Montréal, February 20, 2007 – Videotron posted strong growth in 2006 in terms of both financial results and clients numbers. The figures as of December 31, 2006, released today, show increases for each of the Company's products – cable television, Internet access, cable telephone and wireless telephone services – positioning Videotron as a leading player in the Canadian telecommunications market. In 2006, Videotron ranked first among Canada's major cable companies in customer growth rates for all of its services.
The figures show the popularity of Videotron's multi-product packages, strong Internet service penetration and continuing customer migration from analog to digital television.
"These results will make it possible for us to continue reinjecting significant amounts into the Québec economy, as we did in 2006 when we reinvested more than $300 million in our network in order to provide our clients the best possible customer experience," said Robert Dépatie, President and Chief Executive Officer of Videotron.
Wireless telephone service completes multi-product offering
During 2006, Videotron completed its selection of telecommunications services with the launch of wireless telephone service in August. As of December 31, 2006, there were already 12,000 subscriber lines on Videotron's wireless service.
With the addition of wireless telephone service, Videotron can now provide each customer with up to four telecom products: Internet access, teledistribution, cable telephone, wireless telephone. Videotron's multi-product bundles continued to prove attractive in 2006, with nearly 50% of Videotron customers now subscribed to two or more services.
illico Digital TV means freedom of choice: the largest selection of French-language HD channels
After posting 40% subscriber base growth for its digital television service in 2005, Videotron added 149,000 customers in 2006, a 31% increase. As of December 31, 2006, there were approximately 624,000 subscribers to illico Digital TV, nearly 40% of the total customer base for Videotron cable television service.
The illico on Demand service offered exclusively by Videotron and Archambault Group to all illico Digital TV subscribers was a factor in illico's success.
illico on Demand logged more than 20 million paid and free orders in 2006, compared with 10 million in 2005. The 100% increase is a clear indication of the drawing power of the new way to access entertainment content. Videotron proudly remains the only Video on Demand (VoD) provider in its service area, with a VoD catalogue of over 1,000 movies, television programs, concerts and documentaries.
Videotron also offers subscribers to illico Digital TV the largest selection of French-language high-definition channels in its service area.
Videotron's unique "à la carte" approach to channel selection lets subscribers pick and choose among an impressive number of television services. During the year, Videotron added to its packages a number of channels that appeal to different ethnic communities. It enhanced its Spanish-language news and entertainment services during the quarter, increasing the number of channels in its Hispano package to 10, 8 of which are available exclusively from Videotron.
Videotron Internet access service still the fastest
Videotron signed up 154,000 new subscribers to its cable Internet service in 2006, compared with 135,000 in 2005, a 23% increase. Customer satisfaction with the service was 96.7%.
There are now a total of more than 805,000 subscribers to Videotron Internet service. During the year, Videotron phased in Internet service upgrades on a region-by-region basis, increasing the speed of High-Speed Internet from 5.1 mbps to 7 mbps and of Extreme Plus Internet from 16 mbps to 20 mbps. Videotron Internet access service remains the fastest in Québec. In December 2006, Videotron announced the first North American test of new technology that will substantially increase the speed of its Internet service. Under a partnership with Cisco®, Videotron will conduct beta testing of Internet service supporting speeds of up to 100 mbps with 150 customers.
Breakthrough into residential telephone market
Since its gradual region-by-region roll-out in early 2005, Videotron cable telephone service has registered steady growth: 235,000 new customers were recruited in 2006 and the 400,000 customer mark was passed in January 2007. Videotron maintains its position as the largest provider of cable telephone service in Canada, in terms of subscriber base, and the fifth largest in North America.
"By offering a reliable alternative to the services offered by the conventional telephone companies, we have created real competition and delivered substantial benefits for consumers: they have seen significant price cuts and can now freely choose their telephone provider," said Mr. Dépatie. "We are particularly proud of the fact that customer satisfaction with our cable telephone service is 94%, according to a recent Léger Marketing survey."
Customer service
Videotron's customer service department handled more than 10 million calls in 2006, a 25% increase over 2005, and its technicians made more than 1.3 million visits to customers.
Videotron Business Solutions
In April, after Videotron Telecom Ltd. was folded into Videotron and its operations incorporated into those of Videotron, Videotron Business Solutions rolled out its cable telephone service for small and medium-sized businesses that need 1 and 2 lines, offering them substantial savings. In a second phase, service for businesses that need 3 to 12 lines will be made available in the near future.
Videotron Ltd. (www.videotron.com), a wholly owned subsidiary of Quebecor Media Inc., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and wireless. Videotron is a leader in new technologies with its illico interactive television system and its broadband network, which supports high-speed cable Internet access, analog and digital cable television, and other services. As of December 31, 2006, Videotron was serving 1,572,000 cable television customers in Québec, including 624,000 illico subscribers. Videotron is also the Québec leader in high-speed Internet access, with 805,000 subscribers to its cable modem and dial-up services. Videotron also offers 12,000 subscriber lines on its wireless service and, as of January 15, 2007, Videotron was providing residential telephone service to 400,000 Québec households.
