Quebecor’s Videotron division posts Q4 net profit of $161.9M, up 68.8%

MONTREAL – Quebecor Inc. says profits in its Videotron division rose by 69 per cent in its fourth quarter as it booked higher revenues driven partly by growth in its wireless division.

The provider of cable TV, Internet and wireless company posted earnings of $161.9 million on Tuesday, down from $96 million a year earlier.

Revenues were up more than seven per cent to $634.8 million, the multimedia company said.

Videotron added 17,300 cable TV subscribers in the quarter compared with 9,600 in the same quarter of 2010.

In its wireless services, the company added 32,500 mobile phone customers, 12.6 per cent increase from the same quarter in 2010.

Desjardins Financial analyst Maher Yaghi said the subscriber additions missed his expectations for the period. He was anticipating a much higher 52,000 adds.

“Overall, we see the results as neutral given that better financial performance was offset by wireless results that missed our expectations,” Yaghi said in a research note.

“Videotron’s wireless results were below expectations in every regard.”

He noted that Videotron provides the vast majority of profitability for Quebecor.

Internet subscriber additions were 26,100 Internet subscribers, a two per cent increase from the same quarter in 2010. Videotron added 25,900 telephone subscribers in the quarter, a 2.2 per cent increase year-over-year.

Quebecor (TSX:QBR.B) said its 2011 financial results will be released on March 15 because results for its other divisions aren’t yet complete.