Quebecor has reported a decrease in media revenue in Q3 2024, citing advertising declines and and the implementation of the federal Digital Services Tax.

“We are implementing the reorganization plan announced in November 2023 to reduce our operating expenses, but unfortunately the savings achieved in the third quarter of 2024 were largely offset by the new 3% federal tax on digital services, which was originally intended to make foreign digital companies contribute to Canada’s broadcasting system,” said Quebecor president and CEO Pierre Karl Péladeau in a statement.

Media revenue came to $155.1 million in the quarter, down 6.6% compared to $166 million in the same period last year.  Overall revenue was $1.39 billion for the quarter, slightly down from $1.42 billion in Q3 2023.

Adjusted EBITDA for media dropped to $14.7 million, a 30% decline from $21 million in Q3 2023.

However, Quebecor reported adjusted EBITDA of $16.9 million for the year-to-date, an increase of $22.8 million compared to a loss of $5.9 million in the same period. This was attributed to the $10.2 million in retroactive impact from an agreement on carriage fees for the LCN specialty channel combined with higher volume in film production and audiovisual services.

Capital expenditures in the segment increased to $8.2 million from $3.5 million compared to Q2 2023.

In October, Quebecor subsidiary Vidéotron launched the French streaming service illico+ across the country as a result of the merger between Vrai and Club illico. Starting with more than 8,500 titles, the company plans to add more than 1,800 in 2025.

Another subsidiary, TVA Group, saw a $4.3 million decrease in adjusted EBITDA, which was attributed to the continued decline in television ad revenues, said Péladeau.

The company said TVA Group maintained its lead in Quebec with 39% of the market share.

Image courtesy of Quebecor