Videotron parent company Quebecor announced their Q1 2011 results today and overall the revenue increased by 4.5 per cent to $990.5 million. Net income was $34.3 million which represents a drop of $0.6 million compared to Q1 2010. The reason for the decrease according to Quebecor CEO Pierre Karl Peladeau is due to “the roll-out of Videotron’s new mobile services network negatively impacted net income in the first quarter of 2011. In the first months following a product launch, the revenues generated by the new product are not sufficient to cover the higher expenses, including amortization charges in the case of the 4G network”. Peladeau also noted their 4G network now reaches over 4 million people in Quebec and are averaging about 12,500 new customers per month which is “exceeding targets.”
Videotron subscriber numbers as of March 31st on their “4G” network is now at 143,600 (86,100 new subs and 57,500 migrated from the old network). In total Videotron now has 164 700 (with MVNO).