Quebecor Posts 13% EBITDA Growth but Subscriber Record Comes With a Catch

Quebecor grew third-quarter EBITDA 13% to CAD 707 million on revenue of CAD 1.45 billion, up 4% year over year — yet a striking portion of that earnings lift came from an accounting line, not operations. CFO Hugues Simard disclosed that consolidated EBITDA benefited from a CAD 32 million year-over-year reduction in stock-based compensation expense. Strip that out, and EBITDA rose CAD 47 million, or 7%. A strong quarter, but a smaller one than the headline suggests.

Net income attributable to shareholders climbed to CAD 296 million, or CAD 1.33 per share, from CAD 236 million, or CAD 1.03 per share. Adjusted net income reached CAD 294 million, or CAD 1.32 per share, against CAD 242 million, or CAD 1.05 per share, a year earlier. Free cash flow moved the other way: it fell 5% to CAD 422 million on a lower working capital adjustment, even as cash flow from operating activities rose 2% to CAD 593 million. The takeaway: profit improved on multiple measures, but cash conversion softened.

What drove the telecommunications numbers?

Telecommunications revenue rose 4.2% to CAD 1.3 billion. Wireless service revenue grew 10% to CAD 492 million, and segment adjusted EBITDA rose 7.5% to CAD 648 million, with the margin expanding 160 basis points to 51%.

President and CEO Pierre Karl Péladeau said Quebecor added 100,700 net mobile lines across Videotron, Freedom Mobile and Fizz — a figure he called a company record. He then said the result surpassed the 130,800 lines added in the third quarter of 2025, a higher number than the one he cited for the latest quarter. The transcript did not resolve the discrepancy. Management's record claim, on the face of the numbers presented, does not hold together.

Mobile average revenue per user rose to CAD 36.08 from CAD 35.05, the fourth consecutive quarter of year-over-year growth. Péladeau attributed the gain to customers choosing richer plans and staying longer — not to price increases for existing customers. That distinction matters for durability; plan mix can reverse faster than a contracted rate rise.

Analysts pressed on whether Quebecor could hold its subscriber gains if rivals matched its lower prices. Péladeau said the company was watching competitors but saw no reason to change a working strategy. "If it is not broken, don't fix it," he said.

On market position, Simard said Western Canada share remains in the single digits, leaving room to grow. He estimated Quebecor held almost 8% of Canadian wireless service revenue over the trailing 12 months, up from slightly more than 7% a year earlier. The company also added 8,600 internet customers; internet revenue grew 3%. Simard called the Quebec broadband market competitive but rational, with revenue growth restored after a difficult stretch.

Where does the balance sheet stand?

Quebecor cut net debt by more than CAD 220 million in the quarter, bringing net debt-to-EBITDA down to 2.69 from 2.87 in the prior quarter. Videotron repaid CAD 200 million of the term loan tied to the Freedom acquisition during the quarter and another CAD 100 million after quarter-end, leaving CAD 100 million outstanding on that tranche. The company held more than CAD 900 million in available liquidity at quarter-end.

Freedom Mobile expanded its 5G+ network in Ontario, Alberta and British Columbia, reaching more than 500,000 additional Canadians. Péladeau framed the rollout as an ongoing process, not a one-quarter effort. Asked why Quebecor was not spending more aggressively on the network, he said the company would stay disciplined and that roaming agreements helped it deliver service. Construction was progressing well in Alberta, he said, but proved harder in parts of British Columbia, where finding experienced workers was also a challenge. Simard guided fourth-quarter capital spending higher as investment timing catches up, consistent with annual guidance, and said he did not expect a near-term shift in capital allocation across dividends, debt repayment and buybacks.

What improved in media?

Media revenue rose 1.4% to CAD 154 million, and segment EBITDA increased CAD 16 million to CAD 40 million. Péladeau credited cost cuts, higher TVA Sports subscription revenue, a new affiliation agreement and estimated support from a Quebec tax credit for news media. Note the reliance on savings and an estimated credit rather than broad demand growth.

Quebecor also signed a 12-year sublicensing agreement with Rogers for French-language NHL broadcast rights through the 2037–2038 season, with games also carried on the illico+ streaming service. Péladeau said the rights would support television and streaming; he did not disclose the price. In short, the media recovery is real but engineered, and its largest new contract carries no visible cost.