Montréal, February 25, 2009 – Videotron announced today that 2008 was highlighted by significant growth for all products, and that, for a 14th consecutive quarter. 2008 was also significant in terms of milestones for Videotron with the installation of its millionth illico Digital TV set-top box, the addition of the millionth client to the Internet access service, and the introduction of the Ultimate Speed Internet 30 (30 Mbps) and Ultimate Speed Internet 50 (50 Mbps) services. During the year, the Company also unveiled plans for major investments totalling between $800 million and $1 billion to roll-out its new Advanced Wireless Services network, a project that will create several hundred jobs.
Significant growth for all products
Videotron added 159,100 clients to its illico Digital TV service, the largest customer increase since the service was introduced. As of December 31, 2008, Videotron had 1,715,620 subscribers to its cable television service, including 927,320 subscribers to illico Digital TV; 1,063,850 subscribers to its Internet access service; 851,990 subscribers to its cable telephone service; and 63,400 activated phones on its wireless telephone service.
In 2008, Videotron exceeded its own forecasts and met its customers' expectations, maintaining a satisfaction rate that ranks among the highest in the Canadian telecom industry, said Robert Dépatie, President and Chief Executive Officer. For this achievement, I am very proud of our people.
Strong consumer acceptance of illico Digital TV
Videotron posted record growth for its cable television service during the year ended December 31, 2008, with an increase of 77,500 subscribers, bringing the total to 1,715,620, compared with an increase of 65,700 subscribers during 2007. Digital television service also registered record growth in 2008 with an increase of 159,100 customers during the year, compared with an increase of 144,600 subscribers during 2007, bringing the total to 927,320 for 2008. As of December 31, 2008, 54% of Videotron's cable television clients subscribed to its digital television service.
The freedom and choice afforded by the illico on Demand service continued to prove popular with Quebecers: in 2008, Videotron customers ordered close to 45 million titles, a four-fold increase since 2005, when 10 million orders were placed. The growth has accelerated year after year, as the variety of free and paid titles available on illico on Demand has expanded. There were 20 million orders in 2006 and 24 million in 2007.
In 2008, Videotron introduced the illico Call Display service, which lets customers who subscribe to both Videotron cable telephone service and illico Digital TV see the caller's name and number on their television screen.
Fastest Internet service in Québec
In the second quarter of 2008, the customer base for Videotron's Internet access service passed the 1 million mark. As of December 31, 2008, there were 1,063,850 subscribers to the service, an increase of 32,400 during the fourth quarter and 130,800 during the year.
In early 2008, Videotron launched Ultimate Speed Internet 30 and Ultimate Speed Internet 50 in the Montréal North Shore area. Supported by DOCSIS® 3.0 technology, the two new Internet access services break new ground, delivering speeds of 30 Mbps and 50 Mbps respectively. Since the beginning of 2009, Ultimate Speed Internet service has been available to 377,000 North Shore households, meeting the needs of connected families that share a single Internet access service.
Attractive alternative to traditional telephone service
In 2008, more than 215,600 Quebecers signed up for Videotron's residential telephone service, which has registered fast-paced growth since it was introduced. As of December 31, 2008, there were 851,990 residential and business subscribers to the service. The penetration rate for Videotron residential telephone service (as a proportion of the customer base for cable television service) is now 50%.
Since 2005, Videotron's cable telephone service has been spurring healthy competition in the residential and business telephone markets, positioning Videotron as a leading player in the Canadian telecom industry, said Robert Dépatie.
Videotron wireless telephone service: a harbinger of things to come
At December 31, 2008, as it prepared to build out its own Advanced Wireless Services network, Videotron had activated 63,400 phones on its wireless service.
As we look forward to rolling out our own wireless network, marking the dawn of a new era for our Company, we are confident that we are strongly positioned to deliver what we promised consumers in October 2008: an unprecedented wireless services offering, said Mr. Dépatie.
Outlook for 2009
Despite the tough economic times, the Company is planning for continued growth, said Robert Dépatie. Videotron recently announced the creation of 500 new jobs in all corporate departments. It is forging ahead with its strategy to become a key technology provider and a premiere brand in the world of telecommunications.
Forward-looking statements
The forward-looking statements in this press release reflect Videotron's forecasts as of February 25th, 2009, and are subject to change after that date. Videotron Ltée expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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 telephone service. 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, 2008, Videotron was serving 1,715,620 cable television customers in Québec, including 927,320 illico Digital TV subscribers. Videotron is the Québec leader in high-speed Internet access, with 1,063,850 subscribers to its cable modem service as of December 31, 2008. As of the same date, Videotron had activated 63,400 lines on its wireless telephone service and was providing cable telephone service to approximately 851,990 Québec households and organizations.
