Quebecor Inc. says its profit rose last quarter as it managed to increase its revenue per mobile customer for the first time in nearly three years.
It comes as the media and telecommunications firm raised its quarterly dividend to 40 cents per share, up 14.3 per cent from 35 cents per share.
On Thursday, the company reported its net income attributable to shareholders totalled $211.5 million in its fourth quarter, up from $177.7 million a year earlier.
Quebecor said the increase came as it added 73,900 mobile lines in the quarter, compared with an increase of 87,500 in the same period of 2024, while average monthly mobile revenue per user (ARPU) was $35.23 in the quarter, up from $34.75 a year earlier.
It was the first time in 11 quarters that Quebecor recorded ARPU growth.
“On ARPU, we’ve got momentum,” chief financial officer Hugues Simard told analysts on a conference call Thursday.
“We were obviously starting from a lower base than our competition. We have turned positive, contrary to the others.”
Analysts generally praised the company’s performance, with Desjardins’ Jerome Dubreuil noting Quebecor was “the first company among the Big 4 to report positive ARPU growth in almost two years.” He called it a “dominant quarter in wireless” for Quebecor, adding the company “won the quarter on all fronts” compared with its competitors’ mobile customer gains.
Since 2023, Quebecor’s wireless brands have been offering cheaper plans compared with rivals as the company has sought to add subscribers.
The trend followed the acquisition of Freedom Mobile by its Videotron subsidiary, which was hailed as a new fourth national carrier.
As part of that transaction, Videotron was assigned a list of mandatory conditions by the federal government, including that it must offer pricing plans at least 20 per cent lower than its competitors for 10 years.
President and CEO Pierre Karl Péladeau told analysts that Quebecor continues “to capitalize on the favourable dynamics we created with the Freedom acquisition.”
“Since then, our strategy has been clear and consistent: to deliver richer, higher quality services at everyday best prices, period,” he said.
“And you know what? It works. This positioning, which is quite different from our competitors, is strengthening our competitiveness, increasing our market share, and firmly established Videotron as the game-changing alternative Canadian consumers have been waiting for and are now flocking to.”
Analysts and other telecom executives have said Quebecor’s discounted pricing has prompted more intense competition in the sector, with its rivals forced to pivot and offer lower priced plans of their own. While that’s helped those companies add new subscribers, it’s often been cited as a factor driving down ARPU year-over-year.
More recently, some big players like Rogers and Bell have both said they are taking a more balanced approach and being selective with their offers and promotions. Telus said earlier this month its most recent quarterly results were affected by “irrational tactics” within the industry, as smaller players opted for aggressive pricing.
But Simard cautioned Quebecor’s strategy isn’t about attracting new customers at any cost.
“Even though we have been having the highest growth for quite some time, and certainly intend to continue to have the highest growth, we don’t manage based on net adds. We focus on profitable growth, not just growth at any price.”
He said sustained ARPU growth will “depend on the competitive environment going forward.”
“Should it stay irrationally or unpredictably … competitive, then perhaps are we looking at a stability of our ARPU going forward?” he said.
“But my gut feeling is that we’ve got momentum there and we can take some heat on that. Depending on what happens, we’re certainly in a better position than our competition on this.”
Quebecor’s fourth-quarter profit amounted to 93 cents per share for the quarter ended Dec. 31, up from 76 cents per share a year earlier.
Revenue for the quarter totalled $1.55 billion, up from $1.50 billion in the last three months of 2024.
On an adjusted basis, Quebecor said it earned 99 cents per share in its latest quarter, up from an adjusted profit of 80 cents per share a year earlier.
Scotiabank analyst Maher Yaghi noted Quebecor reported flat revenues for the year as a whole, saying it demonstrates “the pressures all players in the industry are facing, even those like (Quebecor) that are gaining share.”
“We believe financials should slowly improve going forward, but the rate of growth will likely remain muted until we see general pricing sustainably trend higher,” he said in a note.
This report by The Canadian Press was first published Feb. 26, 2026.
Companies in this story: (TSX:QBR.B)
