PKP needs more freedom

PKP a besoin de plus de liberté

Photo: Graham Hughes The canadian Press
Pierre Karl Péladeau

The president and ceo of Quebecor, Pierre Karl Péladeau, will continue to put pressure on the authorities to denounce the laxity of tax benefit of certain foreign players such as Netflix and Spotify, and the constraints to which are submitted the canadian companies.

“The environment has changed drastically over the last ten years, and the CRTC has not realized appropriately. The foreign media — and the players of the Internet — we cut the grass under foot, and the regulator let the situation continue, ” said Thursday, Mr. Péladeau during a conference call to discuss results for the second quarter of Quebecor. “We need more freedom for the content that we want to offer our customers, and we will continue to assert our views with the CRTC,” he added.

Mr. Péladeau had already complained in the past of ” abuse regulations “, citing as an example the decision of the Board of the canadian broadcasting and telecommunications requiring Videotron to alter their service Music unlimited, which allowed its customers to listen to streaming music without charge for the data downloaded.

In unveiling its results on Thursday morning, Quebecor reported a net profit decreased, despite an increase in revenues. The company said that in the second quarter of the current financial year, its net income was $ 41.3 million, or 18 ¢ per share, a sharp decline compared to 137.8 million, or 57 ¢ per share, for the same period of 2017. The giant quebec telecommunications has allocated a large part of this decline in the gain on the sale of a spectrum licence recorded in the second quarter of 2017. Excluding non-recurring items, the adjusted earnings related to continuing operating activities was $ 106.2 million, or 45 ¢ per share, up from $ 88.6 million, or 37 ¢ per share, in the same period last year. The revenues of Quebecor reached 1.04 billion, up 0.5 % compared to a year ago.

Investors seemed to welcome the results and the action of the Quebecor has climbed Thursday $ 1.38, or 5,11 %, to close at 28,40 $ on the Toronto stock Exchange.

In the media sector, Quebecor reiterated that the TVA Network had suffered a decline in its financial performance due to lower advertising revenues. In addition, the absence of the hockey club Montreal canadiens playoffs of the national hockey League has led to a decline in revenue of the specialty channel TVA Sports. Revenue in the media sector are passed to the 199.5 million to 186,5 million.

Like previous quarters, the telecommunications sector of Quebecor has been successful. It has posted a growth of 2.5 per cent of its revenues. The company has reported a growth of 12.9 % of revenues for Videotron mobile phone, 5.8% for Internet access and 18.4% for video-on-demand by subscription to Club illico.

The analyst Maher Yaghi, of Desjardins securities, said that the results were in line with expectations, and noted that the strong performance in the telecommunications had been undermined by the weakness of the side of the media.

Quebecor has completed in the second quarter the redemption of all of the shares of Quebecor Media held by Caisse de dépôt et placement du Québec (CDPQ), in the framework of a process started in 2012. In exchange for his 17.6 million shares, the CDPQ has received 1,54 billion in cash and $ 150 million in convertible debentures that will become class B shares of Quebecor.

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