Impressive Q1; Continued Wireless Momentum; Favourable Capital Position

研报英文原文证据摘录

Impressive Q1; Continued Wireless Momentum; Favourable Capital Position

er market share) with 29k net adds (41k consensus), while ARPU again EPS $3.23 $3.83 $4.40↑ $4.74↑

increased by 1.4% (vs. ~1-2% declines for incumbents). There continues to be significant FCFPS $4.83 $6.19 $4.98↑ $5.08↑

opportunity for price expansion with Quebecor’s ARPU at ~$35 vs. incumbents at ~$56-57. EV $15,158 $18,944 $19,342↓ $18,548↓

Management seemed encouraging on the competitive market thus far in Q2. The company Consensus Estimates

is expanding its B2B business nationally leveraging the Freedom network.

2024A 2025A 2026E 2027E

Turnaround in Internet revenues; improvement in Quebec market. Internet revenues

EPS $4.19 $4.58

increased 3.2% in Q1/26 (vs. +1.7% in Q4/25) largely from price increases. Results have

been improving sequentially since Q3/24, swinging ~8% from -4.8%. Wireline subscriber Valuation

metrics beat across all metrics. Quebecor can use FWA and TPIA (given its relative 2024A 2025A 2026E 2027E

footprint) as levers to grow its wireline services. Additionally, the company is increasing EV/EBITDA 6.4x 7.9x 7.8x 7.2x

internet speeds across its network. P/E 19.2x 16.2x 14.1x 13.1x

Favourable capital position with optionality. Quebecor will continue to utilize a capital- P/FCFPS 12.8x 10.0x 12.4x 12.2x

light model for network expansion through FWA, MVNO, and TPIA. There was no change

QTR. EPS Q1 Q2 Q3 Q4

to F26 capex expectations of ~$690mm. The company repurchased ~1.55mm shares for

2024A $0.71 $0.89 $0.82 $0.80~$85mm and increased its NCIB allotment by 2mm shares. Industry-leading leverage

decreased ~0.1x to 2.86x and is below target. Forecasts. We modestly increased our 2025A $0.80 $0.99 $1.05 $0.99

estimates to reflect Q1. Target price raises to $67.