter of 2026. Indéfendable remained the most--watched drama in Québec, while Révolution was the most popular entertainment show during the spring season. TVA Group maintained its leadership in Québec on the strength of its programming with a 44.2% market share.
For Quebecor, strong performance and corporate responsibility go hand in hand. We are particularly proud to have ranked 19th on Corporate Knights' 2026 list of Canada's Best 50 Corporate Citizens. This recognition reflects our long--standing commitment to sustainable growth, based on concrete action for the climate, the circular economy and environmentally responsible production.
In view of our strong financial results, modest dividend payout ratio, and with a view to maintaining a sound, disciplined capital allocation strategy--which combines improving our financial ratios through steady debt reduction with continuing and renewing our normal course issuer bid--Quebecor's Board of Directors approved a 12.5% increase in the quarterly dividend on the Corporation's Class A and Class B Shares, from $0.40 to $0.45.
Backed by the strongest balance sheet in the industry, Quebecor is better positioned than ever to actively pursue its cross--Canada expansion. We will continue executing our strategy with discipline--investing in growth--enabling technologies, seizing the most promising opportunities, and rigorously allocating capital to create long--term value for our shareholders, customers, employees and all stakeholders.
Non--IFRS financial measures
The Corporation uses financial measures not standardized under International Financial Reporting Standards ("IFRS"), such as adjusted EBITDA, adjusted net income, adjusted cash flows from operations, free cash flows and consolidated net debt leverage ratio, and key performance indicators, including RGUs and mobile ARPU. Definitions of the non--IFRS measures and key performance indicators used by the Corporation in this press release are provided in the "Definitions" section.
Financial table
Table 1
Consolidated summary of income, cash flows and balance sheet
(in millions of Canadian dollars, except per basic share data)
Three months ended Six months ended
June 30 June 30
2026 2025 2026 2025
Income
Revenues:
Telecommunications $1,234.6 $1,186.8 $2,451.5 $2,346.9
Media 184.8 174.4 341.3 339.0
Sports and
Entertainment 48.4 51.5 97.4 101.2
Inter--segments (27.6) (32.3) (54.8) (63.6)
1,440.2 1,380.4 2,835.4 2,723.5
Adjusted EBITDA
(negative adjusted
EBITDA):
Telecommunications 641.7 609.5 1,261.3 1,190.9
Media 26.8 9.3 24.6 (9.3)
Sports and
Entertainment 3.1 4.7 4.9 8.2
Head Office (44.2) (18.4) (86.8) (35.1)
627.4 605.1 1,204.0 1,154.7
Depreciation and
amortization (217.4) (213.8) (426.8) (429.1)
Financial expenses (79.5) (86.0) (155.7) (178.5)
Restructuring,
impairment of assets
and other (2.3) (16.0) (6.4) (19.3)
Other items 29.9 2.0 39.3 8.6
Income taxes (82.6) (75.1) (154.8) (135.9)
Net income $ 275.5 $ 216.2 $ 499.6 $ 400.5
Net income
attributable to
shareholders $ 270.9 $ 217.7 $ 496.3 $ 408.4
Adjusted net income 241.3 226.8 460.8 411.9
Per basic share:
Net income
attributable to
shareholders 1.21 0.95 2.20 1.77
Adjusted net income 1.07 0.99 2.04 1.79
Table 1 (continued) Three months ended Six months ended
June 30 June 30
2026 2025 2026 2025
Capital expenditures:
Telecommunications $ 167.8 $ 149.8 $ 298.1 $ 292.0
Media 4.2 1.0 5.4 3.9
Sports and Entertainment 1.7 1.5 3.0 2.7
Head Office -- -- 0.1 --
173.7 152.3 306.6 298.6
Cash flows:
Adjusted cash flows from
operations:
Telecommunications 473.9 459.7 963.2 898.9
Media 22.6 8.3 19.2 (13.2)
Sports and Entertainment 1.4 3.2 1.9 5.5
Head Office (44.2) (18.4) (86.9) (35.1)
453.7 452.8 897.4 856.1
Free cash flows(1) 418.7 374.9 654.2 612.7
Cash flows provided by
operating activities 569.6 538.0 989.9 958.2
June 30, Dec. 31,
2026 2025
Balance sheet
Cash and cash equivalents $ 97.6 $ 160.6
Working capital (877.0) (233.2)
Net assets related to
derivative financial
instruments 93.5 24.3
Total assets 12,954.7 12,812.2
Short term borrowings 661.0 --
Total long--term debt
(including current
portion) 6,120.4 6,824.3
Lease liabilities
(current and long term) 413.7 410.6
Equity attributable to
shareholders 2,743.7 2,625.0
Equity 2,980.1 2,737.0
Consolidated net debt
leverage ratio(1) 2.87x 2.95x
(1) See "Non--IFRS financial measures."
2026/2025 second quarter comparison
Revenues: $1.44 billion, a $59.8 million (4.3%) increase.
-- Revenues increased in Telecommunications ($47.8 million or 4.0% of
segment revenues) and in Media ($10.4 million or 6.0%).
-- Revenues decreased in Sports and Entertainment ($3.1 million or --6.0%).
Adjusted EBITDA: $627.4 million, an increase of $22.3 million (3.7%), despite the $39.5 million unfavourable impact of the stock--based compensation charge across all of the Corporation's segments, due mainly to a significant increase in Quebecor's share price.
-- Adjusted EBITDA increased in Telecommunications ($32.2 million or 5.3% of
segment adjusted EBITDA) and in Media ($17.5 million).
-- There was an unfavourable variance at Head Office ($25.8 million),
essentially due to the increase in the stock--based compensation charge.
-- Adjusted EBITDA decreased in Sports and Entertainment ($1.6 million).
Net income attributable to shareholders: $270.9 million ($1.21 per basic share) in the second quarter of 2026, compared with $217.7 million ($0.95 per basic share) in the same period of 2025, an increase of $53.2 million ($0.26 per basic share) or 24.4%.
-- The favourable variances were:
-- $27.9 million favourable variance in other items;
-- $22.3 million increase in adjusted EBITDA;
-- $13.7 million decrease in the charge for restructuring, impairment
of assets and other;
-- $6.5 million decrease in financial expenses.
-- The unfavourable variances were:
-- $7.5 million increase in the income tax expense;
-- $6.1 million unfavourable variance in non--controlling interest;
-- $3.6 million increase in the depreciation and amortization charge.
Adjusted net income: $241.3 million ($1.07 per basic share) in the second quarter of 2026, compared with $226.8 million ($0.99 per basic share) in the same period of 2025, an increase of $14.5 million ($0.08 per basic share) or 6.4%.
Adjusted cash flows from operations: $453.7 million, a $0.9 million (0.2%) increase in the second quarter of 2026 due to the $22.3 million increase in adjusted EBITDA, partially offset by a $21.4 million increase in capital expenditures, mainly in the Telecommunications segment.
Cash flows provided by operating activities: $569.6 million in the second quarter of 2026, a $31.6 million (5.9%) increase due primarily to the increase in adjusted EBITDA, the decrease in the cash portion of the charge for restructuring, impairment of assets and other, and a decrease in the cash portion of financial expenses, partially offset by an unfavourable net change in non--cash balances related to operating activities and an increase in current income taxes.
2026/2025 year--to--date comparison
Revenues: $2.84 billion, a $111.9 million (4.1%) increase.
-- Revenues increased in Telecommunications ($104.6 million or 4.5% of
segment revenues) and in Media ($2.3 million or 0.7%).
-- Revenues decreased in Sports and Entertainment ($3.8 million or --3.8%).
Adjusted EBITDA: $1.20 billion, an increase of $49.3 million (4.3%), despite the $86.8 million unfavourable impact of the stock--based compensation charge across all of the Corporation's segments, due mainly to a significant increase in Quebecor's share price.
-- Adjusted EBITDA increased in Telecommunications ($70.4 million or 5.9% of
segment adjusted EBITDA) and in Media ($33.9 million).
-- There was an unfavourable variance at Head Office ($51.7 million),
essentially due to the increase in the stock--based compensation charge.
-- Adjusted EBITDA decreased in Sports and Entertainment ($3.3 million).
Net income attributable to shareholders: $496.3 million ($2.20 per basic share) in the first half of 2026, compared with $408.4 million ($1.77 per basic share) in the same period of 2025, an increase of $87.9 million ($0.43 per basic share) or 21.5%.
-- The main favourable variances were:
-- $49.3 million increase in adjusted EBITDA;
-- $30.7 million favourable variance in other items;
-- $22.8 million decrease in financial expenses;
-- $12.9 million decrease in the charge for restructuring, impairment
of assets and other.
-- The unfavourable variances were:
-- $18.9 million increase in the income tax expense;
-- $11.2 million unfavourable variance in non--controlling interest.
Adjusted net income: $460.8 million ($2.04 per basic share) in the first half of 2026, compared with $411.9 million ($1.79 per basic share) in the same period of 2025, an increase of $48.9 million ($0.25 per basic share) or 11.9%.
Adjusted cash flows from operations: $897.4 million, a $41.3 million (4.8%) increase due to the $49.3 million increase in adjusted EBITDA, partially offset by an $8.0 million increase in capital expenditures, mainly in the Telecommunications segment.
Cash flows provided by operating activities: $989.9 million, a $31.7 million (3.3%) increase due primarily to the increase in adjusted EBITDA, a decrease in the cash portion of financial expenses and a decrease in the cash portion of the charge for restructuring, impairment of assets and other, partially offset by the increase in current income taxes and an unfavourable net change in non--cash balances related to operating activities.
Financing operations
-- On August 5, 2026, the Board of Directors of Quebecor declared a
quarterly dividend of $0.45 per share on the Corporation's Class A Shares
and Class B Shares, a 12.5% increase.
-- During the second quarter of 2026, Videotron repaid the full
$500.0 million outstanding under the second tranche of its term credit
facility and $300.0 million of the $700.0 million outstanding under the
third tranche. On July 8, 2026, Videotron made an additional repayment of
$100.0 million under its term credit facility.
-- On April 1, 2026, Videotron established a commercial paper program in the
United States by way of private placement, under which it may issue
unsecured senior notes (ranking pari passu with its other unsecured and
unsubordinated debt) with a maximum maturity of 364 days, up to an
outstanding amount of US$1.00 billion. Videotron's revolving credit
facility is serving as a liquidity backstop and the foreign exchange risk
related to the commercial paper is being fully hedged by Videotron.
Capital stock
Normal course issuer bid