Quebecor TSE: QBR.A reported higher first-quarter revenue, earnings and cash flow as wireless growth and improving wireline trends helped offset continued pressure in its media operations, executives said on the company’s 2026 first-quarter earnings call.
President and CEO Pierre Karl Péladeau said Quebecor is continuing to focus on “profitable growth” in wireless rather than matching aggressive promotional offers from larger competitors. On a consolidated basis, Quebecor reported revenue of CAD 1.4 billion, up CAD 52 million, or 4%, from a year earlier. EBITDA reached CAD 577 million, up CAD 27 million, or 5%. Excluding an unfavorable CAD 47 million increase in share-based compensation expense, EBITDA rose CAD 74 million, or 13%.
Adjusted net income was CAD 220 million, or CAD 0.97 per share, compared with CAD 185 million, or CAD 0.80 per share, in the prior-year quarter. Net income attributable to shareholders was CAD 225 million, or CAD 1.00 per share, up from CAD 191 million, or CAD 0.82 per share, a year earlier, Chief Financial Officer Hugues Simard said.
Wireless Growth Drives Telecom Results
Quebecor’s telecom segment delivered what Péladeau described as “one of, if it is not the strongest first quarter” in the company’s history. Telecom revenue increased 5% year over year to CAD 1.2 billion, while service revenue rose 4% to CAD 1 billion. Adjusted EBITDA in the segment climbed 6.6% to CAD 620 million, with the margin improving 80 basis points to 50.9%.
Wireless service revenue rose 8.8% year over year to CAD 466 million. Consolidated mobile ARPU increased for a second consecutive quarter to CAD 35.89, up 1.4%. Péladeau contrasted that performance with what he characterized as ARPU pressure among competitors, saying Quebecor’s ARPU is rising because customers are “choosing to stay and upgrade,” rather than because of short-term promotions.
The company added 28,800 net mobile lines in the quarter, down from 52,900 net additions in the same quarter last year. Péladeau attributed the lower additions to Quebecor’s decision not to follow what he called an “aggressively promotional” wireless market. He said the company captured 37% of total market loading in the quarter while improving ARPU and service revenue.
In response to analyst questions, Simard said Quebecor was “globally quite pleased” with wireless churn, particularly relative to competitors. He said the quarter included both lower gross loading and higher churn, but the company believed it made the right decision by prioritizing subscribers “at the right price.”
Wireline Revenue Turns Positive
Wireline revenue increased 0.4% to CAD 565 million, marking the first positive wireline revenue quarter in nearly three years, Simard said. Péladeau said the inflection reflected network investment and a broadband strategy that is beginning to deliver measurable revenue improvements.
The company launched Internet 2 Gig on April 10, offering download speeds of up to 2,000 Mbps and upload speeds of up to 200 Mbps in the Greater Montreal area, Laval and Québec City. Péladeau said the service was designed to meet rising bandwidth needs for households and businesses in Quebecor’s core markets.
Simard said internet service revenue growth was driven in part by price increases and a more rational competitive broadband environment in Quebec. Péladeau added that Quebecor’s customer service and network improvements have helped it compete against Bell’s fiber investments and pricing activity.
In TV distribution, executives said Quebecor has maintained revenue and margins despite broader industry pressure, citing its Helix platform and illico+ revenue growth. Simard said cable revenue was “rather flat,” which he characterized as a solid result in the current environment.
Media Remains Under Pressure Despite Cost Improvements
Quebecor’s media segment revenue fell 5% year over year to CAD 157 million. EBITDA improved by CAD 16 million to a CAD 2 million loss, reflecting cost reduction initiatives and a favorable impact from the federal government’s cancellation of the digital services tax, Simard said.
Péladeau said Groupe TVA reported negative adjusted EBITDA of CAD 1 million, an improvement of CAD 20 million from the same quarter in 2025. He said the improvement reflected efforts to simplify structures and streamline operations, but he remained cautious because of what he described as a “deep structural crisis” affecting private broadcasters.
He cited pressures from large digital platforms in advertising, erosion in television subscriptions, reduced support from the Canada Media Fund, competition from CBC/Radio-Canada and regulatory burdens from the CRTC. Péladeau said governments, regulators, industry associations and unions need to help rebuild a viable model for local news, entertainment and sports content.
Balance Sheet, Buybacks and Capital Spending
Quebecor ended the quarter with a net debt-to-EBITDA ratio of 2.86 times, which Simard said remains the lowest among telecom operators “by quite some margin.” The company reduced debt by more than CAD 120 million in the quarter while repurchasing CAD 85 million of stock.
Quebecor bought and canceled 1.5 million Class B shares during the quarter. Simard said the Toronto Stock Exchange approved an increase in the maximum number of Class B shares that may be repurchased under the current program to 7 million shares, with the program ending Aug. 15. Asked about future buybacks, Simard said the company plans to continue at a “balanced, disciplined level.”
The company also launched a US$1 billion commercial paper program in the United States on April 1 to diversify funding sources. The next day, it used available liquidity to repay the CAD 500 million balance on the second tranche of its term credit facility. Available liquidity was more than CAD 1.7 billion at quarter-end.
Telecom capital expenditures, excluding spectrum licenses, declined CAD 12 million, or 8%, in the quarter. Simard said the decline was partly due to timing and partly reflected prudence during a highly competitive quarter. He said there was no change to the company’s capital spending guidance, and Quebecor’s 5G+ rollout remains on track.
Management Says Strategy Remains Unchanged
Throughout the call, executives emphasized that Quebecor intends to “stay the course.” Péladeau said the company will continue building its wireless platform through Vidéotron, Freedom Mobile and Fizz, while expanding business services outside Quebec over time.
On satellite connectivity, Péladeau said Quebecor is reviewing options but does not view the market as urgent, describing it as complementary and still relatively small. On wholesale internet rates, executives said Quebecor continues to evaluate bundling opportunities outside Quebec but declined to provide specific commercial plans.
Simard said Fizz is gaining traction both inside and outside Quebec and is seeing “surprisingly low cannibalization” with Freedom Mobile in Ontario and Western Canada. He said Quebecor is also in the early stages of wireless network investment in Manitoba, with traffic expected to move gradually from MVNO arrangements to Quebecor’s own network toward the end of the year and beyond.
About Quebecor TSE: QBR.A
Quebecor primarily provides mobile and fixed-line telecom services in Quebec where it is the leading telecom provider. With more than 1.8 million internet subscribers Quebecor provides internet service to more than 60% of the homes its network passes. It also has about 1.6 million mobile subscribers representing more than 20% wireless market share in Quebec. In addition to the quadruple-play services Quebecor offers a French-language subscription video on demand service and has a media segment that owns and operates television stations publishes newspapers and magazines and produces and distributes films and television shows.
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