MONTRÉAL, Feb. 22,
2024 /CNW/ - Quebecor Inc. ("Quebecor" or the
"Corporation") today reported its consolidated financial results
for the fourth quarter and full year of 2023. Quebecor
consolidates the financial results of its wholly owned
Quebecor Media Inc. ("Quebecor Media")
subsidiary.
Highlights
2023 financial year and recent
developments
- In 2023, Quebecor recorded revenues of $5.43 billion, up $902.4
million (19.9%), adjusted EBITDA1 of
$2.24 billion, up $303.3 million (15.7%), and adjusted cash
flows from operations2 of $1.68 billion, up $239.8 million (16.7%) compared
with 2022.
- The Telecommunications segment increased its revenues by
$935.8 million (25.2%), its
adjusted EBITDA by $317.4 million (16.6%), and its adjusted
cash flows from operations by $237.8 million (16.3%) in 2023, reflecting,
among other things, the contribution of the Freedom Mobile
("Freedom") acquisition.
- The Telecommunications segment increased its revenues from
mobile services and equipment by $931.7 million (84.5%) due to the impact of
the Freedom acquisition and growth at Videotron Ltd.
("Videotron"), and its revenues from Internet access services
increased by $45.7 million
(3.7%).
- The acquisition of Freedom was significantly accretive to the
Telecommunications segment's revenue generating
units3 (RGUs), immediately adding
1,824,400 subscriber connections to the mobile telephony
service and 20,000 subscriptions to the Internet access
service. Organic growth added 138,000 RGUs (2.5%)
in 2023, including 230,100 subscriber connections (13.5%)
in mobile telephony and 24,900 Internet access subscriptions
(1.5%).
- TVA Group Inc. ("TVA Group") reported declines
of $49.2 million (‑8.3%) in
revenues and $24.8 million
(‑128.5%) in adjusted EBITDA in 2023 compared
with 2022.
- The Sports and Entertainment segment grew its revenues by
$22.8 million (12.0%) and its
adjusted EBITDA by $3.6 million
(18.6%) in 2023.
- Quebecor's consolidated net income attributable to shareholders
was up $50.8 million
($0.27 per basic share) or 8.5% to
$650.5 million ($2.82 per basic share).
- Adjusted income from operating activities4 was
$688.1 million ($2.98 per basic share), up $63.3 million ($0.32 per basic share) or 10.1%.
- 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 from $0.30 to $0.325.
- On April 3, 2023, Videotron acquired Freedom from
Shaw Communications Inc. ("Shaw"). Videotron paid $2.07 billion in cash and assumed certain
liabilities, mainly lease obligations. The acquisition includes
Freedom brand's entire wireless and Internet customer base, as
well as its owned infrastructure, spectrum and retail outlets. It
also includes a long‑term undertaking by Shaw and Rogers
Communications Inc. ("Rogers") to provide Videotron with
transport services (including backhaul and backbone), roaming
services and wholesale Internet services.
- On April 3, 2023, Videotron entered into a new
$2.10 billion secured term
credit facility with a syndicate of financial institutions to
finance the acquisition of Freedom. The term credit facility
consists of three tranches of equal size maturing in
October 2024, April 2026 and April 2027, bearing
interest at floating rates. On April 10, 2023, Videotron
entered into a floating‑to‑fixed interest rate swap agreement in
connection with the $700.0 million tranche maturing in
April 2027.
- On November 30, 2023, Quebecor announced an
investment of $298.9 million in
the acquisition by Videotron of 305 blocks of spectrum in the
3800 MHz band across Canada.
Approximately 61% of these 305 blocks of spectrum are located
outside Québec, mainly in southern Ontario, Alberta and British
Columbia.
- On October 12, 2023, Quebecor announced the launch of
its Mobile Virtual Network Operator ("MVNO") service and the
expansion of the service territory of its Videotron, Fizz and
Freedom brands.
- On January 25, 2024, Videotron and its Fizz brand hit a
double when Léger released its 2024 WOW Index. According to the
study, Videotron was the telecommunications provider with the best
in‑store experience in Québec, while Fizz ranked first in
Canada for online experience for
the fifth year in a row.
- In a survey conducted by Léger between August 1 and
7, 2023, Videotron was picked as the telecommunications
company with the best customer service in Québec by more than twice
as many respondents as its nearest rival. Léger's 2023
Reputation survey, released on April 5, 2023, also ranked
Videotron as the most respected telecommunications company in
Québec for the 17th time since 2006.
- On January 17, 2023, Quebecor Media redeemed at
maturity its Senior Notes in aggregate principal amount of
US$850.0 million, bearing
interest at 5.75%, and unwound the related hedging contracts for a
total cash consideration of $830.9 million.
- On November 2, 2023, following the announcement of
major changes to its organizational structure against the backdrop
of a global crisis in media industries, TVA Group launched a
reorganization plan that will refocus its mission on broadcasting,
restructure its news division and optimize its real estate assets.
The plan to reduce operating costs will result in a workforce
reduction of 547 employees.
____________________________
|
1 See
"Adjusted EBITDA" under "Definitions."
|
2 See
"Adjusted cash flows from operations" under
"Definitions."
|
3 See
"Key performance indicator" under "Definitions."
|
4 See
"Adjusted income from operations" under "Definitions."
|
Fourth quarter 2023
- In the fourth quarter of 2023, Quebecor recorded revenues
of $1.50 billion, up
$319.8 million (27.0%), adjusted
EBITDA of $565.4 million, up
$82.4 million (17.1%), and
adjusted cash flows from operations of $395.7 million, up $36.3 million (10.1%) compared with the same
period in 2022.
- The Telecommunications segment increased its revenues by
$337.7 million (35.2%), its
adjusted EBITDA by $83.1 million
(17.5%), and its adjusted cash flows from operations by
$38.4 million (10.7%),
reflecting, among other things, the contribution of the Freedom
acquisition.
- The Telecommunications segment increased its revenues from
mobile services and equipment (by $343.4 million or more than 100%) due to the
impact of the Freedom acquisition and growth at Videotron, as well
as increased revenues from Internet access ($4.4 million or 1.4%).
- There was a net increase of 48,300 RGUs (0.6%) in the
fourth quarter of 2023, including 66,100 connections
(1.8%) to the mobile telephony service and 6,300 subscriptions
(0.4%) to Internet access services.
- Quebecor's consolidated net income attributable to shareholders
was up $3.7 million
($0.01 per basic share) to
$146.2 million ($0.63 per basic share).
- Adjusted income from operating activities: $167.5 million ($0.73 per basic share), an increase of
$8.1 million ($0.04 per basic share) or 5.1%.
Comments by Pierre Karl Péladeau, President
and Chief Executive Officer of Quebecor
2023 was a watershed year for Quebecor with the
acquisition of Freedom in April 2023, which made the
Corporation Canada's fourth largest national wireless carrier.
We are proud to have rapidly implemented competitive and innovative
strategies to deliver on our promise to lower telecommunications
prices across the country and honour our commitments to Canadians
and to Innovation, Science and Economic Development Canada ("ISED
Canada").
Our Telecommunications segment significantly
increased its market share in Canada with the acquisition of Freedom, and we
didn't stop there. We heightened competition across Canada and significantly increased customer
growth with 230,100 (13.5%) new mobile lines in 2023, more
than double the growth of 2022, leveraging our brand portfolio
now composed of Videotron, Freedom and Fizz. In the fourth quarter
of 2023, we added 66,100 lines, five times more than in the
same quarter of 2022. We also continued investing in Freedom's
wireless network to make it one of the most reliable and powerful
in the country. And we continue to innovate, as demonstrated by the
recent launch of Freedom's Roam Beyond and Videotron's
Canada‑International mobile plans, which offer mobile coverage
across Canada and in dozens of
destinations around the world, allowing our customers to travel
without roaming charges.
The number of Canadians reached by our mobile
networks increased in 2023 from 7.5 million (or 20% of
Canada's population) to more than
26 million (or 70% of Canada's population), thereby significantly
increasing our addressable market. Entering new markets as an MVNO
will enable us to further expand our reach. We are now in a
position to gradually roll out our attractive, advantageously
priced plans to millions of additional consumers across
Canada. We've recently enhanced
our offering with the launch of Fizz outside Québec. It will
gradually be rolled out across the country in 2024.
To strengthen our nationwide footprint and
support the roll‑out of our 5G network, we announced in
November 2023 the acquisition of 305 blocks of spectrum
in the 3800 MHz band for $298.9 million. More than 60% of these
blocks are outside Québec. This strategic addition to our wireless
spectrum portfolio brings Quebecor's total investment in the
3500 MHz and 3800 MHz bands to over $1.1 billion.
Quebecor posted an excellent financial
performance in 2023, growing its revenues by 19.9%, its
adjusted EBITDA by 15.7% and its adjusted cash flows from
operations by 16.7%. The Telecommunications segment increased its
revenues by 25.2%, its adjusted EBITDA by 16.6%, and its adjusted
cash flows from operations by 16.3% in 2023 as a result of the
Freedom acquisition and organic growth. As we continue to
successfully integrate Freedom, the 10.1% increase in Quebecor's
adjusted income from operating activities in 2023 demonstrates
the considerable leverage created by this acquisition as well as
our disciplined management of operating costs, as evidenced by our
profit margin, still one of the highest in the telecoms industry.
Quebecor also had an outstanding fourth quarter, with increases of
27.0% in revenues, 17.1% in adjusted EBITDA and 10.1% in adjusted
cash flows from operations.
Since acquiring Freedom in April 2023, we
have successfully repaid more than $400 million in net debt.
We have reduced our consolidated net debt leverage
ratio1 from 3.6x on the date of the Freedom acquisition
to 3.4x at December 31, 2023, one of the lowest in
Canada's telecom services
industry. This sets the stage for us to achieve our objective of
sustaining a leverage ratio in the low 3x area. With net
available liquidity of $1.91 billion at
December 31, 2023, we have a solid financial position
that enables us to remain focused on our strategic priorities,
while managing our capital investments in a disciplined manner.
As excellent customer experience is at the heart
of our business model, we were proud to receive a string of
distinctions in 2023 that confirmed our status as the leader
in customer service, including telecom with the best in‑store
experience in Québec according to Léger's WOW index, best online
experience in Canada for Fizz,
telecom with the best customer service in Québec, and most
respected telecom in Québec for the 17th time since
2006.
TVA Group posted negative adjusted EBITDA of
$5.4 million in 2023, an
unfavourable variance of $24.8 million compared with the previous
year, as revenues and adjusted EBITDA declined significantly in all
its lines of business. The Broadcasting segment saw another large
drop in advertising revenues. This business continues to be
hard‑hit by the proliferation of online video streaming platforms,
competition from the web giants and unfair competition from
Radio‑Canada, which receives massive government subsidies. The weak
results were also due to the activities of the Film Production
& Audiovisual Services segment, which were strongly affected by
the shutdown of foreign productions because of the screenwriters'
and actors' strikes in the U.S. during the year.
Faced with an unprecedented global crisis in the
media industry, TVA Group was forced to launch a
reorganization plan to address its unsustainable money‑losing
situation. The measures announced on November 2, 2023
included the difficult but necessary decision to eliminate
547 positions in order to restore TVA Group's financial
situation and ensure its survival. Implementation of this plan will
enable TVA Group to pursue its mission by broadcasting the
best original homegrown content produced in Québec, providing
reliable, high‑quality news coverage throughout Québec and carrying
major sporting events live.
To protect its market share, TVA Group
continued to invest in content for the TVA Network and its
specialty channels. The family show Chanteurs masqués, which
drew an average audience of over 1.8 million viewers, the
shows La Voix, Sortez‑moi d'ici! and the daily
program Indéfendable, with more than 1.5 million
viewers each, and TVA Nouvelles, which drew 4.3 million
viewers per week and was the most‑watched newscast in every time
slot (noon, 6 p.m. and 10 p.m.), all contributed strongly
to the TVA Network's high ratings. TVA Group increased its
market share to 41.0% as of December 31, 2023, 0.2
percentage points higher than in 2022. TVA Group's
audience statistics speak for themselves: it has more than twice
the market share of its competitors.
Guided by its determination to pursue its
Canadian expansion by offering the best products, the best service
and the best prices, Quebecor continues to execute rigorously on
its strategies while maintaining tight financial discipline.
Clearly, our successes of the past year were attributable to our
people, who demonstrated agility, outside‑the‑box thinking and
teamwork on a daily basis while providing our customers with
outstanding service. Building on our successes and on the solid
foundations for long‑term growth we laid in 2023, we look to
the future with confidence, fully committed to creating sustainable
value for all our stakeholders.
_________________________
|
1 See
"Consolidated net debt leverage ratio" under
"Definitions."
|
Non‑IFRS financial measures
The Corporation uses financial measures not
standardized under International Financial Reporting Standards
("IFRS"), such as adjusted EBITDA, adjusted income from operating
activities, adjusted cash flows from operations, free cash flows
from operating activities and consolidated net debt leverage ratio,
and key performance indicators, including RGUs. Beginning in the
first quarter of 2023, the Corporation has elected
to exclude subscriptions to OTT video services and customers of
third‑party Internet access ("TPIA") providers from its RGUs, as
they are not highly representative for the purpose of assessing the
Corporation's performance. Definitions of the non‑IFRS measures and
key performance indicator used by the Corporation in this press
release are provided in the "Definitions" section.
Financial tables
Table 1
Consolidated summary of
income, cash flows and balance sheet
(in millions of
Canadian dollars, except per basic share data)
|
|
Years ended
December 31
|
|
Three months
ended
December 31
|
|
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
4,654.0
|
$
|
3,718.2
|
$
|
3,735.0
|
$
|
1,297.7
|
$
|
960.0
|
|
Media
|
|
721.9
|
|
755.4
|
|
776.0
|
|
204.8
|
|
215.4
|
|
Sports and
Entertainment
|
|
213.4
|
|
190.6
|
|
167.0
|
|
56.4
|
|
54.1
|
|
Inter‑segment
|
|
(155.0)
|
|
(132.3)
|
|
(123.6)
|
|
(54.1)
|
|
(44.5)
|
|
|
|
5,434.3
|
|
4,531.9
|
|
4,554.4
|
|
1,504.8
|
|
1,185.0
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
2,230.3
|
|
1,912.9
|
|
1,875.7
|
|
559.0
|
|
475.9
|
|
Media
|
|
7.7
|
|
25.0
|
|
83.4
|
|
13.6
|
|
14.8
|
|
Sports and
Entertainment
|
|
23.0
|
|
19.4
|
|
20.4
|
|
2.2
|
|
2.6
|
|
Head
Office
|
|
(23.2)
|
|
(22.8)
|
|
(6.3)
|
|
(9.4)
|
|
(10.3)
|
|
|
|
2,237.8
|
|
1,934.5
|
|
1,973.2
|
|
565.4
|
|
483.0
|
|
Depreciation and
amortization
|
|
(909.0)
|
|
(767.7)
|
|
(783.8)
|
|
(231.1)
|
|
(189.9)
|
|
Financial
expenses
|
|
(408.4)
|
|
(323.0)
|
|
(333.4)
|
|
(107.0)
|
|
(79.4)
|
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.0)
|
|
(19.2)
|
|
14.4
|
|
(8.7)
|
|
(16.5)
|
|
Restructuring,
acquisition costs and other
|
|
(52.4)
|
|
(14.5)
|
|
(4.1)
|
|
(23.5)
|
|
(5.2)
|
|
Loss on debt
refinancing
|
|
–
|
|
–
|
|
(80.9)
|
|
–
|
|
–
|
|
Income
taxes
|
|
(227.9)
|
|
(213.4)
|
|
(197.0)
|
|
(53.9)
|
|
(49.5)
|
|
Net income
|
$
|
635.1
|
$
|
596.7
|
$
|
588.4
|
$
|
141.2
|
$
|
142.5
|
|
Net income
attributable to shareholders
|
$
|
650.5
|
$
|
599.7
|
$
|
578.4
|
$
|
146.2
|
$
|
142.5
|
|
Adjusted income from
operating activities
|
|
688.1
|
|
624.8
|
|
621.9
|
|
167.5
|
|
159.4
|
|
Per basic
share:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to shareholders
|
|
2.82
|
|
2.55
|
|
2.38
|
|
0.63
|
|
0.62
|
|
Adjusted income from
operating activities
|
|
2.98
|
|
2.66
|
|
2.55
|
|
0.73
|
|
0.69
|
|
Table 1 (continued)
|
Years ended
December 31
|
|
Three months
ended
December 31
|
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment and to
intangible assets:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
536.7
|
$
|
457.1
|
$
|
537.1
|
$
|
160.4
|
$
|
115.7
|
|
Media
|
12.9
|
|
32.0
|
|
44.9
|
|
6.2
|
|
6.2
|
|
Sports and
Entertainment
|
7.7
|
|
3.9
|
|
4.3
|
|
2.9
|
|
1.3
|
|
Head
Office
|
1.1
|
|
1.9
|
|
4.8
|
|
0.2
|
|
0.4
|
|
|
558.4
|
|
494.9
|
|
591.1
|
|
169.7
|
|
123.6
|
|
Acquisition of spectrum
licences
|
9.9
|
|
–
|
|
830.0
|
|
–
|
|
–
|
|
Cash flows:
|
|
|
|
|
|
|
|
|
|
|
Adjusted cash
flows from operations:
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
1,693.6
|
|
1,455.8
|
|
1,338.6
|
|
398.6
|
|
360.2
|
|
Media
|
(5.2)
|
|
(7.0)
|
|
38.5
|
|
7.4
|
|
8.6
|
|
Sports and
Entertainment
|
15.3
|
|
15.5
|
|
16.1
|
|
(0.7)
|
|
1.3
|
|
Head
Office
|
(24.3)
|
|
(24.7)
|
|
(11.1)
|
|
(9.6)
|
|
(10.7)
|
|
|
1,679.4
|
|
1,439.6
|
|
1,382.1
|
|
395.7
|
|
359.4
|
|
Free cash flows from
operating activities1
|
910.5
|
|
783.2
|
|
572.3
|
|
184.4
|
|
223.6
|
|
Cash flows provided
by operating activities
|
1,462.2
|
|
1,262.7
|
|
1,182.6
|
|
335.7
|
|
325.5
|
|
Dividends declared
|
277.1
|
|
282.1
|
|
267.6
|
|
69.3
|
|
69.4
|
|
Dividends declared per basic
share
|
1.20
|
|
1.20
|
|
1.10
|
|
0.30
|
|
0.30
|
|
Balance sheet:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
11.1
|
$
|
6.6
|
$
|
64.7
|
|
|
|
|
|
Working
capital
|
(1,125.6)
|
|
(724.7)
|
|
50.4
|
|
|
|
|
|
Net assets
related to derivative financial instruments
|
110.8
|
|
520.3
|
|
382.3
|
|
|
|
|
|
Total
assets
|
12,741.3
|
|
10,625.3
|
|
10,763.0
|
|
|
|
|
|
Total
long‑term debt (including current portion)
|
7,668.2
|
|
6,517.7
|
|
6,554.0
|
|
|
|
|
|
Lease
liabilities (current and long term)
|
376.2
|
|
186.2
|
|
183.2
|
|
|
|
|
|
Convertible
debentures, including embedded derivatives
|
165.5
|
|
160.0
|
|
141.6
|
|
|
|
|
|
Equity
attributable to shareholders
|
1,726.9
|
|
1,357.3
|
|
1,255.6
|
|
|
|
|
|
Equity
|
1,837.7
|
|
1,483.5
|
|
1,378.8
|
|
|
|
|
|
Consolidated net debt leverage
ratio
|
3.39x
|
|
3.20x
|
|
3.19x
|
|
|
|
|
|
|
______________________
|
1 See "Free
cash flows from operating activities" under
"Definitions."
|
2023/2022 financial year comparison
Revenues: $5.43 billion, a $902.4 million (19.9%) increase.
- Revenues increased in Telecommunications ($935.8 million or 25.2% of segment
revenues), due to the impact of the Freedom acquisition and growth
in mobile services and equipment and Internet access services, and
in Sports and Entertainment ($22.8 million or 12.0%).
- Revenues decreased in Media ($33.5 million or ‑4.4%).
Adjusted EBITDA: $2.24 billion, a $303.3 million (15.7%) increase.
- Adjusted EBITDA increased in Telecommunications ($317.4 million or 16.6% of segment adjusted
EBITDA), due primarily to Freedom's contribution and also to the
increased profitability of Videotron's other activities, and in
Sports and Entertainment ($3.6 million or 18.6%).
- Adjusted EBITDA decreased in Media ($17.3 million).
- The change in the fair value of Quebecor stock options and
stock‑price‑based share units resulted in a $2.8 million unfavourable variance in the
Corporation's stock‑based compensation charge in 2023 compared
with 2022.
Net income attributable to shareholders:
$650.5 million ($2.82 per basic share) in 2023, compared
with $599.7 million
($2.55 per basic share) in 2022,
an increase of $50.8 million
($0.27 per basic share) or 8.5%.
- The favourable variances were:
- $303.3 million increase in
adjusted EBITDA;
- $14.2 million favourable
variance in gains and losses on valuation and translation of
financial instruments, including $13.0 million without any tax
consequences;
- $12.4 million favourable
variance in non‑controlling interest.
- The unfavourable variances were:
- $141.3 million increase in
the depreciation and amortization charge;
- $85.4 million increase
related to financial expenses;
- $37.9 million unfavourable
variance in the charge for restructuring, acquisition costs and
other;
- $14.5 million increase in
the income tax expense.
Adjusted income from operating activities:
$688.1 million ($2.98 per basic share) in 2023, compared
with $624.8 million
($2.66 per basic share) in 2022,
an increase of $63.3 million
($0.32 per basic share) or 10.1%.
Adjusted cash flows from operations:
$1.68 billion, a $239.8 million (16.7%) increase due
primarily to the $303.3 million
increase in adjusted EBITDA, partially offset by a $67.8 million increase in additions to
intangible assets.
Cash flows provided by operating
activities: $1.46 billion, a
$199.5 million (15.8%) increase
due primarily to the increase in adjusted EBITDA and the decrease
in current income taxes, partially offset by the increase in the
cash portion of financial expenses, the unfavourable net change in
non‑cash balances related to operating activities, and the
unfavourable variance in the cash portion of restructuring,
acquisition costs and other.
2023/2022 fourth quarter comparison
Revenues: $1.50 billion, a $319.8 million (27.0%) increase.
- Revenues increased in Telecommunications ($337.7 million or 35.2% of segment
revenues), due to the impact of the Freedom acquisition and growth
in mobile services and equipment and Internet access services, and
in Sports and Entertainment ($2.3 million or 4.3%).
- Revenues decreased in Media ($10.6 million or ‑4.9%).
Adjusted EBITDA: $565.4 million, an $82.4 million (17.1%) increase.
- Adjusted EBITDA increased in Telecommunications ($83.1 million or 17.5% of segment adjusted
EBITDA), including Freedom's contribution.
- Adjusted EBITDA decreased in Media ($1.2 million or ‑8.1%) and in Sports and
Entertainment ($0.4 million or
‑15.4%).
- The change in the fair value of Quebecor stock options and
stock‑price‑based share units resulted in a $0.2 million favourable variance in the
Corporation's stock‑based compensation charge in the fourth quarter
of 2023 compared with the same period of 2022.
Net income attributable to shareholders:
$146.2 million ($0.63 per basic share) in the fourth quarter
of 2023, compared with $142.5 million ($0.62 per basic share) in the same period
of 2022, an increase of $3.7 million ($0.01 per basic share).
- The favourable variances were:
- $82.4 million increase in
adjusted EBITDA;
- $7.8 million favourable
variance in gains and losses on valuation and translation of
financial instruments, including $7.7 million without any tax
consequences.
- $5.0 million favourable
variance in non‑controlling interest.
- The unfavourable variances were:
- $41.2 million increase in
the depreciation and amortization charge;
- $27.6 million increase
related to financial expenses;
- $18.3 million unfavourable
variance in the charge for restructuring, acquisition costs and
other;
- $4.4 million increase in the
income tax expense.
Adjusted income from operating activities:
$167.5 million ($0.73 per basic share) in the fourth quarter
of 2023, compared with $159.4 million ($0.69 per basic share) in the same period
of 2022, an increase of $8.1 million ($0.04 per basic share) or 5.1%.
Adjusted cash flows from operations:
$395.7 million, a $36.3 million (10.1%) increase due primarily
to the $82.4 million increase in
adjusted EBITDA, partially offset by a $32.1 million increase in additions to
intangible assets and a $14.0 million increase in additions to
property, plant and equipment.
Cash flows provided by operating
activities: $335.7 million,
a $10.2 million (3.1%) increase
due primarily to the increase in adjusted EBITDA and the decrease
in current income taxes, partially offset by the unfavourable net
change in non‑cash balances related to operating activities, the
increase in the cash portion of financial expenses and the
unfavourable variance in the cash portion of restructuring,
acquisition costs and other.
Investing and financing operations
- On June 28, 2023, TVA Group terminated its
secured revolving credit facility in the amount of $75.0 million.
- On April 3, 2023, Videotron entered into a new
$2.10 billion secured term
credit facility with a syndicate of financial institutions to
finance the acquisition of Freedom. The term credit facility
consists of three tranches of equal size maturing in
October 2024, April 2026 and April 2027, bearing
interest at Bankers' acceptance rate, Secured Overnight Financing
Rate ("SOFR"), Canadian prime rate or U.S. prime rate, plus a
premium determined by Videotron's leverage ratio. On
April 10, 2023, Videotron entered into a
floating‑to‑fixed interest rate swap agreement in connection with
the $700.0 million tranche
maturing in April 2027, fixing the interest rate at 5.203%
based on Videotron's leverage ratio at that time. The swap became
effective on May 4, 2023 and matures on April 3,
2027.
- On January 17, 2023, Quebecor Media redeemed at
maturity its Senior Notes in aggregate principal amount of
US$850.0 million, bearing
interest at 5.75%, and unwound the related hedging contracts for a
total cash consideration of $830.9 million. Drawings from the Videotron
secured revolving credit facility were used to finance this
redemption.
- On January 13, 2023, Videotron's secured revolving
credit facility was amended to increase it from $1.50 billion to $2.00 billion. Certain terms and conditions
of this credit facility were also amended.
Capital stock
On August 9, 2023, the Board of
Directors of the Corporation authorized a normal course issuer bid
for a maximum of 1,000,000 Class A Shares representing
approximately 1.3% of issued and outstanding Class A Shares,
and for a maximum of 2,000,000 Class B Shares
representing approximately 1.3% of issued and outstanding
Class B Shares as of August 1, 2023. The purchases
can be made from August 15, 2023 to August 14, 2024,
at prevailing market prices on the open market through the
facilities of the Toronto Stock Exchange or other alternative
trading systems in Canada. All
shares purchased under the bid will be cancelled.
On August 11, 2023, the Corporation
entered into an automatic securities purchase plan ("the plan")
with a designated broker whereby shares may be repurchased under
the plan at times when such purchases would otherwise be prohibited
pursuant to regulatory restrictions or self‑imposed blackout
periods. The plan received prior approval from the Toronto Stock
Exchange. It came into effect on August 15, 2023 and will
terminate on the same date as the normal course issuer bid.
Under the plan, before entering a self‑imposed
blackout period, the Corporation may, but is not required to, ask
the designated broker to make purchases under the normal course
issuer bid. Such purchases shall be made at the discretion of the
designated broker, within parameters established by the Corporation
prior to the blackout periods. Outside the blackout periods,
purchases will be made at the discretion of the Corporation's
management.
In 2023, the Corporation purchased and
cancelled 260,500 Class B Shares for a total cash
consideration of $7.8 million
(8,321,451 Class B Shares for a total cash consideration
of $237.0 million in 2022).
The excess of $6.2 million of
the purchase price over the carrying value of Class B Shares
repurchased was recorded as a reduction of retained earnings
in 2023 ($188.0 million
in 2022).
Dividends
On February 21, 2024, the Board of Directors
of Quebecor declared a quarterly dividend of $0.325 per share on its Class A Shares and
Class B Shares, payable on April 2, 2024 to shareholders
of record at the close of business on March 8, 2024. This
dividend is designated an eligible dividend, as provided under
subsection 89(14) of the Canadian Income Tax Act and its provincial
counterpart.
Acquisition of Freedom
On April 3, 2023, Videotron acquired
all the issued shares of Freedom from Shaw. Videotron paid
$2.07 billion in cash, net of
cash acquired of $103.2 million.
As part of the transaction, Videotron assumed certain liabilities,
mainly lease obligations. The consideration paid is subject to
certain post‑closing adjustments. Videotron's acquisition of
Freedom includes the Freedom Mobile brand's entire wireless and
Internet customer base, as well as its owned infrastructure,
spectrum and retail outlets. The transaction also includes a
long‑term undertaking by Shaw and Rogers to provide Videotron with
transport services (including backhaul and backbone), roaming
services and wholesale Internet services. Videotron has also made
certain commercial commitments to the Minister of Innovation,
Science and Industry. Through the acquisition of Freedom, Videotron
has entered the British Columbia
and Alberta telecommunications
markets and strengthened its position in the Ontario market.
On April 3, 2023, Videotron entered
into a new $2.10 billion secured
term credit facility with a syndicate of financial institutions to
finance the acquisition of Freedom. The term credit facility
consists of three tranches of equal size maturing in
October 2024, April 2026 and April 2027, bearing
interest at Bankers' acceptance rate, SOFR, Canadian prime rate or
U.S. prime rate, plus a premium determined by Videotron's leverage
ratio. On April 10, 2023, Videotron entered into a
floating‑to‑fixed interest rate swap agreement in connection with
the $700.0 million tranche
maturing in April 2027, fixing the interest rate at 5.203%
based on Videotron's leverage ratio at that time. The swap became
effective on May 4, 2023 and matures on April 3,
2027.
600 MHz, 3500 MHz and 3800 MHz
spectrum auction
On November 30, 2023, Quebecor
announced an investment of $298.9 million in the acquisition by
Videotron of 305 blocks of spectrum in the 3800 MHz band
across Canada in the latest
spectrum auction held by ISED Canada. Approximately 61% of these
305 blocks of spectrum are located outside Québec, mainly in
southern Ontario, Alberta and British
Columbia. Videotron made an initial deposit of $59.8 million on January 17, 2024 and
the balance of $239.1 million
will be paid in May 2024. On January 26, 2023,
Quebecor also announced a $9.9 million investment by Videotron in the
acquisition of spectrum licences in the 600 MHz band in
Manitoba and in the 3500 MHz
band in Québec.
Convertible debentures
In accordance with the terms of the trust
indenture governing the convertible debentures, the quarterly
dividend declared on November 8, 2023 on Quebecor
Class B Shares triggered an adjustment to the floor price and
ceiling price then in effect. Accordingly, effective
November 23, 2023, the conversion features of the
convertible debentures are subject to an adjusted floor price of
approximately $23.87 per share (that
is, a maximum number of approximately 6.283,314 Class B
Shares corresponding to a ratio of $150.0 million to the adjusted floor price)
and an adjusted ceiling price of approximately $29.84 per share (that is, a minimum number of
approximately 5,026,651 Class B Shares corresponding to a
ratio of $150.0 million to the
adjusted ceiling price).
Detailed financial information
For a detailed analysis of Quebecor's fourth
quarter and full‑year 2023 results, please refer to the Management
Discussion and Analysis and consolidated financial statements of
Quebecor, available on the Corporation's website at
www.quebecor.com/en/investors/financial-documentation and the
SEDAR+ website at www.sedarplus.ca.
Conference call for investors and
webcast
Quebecor will hold a conference call to discuss
its fourth‑quarter and full‑year 2023 results on
February 22, 2024 at 10:00 a.m.
EST. There will be a question period reserved for financial
analysts. To access the conference call, please dial
1‑877‑293‑8052, access code for participants 96614#. The conference
call will also be broadcast live on Quebecor's website at
www.quebecor.com/en/investors/conferences‑and‑annual‑meeting. It is
advisable to ensure the appropriate software is installed before
accessing the call. Instructions and links to free player downloads
are available at the Internet address shown above. Anyone unable to
attend the conference call will be able to listen to a recording by
dialing 1‑877‑293‑8133, access code 96614#, recording access code
0114269#. The recording will be available until May 22,
2024.
Cautionary statement regarding 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 the Corporation'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 the possibility
that the Corporation is unable to successfully carry out its
business strategies, including but not limited to the geographic
expansion of its telecommunications activities and the
reorganization of TVA Group, seasonality (including seasonal
fluctuations in customer orders), operating risk (including
fluctuations in demand for Quebecor's products and the pricing of
competitors' products and services), new competition and Quebecor's
ability to retain its current customers and attract new ones,
Quebecor's ability to penetrate new, highly competitive markets and
the accuracy of estimates of the size of potential markets, risks
related to fragmentation of the advertising market, insurance risk,
risks associated with capital investments (including risks related
to technological development and equipment availability and
breakdown), environmental risks, risks associated with
cybersecurity and the protection of personal information, risks
associated with service interruptions resulting from equipment
breakdown, network failure, the threat of natural disaster,
epidemics, pandemics or other public health crises, political
instability in some countries, risks associated with emergency
measures implemented by various governments, credit risk, financial
risks, debt risks, risks related to interest rate fluctuations,
foreign exchange risks, risks associated with government acts and
regulations, risks linked to an unfavorable judgment or settlement
of a dispute, risks associated with labour agreements, risks
related to changes in tax legislation, and changes in the general
political and economic environment.
In addition, there are risks associated with the
acquisition of Freedom and the strategy for expansion outside
Québec, including Quebecor's ability to successfully integrate
Freedom's operations following the acquisition and to realize
synergies, and potential unknown liabilities or costs associated
with the acquisition of Freedom. As well, the anticipated benefits
and effects of the acquisition of Freedom may not be realized in a
timely manner or at all, and future operating costs and capital
expenditures could be different than anticipated. In addition,
unanticipated litigation or other regulatory proceedings associated
with the acquisition of Freedom could result in changes to the
parameters of the transaction. Finally, the impacts of the
significant and recurring investments that will be required in the
new markets of Freedom and Videotron, operating as an MVNO or
otherwise, for development and expansion and to compete effectively
with the ILECs and other current or potential competitors in these
markets, including the fact that the post–acquisition Videotron
business will continue to face the same risks that Videotron
currently faces, but will also face increased risks relating to new
geographies and markets.
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 www.sedarplus.ca and
www.quebecor.com, including, in particular, the "Risks and
Uncertainties" section of the Corporation's Management Discussion
and Analysis for the year ended December 31, 2023.
The forward‑looking statements in this press
release reflect the Corporation's expectations as of
November 9, 2023 and are subject to change after this
date. The Corporation 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.
About Quebecor
Quebecor, a Canadian leader in
telecommunications, entertainment, news media and culture, is one
of the best‑performing integrated communications companies in the
industry. Driven by their determination to deliver the best
possible customer experience, all of Quebecor's subsidiaries and
brands are differentiated by their high‑quality, multiplatform,
convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in
Québec and employs more than 10,000 people in Canada.
A family business founded in 1950, Quebecor is
strongly committed to the community. Every year, it actively
supports more than 400 organizations in the vital fields of
culture, health, education, the environment, and
entrepreneurship.
Visit our website: www.quebecor.com
Follow us on X: www.x.com/Quebecor
DEFINITIONS
Adjusted EBITDA
In its analysis of operating results, the
Corporation defines adjusted EBITDA, as reconciled to net income
under IFRS, as net income before depreciation and amortization,
financial expenses, (loss) gain on valuation and translation of
financial instruments, restructuring, acquisition costs and other,
loss on debt refinancing and income taxes. Adjusted EBITDA 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 IFRS
financial 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. The Corporation's management and Board of Directors use
this measure in evaluating its consolidated results as well as the
results of the Corporation's operating segments. This measure
eliminates the significant level of impairment and
depreciation/amortization of tangible and intangible assets and is
unaffected by the capital structure or investment activities of the
Corporation and its business segments.
Adjusted EBITDA is also relevant because it is a
component of the Corporation'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 the Corporation's segments. The
Corporation also uses other measures that do reflect such costs,
such as adjusted cash flows from operations and free cash flows
from operating activities. The Corporation's definition of adjusted
EBITDA may not be the same as similarly titled measures reported by
other companies.
Table 2 provides a reconciliation of
adjusted EBITDA to net income as disclosed in Quebecor's
consolidated financial statements. The consolidated financial
information for the three‑month periods ended
December 31, 2023 and 2022 presented in Table 2
below is drawn from the Corporation's unaudited quarterly
consolidated financial statements.
Table 2
Reconciliation of the
adjusted EBITDA measure used in this press release to the net
income measure used in the consolidated financial
statements
(in millions of Canadian dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(negative adjusted EBITDA):
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
2,230.3
|
$
|
1,912.9
|
$
|
1,875.7
|
$
|
559.0
|
$
|
475.9
|
|
Media
|
|
7.7
|
|
25.0
|
|
83.4
|
|
13.6
|
|
14.8
|
|
Sports and
Entertainment
|
|
23.0
|
|
19.4
|
|
20.4
|
|
2.2
|
|
2.6
|
|
Head
Office
|
|
(23.2)
|
|
(22.8)
|
|
(6.3)
|
|
(9.4)
|
|
(10.3)
|
|
|
|
2,237.8
|
|
1,934.5
|
|
1,973.2
|
|
565.4
|
|
483.0
|
|
Depreciation and
amortization
|
|
(909.0)
|
|
(767.7)
|
|
(783.8)
|
|
(231.1)
|
|
(189.9)
|
|
Financial
expenses
|
|
(408.4)
|
|
(323.0)
|
|
(333.4)
|
|
(107.0)
|
|
(79.4)
|
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.0)
|
|
(19.2)
|
|
14.4
|
|
(8.7)
|
|
(16.5)
|
|
Restructuring,
acquisition costs and other
|
|
(52.4)
|
|
(14.5)
|
|
(4.1)
|
|
(23.5)
|
|
(5.2)
|
|
Loss on debt
refinancing
|
|
–
|
|
–
|
|
(80.9)
|
|
–
|
|
–
|
|
Income
taxes
|
|
(227.9)
|
|
(213.4)
|
|
(197.0)
|
|
(53.9)
|
|
(49.5)
|
|
Net income
|
$
|
635.1
|
$
|
596.7
|
$
|
588.4
|
$
|
141.2
|
$
|
142.5
|
|
Adjusted income from operating
activities
The Corporation defines adjusted income from
operating activities, as reconciled to net income attributable to
shareholders under IFRS, as net income attributable to shareholders
before (loss) gain on valuation and translation of financial
instruments, restructuring, acquisition costs and other, and loss
on debt refinancing, net of income tax related to adjustments and
net income attributable to non‑controlling interest related to
adjustments. Adjusted income from operating activities, as defined
above, is not a measure of results that is consistent with IFRS. It
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. The
Corporation uses adjusted income from operating activities to
analyze trends in the performance of its businesses. The
above‑listed items are excluded from the calculation of this
measure because they impair the comparability of financial results.
Adjusted income from operating activities is more representative
for forecasting income. The Corporation's definition of adjusted
income from operating activities may not be identical to similarly
titled measures reported by other companies.
Table 3 provides a reconciliation of
adjusted income from operating activities to the net income
attributable to shareholders measure used in Quebecor's
consolidated financial statements. The consolidated financial
information for the three‑month periods ended
December 31, 2023 and 2022 presented in Table 3
below is drawn from the Corporation's unaudited quarterly
consolidated financial statements.
Table 3
Reconciliation of the
adjusted income from operating activities measure used in this
press release to the net income attributable to shareholders
measure used in the consolidated financial
statements
(in millions of Canadian dollars)
|
|
Years ended
December 31
|
|
Three months
ended
December 31
|
|
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from
operating activities
|
$
|
688.1
|
$
|
624.8
|
$
|
621.9
|
$
|
167.5
|
$
|
159.4
|
|
(Loss) gain on
valuation and translation of financial instruments
|
|
(5.0)
|
|
(19.2)
|
|
14.4
|
|
(8.7)
|
|
(16.5)
|
|
Restructuring,
acquisition costs and other
|
|
(52.4)
|
|
(14.5)
|
|
(4.1)
|
|
(23.5)
|
|
(5.2)
|
|
Loss on debt
refinancing
|
|
–
|
|
–
|
|
(80.9)
|
|
–
|
|
–
|
|
Income taxes related
to adjustments1
|
|
12.7
|
|
8.6
|
|
26.1
|
|
6.3
|
|
4.8
|
|
Non‑controlling
interest related to adjustments
|
|
7.1
|
|
–
|
|
1.0
|
|
4.6
|
|
–
|
|
Net income attributable to
shareholders
|
$
|
650.5
|
$
|
599.7
|
$
|
578.4
|
$
|
146.2
|
$
|
142.5
|
|
1 Includes impact of
fluctuations in income tax applicable to adjusted items, either for
statutory reasons or in connection with tax
transactions.
|
Adjusted cash flows from operations and free
cash flows from operating activities
Adjusted cash flows from operations
Adjusted cash flows from operations represents
adjusted EBITDA, less additions to property, plant and equipment
and to intangible assets (excluding licence acquisitions and
renewals). Adjusted cash flows from operations represents funds
available for interest and income tax payments, expenditures
related to restructuring programs, business acquisitions, licence
acquisitions and renewals, payment of dividends, repayment of
long‑term debt and lease liabilities, and share repurchases.
Adjusted cash flows from operations is not a measure of liquidity
that is consistent with IFRS. It is not intended to be regarded as
an alternative to IFRS financial performance measures or to the
statement of cash flows as a measure of liquidity. Adjusted cash
flows from operations is used by the Corporation's management and
Board of Directors to evaluate the cash flows generated by the
operations of all of its segments, on a consolidated basis, in
addition to the operating cash flows generated by each segment.
Adjusted cash flows from operations is also relevant because it is
a component of the Corporation's annual incentive compensation
programs. The Corporation's definition of adjusted cash flows from
operations may not be identical to similarly titled measures
reported by other companies.
Free cash flows from operating
activities
Free cash flows from operating activities
represents cash flows provided by operating activities calculated
in accordance with IFRS, less cash flows used for additions to
property, plant and equipment and to intangible assets (excluding
expenditures related to licence acquisitions and renewals), plus
proceeds from disposal of assets. Free cash flows from operating
activities is used by the Corporation's management and Board of
Directors to evaluate cash flows generated by the Corporation's
operations. Free cash flows from operating activities represents
available funds for business acquisitions, licence acquisitions and
renewals, payment of dividends, repayment of long‑term debt and
lease liabilities, and share repurchases. Free cash flows from
operating activities is not a measure of liquidity that is
consistent with IFRS. It is not intended to be regarded as an
alternative to IFRS financial performance measures or to the
statement of cash flows as a measure of liquidity. The
Corporation's definition of free cash flows from operating
activities may not be identical to similarly titled measures
reported by other companies.
Tables 4 and 5 provide a reconciliation of
adjusted cash flows from operations and free cash flows from
operating activities to cash flows provided by operating activities
reported in the consolidated financial statements. The consolidated
financial information for the three‑month periods ended
December 31, 2023 and 2022 presented in
tables 4 and 5 is drawn from the Corporation's unaudited
quarterly consolidated financial statements.
Table 4
Adjusted cash flows from
operations
(in millions of Canadian dollars)
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
|
|
|
|
2023
|
2022
|
2021
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (negative adjusted
EBITDA):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
$
|
2,230.3
|
$
|
1,912.9
|
$
|
1,875.7
|
$
|
559.0
|
$
|
475.9
|
|
|
|
Media
|
|
7.7
|
|
25.0
|
|
83.4
|
|
13.6
|
|
14.8
|
|
|
|
Sports and
Entertainment
|
|
23.0
|
|
19.4
|
|
20.4
|
|
2.2
|
|
2.6
|
|
|
|
Head
Office
|
|
(23.2)
|
|
(22.8)
|
|
(6.3)
|
|
(9.4)
|
|
(10.3)
|
|
|
|
|
|
2,237.8
|
|
1,934.5
|
|
1,973.2
|
|
565.4
|
|
483.0
|
|
|
|
Minus
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to
property, plant and equipment:1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(388.8)
|
|
(378.9)
|
|
(391.5)
|
|
(109.6)
|
|
(96.9)
|
|
|
|
Media
|
|
(7.1)
|
|
(21.8)
|
|
(20.3)
|
|
(4.9)
|
|
(4.7)
|
|
|
|
Sports and
Entertainment
|
|
(2.1)
|
|
(1.0)
|
|
(0.8)
|
|
(1.5)
|
|
(0.4)
|
|
|
|
Head
Office
|
|
(0.2)
|
|
(0.8)
|
|
(1.5)
|
|
(0.1)
|
|
(0.1)
|
|
|
|
|
|
(398.2)
|
|
(402.5)
|
|
(414.1)
|
|
(116.1)
|
|
(102.1)
|
|
|
|
Additions to
intangible assets:2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
(147.9)
|
|
(78.2)
|
|
(145.6)
|
|
(50.8)
|
|
(18.8)
|
|
|
|
Media
|
|
(5.8)
|
|
(10.2)
|
|
(24.6)
|
|
(1.3)
|
|
(1.5)
|
|
|
|
Sports and
Entertainment
|
|
(5.6)
|
|
(2.9)
|
|
(3.5)
|
|
(1.4)
|
|
(0.9)
|
|
|
|
Head
Office
|
|
(0.9)
|
|
(1.1)
|
|
(3.3)
|
|
(0.1)
|
|
(0.3)
|
|
|
|
|
|
(160.2)
|
|
(92.4)
|
|
(177.0)
|
|
(53.6)
|
|
(21.5)
|
|
|
|
Adjusted cash flows from
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Telecommunications
|
|
1,693.6
|
|
1,455.8
|
|
1,338.6
|
|
398.6
|
|
360.2
|
|
|
|
Media
|
|
(5.2)
|
|
(7.0)
|
|
38.5
|
|
7.4
|
|
8.6
|
|
|
|
Sports and
Entertainment
|
|
15.3
|
|
15.5
|
|
16.1
|
|
(0.7)
|
|
1.3
|
|
|
|
Head
Office
|
|
(24.3)
|
|
(24.7)
|
|
(11.1)
|
|
(9.6)
|
|
(10.7)
|
|
|
|
|
$
|
1,679.4
|
$
|
1,439.6
|
$
|
1,382.1
|
$
|
395.7
|
$
|
359.4
|
|
|
|
|
|
|
|
|
|
|
Years ended
December 31
|
Three months
ended
December 31
|
|
|
1 Reconciliation to cash flows used for additions
to
property, plant and equipment as per
consolidated
financial statements:
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
Additions to
property, plant and equipment
|
$
|
(398.2)
|
$
|
(402.5)
|
$
|
(414.1)
|
$
|
(116.1)
|
$
|
(102.1)
|
|
|
Net variance in
current operating items related to additions to
property, plant and equipment (excluding government credits
receivable for major capital
projects)
|
|
1.2
|
|
7.4
|
|
(15.2)
|
|
3.4
|
|
21.7
|
|
|
Cash flows used for
additions to property, plant and equipment
|
$
|
(397.0)
|
$
|
(395.1)
|
$
|
(429.3)
|
$
|
(112.7)
|
$
|
(80.4)
|
|
|
|
Years ended
December 31
|
|
Three months
ended
December 31
|
|
|
2 Reconciliation to cash flows used for additions
to
intangible assets as per consolidated
financial statements:
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
Additions to
intangible assets
|
$
|
(160.2)
|
$
|
(92.4)
|
$
|
(177.0)
|
$
|
(53.6)
|
$
|
(21.5)
|
|
|
Net variance in
current operating items related to additions to
intangible assets (excluding government
credits
receivable for major capital
projects)
|
|
3.8
|
|
1.0
|
|
(11.7)
|
|
14.1
|
|
(0.5)
|
|
|
Cash flows used for
licence acquisitions
|
|
(9.9)
|
|
–
|
|
(830.0)
|
|
–
|
|
–
|
|
|
Cash flows used for
additions to intangible assets
|
$
|
(166.3)
|
$
|
(91.4)
|
$
|
(1,018.7)
|
$
|
(39.5)
|
$
|
(22.0)
|
|
|
Table 5
Free cash flows from
operating activities and cash flows provided by operating
activities reported in the consolidated financial
statements
(in millions of Canadian dollars)
|
Years ended
December 31
|
|
Three months
ended
December 31
|
|
|
2023
|
|
2022
|
|
2021
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted cash flows from operations from
Table 4
|
$
1,679.4
|
$
|
1,439.6
|
$
|
1,382.1
|
$
|
395.7
|
$
|
359.4
|
|
Plus (minus)
|
|
|
|
|
|
|
|
|
|
|
Cash portion of
financial expenses
|
(400.0)
|
|
(315.7)
|
|
(325.5)
|
|
(104.8)
|
|
(77.5)
|
|
Cash portion of
restructuring, acquisition costs and other
|
(46.0)
|
|
(10.3)
|
|
(22.0)
|
|
(24.3)
|
|
(4.4)
|
|
Current income
taxes
|
(221.2)
|
|
(276.7)
|
|
(256.9)
|
|
(40.4)
|
|
(60.1)
|
|
Other
|
2.4
|
|
1.0
|
|
8.6
|
|
(1.6)
|
|
(4.8)
|
|
Net change in
non‑cash balances related to operating
activities
|
(109.1)
|
|
(63.1)
|
|
(187.1)
|
|
(57.7)
|
|
(10.2)
|
|
Net variance in
current operating items related to additions
to property, plant and equipment (excluding
government
credits receivable for major capital
projects)
|
1.2
|
|
7.4
|
|
(15.2)
|
|
3.4
|
|
21.7
|
|
Net variance in
current operating items related to additions
to intangible assets (excluding government
credits
receivable for major capital
projects)
|
3.8
|
|
1.0
|
|
(11.7)
|
|
14.1
|
|
(0.5)
|
|
Free cash flows from operating
activities
|
910.5
|
|
783.2
|
|
572.3
|
|
184.4
|
|
223.6
|
|
Plus (minus)
|
|
|
|
|
|
|
|
|
|
|
Cash flows used for
additions to property, plant and
equipment
|
397.0
|
|
395.1
|
|
429.3
|
|
112.7
|
|
80.4
|
|
Cash flows used for
additions to intangible assets
(excluding expenditures related to licence
acquisitions
and renewals)
|
156.4
|
|
91.4
|
|
188.7
|
|
39.5
|
|
22.0
|
|
Proceeds from
disposal of assets
|
(1.7)
|
|
(7.0)
|
|
(7.7)
|
|
(0.9)
|
|
(0.5)
|
|
Cash flows provided by operating
activities
|
$
1,462.2
|
$
|
1,262.7
|
$
|
1,182.6
|
$
|
335.7
|
$
|
325.5
|
|
Consolidated net debt leverage ratio
The consolidated net debt leverage ratio
represents consolidated net debt, excluding convertible debentures,
divided by the trailing 12‑month adjusted EBITDA. Consolidated net
debt, excluding convertible debentures, represents total long‑term
debt plus bank indebtedness, lease liabilities, the current portion
of lease liabilities and liabilities related to derivative
financial instruments, less assets related to derivative financial
instruments and cash and cash equivalents. The consolidated net
debt leverage ratio serves to evaluate the Corporation's financial
leverage and is used by management and the Board of Directors in
its decisions on the Corporation's capital structure, including its
financing strategy, and in managing debt maturity risks. The
consolidated net debt leverage ratio excludes convertible
debentures because, subject to certain conditions, those debentures
can be repurchased at the Corporation's discretion by issuing
Quebecor Class B Shares. Consolidated net debt leverage ratio
is not a measure established in accordance with IFRS. It is not
intended to be used as an alternative to IFRS measures or the
balance sheet to evaluate the Corporation's financial position. The
Corporation's definition of consolidated net debt leverage ratio
may not be identical to similarly titled measures reported by other
companies.
Table 6 provides the calculation of
consolidated net debt leverage ratio and the reconciliation to
balance sheet items reported in Quebecor's consolidated financial
statements.
Table 6
Consolidated net debt
leverage ratio
(in millions of Canadian dollars)
|
Dec. 31,
2023
|
|
Dec. 31,
2022
|
|
Dec. 31,
2021
|
|
|
|
|
|
|
Total long‑term
debt1
|
$
7,668.2
|
|
$
6,517.7
|
|
$
6,554.0
|
Plus (minus)
|
|
|
|
|
|
Lease
liabilities2
|
376.2
|
|
186.2
|
|
183.2
|
Bank
indebtedness
|
9.6
|
|
10.1
|
|
−
|
Derivative financial
instruments3
|
(110.8)
|
|
(520.3)
|
|
(382.3)
|
Cash and cash
equivalents
|
(11.1)
|
|
(6.6)
|
|
(64.7)
|
Consolidated net debt
excluding convertible debentures
|
7,932.1
|
|
6,187.1
|
|
6,290.2
|
Divided
by:
|
|
|
|
|
|
Trailing 12‑month
adjusted EBITDA4
|
$
2,337.1
|
|
$
1,934.5
|
|
$
1,973.2
|
Consolidated net debt leverage
ratio4
|
3.39x
|
|
3.20x
|
|
3.19x
|
|
|
|
|
|
|
1 Excluding
changes in the fair value of long‑term debt related to hedged
interest rate risk and financing costs.
|
2 Current
and long‑term liabilities
|
3 Current
and long‑term assets less long‑term liabilities.
|
4 On a pro
forma basis as at December 31, 2023, using Freedom's trailing
12‑month adjusted EBITDA.
|
Key performance indicator
Revenue‑generating unit
The Corporation uses RGU, an industry metric, as
a key performance indicator. An RGU represents, as the case may be,
subscriber connections to the mobile and wireline telephony
services and subscriptions to the Internet access and television
services. RGU is not a measurement that is consistent with IFRS and
the Corporation's definition and calculation of RGU may not be the
same as identically titled measurements reported by other companies
or published by public authorities.
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars, except for earnings per share
data)
|
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
|
December
31
|
|
December
31
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,504.8
|
$
|
1,185.0
|
|
$
|
5,434.3
|
$
|
4,531.9
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
198.2
|
|
181.6
|
|
|
755.5
|
|
696.9
|
Purchase of goods and
services
|
|
|
741.2
|
|
520.4
|
|
|
2,441.0
|
|
1,900.5
|
Depreciation and
amortization
|
|
|
231.1
|
|
189.9
|
|
|
909.0
|
|
767.7
|
Financial
expenses
|
|
|
107.0
|
|
79.4
|
|
|
408.4
|
|
323.0
|
Loss on valuation and
translation of financial instruments
|
|
|
8.7
|
|
16.5
|
|
|
5.0
|
|
19.2
|
Restructuring,
acquisition costs and other
|
|
|
23.5
|
|
5.2
|
|
|
52.4
|
|
14.5
|
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
|
|
195.1
|
|
192.0
|
|
|
863.0
|
|
810.1
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
(recovery):
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
40.4
|
|
60.1
|
|
|
221.2
|
|
276.7
|
Deferred
|
|
|
13.5
|
|
(10.6)
|
|
|
6.7
|
|
(63.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
53.9
|
|
49.5
|
|
|
227.9
|
|
213.4
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
141.2
|
$
|
142.5
|
|
$
|
635.1
|
$
|
596.7
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
146.2
|
$
|
142.5
|
|
$
|
650.5
|
$
|
599.7
|
Non-controlling
interests
|
|
|
(5.0)
|
|
-
|
|
|
(15.4)
|
|
(3.0)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.63
|
$
|
0.62
|
|
$
|
2.82
|
$
|
2.55
|
Diluted
|
|
|
0.63
|
|
0.62
|
|
|
2.80
|
|
2.55
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding (in millions)
|
|
|
230.7
|
|
231.4
|
|
|
230.9
|
|
235.2
|
Weighted average
number of diluted shares (in millions)
|
|
|
230.9
|
|
231.5
|
|
|
236.2
|
|
235.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
|
December
31
|
|
December
31
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
$
|
141.2
|
$
|
142.5
|
|
$
|
635.1
|
$
|
596.7
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
(loss) income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Cash flow
hedges:
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
valuation of derivative financial instruments
|
|
|
(42.4)
|
|
(0.1)
|
|
|
5.4
|
|
(67.6)
|
Deferred income
taxes
|
|
|
10.4
|
|
1.6
|
|
|
0.5
|
|
8.5
|
|
|
|
|
|
|
|
|
|
|
(Loss) gain on
translation of investments in foreign associates
|
|
(1.4)
|
|
0.9
|
|
|
(11.3)
|
|
(5.8)
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be
reclassified to income:
|
|
|
|
|
|
|
|
|
|
|
Defined benefit
plans:
|
|
|
|
|
|
|
|
|
|
|
Re-measurement gain
(loss)
|
|
|
16.9
|
|
(81.2)
|
|
|
16.9
|
|
141.3
|
Deferred income
taxes
|
|
|
(4.5)
|
|
21.8
|
|
|
(4.5)
|
|
(37.4)
|
|
|
|
|
|
|
|
|
|
|
|
Equity
investment:
|
|
|
|
|
|
|
|
|
|
Loss on revaluation of
an equity investment
|
|
|
(2.8)
|
|
(6.5)
|
|
|
(2.7)
|
|
(12.2)
|
Deferred income
taxes
|
|
|
0.3
|
|
0.9
|
|
|
0.3
|
|
1.6
|
|
|
|
(23.5)
|
|
(62.6)
|
|
|
4.6
|
|
28.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
$
|
117.7
|
$
|
79.9
|
|
$
|
639.7
|
$
|
625.1
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
(loss) attributable to
|
|
|
|
|
|
|
|
|
|
|
Shareholders
|
|
$
|
122.1
|
$
|
79.6
|
|
$
|
654.5
|
$
|
620.8
|
Non-controlling
interests
|
|
|
(4.4)
|
|
0.3
|
|
|
(14.8)
|
|
4.3
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED
INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
1,297.7
|
$
|
204.8
|
$
|
56.4
|
$
|
(54.1)
|
$
|
1,504.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
125.1
|
|
50.6
|
|
11.4
|
|
11.1
|
|
198.2
|
Purchase of goods and
services
|
|
|
613.6
|
|
140.6
|
|
42.8
|
|
(55.8)
|
|
741.2
|
Adjusted
EBITDA1
|
|
|
559.0
|
|
13.6
|
|
2.2
|
|
(9.4)
|
|
565.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
231.1
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
107.0
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
8.7
|
Restructuring,
acquisition costs and other
|
|
|
|
|
|
|
|
|
|
|
23.5
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
195.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment2
|
|
$
|
110.1
|
$
|
1.2
|
$
|
1.4
|
$
|
-
|
$
|
112.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible
assets
|
|
|
36.6
|
|
1.4
|
|
1.4
|
|
0.1
|
|
39.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
960.0
|
$
|
215.4
|
$
|
54.1
|
$
|
(44.5)
|
$
|
1,185.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
102.7
|
|
56.5
|
|
11.2
|
|
11.2
|
|
181.6
|
Purchase of goods and
services
|
|
|
381.4
|
|
144.1
|
|
40.3
|
|
(45.4)
|
|
520.4
|
Adjusted
EBITDA1
|
|
|
475.9
|
|
14.8
|
|
2.6
|
|
(10.3)
|
|
483.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
189.9
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
79.4
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
16.5
|
Restructuring,
acquisition costs and other
|
|
|
|
|
|
|
|
|
|
|
5.2
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
192.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment2
|
|
$
|
74.4
|
$
|
5.5
|
$
|
0.4
|
$
|
0.1
|
$
|
80.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible
assets
|
|
|
17.3
|
|
3.5
|
|
0.9
|
|
0.3
|
|
22.0
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENTED
INFORMATION (continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
4,654.0
|
$
|
721.9
|
$
|
213.4
|
$
|
(155.0)
|
$
|
5,434.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
472.3
|
|
206.0
|
|
44.5
|
|
32.7
|
|
755.5
|
Purchase of goods and
services
|
|
|
1,951.4
|
|
508.2
|
|
145.9
|
|
(164.5)
|
|
2,441.0
|
Adjusted
EBITDA1
|
|
|
2,230.3
|
|
7.7
|
|
23.0
|
|
(23.2)
|
|
2,237.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
909.0
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
408.4
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
5.0
|
Restructuring,
acquisition costs and other
|
|
|
|
|
|
|
|
|
|
|
52.4
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
863.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment2
|
|
$
|
389.3
|
$
|
5.6
|
$
|
2.0
|
$
|
0.1
|
$
|
397.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible
assets
|
|
|
156.6
|
|
3.8
|
|
5.3
|
|
0.6
|
|
166.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months ended
December 31, 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sports
|
|
Head
|
|
|
|
|
|
|
|
|
|
|
and
|
|
office
|
|
|
|
|
|
|
Telecommuni-
|
|
|
|
Enter-
|
|
and
Inter-
|
|
|
|
|
|
|
cations
|
|
Media
|
|
tainment
|
|
segments
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
$
|
3,718.2
|
$
|
755.4
|
$
|
190.6
|
$
|
(132.3)
|
$
|
4,531.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
costs
|
|
|
397.7
|
|
228.5
|
|
42.0
|
|
28.7
|
|
696.9
|
Purchase of goods and
services
|
|
|
1,407.6
|
|
501.9
|
|
129.2
|
|
(138.2)
|
|
1,900.5
|
Adjusted
EBITDA1
|
|
|
1,912.9
|
|
25.0
|
|
19.4
|
|
(22.8)
|
|
1,934.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
|
|
|
|
|
|
|
767.7
|
Financial
expenses
|
|
|
|
|
|
|
|
|
|
|
323.0
|
Loss on valuation and
translation of financial instruments
|
|
|
|
|
|
|
|
|
|
19.2
|
Restructuring,
acquisition costs and other
|
|
|
|
|
|
|
|
|
|
|
14.5
|
Income before income
taxes
|
|
|
|
|
|
|
|
|
|
$
|
810.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows used
for
|
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment2
|
|
$
|
369.7
|
$
|
23.5
|
$
|
1.0
|
$
|
0.9
|
$
|
395.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additions to intangible
assets
|
|
|
75.1
|
|
12.2
|
|
2.9
|
|
1.2
|
|
91.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The Chief Executive
Officer uses adjusted EBITDA as the measure of profit to assess the
performance of each segment. Adjusted EBITDA is a non-IFRS
measure and is defined as net income before depreciation and
amortization, financial expenses, loss on valuation and translation
of financial instruments,
restructuring, acquisition costs and other and income
taxes.
|
|
|
2
|
Subsidies of $39.3
million in the twelve-month period ended December 31, 2023 ($18.9
million and $123.1 million in the respective three-month and
twelve-
month periods ended December 31, 2022) related to the roll-out of
high-speed internet services in various regions of Quebec are
presented as a reduction of
the corresponding additions to property, plant and equipment in the
Telecommunications segment.
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity attributable
to shareholders
|
|
Equity
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
attributable
|
|
|
|
|
|
|
|
|
|
|
other
com-
|
|
to
non-
|
|
|
|
|
Capital
|
|
Contributed
|
|
Retained
|
|
prehensive
|
|
controlling
|
|
Total
|
|
|
stock
|
surplus
|
|
earnings
|
|
(loss)
income
|
|
interests
|
|
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of
December 31, 2021
|
$
|
965.2
|
$
|
17.4
|
$
|
292.3
|
$
|
(19.3)
|
$
|
123.2
|
$
|
1,378.8
|
Net income
(loss)
|
|
-
|
|
-
|
|
599.7
|
|
-
|
|
(3.0)
|
|
596.7
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
21.1
|
|
7.3
|
|
28.4
|
Dividends
|
|
-
|
|
-
|
|
(282.1)
|
|
-
|
|
(1.3)
|
|
(283.4)
|
Repurchase of Class B
Shares
|
|
(49.0)
|
|
-
|
|
(188.0)
|
|
-
|
|
-
|
|
(237.0)
|
Balance as of
December 31, 2022
|
|
916.2
|
|
17.4
|
|
421.9
|
|
1.8
|
|
126.2
|
|
1,483.5
|
Net income
(loss)
|
|
-
|
|
-
|
|
650.5
|
|
-
|
|
(15.4)
|
|
635.1
|
Other comprehensive
income
|
|
-
|
|
-
|
|
-
|
|
4.0
|
|
0.6
|
|
4.6
|
Dividends
|
|
-
|
|
-
|
|
(277.1)
|
|
-
|
|
(0.2)
|
|
(277.3)
|
Repurchase of Class B
Shares
|
|
(1.6)
|
|
-
|
|
(6.2)
|
|
-
|
|
-
|
|
(7.8)
|
Business
disposal
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(0.4)
|
|
(0.4)
|
Balance as of
December 31, 2023
|
$
|
914.6
|
$
|
17.4
|
$
|
789.1
|
$
|
5.8
|
$
|
110.8
|
$
|
1,837.7
|
QUEBECOR
INC.
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
Three months
ended
|
|
Twelve months
ended
|
(unaudited)
|
|
December
31
|
|
December
31
|
|
|
|
2023
|
|
2022
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows related
to operating activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
141.2
|
$
|
142.5
|
|
$
|
635.1
|
$
|
596.7
|
Adjustments
for:
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property, plant and equipment
|
|
|
141.2
|
|
134.2
|
|
|
582.2
|
|
548.5
|
Amortization of
intangible assets
|
|
|
60.5
|
|
44.9
|
|
|
226.7
|
|
176.5
|
Depreciation of
right-of-use assets
|
|
|
29.4
|
|
10.8
|
|
|
100.1
|
|
42.7
|
Loss on valuation and
translation of financial instruments
|
|
|
8.7
|
|
16.5
|
|
|
5.0
|
|
19.2
|
(Gain) loss on disposal
of other assets
|
|
|
(0.4)
|
|
(0.1)
|
|
|
(2.9)
|
|
0.5
|
Impairment of
assets
|
|
|
0.5
|
|
0.9
|
|
|
8.5
|
|
3.7
|
Amortization of
financing costs
|
|
|
2.2
|
|
1.9
|
|
|
8.4
|
|
7.3
|
Deferred income
taxes
|
|
|
13.5
|
|
(10.6)
|
|
|
6.7
|
|
(63.3)
|
Other
|
|
|
(3.4)
|
|
(5.3)
|
|
|
1.5
|
|
(6.0)
|
|
|
|
393.4
|
|
335.7
|
|
|
1,571.3
|
|
1,325.8
|
Net change in non-cash
balances related to operating activities
|
|
|
(57.7)
|
|
(10.2)
|
|
|
(109.1)
|
|
(63.1)
|
Cash flows provided by
operating activities
|
|
|
335.7
|
|
325.5
|
|
|
1,462.2
|
|
1,262.7
|
Cash flows related
to investing activities
|
|
|
|
|
|
|
|
|
|
|
Additions to property,
plant and equipment
|
|
|
(112.7)
|
|
(80.4)
|
|
|
(397.0)
|
|
(395.1)
|
Deferred subsidies used
to finance additions to property,
|
|
|
|
|
|
|
|
|
|
|
plant and equipment
|
|
|
-
|
|
(18.9)
|
|
|
(39.3)
|
|
(123.1)
|
|
|
|
(112.7)
|
|
(99.3)
|
|
|
(436.3)
|
|
(518.2)
|
Additions to intangible
assets
|
|
|
(39.5)
|
|
(22.0)
|
|
|
(166.3)
|
|
(91.4)
|
Business
acquisitions
|
|
|
-
|
|
-
|
|
|
(2,069.6)
|
|
(22.1)
|
Proceeds from disposals
of assets
|
|
|
0.9
|
|
0.5
|
|
|
1.7
|
|
7.0
|
Acquisitions of
investments and other
|
|
|
(0.3)
|
|
0.2
|
|
|
(7.0)
|
|
(6.6)
|
Cash flows used in
investing activities
|
|
|
(151.6)
|
|
(120.6)
|
|
|
(2,677.5)
|
|
(631.3)
|
Cash flows related
to financing activities
|
|
|
|
|
|
|
|
|
|
|
Net change in bank
indebtedness
|
|
|
(13.0)
|
|
(4.3)
|
|
|
(0.5)
|
|
10.1
|
Net change under
revolving facilities, net of financing costs
|
|
|
(84.0)
|
|
(92.5)
|
|
|
299.0
|
|
(213.3)
|
Issuance of long-term
debt, net of financing costs
|
|
|
-
|
|
-
|
|
|
2,092.5
|
|
-
|
Repayment of long-term
debt
|
|
|
-
|
|
(43.5)
|
|
|
(1,138.1)
|
|
(44.6)
|
Repayment of lease
liabilities
|
|
|
(31.1)
|
|
(11.0)
|
|
|
(94.5)
|
|
(42.8)
|
Settlement of hedging
contracts
|
|
|
-
|
|
(0.8)
|
|
|
307.2
|
|
(1.6)
|
Repurchase of Class B
Shares
|
|
|
(0.7)
|
|
(33.2)
|
|
|
(7.8)
|
|
(237.0)
|
Dividends
|
|
|
(69.3)
|
|
(69.4)
|
|
|
(277.1)
|
|
(282.1)
|
Dividends paid to
non-controlling interests
|
|
|
-
|
|
-
|
|
|
(0.2)
|
|
(1.3)
|
Cash flows (used in)
provided by financing activities
|
|
|
(198.1)
|
|
(254.7)
|
|
|
1,180.5
|
|
(812.6)
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash,
cash equivalents and restricted cash
|
|
|
(14.0)
|
|
(49.8)
|
|
|
(34.8)
|
|
(181.2)
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash at beginning of period
|
|
|
25.1
|
|
95.7
|
|
|
45.9
|
|
227.1
|
Cash, cash
equivalents and restricted cash at end of period
|
|
$
|
11.1
|
$
|
45.9
|
|
$
|
11.1
|
$
|
45.9
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash consist of
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
10.8
|
$
|
6.2
|
|
$
|
10.8
|
$
|
6.2
|
Cash
equivalents
|
|
|
0.3
|
|
0.4
|
|
|
0.3
|
|
0.4
|
Restricted
cash
|
|
|
-
|
|
39.3
|
|
|
-
|
|
39.3
|
|
|
$
|
11.1
|
$
|
45.9
|
|
$
|
11.1
|
$
|
45.9
|
|
|
|
|
|
|
|
|
|
|
|
Interest and taxes
reflected as operating activities
|
|
|
|
|
|
|
|
|
|
|
Cash interest
payments
|
|
$
|
144.2
|
$
|
130.5
|
|
$
|
389.9
|
$
|
311.3
|
Cash income tax
payments (net of refunds)
|
|
|
37.3
|
|
59.5
|
|
|
285.4
|
|
282.4
|
QUEBECOR
INC.
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Canadian dollars)
|
|
|
|
|
|
|
|
(unaudited)
|
|
|
|
December
31
|
|
|
December 31
|
|
|
|
|
2023
|
|
|
2022
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
|
11.1
|
|
$
|
6.6
|
Restricted
cash
|
|
|
|
-
|
|
|
39.3
|
Accounts
receivable
|
|
|
|
1,175.1
|
|
|
840.7
|
Contract
assets
|
|
|
|
125.4
|
|
|
50.2
|
Income
taxes
|
|
|
|
49.0
|
|
|
10.8
|
Inventories
|
|
|
|
512.1
|
|
|
406.2
|
Derivative financial
instruments
|
|
|
|
129.3
|
|
|
320.8
|
Other current
assets
|
|
|
|
192.3
|
|
|
135.5
|
|
|
|
|
2,194.3
|
|
|
1,810.1
|
|
|
|
|
|
|
|
|
Non-current
assets
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
|
3,417.9
|
|
|
2,897.6
|
Intangible
assets
|
|
|
|
3,385.1
|
|
|
2,275.0
|
Right-of-use
assets
|
|
|
|
340.8
|
|
|
155.4
|
Goodwill
|
|
|
|
2,721.2
|
|
|
2,726.0
|
Derivative financial
instruments
|
|
|
|
35.8
|
|
|
199.5
|
Deferred income
taxes
|
|
|
|
23.4
|
|
|
22.0
|
Other
assets
|
|
|
|
622.8
|
|
|
539.7
|
|
|
|
|
10,547.0
|
|
|
8,815.2
|
Total
assets
|
|
|
$
|
12,741.3
|
|
$
|
10,625.3
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Bank
indebtedness
|
|
|
$
|
9.6
|
|
$
|
10.1
|
Accounts payable,
accrued charges and provisions
|
|
|
|
1,185.9
|
|
|
950.3
|
Deferred
revenue
|
|
|
|
370.6
|
|
|
305.8
|
Deferred
subsidies
|
|
|
|
-
|
|
|
39.3
|
Income
taxes
|
|
|
|
24.7
|
|
|
31.2
|
Convertible
debentures
|
|
|
|
150.0
|
|
|
-
|
Current portion of
long-term debt
|
|
|
|
1,480.6
|
|
|
1,161.1
|
Current portion of
lease liabilities
|
|
|
|
98.5
|
|
|
37.0
|
|
|
|
|
3,319.9
|
|
|
2,534.8
|
|
|
|
|
|
|
|
|
Non-current
liabilities
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
6,151.8
|
|
|
5,317.7
|
Convertible
debentures
|
|
|
|
-
|
|
|
150.0
|
Lease
liabilities
|
|
|
|
277.7
|
|
|
149.2
|
Derivative financial
instruments
|
|
|
|
54.3
|
|
|
-
|
Deferred income
taxes
|
|
|
|
809.7
|
|
|
780.3
|
Other
liabilities
|
|
|
|
290.2
|
|
|
209.8
|
|
|
|
|
7,583.7
|
|
|
6,607.0
|
Equity
|
|
|
|
|
|
|
|
Capital
stock
|
|
|
|
914.6
|
|
|
916.2
|
Contributed
surplus
|
|
|
|
17.4
|
|
|
17.4
|
Retained
earnings
|
|
|
|
789.1
|
|
|
421.9
|
Accumulated other
comprehensive income
|
|
|
|
5.8
|
|
|
1.8
|
Equity attributable
to shareholders
|
|
|
|
1,726.9
|
|
|
1,357.3
|
Non-controlling
interests
|
|
|
|
110.8
|
|
|
126.2
|
|
|
|
|
1,837.7
|
|
|
1,483.5
|
|
|
|
|
|
|
|
|
Total liabilities
and equity
|
|
|
$
|
12,741.3
|
|
$
|
10,625.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Quebecor