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TVA Group Incorporated
News and Blogs
Total : 11 View more »
Quebecor invests big in mobile gambit
www.hollywoodreporter.com | Oct 22, 2008
Quebec TV giant Quebecor Media will spend CAN$800 million ($665.5 million) to get into the provincial mobile phone market by the end of 2009.
http://www.hollywoodreporter.com/hr/content_display/world/news/e3i89d2099dbe2c2712c9ac1a545b1b6109
TVA Group swings to Q4 profit of $15.6M from year-ago loss of $13M
www.topix.net | Feb 25, 2008
- Quebecor Media's TVA Group Inc. (TSX:TVA.B) has swung to a fourth-quarter profit of $15.6 million from a loss of $13 million a year earlier, when there was a large writedown of TV assets.
MicroStrategy Announces Record Revenues of $351 Million in 2007
www.prnewswire.com
Fourth quarter 2007 revenue was $97.6 million versus $92.6 million for the fourth quarter of 2006, a 5% increase. This marked the twentieth consecutive quarter of year-over-year revenue growth. Revenue for the full year 2007 was $350.7 million versus $313.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/02-01-2008/0004748008&EDATE=
TVA Group, Sun Media scoop up Toronto 1
www.variety.com | Aug 23, 2004
TVA Group and Sun Media Corp., subsids of media giant Quebecor Media, are the surprise buyers of struggling TV channel Toronto 1, for C$46 million ($35 million.).Home Ent News, news from the entertainment source: Variety.TVA Group, Sun Media scoop up Toronto 1.
http://www.variety.com/article/VR1117909480.html?categoryid=20&cs=1
Web Sites
Total : 8 View more »
Quebecor inc.
Since September 2001, TVA Group has been part of the Quebecor family of companies. The force and reach of the largest French-language television network in North America now supports our growth.
http://www.quebecor.com/LeisureEnternainment/Broadcasting.aspx?Culture=en
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Quebecor Inc.
Montréal, September 1, 2006 - Mr. Pierre Dion, President and Chief Executive Officer of Groupe TVA, announces the appointment of Mr. Denis Rozon to the position of Vice President and Chief Financial Officer of the Company. Before joining TVA, Mr.
http://www.quebecor.com/NewsCenter/PressReleasesDetails.aspx?Culture=en&PostingName=01092006
Quebecor Inc.
Montréal, February 21, 2005 - Quebecor Media Inc. is pleased to announce that its TVA Group subsidiary is launching ARGENT, a new French-language business channel entirely devoted to the economy, business, finance and market news.
http://www.quebecor.com/NewsCenter/PressReleasesDetails.aspx?Culture=en&PostingName=21022005
News from Zibb.com
Total : 12 View more »
Regulatory Framework for Canadian Broadcasting: Quebecor Media Will Use New Opportunities for
MONTREAL, QUEBEC, Oct 31, 2008 (Marketwire via COMTEX) --
Quebecor Media is pleased that the decision yesterday by the CRTC seems to point Canadian broadcasting policy toward less regulation and greater competition in the area of telecommunications to the benefit of Canadians.
While it did not accept Quebecor Media's suggestion to better finance general television through royalties, the Commission acted on many other proposals submitted by the Company. These included the deregulation of the types of speciality networks and possibilities to launch new ones, providing greater choice for viewers as well as more opportunities for the television production community in Quebec.
The TVA Group will further explore opportunities to launch new networks and could submit applications to the CRTC for new licences in the coming months. Analysis of yesterday's announcement suggests that the future of general networks will depend on the existence and support within the same organization of speciality networks that have multiple sources of financing.
Quebecor Media is also pleased to see the Commission open to deployment and improvement of new technologies, including video on demand that will give consumers greater freedom in the choices offered by the Canadian broadcasting system.
The Quebec Company regrets, however, the slowness with which the Commission will achieve its objectives since most of the deregulation of the distribution industry will not take effect until 2011. The streamlining of rules about the creation of channel packages, for example, is one change that consumers would have certainly liked to benefit from now.
Quebecor Media questions the paradox of a greater regulatory burden by the CRTC with the imposition of additional financial charges to increase to 6% from 5% the payments by distribution companies to a local programming fund that will not meet the expectations of Canadian viewers.
Quebecor Inc. (TSX:QBR.A)(TSX:QBR.B) is a communications company with operations in North America, Europe, Latin America and Asia. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., the largest cable operator in Quebec is a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, Canada's largest national chain of daily and community newspapers; TVA Group Inc., operator of the largest French-language broadcast television network in Quebec, a number of specialty channels, and the English-language broadcast station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; companies engaged in book publishing and magazine publishing; and companies engaged in the production, distribution and retailing of cultural products, including Archambault Group Inc., the largest chain of music stores in eastern Canada, TVA Films, and Le SuperClub Videotron Ltd., a chain of video and video game rental and retail stores.
SOURCE: Quebecor Media Inc.
Quebecor Media Inc. Isabelle Dessureault 514-380-7501 isabelle.dessureault@videotron.com
Tags: asia book broadcasting business canada communications community europe finance internet local magazine media music north america policy programming publishing quebec retail technology telecommunications television tv video
Companies: Quebecor, Inc. (QBCAF)
TVA Group Records a Decrease of 8.2% of its Operating Income for the Quarter Ended September 30,
MONTREAL, CANADA, Oct 31, 2008 (Marketwire via COMTEX) --
TVA Group Inc. (TSX:TVA.B) announces that the Company reported consolidated operating income of $10.8 million for the third quarter 2008, compared with consolidated operating income of $11.8 million for the same quarter of 2007.
Highlights of the third quarter:
- Increase of 14.5% in the Television sector's operating income over the same quarter of 2007 which had benefited of a positive impact of an accrual of $3,238,000 related to disputed regulatory fees;
- Decrease of 17.7% in the Publishing sector's operating income against the corresponding quarter last year, down from $2,969,000 in 2007 to $2,444,000 in 2008;
- The Distribution sector sustained an operating loss of $517,000 for the quarter, compared with operating income of $1,247,000 for the same quarter of 2007;
- Reduction in future tax liabilities of $6,977,000 in light of the evolution in tax auditing, jurisprudence and tax legislation.
As a result, the Company reported net income of $11.9 million, or $0.49 per share, compared with net income of $5.3 million, or $0.20 per share for the corresponding quarter of 2007.
Since the beginning of the fiscal year, the Company has generated net income of $30.4 million, or $1.18 per share, compared with $22.8 million, or $0.84 per share, for the corresponding period of 2007.
"Given the slowdown in the advertising market in Canada, we are satisfied with our results, in spite of the 8.2% decrease in operating income related, in part, to the adjustments over the last two years for disputed regulatory fees. In television, our specialty channels have seen an increase of 20.9% in their operating revenues, and the TVA Network continues to enjoy solid ratings at the beginning of the fall season with a 29 market shares, and 25 of its shows among the 30 most watched", said Pierre Dion, President and Chief Executive Officer of the TVA Group.
"The slowdown in the advertising market was felt more in the Publishing sector with a 9.8% lag in operating revenues compared to the same quarter of 2007. In spite of economic conditions, tight management of our operating expenses provided the sector profit margins of 12.7% for the quarter. Finally, in the Distribution sector, the drop in operating income is explained mainly by advertising investments made over the quarter for films that will be released during the fourth quarter of 2008, combined with decrease in operating revenues for the sector," said Mr. Dion.
Cash flows from operating activities were $11.9 million for the third quarter, against $7.5 million for the corresponding year-ago period. This increase is essentially due to the change in non-cash working capital items, mainly accounts receivable.
TVA Group's Board of Directors today declared a dividend of $0.05 per share, payable on December 2, 2008 to Class A and B shareholders of record as at November 17, 2008. This dividend is designated to be an eligible dividend, as provided under subsection 89(14) of the Income Tax Act and its provincial counterpart.
TVA Group Inc., a subsidiary of Quebecor Media Inc., is an integrated communications company involved in television, the production and distribution of audiovisual products, and in magazine publishing. TVA Group is one of the largest private sector producers and the largest private sector broadcaster of French-language entertainment, information and public affairs programming, and magazine publishing in North America. TVA Group also operates SUN TV, a conventional station in Toronto. The Company's Class B shares are listed on the Toronto Stock Exchange under the ticker symbol TVA.B.
The unaudited consolidated financial statements with notes and Management's Discussion and Analysis can be consulted on TVA's Web site at: www.tva.canoe.ca.
Definition of operating income
In its analysis of operating results, the Company defines operating income or operating loss as earnings (loss) before amortization, financial expenses, restructuring costs of operations, impairment of intangible assets, gain on acquisition and disposal of business, (recovery) income taxes, non-controlling interest and equity in income of companies subject to significant influence. Operating income or operating loss, as defined above, is not a measure of results that is consistent with Canadian Generally Accepted Accounting Principles ("GAAP"). Neither is it intended to be regarded as an alternative to other financial performance measures or to the statement of cash flows as a measure of liquidity. This measure is not intended to represent funds available for debt service, dividend payment, reinvestment or other discretionary uses, and should not be considered in isolation or as a substitute for other performance measures prepared in accordance with Canadian GAAP. Operating income is used by the Company because management believes it is a meaningful measurement of performance.
This measure is commonly used by senior management and the Board of Directors to evaluate the consolidated results of the Company and its sector's results. Measurements such as operating income are also commonly used by the investment community to analyze and compare the performance of companies in the industries in which we are engaged. The Company's definition of operating income may not be identical to similarly titled measures reported by other companies.
Forward-looking Information Disclaimer
The statements in this news release that are not historical facts may be forward-looking statements and are subject to important known and unknown risks, uncertainties and assumptions which could cause the Company's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements generally can be identified by the use of the conditional, the use of forward-looking terminology such as "propose," "will," "expect," "may," "anticipate," "intend," "estimate," "plan," "foresee," "believe" or the negative of these terms or variations of them or similar terminology. Certain factors that may cause actual results to differ from current expectations include seasonality, operational risks (including pricing actions by competitors), capital investment risks, environmental risks, credit risk, government regulation risks, governmental assistance risks and general changes in the economic environment. 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 the Company's actual results to differ from current expectations, please refer to the Company's public filings available at www.sedar.com and www.tva.canoe.ca including, in particular, the "Risks and Uncertainties" section of the Company's Management's Discussion and Analysis for the year ended December 31, 2007.
The forward-looking statements in this news release reflect the Company's expectations as of October 31st, 2008, and are subject to change after this date. The Company 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, unless required by the applicable securities laws.
TVA GROUP INC.
Consolidated statements of income and comprehensive income
(unaudited)
(in thousands of dollars, except per share amounts)
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Three-month periods Nine-month periods
ended September 30 ended September 30
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2008 2007 2008 2007
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Operating revenues $92,249 $91,620 $309,763 $291,413
Operating, selling and
administrative expenses
(note 14) 81,400 79,796 265,824 254,826
Amortization of fixed
assets, intangible
assets and deferred
start-up costs 3,512 3,157 10,288 9,637
Financial expenses (note 3) 1,035 1,241 2,013 3,414
Restructuring costs of
operations (note 4) - 527 184 1,739
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Income before income taxes,
non-controlling interest and
equity in income of
companies subject to
significant influence $6,302 $6,899 $31,454 $21,797
Income taxes (recovery)
(note 5) (5,222) 2,350 2,843 1,992
Non-controlling interest (374) (721) (1,369) (2,177)
Equity in loss (income) of
companies subject to
significant influence 40 (4) (393) (796)
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NET INCOME AND
COMPREHENSIVE INCOME $11,858 $5,274 $30,373 $22,778
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EARNINGS PER SHARE BASIC
AND DILUTED (note 9 c) $0.49 $0.20 $1.18 $0.84
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See accompanying notes to consolidated financial statements
Consolidated statements of retained earnings
(unaudited)
(in thousands of dollars)
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Nine-month periods
ended September 30
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2008 2007
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Balance, at beginning of period $95,610 $62,631
Net income 30,373 22,778
Dividends paid (3,904) (4,054)
Share redemption - excess of purchase price over net
carrying value (note 9b) (36,208) -
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Balance, at end of period $85,871 $81,355
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See accompanying notes to consolidated financial statements
TVA GROUP INC.
Consolidated balance sheets
(unaudited)
(in thousands of dollars)
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Sept. 30, 2008 Dec. 31, 2007
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ASSETS
Current assets
Cash $1,584 $3,225
Accounts receivable 84,207 107,854
Current income tax assets 1,956 946
Investments in televisual products and films 56,203 45,906
Inventories and prepaid expenses 6,320 5,969
Future income tax assets 3,312 4,629
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153,582 168,529
Investments in televisual products and films 37,363 27,253
Investments (note 7) 31,878 31,571
Fixed assets 82,386 77,275
Future income tax assets - 2,319
Other assets 9,606 9,102
Licences and others intangible assets 69,719 69,732
Goodwill 71,981 71,981
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$456,515 $457,762
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank overdraft $212 $2,435
Accounts payable and accrued liabilities 83,866 85,812
Current income tax liabilities 1,039 11,037
Broadcast and distribution rights payable 28,070 23,054
Deferred revenue 7,273 6,613
Deferred credit 396 471
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120,856 129,422
Broadcast rights payable 4,420 3,965
Long-term debt 98,500 56,333
Future income tax liabilities (note 5) 30,903 39,334
Others long term liabilities (note 7) 126 731
Non-controlling interest and redeemable
preferred shares (note 8) 12,089 13,458
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266,894 243,243
Shareholders' equity
Capital stock (note 9) 99,930 115,137
Contributed surplus 3,820 3,772
Retained earnings 85,871 95,610
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189,621 214,519
Contingency (note 14)
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$456,515 $457,762
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See accompanying notes to consolidated financial statements
TVA GROUP INC.
Consolidated statements of cash flows
(unaudited)
(in thousands of dollars)
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Three-month periods Nine-month periods
ended September 30 ended September 30
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2008 2007 2008 2007
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CASH FLOWS FROM OPERATING
ACTIVITIES
Net income $11,858 $5,274 $30,373 $22,778
Non-cash items
Amortization 3,534 3,179 10,354 9,703
Equity in income of
companies subject to
significant influence 40 (4) (393) (796)
Non-controlling interest (374) (721) (1,369) (2,177)
Tax benefits relating to tax
deductions (note 5) - - - (3,670)
Future income taxes (6,408) (29) (4,900) (1,332)
Others (381) 208 (570) (467)
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Cash flows provided by
current operations 8,269 7,907 33,495 24,039
Net change in non-cash items 3,657 (361) (3,416) 15,008
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Cash flows from operating
activities 11,926 7,546 30,079 39,047
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CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to fixed assets (7,981) (3,453) (15,351) (9,735)
Business acquisition
(notes 6 and 7) (105) (274) (105) (2,899)
Deferred charges - - (400) -
Changes in investments
(note 7) - 226 (489) 226
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Cash flows from investing
activities (8,086) (3,501) (16,345) (12,408)
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CASH FLOWS FROM FINANCING
ACTIVITIES
Bank overdraft (2,335) (1,985) (2,223) 2,015
(Decrease) increase in
long-term debt (922) (951) 42,167 (26,016)
Class B share redemption
(note 9 b) (15) - (51,415) -
Issuance of shares of a
subsidiary (note 8) - 750 - 2,050
Dividends paid (1,202) (1,352) (3,904) (4,054)
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Cash flows from financing
activities (4,474) (3,538) (15,375) (26,005)
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Net change in cash (634) 507 (1,641) 634
Cash, at beginning of period 2,218 3,083 3,225 2,956
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Cash, at end of period $1,584 $3,590 $1,584 $3,590
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SUPPLEMENTAL INFORMATION
Interests paid net of
interests income received $698 $926 $1,705 $3,131
Income taxes paid (received) 3,313 (806) 18,751 (3,155)
Additions to fixed assets
financed by accounts payable
and accrued liabilities at
end of period $983 $1,521
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See accompanying notes to consolidated financial statements
TVA GROUP INC.
Notes to consolidated financial statements
Three-month and nine-month periods ended September 30, 2008 and 2007 (unaudited)
(Amounts presented in the tables are expressed in thousands of dollars, except per-share and per-option amounts)
1. FINANCIAL STATEMENT PRESENTATION
These consolidated financial statements have been prepared in conformity with Canadian Generally Accepted Accounting Principles ("GAAP"). With the exception of the accounting policies presented in note 2 for the current quarter, the same accounting policies described in the consolidated financial statements included in the latest annual report of TVA Group Inc. ("the Company") have been used. However, these consolidated financial statements do not include all disclosures required under Canadian GAAP for an annual report and accordingly should be read in conjunction with the Company's latest annual consolidated financial statements and the notes thereto.
Some of the Company's businesses experience significant seasonality effects due to, among other things, seasonal advertising patterns and their influence on people's viewing, reading and listening habits. Because the Company depends on the sale of advertising for a significant portion of its revenue, operating results are also sensitive to prevailing economic conditions, including changes in local, regional and national economic conditions, particularly as they may affect advertising expenditures. Accordingly, the results of operations for interim periods should not necessarily be considered indicative of full-year results due to the seasonality of certain operations.
2. CHANGES IN ACCOUNTING POLICIES
Current changes to accounting policies
On January 1st, 2008, the Company adopted the Canadian Institute of Chartered Accountants (CICA) Handbook Section 3031, Inventories which requires that additional details be provided regarding the determination and recognition of inventories and the information to be presented. The adoption of this new section did not have any significant effect on its consolidated financial statements.
On January 1st, 2008, the Company also adopted Sections 3862, Financial Instruments - Disclosures, 3863, Financial Instruments - Presentation and Section 1535, Capital Disclosures. The disclosures required by the new standards are presented in note 13 of these consolidated financial statements.
Future changes to accounting policies
In January 2008, the CICA issued Section 3064 Goodwill and Intangible Assets, to replace Section 3062 Goodwill and Other Intangible Assets, Section 3450 Research and Development Costs, and Emerging Issues Committee (EIC) 27 Revenues and Expenditures during the Pre-operating Period, and to modify the Accounting Guideline (AcG) -11 Entreprises in the Development Stage. The new section establishes standards for the recognition of intangible assets in the sense of the definition of assets based on principles for recognizing costs as assets and clarifying the application of the concept of matching revenues and expenses for intangible assets acquired or developed internally. The new standard will take effect for interim and annual financial statements for fiscal years that begin October 1, 2008 or later. The Company is evaluating the impact of the application of this standard. In February 2008, the Accounting Standards Board of Canada confirmed that Canadian GAAP, as used by companies with a public obligation to report, will be fully converged to International Financial Reporting Standards ("IFRS") published by the International Accounting Standards Board ("IASB"). The Company will present its interim and annual financial statements for 2011 in accordance with the IFRS. The Company is evaluating the impact of this alignment with the IFRS.
3. FINANCIAL EXPENSES
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Three-month periods Nine-month periods
ended September 30 ended September 30
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2008 2007 2008 2007
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Interests on long-term debt $959 $1,043 $2,477 $3,364
Dividends on redeemable
preferred shares 267 940 797 2,800
Interest revenues on convertible
bonds issued by
an affiliated company (258) (910) (771) (2,710)
Interest revenues (25) (58) (649) (329)
Amortization of deferred
financing charges 22 22 66 66
Foreign exchange loss 70 204 93 223
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$1,035 $1,241 $2,013 $3,414
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4. RESTRUCTURING COSTS OF OPERATIONS
During the third quarter of 2007, the Company recorded a provision for restructuring costs of $527,000 following the elimination of positions in its Television sector.
During the first nine months of 2008, the Company recorded a provision of restructuring costs in the amount of $184,000 following the elimination of one position in its Television sector versus a provision for restructuring costs of $1,739,000 for the corresponding period of 2007 including $978,000 related to the elimination of positions in the Television and Publishing sectors, and $761,000 linked to new litigation relating to the production activities of its former subsidiary, TVA Acquisition Inc.
5. INCOME TAXES (RECOVERY)
In light of the evolution of tax auditing, jurisprudence and tax legislation, the Company reduced its future tax liabilities during the third quarter of 2008 by $6,977,000.
During the second quarter of 2007, following the federal government's adoption of Bill C-33, which provides for the modification of the deduction multiple for tax deductions, the Company recognized into income tax benefits an amount of $3,670,000 that had been recorded as an income tax liabilities pending the official enactment of the Bill by taxation authorities. Moreover, following the reductions in federal income tax rates for 2011 and subsequent years, and in light of the evolution of tax auditing, jurisprudence and tax legislation, the Company also reduced its future tax liabilities by $2,057,000 during the first semester of 2007.
6. BUSINESS ACQUISITION
On July 30, 2007, the Company acquired all of the issued and outstanding shares in Animal Hebdo Inc., the company that publishes Animal magazine, for a total consideration of $274,000. On January 8, 2007, the Company made the final payment of the purchase price for the conventional television station in Toronto, SUN TV, including a working capital adjustment of $2,625,000.
7. INVESTMENT
During the first quarter of 2008, the Company invested an additional $490,000 in the pay-per-view television service Canal Indigo S.E.N.C., in which it held a 20% interest. Furthermore, on February 15, 2008, the Company signed an agreement to purchase all of the shares of Canal Indigo S.E.N.C. for a total amount of $105,000. This transaction was finalized on August 31st, 2008, and the results are included in the Company's consolidated results since September 1st, 2008.
8. NON-CONTROLLING INTEREST
On September 7, 2007, a subsidiary of the Company, SUN TV Company, in which the Company has a 75% interest and that operates the SUN TV television station, obtained from its non-controlling shareholder an investment in its capital stock of $750,000, bringing the cumulative investments for 2007 to $2,050,000. The respective percentage interests in SUN TV Company remained unchanged.
9. CAPITAL STOCK
a) Number of shares outstanding
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September 30, 2008 Dec. 31, 2007
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Class A common shares 4,320,000 4,320,000
Class B shares 19,704,206 22,704,848
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24,024,206 27,024,848
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b) Shares redemption
Substantial issuer bid
On March 31, 2008, the Company filed a substantial issuer bid to redeem for cancellation up to 2,000,000 of its participating Class B non-voting shares, or about 8.8% of the total number of its issued and outstanding shares, for fixed price of $17.00 per share. On May 14, 2008; the Company filed a notice to amend and extend its initial offer order to bring the number of shares redeemable under the offer to a maximum of 3,000,000 Class B shares and the offer was thereby extended until June 2, 2008. A total of 9,189,542 Class B shares were deposited as at the expiration of the offer.
Taking into account the proration factor, adjustments for odd lot purchases and to avoid the creation of new irregular lots, the Company took up 3,000,642 Class B shares, for a total consideration of $51,010,914, plus $404,000 transaction fees, paid through the credit agreement. The Class B shares redeemed for cancellation under this issuer bid represented 13.2% of the 22,704,848 Class B shares issued and outstanding before the redemption.
c) Earnings per share
The following table provides the calculation of basic and diluted earnings per share:
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Three-month periods Nine-month periods
ended September 30 ended September 30
--------------------------------------------------------------------------
2008 2007 2008 2007
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Net income $11,858 $5,274 $30,373 $22,778
Weighted average
number of shares
outstanding 24,024,206 27,024,848 25,716,876 27,024,848
Effect of dilutive
stock options - 6,483 3,467 6,773
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Weighted average
number of diluted
shares outstanding 24,024,206 27,031,331 25,720,343 27,031,621
Basic and diluted
earnings per share $0.49 $0.20 $1.18 $0.84
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10.STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS
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Three-month period Nine-month period
ended September 30, 2008 ended September 30, 2008
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Conventional Quebecor Conventional Quebecor
Class B stock Media Inc. Class B stock Media Inc.
options stock options options stock options
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Balance at
beginning 983,693 258,678 983,693 328,159
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Exercised - (12,694) - (82,175)
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Balance as at
September 30,
2008 983,693 245,984 983,693 245,984
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During the first quarter of 2008, the Company increased the number of Class B shares that could be issued according to the terms of the Class B stock option plan for managers from 1,400,000 to 2,200,000. Of the number of options outstanding as at September 30, 2008, 179,509 conventional Class B stock options at an average exercise price of $19.37 and 2,239 Quebecor Media Inc. stock options at an average exercise price of $30.99 can be exercised.
11.GUARANTEES
The maximum exposure in respect of the guaranteed portion of the residual values of certain assets under operating leases to the benefit of the lessor is approximately $992,000. As at September 30, 2008, the Company did not record any liability related to these guarantees.
12.PENSION PLANS AND OTHER RETIREMENT BENEFITS
The Company maintains defined benefit and defined contribution pension plans for its employees. In addition, under an old plan, the Company maintains for certain retired employees other retirement benefits, such as health, life and dental insurance plans. Total costs for these benefits are as follows:
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Three-month periods Nine-month periods
ended September 30 ended September 30
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2008 2007 2008 2007
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Pension plans
Defined benefit plans $672 $1,176 $2,072 $3,063
Defined contribution plans 627 584 1,874 1,643
Other retirement benefits $47 $46 $141 $139
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13. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
The Company's risk management policy is established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policy is reviewed, when necessary, to reflect changes in market conditions and the Company's activities.
From its use of financial instruments, the Company is exposed to credit risk, liquidity risk, market risks relating to foreign exchange fluctuations and to interest rate fluctuations.
i) Fair value of financial instruments
The carrying amount of accounts receivable from external and related parties (classified as receivables) and accounts payable and accrued charges to external and related parties (classified as other liabilities) approximates their fair value since these items will be realized or paid within one year. As at September 30, 2008, the fair value of the long-term debt was equivalent to the book value because it bears interest at variable rates.
ii) Credit risk management
The Company is exposed to credit losses resulting from defaults by third parties. In the normal course of business, the Company regularly evaluates the financial position of its clients and reviews the credit history of each new client. As at September 30, 2008, no clients had balances representing a significant portion of the Company's consolidated trade receivables. The Company establishes an allowance for doubtful accounts in response to the specific credit risk of its clients. The Company's accounts receivable balance is divided among various clients, primarily advertising agencies. The Company does not believe that it is exposed to an unusual or significant level of customer credit risk. As at September 30, 2008, 10,4% of the accounts receivable had been unpaid for more than 120 days after the date of invoicing. Moreover, the allowance for doubtful accounts amounted to $4,120,000 as of September 30, 2008 ($3,578,000 as of December 31, 2007).
iii) Liquidity risk management
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due or to meet them at excessive cost. The Company ensures that it has sufficient cash flows from continuing operations and available sources of financing to meet planned cash requirements for capital investments, working capital, interest payments, debt repayments, pension plan contributions, dividends and shares redemption.
The Company has at its disposal a maximum amount of $160,000,000 under a credit agreement consisting of a revolving-term bank loan bearing interest at floating rates based on the banker's acceptance rate or Canadian bank prime rate, plus a variable margin based on the ratio of total debt to operating income (or earnings before interests, taxes and amortizations). The credit agreement matures on June 15, 2010 and is repayable in full on that date.
iv) Market risk
Market risk is the risk that changes in market prices due to foreign exchange rates and interest rates will affect the Company's income or the value of its financial instruments. The objective of market risk management is to mitigate and control exposures within acceptable parameters.
Foreign currency risk
The Company is exposed to limited foreign currency risk on sales and expenses that are denominated in a foreign currency other than Canadian dollars due to the insubstantial volume of such transactions undertaken. The majority of these transactions are denominated in U.S. dollars, mainly for the acquisition of certain distribution rights, for capital expenditures and for certain foreign denominated sales. The Company has determined in view of its limited transactions denominated in a foreign currency, its limited exposure to foreign currency risk does not necessitate the use of hedging. Accordingly, the Company's sensitivity to the variation of foreign currency rates is not significant.
An increase or a decrease of 1% in the exchange rate of a Canadian dollar into a U.S. dollar would have an impact on earnings before taxes or capital expenditures less than $100,000 on a yearly basis.
Interest rate risk
The Company is exposed to interest rate risk on its long-term debt because its financing bears interest at variable rates.
An increase (decrease) of 100 basis points in Canadian banker's acceptances rate at the reporting date would have increased (decreased) interest expenses by $985,000 on an annual basis using debt level prevailing as of September 30, 2008.
Considering the low exposure to markets risk, the Company does not use derivative financial instruments. However, the Company regularly reviews its situation to ensure that its exposure to these risks has not changed.
Capital management
The Company's primary objectives in managing capital are:
- to safeguard the entity's ability to continue as a going concern, so that it can continue to provide returns for shareholders
- to maintain an optimal capital base in order to support the capital requirements of is various activities sectors, including growth opportunities and to maintain investor and creditor confidence.
The Company manages its capital structure in accordance with the characteristics of the assets of its underlying sectors and according to its planned requirements. The Company has the ability to manage its capital structure by issuing new debts or by repaying existing debt with cash generated internally, by controlling the amounts it returns to shareholders under the dividends or shares redemption or by issuing capital stock and by making adjustment to its capital expenditures program. Since the last financial year, the Company has not changed its strategy regarding the management of its capital structure.
The capital structure of the Company is composed of shareholder equity, bank overdraft, long-term debt, non-controlling interest, redeemable preferred shares at the option of the holder, less cash.
Except for the maintenance of certain financial ratios required in the credit agreement, the Company is not subject to any others externally imposed capital requirements As at September 30, 2008, the Company was in compliance with the conditions of its credit agreement.
14. CONTINGENCY
In 2003 and 2004, a number of companies, including TVA Group Inc., brought a suit against the Crown before the Federal Court, alleging that the Part II licence fees that broadcasters are required to pay annually constitute, in fact and in law, a tax, not authorized by the Broadcasting Act. On December 14, 2006, the Federal Court ruled that these fees did indeed constitute an illegal tax, that the Canadian Radio-television and Telecommunications Commission ("CRTC") was to cease collection of such fees, and concluded that the plaintiff companies were not entitled to a reimbursement of the amounts already paid. The plaintiffs and the defendant both filed an appeal before the Federal Court of Appeal. On October 1st, 2007, the CRTC issued a document stating that it would comply with the decision that was rendered and that it would not collect, in 2007 or in any subsequent years, the Part II licence fees payable on November 30 of each year unless a Superior Court overturned the Federal Court decision. In the third quarter of 2007, in light of these facts and the Federal Court decision, the Company reversed its liability of $3,238,000 relating to the Part II licence fees for the period from September 1st, 2006 to September 30, 2007 and ceased to record these fees for subsequent periods.
On April 29, 2008, the Federal Court of Appeal handed down its decision and, on the basis of its position that the Part II licence fees are a valid regulatory charge rather than a tax, overturned the December 14, 2006 decision of the Federal Court. The plaintiff companies disputed the decision and filed an application for leave to appeal to the Supreme Court of Canada. The CRTC publicly stated that it would not attempt to collect the Part II licence fees before the earliest of the following: a) the Supreme Court of Canada denies leave to appeal, or b) the Supreme Court of Canada upholds the Federal Court of Appeal ruling, or c) the matter is settled between the parties. The Company's management believes in the soundness of its application for leave to appeal to the Supreme Court. However, given the Federal Court of Appeal decision that confirms the right of the CRTC to collect the Part II licence fees to which the Company is subject, the Company recorded in the second quarter of 2008 a total liability of $5,710,000 relating to the Part II licence fees for the period from September 1st, 2006 to June 30, 2008. For the three-month period ended September 30, 2008, the Company recorded an expense for the Part II licence fees of $575,000, thereby bringing total liability to $6,285,000 as at September 30, 2008.
15. SEGMENTED INFORMATION
The following table includes information on operating income, as well as information on assets:
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Three-month periods Nine-month periods
ended September 30 ended September 30
--------------------------------------------------------------------------
2008 2007 2008 2007
--------------------------------------------------------------------------
Operating revenues
Television $70,791 $67,194 $240,735 $222,297
Publishing 19,197 21,291 59,098 59,886
Distribution 2,937 4,129 12,345 13,103
Intersegment items (676) (994) (2,415) (3,873)
---------------------------------------------------------------------------
92,249 91,620 309,763 291,413
Operating, selling and
administrative expenses
Television 61,932 59,458 204,576 191,549
Publishing 16,753 18,322 51,679 53,651
Distribution 3,454 2,882 12,240 13,310
Intersegment items (739) (866) (2,671) (3,684)
--------------------------------------------------------------------------
81,400 79,796 265,824 254,826
Income (loss) before
amortization, financial
expenses, restructuring
costs of operations,
income taxes, non-controlling
interest and equity in
income of companies
subject to
significant influence
Television 8,859 7,736 36,159 30,748
Publishing 2,444 2,969 7,419 6,235
Distribution (517) 1,247 105 (207)
Intersegment items 63 (128) 256 (189)
--------------------------------------------------------------------------
$10,849 $11,824 $43,939 $36,587
--------------------------------------------------------------------------
--------------------------------------------------------------------------
The intersegment items mentioned above represent the elimination of normal
course business transactions made between the Company's business segments
regarding revenues, expenses and unrealized profit.
--------------------------------------------------------------------------
--------------------------------------------------------------------------
September 30, 2008 December 31, 2007
--------------------------------------------------------------------------
Total assets
Television $343,378 $342,500
Publishing 84,217 84,237
Distribution 17,658 19,763
Unallocated items 11,262 11,262
--------------------------------------------------------------------------
$456,515 $457,762
--------------------------------------------------------------------------
--------------------------------------------------------------------------
SOURCE: TVA Group Inc.
TVA Group Inc. Denis Rozon, CA Vice-President and Chief Financial Officer 514-598-2808
Tags: accounting acquisition adoption advertising animal annual report bank bonds business canada canadian dollar ceo community contributions debt dental dividend dividends earnings entertainment environment equity exercise federal foreign exchange gaap government health insurance interest rates investment law legislation local magazine market media north america note policy president prices prime rate products profit programming publishing radio rates research and development restructuring retirement revenue sales securities standards stock option tax taxes telecommunications television toronto trade tv us dollar web
Companies: TVA Group Inc (TVAGF)
REMINDER: Regulatory Framework for Canadian Broadcasting: Quebecor Media Will Use New Opportunities
MONTREAL, QUEBEC, Nov 01, 2008 (MARKET WIRE via COMTEX) --
Quebecor Media is pleased that the decision yesterday by the CRTC seems to point Canadian broadcasting policy toward less regulation and greater competition in the area of telecommunications to the benefit of Canadians.
While it did not accept Quebecor Media's suggestion to better finance general television through royalties, the Commission acted on many other proposals submitted by the Company. These included the deregulation of the types of speciality networks and possibilities to launch new ones, providing greater choice for viewers as well as more opportunities for the television production community in Quebec.
The TVA Group will further explore opportunities to launch new networks and could submit applications to the CRTC for new licences in the coming months. Analysis of yesterday's announcement suggests that the future of general networks will depend on the existence and support within the same organization of speciality networks that have multiple sources of financing.
Quebecor Media is also pleased to see the Commission open to deployment and improvement of new technologies, including video on demand that will give consumers greater freedom in the choices offered by the Canadian broadcasting system.
The Quebec Company regrets, however, the slowness with which the Commission will achieve its objectives since most of the deregulation of the distribution industry will not take effect until 2011. The streamlining of rules about the creation of channel packages, for example, is one change that consumers would have certainly liked to benefit from now.
Quebecor Media questions the paradox of a greater regulatory burden by the CRTC with the imposition of additional financial charges to increase to 6% from 5% the payments by distribution companies to a local programming fund that will not meet the expectations of Canadian viewers.
Quebecor Media Inc. is a subsidiary of Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B), a communications company with operations in North America, Europe and Asia. Quebecor Media owns operating companies in numerous media related businesses: Videotron Ltd., the largest cable operator in QuA-A?1/2bec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, the largest publisher of newspapers in Canada; TVA Group Inc., operator of the largest French language over the air television network in QuA-A?1/2bec, a number of specialty channels, and the English language over the air station Sun TV; Canoe Inc., operator of a network of English- and French language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publisher and distributor Quebecor Media Book Group Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products; Le SuperClub VidA-A?1/2otron ltA-A?1/2e, a DVD and console game rental and retail chain; and Quebecor MediaPages, publisher of print and online directories.
Contacts: Quebecor Media Inc. Isabelle Dessureault 514-380-7501 isabelle.dessureault@videotron.com
SOURCE: Quebecor Media inc.
mailto:isabelle.dessureault@videotron.com
Tags: asia book broadcasting business canada communications community distributor dvd europe finance internet local magazine media north america online policy programming publisher publishing quebec retail technology telecommunications television tv video
Companies: Quebecor, Inc. (QBCAF)
Quebecor Inc. Reports Consolidated Results for Third Quarter 2008 - Zibb.com
MONTREAL, QUEBEC, Nov 07, 2008 (MARKET WIRE via COMTEX) --
Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) today reported its financial results for the third quarter of 2008. Quebecor consolidates the financial results of its Quebecor Media Inc. subsidiary, in which it holds a 54.7% interest.
Highlights since end of second quarter 2008
- Quebecor's third quarter 2008 revenues amount to $908.1 million, up $73.5 million (8.8%) from third quarter 2007.
- Operating income(1): up $20.6 million (8.0%) to $277.5 million in the third quarter of 2008.
- Net income: $45.6 million ($0.70 per basic share), compared with $35.2 million net loss ($0.55 per basic share), an $80.8 million ($1.25 per basic share) improvement.
- Adjusted income from continuing operations:(2) up $0.3 million to $42.4 million ($0.65 per basic share) in third quarter 2008.
- Cable segment: operating income(1) up $28.7 million (16.7%). Quarter-over-quarter net customer growth: +55,000 for cable telephone service, +42,500 for cable Internet access, +31,500 for all cable television services combined (including 46,200 customer increase for illico Digital TV), +4,000 activated phones for wireless telephone service.
- Advanced Wireless Services ("AWS") network: Quebecor Media confirms plans to invest between $800.0 million and $1.0 billion in new network over next four years, including $554.6 million already disbursed for the purpose of acquiring 17 operating licences.
"In a challenging business environment, Quebecor posted strong third quarter 2008 results, driven by its Cable segment, which continued logging substantial customer growth for all services," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Our cable subsidiary is positioned to further enhance the quality of its line of cable television and telecommunications services. To this end, Quebecor Media will invest between $800.0 million and $1.0 billion over four years to build its own AWS network, including the amounts already disbursed. Videotron will be able to bring consumers and small businesses in its service area a superior offering of advanced wireless services, based on reliable, cutting-edge technology, exclusive original content, and competitive, straightforward pricing.
"Quebecor Media has already arranged the funding needed to acquire the AWS licences," Mr. Peladeau noted. "In these times of tight credit markets, it is important to mention that future investment in this project does not rely on access to capital markets; it will be funded through cash flow generation and available credit facilities."
(1) See "Operating income" under "Definitions".
(2) See "Adjusted income from continuing operations" under "Definitions".
"While the results are still highly favourable, we must note the disappointing results in publishing and at Sun Media," said Mr. Peladeau. "To maximize opportunities for growth, to capture synergies and to facilitate the repurposing of the information and content generated by our publications for multiple platforms, we will place the operations of Sun Media and Canoe under the responsibility of one manager."
Quebecor Inc.
Third quarter financial highlights - 2004 to 2008
(in millions of Canadian dollars, except per share data)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2008 2007 2006 2005 2004
-------------------------------------------------------------------------
Revenues $908.1 $834.6 $718.6 $649.1 $588.2
Operating income(a) 277.5 256.9 192.9 175.1 169.8
Net income (loss) 45.6 (35.2) 33.8 22.6 41.0
Adjusted income from
continuing operations
((b),(c)) 42.4 42.1 25.6 17.5 9.9
Per share data
Net income (loss) 0.70 (0.55) 0.53 0.35 0.63
Adjusted income from
continuing operations
((b),(c)) 0.65 0.65 0.40 0.27 0.15
(a) See "Operating income" under "Definitions".
(b) See "Quebecor Inc. - Discontinued operations".
Copyright See "Adjusted income from continuing operations" under "Definitions".
Analysis of third quarter 2008 operating results
- Quebecor's consolidated revenues from continuing operations rose $73.5
million (8.8%) to $908.1 million in the third quarter of 2008. Revenues
increased mainly in the following segments:
- Cable (by $58.0 million or 14.7% of segment revenues) reflecting
continued customer growth for all services;
- Newspapers ($11.3 million or 4.4%) due primarily to the impact of the
acquisition of Osprey Media Income Fund (Osprey Media) in August 2007.
- Quebecor's operating income from continuing operations grew $20.6 million
(8.0%) to $277.5 million due mainly to an increase in the Cable segment
($28.7 million or 16.7% of segment operating income) resulting primarily
from customer growth.
- Quebecor's net income was $45.6 million ($0.70 per basic share) in the
third quarter of 2008, compared with a net loss of $35.2 million ($0.55
per basic share) in the same quarter of 2007. The increase of $80.8
million ($1.25 per basic share) was mainly due to:
- $115.5 million favourable variance related to operating results of
discontinued operations(3);
- $20.6 million increase in operating income.
Partially offset by:
- $43.5 million unfavourable variance in gains and losses on valuation
and translation of financial instruments;
- $7.6 million increase in financial expenses related primarily to
increased indebtedness;
- $4.5 million increase in amortization charges.
- Adjusted income from continuing operations totalled $42.4 million in
the third quarter of 2008 ($0.65 per basic share), compared with
$42.1 million ($0.65 per basic share) in the same period of 2007, a
$0.3 million increase.
(3) See "Quebecor Inc. - Discontinued operations".
Analysis of year-to-date operating results
- Quebecor's consolidated revenues from continuing operations increased
$326.5 million (13.6%) to $2.73 billion. Revenues increased mainly in
Cable (by $205.4 million or 18.3% of segment revenues) and Newspapers
($124.1 million or 17.2%) essentially due, in those two cases, to the
same factors as those noted above in the discussion of the third quarter
results, and in Broadcasting ($18.4 million or 6.3%).
- Quebecor generated operating income from continuing operations totalling
$810.9 million, an increase of $139.7 million (20.8%). Operating income
increased mainly in Cable (by $112.1 million or 24.0% of segment
operating income), Newspapers ($21.2 million or 14.2%) and Broadcasting
($7.3 million or 19.9%)
- Net income was $531.0 million ($8.25 per basic share) in the first nine
months of 2008, compared with a net loss of $6.6 million ($0.10 per basic
share) in the same period of 2007. The increase of $537.6 million ($8.35
per basic share) was mainly due to:
- $523.3 million favourable variance in operating results of discontinued
operations(4);
- $139.7 million increase in operating income;
- $10.4 million decrease in reserve for restructuring of operations and
other special charges.
Partially offset by:
- $47.5 million increase in financial expenses;
- $44.0 million increase in income tax expense;
- $26.5 million increase in non-controlling interest;
- $20.8 million increase in amortization charge.
- Adjusted income from continuing operations amounted to $118.1 million
($1.84 per basic share) in the first nine months of 2008, compared with
$96.2 million ($1.49 per basic share) in the same period of 2007, an
increase of $21.9 million ($0.35 per basic share) or 22.8%.
Dividend
On November 6, 2008, the Board of Directors of Quebecor Inc. declared a quarterly dividend of $0.05 per share on Class A Multiple Voting Shares and Class B Subordinate Voting Shares, payable on December 16, 2008 to shareholders of record at the close of business on November 21, 2008.
(4) See "Quebecor Inc. - Discontinued operations".
Quebecor Inc. -- Discontinued operations
On January 21, 2008, Quebecor World Inc. and its U.S. subsidiaries were granted creditor protection under the Companies' Creditors Arrangement Act in Canada. On the same date, its U.S. subsidiaries also filed a petition under Chapter 11 of the United States Bankruptcy Code. Since that date, in accordance with generally accepted accounting principles, Quebecor's investment in Quebecor World has no longer been consolidated, Quebecor's investment in Quebecor World has been valued at zero, and Quebecor World's activities are considered discontinued operations for the purposes of Quebecor's consolidated financial statements.
Quebecor World's operating results have been restated and are reported in the financial statements under the item "Income (loss) from discontinued operations," and the cash flows provided by these operations have been restated and are reported in the financial statements under the item "Cash flows (used in) provided by discontinued operations."
The results of discontinued operations include the $17.7 million net loss (net of non-controlling interest) recognized by Quebecor World for the period of January 1 to 21, 2008, compared with a net loss of $142.9 million (net of non-controlling interest) reported in the first nine months of 2007.
At January 21, 2008, the Company's consolidated balance sheet included a net asset deficiency of $761.3 million, representing the excess of the liabilities and non-controlling interest related to Quebecor World over Quebecor World's assets. At January 21, 2008, the Company also had net losses accumulated in other comprehensive income in the amount of $326.5 million, net of income tax, consisting primarily in accumulated currency translation losses in connection with the net investment in Quebecor World. Therefore, the results of discontinued operations for the first quarter of 2008 also include a net gain of $399.7 million in respect of the difference between the reversal of the net asset deficiency and the reclassification in the results of the net losses accumulated in other comprehensive income as of the deconsolidation date, January 21, 2008, net of the $35.1 million decrease in future income tax assets related to the investment in Quebecor World. These procedures will have no material impact on the operations of Quebecor Media.
Detailed financial information
For a detailed analysis of Quebecor Inc.'s results for the third quarter of 2008, please refer to the Management Discussion and Analysis and consolidated financial statements of Quebecor Inc., available on the Company's website at http://www.quebecor.com/InvestorCenter/QIQuarterlyReports.aspx or from the SEDAR filing service at http://www.sedar.com.
Conference call for investors and webcast
Quebecor Inc. will hold a conference call to discuss the third quarter 2008 results of Quebecor and Quebecor Media on November 7, 2008, at 9:30 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 7746798#. A tape recording of the call will be available from November 7 through December 7, 2008, by dialling 1 877 293-8133, access code 724757#. The conference call will also be broadcast live on the Quebecor Inc. website at www.quebecor.com/InvestorCenter/QIConferenceCall.aspx. 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.
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 which could cause Quebecor'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 seasonality (including seasonal fluctuations in customer orders), operating risk (including fluctuations in demand for Quebecor's products and pricing actions by competitors), insurance risk, risks associated with capital investment (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, risks associated with commodities and energy prices (including fluctuations in the cost and availability of raw materials), credit risk, financial risks, debt risks, risks related to interest rate fluctuations, foreign exchange risks, risks associated with government acts and regulations, risks related to changes in tax legislation, and changes in the general political and economic environment. 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 Inc.'s public filings available at www.sedar.com and www.quebecor.com including, in particular, the "Risks and Uncertainties" section in Quebecor Inc.'s Management Discussion and Analysis for the year ended December 31, 2007.
The forward-looking statements in this press release reflect Quebecor's forecasts as of August 5, 2008, and are subject to change after that date. Quebecor 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.
The Company
Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) is a holding company with a 54.7% interest in Quebecor Media Inc, one of Canada's largest media groups. Quebecor Media owns operating companies in numerous media-related businesses: Videotron Ltd., the largest cable operator in Quebec and a major Internet Service Provider and provider of telephone and business telecommunications services; Sun Media Corporation, the largest publisher of newspapers in Canada; TVA Group Inc., operator of the largest French-language over-the-air television network in Quebec, a number of specialty channels, and the English-language over-the-air station Sun TV; Canoe Inc., operator of a network of English- and French-language Internet properties in Canada; Nurun Inc., a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia; magazine publisher TVA Publishing Inc.; book publisher and distributor Quebecor Media Book Group Inc.; Archambault Group Inc. and TVA Films, companies engaged in the production, distribution and retailing of cultural products; Le SuperClub Videotron ltee, a DVD and console game rental and retail chain; and Quebecor MediaPages, publisher of print and online directories.
SEGMENTED ANALYSIS
-------------------------------------------------------------------------
Quebecor Media Inc.
-------------------------------------------------------------------------
Summary of results
(in millions of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Three months ended Nine months ended
September 30 September 30
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
Revenues $908.1 $834.6 $2,727.5 $2,401.0
Operating income 274.9 253.6 809.1 676.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Third quarter revenues and operating income - 2004 to 2008
(in millions of Canadian dollars)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2008 2007 2006 2005 2004
-------------------------------------------------------------------------
Revenues $908.1 $834.6 $718.6 $649.1 $588.2
Operating income 274.9 253.6 195.2 174.9 169.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cable segment
Third quarter 2008
Revenues: $452.6 million, an increase of $58.0 million (14.7%).
- Combined revenues from all cable television services increased $17.8
million (9.6%) to $203.0 million due to the impact of customer base
growth, the favourable impact of the increase in the illico Digital TV
customer base on revenues from illico on Demand, pay TV, pay-per-view and
set-top boxes, and subscriber growth for the high definition ("HD")
package.
- Revenues from the illico Digital TV service, excluding related
services, increased $18.6 million (21.3%) to $106.1 million. The
performance of illico Digital TV was partially offset by decreased
revenues from analog cable television services.
- Revenues from Internet access services increased $17.0 million (16.0%) to
$123.3 million. The improvement was mainly due to customer growth, as
well as heavier consumption.
- Revenues from cable telephone service increased $20.7 million (39.8%) to
$72.7 million, primarily because of customer growth as well as higher
long-distance revenues.
- Revenues from wireless telephone service increased $2.9 million (54.7%)
to $8.2 million, mainly due to customer growth.
- Revenues of Le SuperClub Videotron ltee decreased $0.5 million (-3.5%) to
$13.6 million.
Monthly ARPU: $81.01, compared with $72.66 in the same quarter of 2007, an
increase of $8.35 (11.5%).
Customer statistics - Net customer growth in third quarter 2008:
- cable telephone service: +55,000 (+70,100 in 2007);
- cable Internet access: +42,500 (+45,000 in 2007);
- all cable television services combined (i.e., net increase for analog
service and illico Digital TV): +31,500 (+31,800 in 2007), including
46,200 more customers for illico Digital TV (+41,200 in 2007);
- wireless telephone service: +4,000 activated phones (+8,000 in 2007).
Cable segment end-of-quarter customer numbers since end of December 2006
(in thousands of customers)
-------------------------------------------------------------------
-------------------------------------------------------------------
Sept. June Mar.
2008 2008 2008
-------------------------------------------------------------------
Cable television:
Analog 814.8 829.5 849.4
Digital 876.7 830.5 802.8
-------------------------------------------------------------------
Total cable television 1,691.5 1,660.0 1,652.2
Cable Internet 1,031.4 988.9 965.3
Cable telephone 797.9 742.9 691.6
Wireless telephone 58.6 54.6 49.9
--------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------
-------------------------------------------------------------------
Dec. Sept. June Mar. Dec.
2007 2007 2007 2007 2006
-------------------------------------------------------------------
Cable television:
Analog 869.9 896.0 905.4 929.8 948.8
Digital 768.2 720.3 679.1 652.9 623.6
-------------------------------------------------------------------
Total cable television 1,638.1 1,616.3 1,584.5 1,582.7 1,572.4
Cable Internet 933.0 898.9 853.9 827.9 792.0
Cable telephone 636.4 573.8 503.7 448.7 397.8
Wireless telephone 45.1 38.7 30.7 20.3 11.8
-------------------------------------------------------------------
-------------------------------------------------------------------
Operating income: $201.0 million in the third quarter of 2008, an increase
of $28.7 million (16.7%).
- The increase was due primarily to:
- customer growth for all services;
- increases in long-distance telephone volume and revenues;
- $7.0 million favourable variance in expenses related to Quebecor
Media's stock option plan, which are charged to its operating segments
as a direct charge, to reflect participation by segment managers in the
plan, and as management fees;
Partially offset by:
- unfavourable variance of $11.4 million related to reversal in the third
quarter of 2007 of current Canadian Radio-television and
Telecommunications Commission ("CRTC") Part II licence fee accruals
following the notice issued on October 1, 2007 confirming the CRTC's
intention not to collect the fees due on November 30, 2007, in view of
a Federal Court decision. However, the Federal Court of Appeal
overturned the Federal Court decision on April 29, 2008.
- Excluding the favourable variation in the stock option expense, and if
the figures for prior periods are restated to reflect the Part II licence
fee adjustment, the segment's operating income increased 19.4% in the
third quarter of 2008, compared with 25.1% in the same quarter of 2007.
Year-to-date
Revenues: $1.33 billion, an increase of $205.4 million (18.3%) essentially
due to the same factors as those noted above in the discussion of third
quarter results.
Customer statistics - Net customer growth in first nine months of 2008:
- cable telephone service: +161,500 (+176,000 in 2007);
- cable Internet access: +98,400 (+106,900 in 2007);
- all cable television services combined (i.e., net increase for analog
service and illico Digital TV): +53,400 (+43,900 in 2007), including
108,500 more customers for illico Digital TV (+96,700 in 2007);
- wireless telephone service: +13,500 activated phones (+26,900 in 2007).
Operating income: $579.1 million, an increase of $112.1 million (24.0%).
- The increase was due primarily to:
- customer growth for all services;
- increases in some rates, consumption and long-distance telephone calls;
- $26.0 million favourable variance in expenses related to Quebecor
Media's stock option plan.
Partially offset by:
- unfavourable variance of $25.9 million related to recognition in the
second quarter of 2008 of a retroactive charge for CRTC Part II licence
fees following the Federal Court of Appeal decision of April 29, 2008
overturning the Federal Court decision on these fees. The Federal Court
judgement had been favourable to Quebecor Media and had led to the
reversal, in the third quarter of 2007, of current Part II licence fee
accruals.
- Excluding the favourable variation in the stock option expense, and if
the figures for prior periods are restated to reflect the Part II licence
fee adjustment, the segment's operating income increased 23.1% in the
first nine months of 2008, compared with 27.3% in the same period of
2007.
Newspapers segment
Third quarter 2008
Revenues: $270.8 million, an increase of $11.3 million (4.4%).
- Osprey Media, the acquisition of which closed in August 2007, generated
revenues of $52.4 million from July through September 2008, compared with
$35.9 million in August and September 2007, for a third-quarter increase
of $16.5 million.
- Excluding the impact of that acquisition, the Newspapers segment's total
revenues decreased $5.2 million (-2.3%) in the third quarter of 2008:
advertising revenues decreased 3.2%, circulation revenues were flat, and
combined revenues from commercial printing and other sources increased
3.5%.
- The revenues of the urban dailies decreased 1.3% in the third quarter of
2008; excluding the acquisition of Osprey Media, the revenues of the
community newspapers increased 0.6%.
- In the urban dailies group, the revenues of the free dailies increased
12.1%.
Operating income: $52.1 million, a decrease of $8.0 million (-13.3%).
- Osprey Media generated operating income of $10.0 million from July
through September 2008, compared with $9.3 million in August and
September 2007, for a third-quarter increase of $0.7 million.
- Excluding the impact of Osprey Media, operating income decreased
$8.7 million (-17.1%) in the Newspapers segment
- The decrease was due primarily to:
- impact of the decrease in revenues, on a comparable basis;
- wage indexing and certain unusual payroll expenses, including charges
related to the transition plan for printing facilities in Ontario and
Quebec;
- expenditures related to the start-up of Quebecor MediaPages.
Partially offset by:
- $4.0 million favourable variance related to the stock option expense.
Year-to-date
Revenues: $845.7 million, an increase of $124.1 million (17.2%) due mainly
to the impact of the acquisition of Osprey Media ($123.6 million), which
closed in August 2007.
Operating income: $170.5 million, an increase of $21.2 million (14.2%).
- Osprey Media generated operating income of $34.8 million from January
through September 2008, compared with $9.3 million in August and
September 2007, for a year-to-date increase of $25.5 million.
- Excluding the impact of Osprey Media, operating income decreased
$4.3 million (-3.1%) in the Newspapers segment.
- The decrease was due primarily to:
- impact of the decrease in advertising revenues (-1.3%) and circulation
revenues (-5.3%), on a comparable basis;
- wage indexing and certain unusual payroll expenses, including charges
related to the transition plan for printing facilities in Ontario and
Quebec;
- expenditures related to the start-up of Quebecor MediaPages.
Partially offset by:
- $10.4 million favourable impact related to the Quebecor Media stock
option plan expense;
- $8.9 million decrease in newsprint costs.
- The combined operating losses of the free dailies decreased 16.5% in the
first nine months of 2008 compared with the same period of 2007.
Broadcasting segment
Third quarter 2008
Revenues: $92.3 million, an increase of $0.7 million (0.8%).
- Revenues from broadcasting operations increased $3.6 million, mainly
because of:
- higher revenues from video on demand and other revenues at the TVA
Network;
- higher subscription revenues and advertising revenues at the specialty
channels (Mystere, ARGENT, Prise 2, LCN, mentv, Mystery and Les idees
de ma maison).
- Distribution revenues decreased $1.2 million, mainly as a result of a
decrease in video revenues and sales of television products in comparison
with the same period of 2007.
- Publishing revenues decreased $2.1 million, essentially because of lower
advertising and newsstand revenues.
Operating income: $10.8 million, a decrease of $1.0 million (-8.5%);
excluding the unfavourable impact of the reversal in the third quarter of
2007 of current CRTC Part II licence fee accruals, operating income
increased $2.2 million.
- Operating income from broadcasting operations increased $1.2 million
because of favourable impacts from:
- increased revenues at the specialty channels;
- lower content costs at the TVA Network and Sun TV;
- decrease in selling and administrative expenses at the TVA Network.
Partially offset by:
- unfavourable variance of $3.2 million related to reversal in the third
quarter of 2007 of current CRTC Part II licence fee accruals following
the notice issued on October 1, 2007 confirming the CRTC's intention
not to collect the fees due on November 30, 2007, in view of a Federal
Court decision. However, the Federal Court of Appeal overturned the
Federal Court decision on April 29, 2008.
- Operating income from distribution operations decreased by $1.8 million,
mainly as a result of the decrease in revenues and promotional expenses
for theatrical releases scheduled for the fourth quarter of 2008.
- Operating income from publishing operations decreased $0.5 million,
mainly because of the decrease in revenues.
Year-to-date
Revenues: $309.8 million, an increase of $18.4 million (6.3%).
- Revenues from broadcasting operations increased $18.4 million, mainly
because of:
- higher advertising, video on demand and other revenues at the TVA
Network;
- higher advertising and subscription revenues at the specialty channels;
- higher revenues from the Internet, commercial production and Shopping
TVA.
- Distribution revenues decreased $0.8 million, primarily as a result of
lower theatrical and video revenues, partially offset by increased sales
of television products.
- Publishing revenues decreased $0.8 million, primarily as a result of
decreases in advertising and newsstand revenues, partially offset by an
increase in custom publishing operations.
Operating income: $43.9 million, an increase of $7.3 million (19.9%);
excluding the unfavourable impact of the reversal in the third quarter of2007 of current CRTC Part II licence fee accruals following the favourable
Federal Court decision and the recognition in the second quarter of 2008 of
a retroactive charge for licence fees following the unfavourable decision
by the Federal Court of Appeal, operating income increased $14.7 million.
- Operating income from broadcasting operations increased $5.6 million,
mainly because of:
- impact of revenue growth at the TVA Network, the specialty channels and
Sun TV;
- decrease in selling and administrative expenses at the TVA Network.
Partially offset by:
- unfavourable variance of $7.4 million related to recognition in the
second quarter of 2008 of a retroactive charge for CRTC Part II licence
fees following the Federal Court of Appeal decision of April 29, 2008
overturning the Federal Court decision on these fees. The Federal Court
judgement had been favourable to Quebecor Media and had led to the
reversal, in the third quarter of 2007, of current Part II licence fee
accruals.
- Operating income from distribution operations showed a $0.3 million
improvement, mainly as a result of the impact of higher sales of
television products and costs related to a larger number of film releases
in the first nine months of 2007 than the same period of 2008, partially
offset by lower video revenues.
- Operating income from publishing operations increased by $1.2 million,
mainly as a result of the decrease in advertising, marketing and
distribution expenses, partially offset by the unfavourable impact of the
decrease in revenues.
Leisure and Entertainment segment
Third quarter 2008
Revenues: $75.2 million, a decrease of $4.4 million (- 5.5%).
- 7.3% decrease in revenues at Quebecor Media Book Group Inc., due
primarily to lower distribution volume in the third quarter of 2008 than
in the same quarter of 2007 and decreased sales in the academic segment.
- 3.1% decrease in revenues at Archambault Group Inc. The impact of higher
broadcast revenues due to the success of the Paul McCartney concert
during Quebec City's 400th anniversary celebration, and higher sales at
Archambault stores, essentially due to the opening of a store in Laval,
Quebec, was outweighed by a decrease in revenues due to the transfer of
video on demand operations to the Cable segment.
Operating income: $8.8 million, a decrease of $0.3 million (-3.3%) compared
with the third quarter of 2007 due primarily to a decrease in gross margin
on retail sales and higher operating expenses at Archambault Group,
combined with a decrease in sales at Quebecor Media Book Group.
Year-to-date
Revenues: $201.5 million, a decrease of $24.9 million (-11.0%).
Operating income: $9.4 million, a decrease of $7.3 million (-43.7%).
Interactive Technologies and Communications segment
Third quarter 2008
Revenues: $21.6 million, an increase of $2.6 million (13.7%).
- The increase was due mainly to:
- impact of increased volumes from customers in Europe, particularly
France and Italy, as well as in Asia and Canada, and from government
customers in Quebec, partially offset by a decrease in volume in the
United States.
Operating income: $1.0 million, a decrease of $0.4 million (-28.6%)
- The decrease was mainly due to:
- impact of the decrease in revenues in the United States., combined with
increases in some market development costs in that country;
- unfavourable variance due to the impact of changes to Nurun Inc.'s
stock option plan in the third quarter of 2007.
Partially offset by:
- impact of increased revenues in Canada, Europe and Asia, and from
government customers in Quebec.
Year-to-date
Revenues: $65.6 million, an increase of $3.7 million (6.0%).
Operating income: $2.1 million, a decrease of $0.7 million (-25.0%).
Internet/Portals segment
Third quarter 2008
Revenues: $13.1 million, an increase of $1.6 million (13.9%).
- 21.6% increase in revenues at the general-interest portals, due mainly to
website creation and maintenance, including the sites of affiliated
companies, and higher advertising revenues.
- 10.2% increase in revenues at special-interest portals, primarily
attributable to revenue growth at the autonet.ca site resulting mainly
from the acquisition of ASL Ltd.
Operating income: $0.5 million, a decrease of $0.5 million (-50.0%) due
mainly to the increase in operating expenses, including advertising
expenses and investment in new products.
Year-to-date
Revenues: $38.3 million, an increase of $3.7 million (10.7%).
Operating income: $1.8 million, a decrease of $2.3 million (-56.1%).
Advanced Wireless Services
On September 10, 2008, Quebecor Media confirmed its intention to invest between $800.0 million and $1.0 billion in its Advanced Wireless Services network over the next four years, including the cost of building out its network in Quebec, projected operating losses in the first years of commercial operation, and $554.6 million already disbursed for the purpose of acquiring 17 operating licences. Quebecor Media plans to finance future disbursements from funds generated by operations.
The money will be used to create a new High Speed Packet Access (HSPA) network, which is expected to be operational in 12 to 18 months. Nokia Siemens Networks has been selected to be Videotron's supplier for the next five years.
DEFINITIONS
Operating income
In its analysis of operating results, the Company defines operating income (loss), as reconciled to net income (loss) under Canadian GAAP, as net income (loss) before amortization, financial expenses, gain on valuation and translation of financial instruments, reserve for restructuring of operations and other special charges, income tax, non-controlling interest and the results of discontinued operations. Operating income as defined above is not a measure of results that is consistent with Canadian GAAP. It is not intended to be regarded as an alternative to other financial operating 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 Canadian GAAP. Management believes that operating income is a meaningful measure of performance. The Company uses operating income in order to assess the performance of its investment in Quebecor Media. The Company's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of the Company's operating segments. This measure eliminates the significant level of non-cash depreciation of tangible assets and amortization of certain intangible assets, and is unaffected by the capital structure or investment activities of the Company and its segments. Operating income is also relevant because it is a significant component of the Company's annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the periodic costs of capitalized tangible and intangible assets used in generating revenues in the Company's segments. The Company also uses other measures that do reflect such costs, such as cash flows from segment operations and free cash flows from operations. In addition, measures like operating income are commonly used by the investment community to analyze and compare the performance of companies in the industries in which the Company is engaged. The Company's definition of operating income may not be the same as similarly titled measures reported by other companies. The following table reconciles Quebecor's operating income with the closest Canadian GAAP measure.
Reconciliation of the operating income measure used in this press release
to the net income (loss) measure used in the consolidated financial
statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
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2008 2007 2008 2007
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Operating income:
Cable $201.0 $172.3 $579.1 $467.0
Newspapers 52.1 60.1 170.5 149.3
Broadcasting 10.8 11.8 43.9 36.6
Leisure and
Entertainment 8.8 9.1 9.4 16.7
Interactive
Technologies and
Communications 1.0 1.4 2.1 2.8
Internet/Portals 0.5 1.0 1.8 4.1
Head office 3.3 1.2 4.1 (5.3)
-------------------------------------------------------------------------
277.5 256.9 810.9 671.2
Amortization (77.5) (73.0) (235.9) (215.1)
Financial expenses (74.0) (66.4) (227.0) (179.5)
Gain (loss) on
valuation and
translation of
financial instruments 4.4 47.9 43.6 40.6
Reserve for
restructuring of
operations
and other special
charges (2.0) (3.0) (4.3) (14.7)
Income tax (38.7) (42.9) (109.0) (65.0)
Non-controlling
interest (44.1) (39.2) (130.6) (104.1)
(Loss) income from
discontinued
operations - (115.5) 383.3 (140.0)
-------------------------------------------------------------------------
Net income (loss) $45.6 $(35.2) $531.0 $(6.6)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Adjusted Income from Continuing Operations
The Company defines adjusted income from continuing operations, as reconciled to net income (loss) under Canadian GAAP, as net income (loss) before gain (loss) on valuation and translation of financial instruments, reserve for restructuring of operations and other special charges, and the results of discontinued operations, net of income tax and non-controlling interest. Adjusted income from continuing operations as defined above is not a measure of results that is consistent with Canadian GAAP. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with Canadian GAAP. Management believes that adjusted income from continuing operations is a meaningful measure that provides an indication of the long-term profitability of the Company's operating activities by eliminating the impact of unusual or one-time items. The Company's definition of adjusted income from continuing operations may not be identical to similarly titled measures reported by other companies.
The following table provides a reconciliation of adjusted income from continuing operations to net income (loss), as disclosed in Quebecor's consolidated financial statements.
Reconciliation of the adjusted income from continuing operations measure
used in this press release to the net income (loss) measure used in the
consolidated financial statements
(in millions of Canadian dollars)
Three months ended Nine months ended
September 30 September 30
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2008 2007 2008 2007
-------------------------------------------------------------------------
Adjusted income
from continuing
operations 42.4 42.1 118.1 96.2
Gain on valuation and
translation of
financial instruments 4.4 47.9 43.6 40.6
Reserve for
restructuring of
operations and
other special charges (2.0) (3.0) (4.3) (14.7)
Income tax related to
adjustments(1) 2.5 (4.4) (3.5) 8.8
Non-controlling
interest related to
adjustments (1.7) (2.3) (6.2) 2.5
Income (loss) from
discontinued
operations - (115.5) 383.3 (140.0)
-------------------------------------------------------------------------
Net income (loss) $45.6 $(35.2) $531.0 $(6.6)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Including the impact of tax rate increases, in connection with tax
planning, applicable to adjusted tax benefits.
Average Monthly Revenue per User
Average monthly revenue per user (ARPU) is an industry metric that the Company uses to measure its average cable, Internet and telephony revenues per month per basic cable customer. ARPU is not a measurement that is consistent with Canadian GAAP, and the Company's definition and calculation of ARPU may not be the same as identically titled measurements reported by other companies. The Company calculates ARPU by dividing its combined cable television, Internet access and telephony revenues by the average number of its basic cable customers during the applicable period, and then dividing the resulting amount by the number of months in the applicable period.
QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(in millions of Canadian dollars, except for earnings per share data)
Three months ended Nine months ended
(unaudited) September 30 September 30
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2008 2007 2008 2007
-------------------------------------------------------------------------
Revenues
Cable $452.6 $394.6 $1,330.7 $1,125.3
Newspapers 270.8 259.5 845.7 721.6
Broadcasting 92.3 91.6 309.8 291.4
Leisure and
Entertainment 75.2 79.6 201.5 226.4
Interactive
Technologies and
Communications 21.6 19.0 65.6 61.9
Internet/Portals 13.1 11.5 38.3 34.6
Head office and
inter-segment (17.5) (21.2) (64.1) (60.2)
-------------------------------------------------------------------------
908.1 834.6 2,727.5 2,401.0
Cost of sales and
selling and
administrative
expenses 630.6 577.7 1,916.6 1,729.8
Amortization 77.5 73.0 235.9 215.1
Financial expenses 74.0 66.4 227.0 179.5
Gain on valuation and
translation of
financial instruments (4.4) (47.9) (43.6) (40.6)
Reserve for
restructuring of
operations and other
special charges 2.0 3.0 4.3 14.7
-------------------------------------------------------------------------
Income before income
taxes and
non-controlling
interest 128.4 162.4 387.3 302.5
Income taxes:
Current (1.1) 3.5 1.2 1.2
Future 39.8 39.4 107.8 63.8
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38.7 42.9 109.0 65.0
-------------------------------------------------------------------------
89.7 119.5 278.3 237.5
Non-controlling
interest (44.1) (39.2) (130.6) (104.1)
-------------------------------------------------------------------------
Income from continuing
operations 45.6 80.3 147.7 133.4
Income (loss) from
discontinued
operations - (115.5) 383.3 (140.0)
-------------------------------------------------------------------------
Net income (loss) $45.6 $(35.2) $531.0 $(6.6)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per share
Basic
From continuing
operations $0.70 $1.24 $2.29 $2.07
From discontinued
operations - (1.79) 5.96 (2.17)
Net income (loss) 0.70 (0.55) 8.25 (0.10)
Diluted
From continuing
operations 0.70 1.23 2.28 2.07
From discontinued
operations - (1.79) 5.96 (2.17)
Net income (loss) 0.70 (0.56) 8.24 (0.10)
-------------------------------------------------------------------------
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Weighted average
number of shares
outstanding
(in millions) 64.3 64.3 64.3 64.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Weighted average
number of diluted
shares (in millions) 64.4 64.3 64.4 64.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION
(in millions of Canadian dollars)
Three months ended Nine months ended
(unaudited) September 30 September 30
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2008 2007 2008 2007
-------------------------------------------------------------------------
Income from continuing
operations before
amortization, financial
expenses, gain on
valuation and
translation of
financial instruments,
reserve for
restructuring of
operations and other
special charges, income
taxes and
non-controlling
interest
Cable $201.0 $172.3 $579.1 $467.0
Newspapers 52.1 60.1 170.5 149.3
Broadcasting 10.8 11.8 43.9 36.6
Leisure and
Entertainment 8.8