Quebecor posts higher Q2 earnings

A growing telecom business helped Quebec-based Quebecor Inc. on Wednesday post higher second quarter earnings, excluding one- time charges.

Montreal-based Quebecor saw overall revenue for the three months to June 30 climb 5% to $994 million.

The biggest revenue gain came in the telecommunications division, which includes the Videotron cable operation and phone operations, which rose 11.4% to $543.1 million.

Here Quebecor saw cable revenue rise 8% to $235.5 million. Videotron lost 4,000 subscribers during the latest quarter, but saw revenue rise as it passed on the CRTC fees for the Local Programming Improvement Fund to subscribers, and increased video on demand and pay TV orders.

Quebecor also squeezed out revenue gains from Internet access services, its cable telephone service and from its wireless telephone service.

At the same time, one-time expenses, including higher income tax and amortization charges and a $16 million charge for losses from financial instruments dented Quebecor’s bottom line.

The group posted a profit of $65.5 million, against a profit of $76.8 million in 2009.

The media group, which also operates the TVA Group TV network and the Sun Media chain of newspapers, saw quarterly revenue rise 5% to $954 million.

Stripping out the one-time items, Quebecor’s adjusted earnings rose 22% to $68.5 million.