MONTREAL - Quebecor Inc. is reporting a 29-per-cent drop in profits in the second quarter despite higher revenues.
The Quebec-based telecommunications company says its net income attributable to shareholders was $123.5 million or 50 cents per share in the quarter, down from $174.9 million or 69 cents per share a year earlier.
It attributed the decrease to the refinancing of debt and lower profits from discontinued operations.
On an adjusted basis, net income from continuing operations were $158.3 million or 65 cents per share, up from $144.9 million or 57 cents per share in the second quarter of 2020.
Revenues for the three months ended June 30 were $1.13 billion, up 12.7 per cent from $1 billion in the year-ago period.
Analysts on average expected Quebecor would report adjusted profits of 62 cents per share on $1.09 billion of revenues, according to financial data firm Refinitiv.
"As the Quebec economy recovered, our sustained efforts and disciplined execution on our business strategies yielded a solid performance in the second quarter of 2021," stated CEO Pierre Karl Péladeau.
The telecommunications segment posted 6.8 per cent revenue growth to $928.4 million on a 127 per cent increase in wireline equipment, media segment revenues rose to $198.2 million from $132.7 million and sports and entertainment revenues were $33.5 million up from $25.9 million.
Mobile telephone connections increased 1.8 per cent or 27,200 while internet subscriptions increased by 5,300.
This report by The Canadian Press was first published Aug. 5, 2021.
Companies in this story: (TSX:QBR.B)