$QBR-B.TO

National Bank on CRTC New Canadian Content Requirement For Streamers, Traditional Broadcasters

The Canadian Radio-television and Telecommunications Commission (CRTC) this week announced changes in spending requirements for traditional broadcasters and streaming operators, notes National Bank analyst Adam Shine.Private Canadian broadcasters will be required to contribute 25% of their annual Canadian broadcasting revenues to Canadian programming expenditures (CPE) versus current levels of 30%-45%.The CPE requirement for online streaming services is being tripled to 15%. "We'll see how this plays out given that the prior 5% rate for online streamers with revenues above $25M in Canada was announced on June 4, 2024 and was to become effective for the f2024-f2025 broadcast year," Shine writes.No date has been set for implementation of the new rules.Lawsuits were filed in late 2024 by several U.S. streamers with the Federal Court of Appeal and the court paused the payment obligation which was due Aug. 31, 2025. A decision is still pending. The streamers could try to appeal a verdict against them to the Supreme Court, Shine adds.Price: $33.92, Change: $+0.32, Percent Change: +0.95%

CIBC in its Q1 Canadian Telecom Earnings Recap Says Quebecor Remains its "Top Pick" Post Quarter

CIBC Capital Markets provided its first-quarter Canadian Telecom Earnings Recap in a note dated May 15 and said its "top pick" following first-quarter remains Quebecor (QBR-A.TO, QBR-B.TO).Among the Canadian telecoms, Q1 revenue and adj. EBITDA came "roughly in line" with consensus, said CIBC. Core telecom margins were up an average of 30 basis points in Q1 and CIBC continues to expect a focus on efficiency in a lower-growth telecom environment.In wireless, average revenue per user (ARPU) declines continue to moderate with wireless service revenue growth of 22 bps at the Big 3, but up 9% at Quebecor, driven by subscriber and APRU growth, stated CIBC.In internet, CIBC noted Telus (T.TO) and BCE (BCE.TO) took the "highest share of net adds", with all companies in its coverage continuing to focus on out-of-footprint expansion via TPIA and/or FW.Competitive pricing escalated through Q1, with flanker brands reducing low-tier prices to ~$25 late in the quarter, said CIBC and added that average Q1 ARPU was down 92 bps Y/Y, an improvement from a 121 bps decline in Q4.Quebecor recorded its second consecutive quarter of ARPU growth (+1.4%), the only Canadian telecom to see ARPU growth after multiyear industry declines, noted CIBC.It further noted that immigration remains a headwind, with industry mobile net additions down 26% Y/Y in the quarter."Q1 equipment revenue dropped 3% across the Big 3, which we view as a healthy barometer of a moderating device subsidy environment, consistent with lower subsidy rates observed in our channel checks," said CIBC. "We observe pricing stabilizing post-Q1, with flagship and flanker pricing up 5% and 3% Y/Y, respectively. Rogers (42%) took the highest share of industry wireless net additions in Q1, followed by Quebecor (37%), TELUS (15%) and BCE (6%)."Telus (44%) and BCE (29%) took the highest share of internet net additions this quarter, noted CIBC, driven by a combination of increased penetration in footprint as well as out-of-footprint expansion in the east (Telus) and in the west (BCE).Quebecor reported its third consecutive quarter of internet revenue growth (+3.2%), added CIBC."All companies within our coverage are exploring out-of-footprint expansion to some degree," said CIBC. "We expect out-of-footprint expansion via TPIA to be a growth opportunity, but to come at a lower margin vs. the owner economics in footprint."Deleveraging remains a focus for the sector, noted CIBC, with average leverage of 3.4x at the end of Q1."BCE and TELUS reiterated their deleveraging targets (3.5x and 3.0x by the end of 2027, respectively), said CIBC. "Rogers reduced its F2026 capex guidance by ~24% at the midpoint, with the savings flowing to FCF."CIBC expects Rogers to use the additional FCF to accelerate deleveraging. Quebecor continues to have the lowest leverage among the telecoms at 2.86x, added CIBC.Price: $49.23, Change: $+0.65, Percent Change: +1.34%

CIBC Confirms Outperformer Rating on Quebecor and Raises Target to $67

CIBC Capital Markets maintained its outperformer rating on the shares of Quebecor (QBR-B.TO) and raised its price target to C$67.00 from C$66.00 after the company reported its first-quarter financial results on Thursday.The bank noted that Quebecor's combination of "solid" wireless ARPU growth and net added market share continued to drive above-market wireless service revenue growth in the quarter."With only ~12% wireless subscriber market share, we expect profitable growth to continue," said analyst Stephanie Price. "Given its solid wireless growth and market share gains, we see a premium as warranted and compare to TMUS in the U.S., which has averaged a 2.4x premium to U.S. peers in recent years given its superior growth."CIBC increased buyback assumptions for 2026 given the expanded NCIB and slightly increased internet and wireless service revenue growth given strong Q1 results, it said.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)Price: $64.39, Change: $+2.32, Percent Change: +3.74%

Quebecor Price Target Raised By $4 at RBC

RBC Capital Markets raised its price target on Quebecor Inc. (QBR-B.TO) to $64 from $60.Analyst Drew McReynolds maintained a Sector Perform rating on shares of the Canadian diversified media and telecom company following its quarterly results on Thursday.The stock rose $4.49, or 7.8%, to $62.07 on the Toronto Stock Exchange."Q1/26 financial results for Telecommunications were ahead of our forecast reflecting an ongoing healthy balance of growth and profitability," McReynolds said in a note to clients."While the bar of expectations at current valuation in our view is now notably higher, a more constructive pricing environment (for the most part) combined with steady execution on a variety of tactical initiatives and cost-efficiencies should enable this bar to be met as 2026 progresses," the analyst said.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

Quebecor Target Up To C$67 From $59, Keeps Outperform at National Bk As Q1 "Sees Telecom Beat As It Gains Momentum, SBC Adds Pressure To Strong Total EBITDA Growth"

Update: Quebecor Reports Q1 Beat; Amends NCIB; But "Extremely Cautious" On "Crisis" In Media Industry

Canadian telco giant Quebecor (QBR-A.TO, QBR-B.TO) said Thursday it remains "extremely cautious due to the deep, ongoing structural crisis in the media industry" even as it reported a rise in adjusted net income and revenue for the first quarter, beating analysts' expectations on both, while it also amended its normal course issuer bid.For the three months ended March 31, 2026, the company reported adjusted net income of $219.5 million or adjusted net income per basic share of $0.97 compared with $185.1 million or adjusted EPS of $0.80, a year earlier. The result beat a consensus estimate compiled by FactSet of $0.93 EPS.Revenue for the quarter increased to $1.40 billion compared with near $1.34 billion, a year-ago, beating a consensus estimate compiled by FactSet of near $1.37 billion."While we are pleased with these results, we remain extremely cautious due to the deep, ongoing structural crisis in the media industry," said Quebecor Chief Executive Pierre Karl Peladeau. "The dominance of GAFAM over the advertising market, cord-cutting, drastically reduced support from the Canada Media Fund, unfair competition from CBC/Radio-Canada and the heavy regulatory burden imposed by the Canadian Radio-television and Telecommunications Commission continue to weaken private broadcasters.""Facing these persistent challenges, a concerted effort by all stakeholders -- governments, the CRTC, industry associations and unions -- is needed to rebuild a viable model that reflects market realities and preserve our collective ability to produce and deliver news, entertainment and sports content to domestic audiences and support the ecosystem that depends on it," added Peladeau.Its board also declared a quarterly dividend of $0.40 per share on its Class A Shares and Class B Shares, unchanged from the prior quarter, payable on June 23, to shareholders of record at the close of business on May 29.Quebecor is amending its NCIB in order to increase the maximum number of Class B Subordinate Voting Shares (with voting rights) that may be repurchased, from 5 million and representing 3.2% of the issued and outstanding as of August 1st, 2025, to 7 million and representing approximately 4.5%. No other terms of the NCIB have been amended.

Quebecor Reports Q1 Beast; Amends NCIB; But "Extremely Cautious" On "Crisis" In Media Industry

Canadian telco giant Quebecor (QBR-A.TO, QBR-B.TO) said Thursday it remains "extremely cautious due to the deep, ongoing structural crisis in the media industry" even as it reported a rise in adjusted net income and revenue for the first quarter, beating analysts' expectations on both, while it also amended its normal course issuer bid.For the three months ended March 31, 2026, the company reported adjusted net income of $219.5 million or adjusted net income per basic share of $0.97 compared with $185.1 million or adjusted EPS of $0.80, a year earlier. The result beat a consensus estimate compiled by FactSet of $0.93 EPS.Revenue for the quarter increased to $1.40 billion compared with near $1.34 billion, a year-ago, beating a consensus estimate compiled by FactSet of near $1.37 billion."While we are pleased with these results, we remain extremely cautious due to the deep, ongoing structural crisis in the media industry," said Quebecor Chief Executive Pierre Karl Peladeau. "The dominance of GAFAM over the advertising market, cord-cutting, drastically reduced support from the Canada Media Fund, unfair competition from CBC/Radio-Canada and the heavy regulatory burden imposed by the Canadian Radio-television and Telecommunications Commission continue to weaken private broadcasters.""Facing these persistent challenges, a concerted effort by all stakeholders -- governments, the CRTC, industry associations and unions -- is needed to rebuild a viable model that reflects market realities and preserve our collective ability to produce and deliver news, entertainment and sports content to domestic audiences and support the ecosystem that depends on it," added Peladeau.Its board also declared a quarterly dividend of $0.40 per share on its Class A Shares and Class B Shares, unchanged from the prior quarter, payable on June 23, to shareholders of record at the close of business on May 29.Quebecor is amending its NCIB in order to increase the maximum number of Class B Subordinate Voting Shares (with voting rights) that may be repurchased, from 5 million and representing 3.2% of the issued and outstanding as of August 1st, 2025, to 7 million and representing approximately 4.5%. No other terms of the NCIB have been amended.

Quebecor Upgraded to Buy at TD

Quebecor Inc. (QBR-B.TO) was upgraded to Buy from Hold at TD Securities on Thursday.Analyst Vince Valentini raised his price target on shares of the Canadian media and telecom company to $63 from $60."Pricing in the Canadian wireless market has continued to improve slightly in April, so our fears of an escalating price war (including an aggressive response from QBR/Freedom) have diminished," Valentini said in a note to clients."Furthermore, with an ARPU starting point of nera $35, QBR faces less downside repricing risk if competitive tension gets worse again," the analyst said."This backdrop, combined with the recent 9% pullback for the stock, has allowed us to revisit our thesis," Valentini said."Updating for our end of quarter channel checks, we expect solid underlying EBITDA and FCF results in Q1/26, which have pushed up our estimates for FY27 (less impact on Q1/26 or FY26 results owing to yet another quarter of elevated non-cash stock-based compensation expense)."(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)