Quebecor reported higher profit and revenue in the third quarter as strong growth in mobile and internet subscriptions helped offset weakness in its media operations. The telecom and entertainment group said subscriber additions drove results across its wireless and internet divisions, marking continued benefits from its Freedom Mobile acquisition.
BNN Bloomberg spoke with Hugues Simard, chief financial officer of Québecor, about the company’s earnings, subscriber momentum and outlook for growth in Canada’s competitive telecom market.
Key Takeaways
- Quebecor’s third-quarter profit rose to $236.1 million, driven by mobile and internet subscriber growth.
- The company’s churn rate at Freedom Mobile is now among the lowest in Canada after major network upgrades.
- Average revenue per user increased for a second straight quarter as the pricing environment stabilized.
- Free cash flow topped $1 billion in 2024 and is expected to rise further this year despite higher investment.
- Quebecor’s media division remains under pressure from weak advertising, though cost controls improved EBITDA.
Read the full transcript below:
ROGER: Quebecor logged higher profit and revenue in the third quarter, driven by an increase in subscribers to its internet and mobile services. Here to talk more about this is Hugues Simard, chief financial officer of Québecor. Hugues, thank you very much for joining us.
HUGUES: My pleasure, Roger. Nice to be here.
ROGER: What drove the success?
HUGUES: We’ve been focused on growing outside our home base for the past two and a half years since we bought Freedom Mobile. It’s been a very competitive market, and it continues to be. But thanks to improvements in our network’s reliability and quality, as well as in customer experience, we’re now resonating with segments we couldn’t reach before. Our pricing has also improved. So we’re very happy with our momentum, with this profitable growth that we’re seeing. We’re encouraged by what we expect in the near future and the medium term from a wireless standpoint.
ROGER: And are you happy with where your churn and your gross loading are right now? You’ve managed to knock that down.
HUGUES: Yes, absolutely. When we took over Freedom two and a half years ago, it had the highest churn rate in the Canadian industry. It’s now the lowest, on par with the best in class. That’s because we improved the network, the client experience and our marketing agility. People are liking our products and services, and we’re keeping them longer. So both in growth and net loading, we’ve improved performance quarter after quarter, and we’re very proud of that.
ROGER: And your ARPU, the average revenue per user, those declines have been improving. What’s making the difference there?
HUGUES: Yes, absolutely. The pricing environment has become more rational and disciplined. We were transparent from the start — we disrupted the market when we bought Freedom Mobile because wireless pricing outside Quebec was much higher than in Quebec, the U.S. and other industrialized countries. We saw an opportunity to shake up the market, but we always said we were after profitable growth, done in a disciplined way. We’ve delivered on that. Our ARPU has now improved for the second consecutive quarter, increasing sequentially, quarter after quarter — something our competitors haven’t achieved. So we’re in good shape to continue improving both revenue and margin. Thanks to our disciplined cost control, EBITDA continues to grow even in a highly competitive market.
ROGER: And what about free cash flow? Do you see that growing?
HUGUES: Absolutely. We delivered more than a billion dollars in free cash flow last year, and this year will be higher, even as we increase our investments to improve and expand the network. We’re continuing to improve cash flow.
ROGER: Of the three business groups — telecom, sports and entertainment, and media — the first two were up, but media dropped. Is that just a tough one to fight?
HUGUES: Media has been part of Quebecor for many years — it’s how we started. Broadcasting has become our biggest media segment, and as you know, private broadcasting in Canada and around the world is under severe pressure with declining ad revenues. This quarter is one of the first where we made significant progress through restructuring and cost containment, improving EBITDA. But the general state of broadcasting in Canada and elsewhere remains under strain.
ROGER: And just a bigger picture question. In the budget, there was talk of opening up competition. What are your thoughts on that?
HUGUES: We’re all for competition. That’s why we launched wireless 15 years ago in Quebec and why we doubled down with the Freedom Mobile acquisition two and a half years ago. We believe we can successfully grow against the big three in Canada. We support any initiatives, governmental or otherwise, that increase competition. We’re confident in our ability to win.
ROGER: Hugues, thank you very much for joining us today. We appreciate it.
HUGUES: My pleasure, Roger.
ROGER: Hugues Simard, chief financial officer of Québecor.
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This BNN Bloomberg summary and transcript of the Nov. 6, 2025 interview with Hugues Simard are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
