Overview Of The Quebecor Company

Quebecor - Company Profile
Quebecor is a communications company based in Montreal, Canada. It was founded in 1965 by Pierre Péladeau, and remains run by his family today. It is a publicly owned company and their stock is traded in the Toronto Stock Exchange currently at $33.02 as of November 22, 2015. The company operates in three main business segments, including Telecommunications, Media and Sports and Entertainment. The Telecommunications segment offers television distribution, Internet, business solutions, cable and mobile telephone services in Canada. The operations of the Media segment include the printing, publishing and distribution of daily newspapers, the operation of an over-the-air television network, and post-production services

Also another positive for Quebecor was their Media segment, due to the acquisition of all of the assets of MELS studios and the emergence of the TVA Sports specialty channel .Revenues increased in all three of their business segments. The telecommunications segment posted very strong results as the performance of mobile telephony service, which serves 742,500 customers, and their Internet access service, which has more than 1.5 million customers. Revenues from business services also jumped 13.7% in the third quarter of 2015. Videotron released the illico 4K ultra-HD PVR during the quarter, becoming the first Canadian telecommunications provider to offer customers throughout its service area ultra high definition on a commercial basis. In the Sports and Entertainment segment, the Videotron Centre has welcomed more than 300,000 guests since its official opening in September

They are a holding company with a 75.4% interest in Quebecor Media one of Canada’s largest media groups, with more than 16,000 employees. Through Sun Media Corporation, Quebecor Media Inc. is the largest publisher of newspapers in Canada. However, Quebecor faces a lot of competition from other telecom companies such as Rogers Communications, BCE and TELUS as these companies are already well developed in terms of their wireless and wireline network. Another point against Quebecor is that it only pays a dividend of $0.04 per share quarterly which makes up a yield of 0.5%. Whereas its competitors offer dividend yields which are up to ten times larger, thus not attracting as many investors. The biggest negative for the company is that it has more than 6 billion dollars in debt compared to its total assets of 9.3 billion. So any investments or expansions that are made will essentially require them to borrow, adding to their debt. An example of this would be Quebecor’s interest in purchasing an expansion NHL team that would play in Quebec City. The fee for this venture would be estimated at 500 million dollars which would increase their debt for the short term. However, this will be positive for the company in the long run as they would own the rights to show every game, boosting viewership. This also gives the media owner opportunity to promote its other products, whether