Quebecor Inc.

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Press Release $QBR.B.TO Quebecor Inc.

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Quebecor Inc. Reports Fourth Quarter and Full-Year 2012 Consolidated Results

MONTREAL, QUEBEC -- (Marketwire) -- 03/14/13 -- Quebecor Inc. ("Quebecor" or the "Corporation") (TSX: QBR.A)(TSX: QBR.B) today reported its fourth quarter and full-year consolidated financial results for 2012. Quebecor consolidates the financial results of its Quebecor Media Inc. ("Quebecor Media") subsidiary. The Corporation's interest in Quebecor Media increased from 54.7% to 75.4% on October 11, 2012 as a result of the repurchase of part of the interest held by CDP Capital d'Amerique Investissement inc. ("CDP Capital"), a subsidiary of Caisse de depot et placement du Quebec.

Highlights

2012 financial year


--  Revenues up $145.2 million (3.5%) to $4.35 billion in 2012, mainly
    because of the 8.4% revenue growth in the Telecommunications segment.

--  Operating income(1) up $61.9 million (4.6%) from 2011 to $1.40 billion.

--  Net income attributable to shareholders: $167.7 million ($2.65 per basic
    share), down $33.3 million ($0.49 per basic share) from $201.0 million
    ($3.14 per basic share) in 2011.

--  Adjusted income from continuing operations(2): $196.1 million ($3.10 per
    basic share) in 2012, up $4.6 million ($0.11 per basic share) from
    $191.5 million ($2.99 per basic share) in 2011.

--  Revenues of Videotron Ltd. ("Videotron") up in 2012 for all major
    services: Internet access (up $74.3 million or 10.6%), cable television
    ($66.7 million or 6.6%), mobile telephony ($58.9 million or 52.3%), and
    cable telephony ($18.2 million or 4.2%).

--  Videotron's revenue generating units(3) up 221,800 in 2012 compared with
    an increase of 379,100 in 2011, which was bolstered by the
    discontinuation of the over-the-air analog television broadcasting in
    Canada.

--  Despite aggressive competition in its footprint, Videotron recorded in
    2012 the largest growth in revenue generating units, in absolute terms,
    of all Canadian cable operators.

--  Videotron has added 402,600 subscriber connections to its mobile
    telephony service since it was launched in September 2010.

--  Videotron's operating income up $126.2 million (11.5%) in 2012 and
    average monthly revenue per user (4) ("ARPU") up $8.29 (8.0%) to
    $111.57.

--  Quebecor optimized its capital structure in 2012 through transactions
    aimed at creating value for shareholders, including extension of debt
    maturities by means of financing at more advantageous interest rates and
    the repurchase of part of CDP Capital's interest in Quebecor Media,
    increasing the Corporation's interest from 54.7% to 75.4%.

--  A total non-cash charge of $187.0 million for impairment of goodwill and
    intangible assets, in accordance with International Financial Reporting
    Standards ("IFRS") accounting valuation principles, reflected continuing
    weak market conditions in the newspaper and music industries.


(1)  See "Operating income" under "Definitions."

(2)  See "Adjusted income from continuing operations" under "Definitions."

(3)  The sum of cable television, cable and mobile Internet access, cable
     telephony service subscriptions and subscriber connections to the
     mobile telephony service.

(4)  See "Average monthly revenue per user" under "Definitions."

Fourth quarter 2012


--  Revenues down $5.6 million (-0.5%) from the fourth quarter of 2011 to
    $1.14 billion.

--  Operating income up $1.6 million (0.4%) to $370.8 million. Videotron's
    operating income up $15.7 million (5.3%).

--  Net income attributable to shareholders: $9.2 million ($0.15 per basic
    share), down $76.2 million ($1.19 per basic share) from $85.4 million
    ($1.34 per basic share) in the fourth quarter of 2011.

--  Adjusted income from continuing operations: $56.0 million in the fourth
    quarter of 2012 ($0.89 per basic share), up $0.4 million ($0.02 per
    basic share) from $55.6 million ($0.87 per basic share) in the same
    quarter of 2011.

--  Videotron's revenue generating units up 59,400 in fourth quarter 2012,
    also the largest increase among Canadian cable operators.

--  On November 13, 2012, Sun Media Corporation announced new restructuring
    initiatives designed to streamline its organizational structure to
    support better execution of business processes while improving cost
    effectiveness. These initiatives are expected to yield total annual
    savings exceeding $45.0 million.

"Quebecor's results for the 2012 financial year reflect the reliability of the investment strategy we have been pursuing in recent years, primarily entailing capital expenditures for mobile telephony, modernizing Videotron's network, and developing attractive new products, including illico TV new generation, which was launched in 2012," said Pierre Karl Peladeau, President and Chief Executive Officer of Quebecor. "Despite continuing strong competition in most of its lines of business, the Corporation ended 2012 with a revenue increase of 3.5% compared with 2011, and an operating income increase of 4.6%. The Telecommunications segment continued to be a powerful driver of growth."

"Videotron had a solid year in 2012," said Robert Depatie, President and Chief Executive Officer of Videotron. "Revenues were up for all of our main services, generating overall revenue growth of 8.4% in the segment. Operating income grew by $126.2 million, an 11.5% increase over the previous year. Videotron recorded a net increase of 221,800 revenue generating units and an $8.29 or 8.0% increase in average monthly revenue per user, compared with 2011. Subscriber additions to the mobile network launched in September 2010, which totalled 154,500 in 2011 and 112,000 in 2012, contributed to the customer growth and the increase in profitability. Meanwhile, the cable Internet access and cable telephony services added 55,200 and 59,600 customers respectively in 2012, and the illico TV new generation service passed the half-million subscriber mark, reflecting the success of our business strategy based on marketing bundled services and satisfying customer needs with respect to product development and service quality.

"Also, at the end of February 2013, Videotron launched illico Club Unlimited, a new subscription video on demand service that carries the largest selection of unlimited on-demand French-language titles in Canada. It is a product developed by Quebecers to meet customer needs, in keeping with Videotron's commitment to continuously improve the customer experience it provides."

"The News Media segment's results were down significantly in 2012 compared with the previous year," said Pierre Karl Peladeau. "The upheavals in the traditional print media industry, combined with a stagnant economy, negatively affected the profitability of our publications. The impact of the investments made to generate new revenue streams and the large fixed component of the segment's operating costs were also important factors. The News Media segment needs to adapt its business model and streamline its cost structure. To continue meeting this challenge, the segment launched another reorganization of its newsgathering, editorial, advertising and industrial operations in 2012, with the goal of streamlining its organizational structures and accelerating decision-making. The organizational changes are expected to yield estimated annual savings of $45.0 million."

In the Broadcasting segment, some of TVA Group Inc.'s ("TVA Group") hit shows, such as the 2012 edition of Star Academie and the new show La Voix, which has been on the air since the beginning of 2013, have posted exceptional ratings and market shares, with average audiences of 2.2 million for the weekly Star Academie galas and 2.7 million for the weekly La Voix specials, and market shares of 54.5% and 57.5% respectively, demonstrating once again the success of Quebecor's convergence strategy in creating value-added multiplatform content around high-quality television products for the benefit of all of Quebecor's media properties.

Jean-Francois Pruneau, Chief Financial Officer of Quebecor, noted that no summary of Quebecor's 2012 highlights would be complete without mentioning a major financial event: the repurchase of part of CDP Capital's interest in Quebecor Media for $1.50 billion. "This mutually advantageous transaction increased the Corporation's interest in Quebecor Media from 54.7% to 75.4%, while respecting the Corporation's fundamental financial objectives of maintaining a sufficient level of operational and financial flexibility."

For Quebecor, 2012 was therefore a year that saw solid consolidated financial results, one of the largest financial transactions in the Corporation's history, and continued restructuring and adaptation efforts in all its segments. Quebecor is thus pursuing its goals of growth, profitability, business development, and shareholder value creation.


Table 1
Quebecor financial highlights, 2008 to 2012
(in millions of Canadian dollars, except per share data)

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                            2012(1)   2011(1)   2010(1)   2009(2)   2008(2)
----------------------------------------------------------------------------

Revenues                  $ 4,351.8 $ 4,206.6 $ 4,000.1 $ 3,806.4 $ 3,759.4
Operating income            1,403.6   1,341.7   1,333.4   1,276.7   1,121.1
Income (loss) from
 continuing operations
 attributable to
 shareholders                 167.7     201.0     225.3     276.1    (195.3)
Net income attributable
 to shareholders              167.7     201.0     225.3     277.7     188.0
Adjusted income from
 continuing operations        196.1     191.5     220.6     236.3     179.4
Per basic share:
  Income (loss) from
   continuing operations
   attributable to
   shareholders                2.65      3.14      3.50      4.30     (3.04)
  Net income attributable
   to shareholders             2.65      3.14      3.50      4.32      2.92
  Adjusted income from
   continuing operations       3.10      2.99      3.42      3.68      2.79
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1)  Financial figures for 2010 to 2012 are presented in accordance with
     IFRS.

(2)  Financial figures for 2008 and 2009 are presented in accordance with
     Canadian Generally Accepted Accounting Principles.

2012/2011 financial year comparison

Revenues: $4.35 billion, an increase of $145.2 million (3.5%).


--  Revenues increased in Telecommunications ($204.4 million or 8.4% of
    segment revenues), Interactive Technologies and Communications ($24.6
    million or 20.3%) and Broadcasting ($15.6 million or 3.5%).

--  Revenues decreased in News Media ($58.4 million or -5.7%) and Leisure
    and Entertainment ($20.4 million or -6.5%).

Operating income: $1.40 billion, an increase of $61.9 million (4.6%).


--  Operating income increased in Telecommunications ($126.2 million or
    11.5% of segment operating income) and Interactive Technologies and
    Communications ($1.9 million or 24.1%).

--  Operating income decreased in News Media ($35.0 million or -23.3%),
    Leisure and Entertainment ($13.5 million or -50.8%), Broadcasting ($12.4
    million or -24.6%), and Head Office ($5.3 million). The decrease at Head
    Office mainly reflects the unfavourable variance in the fair value of
    stock options.

--  The change in the fair value of Quebecor Media stock options resulted in
    a $10.4 million unfavourable variance in the consolidated stock-based
    compensation charge in 2012 compared with 2011. The fair value of the
    options increased in 2012, whereas it decreased in 2011. The change in
    the fair value of Quebecor stock options resulted in an $11.3 million
    unfavourable variance in the Corporation's consolidated stock-based
    compensation charge in 2012.

Net income attributable to shareholders: $167.7 million ($2.65 per basic share), down $33.3 million ($0.49 per basic share) from $201.0 million ($3.14 per basic share) in 2011.


--  The decrease was mainly due to:

    --  $201.5 million charge for impairment of goodwill and intangible
        assets recorded in 2012;

    --  $88.1 million increase in amortization charge;

    --  $61.1 million unfavourable variance in loss on debt refinancing;

    --  $11.7 million increase in financial expenses.

        Partially offset by:


    --  $142.9 million favourable variance in gain on valuation and
        translation of financial instruments;

    --  $61.9 million increase in operating income.

Adjusted income from continuing operations: $196.1 million in 2012 ($3.10 per basic share), compared with $191.5 million ($2.99 per basic share) in 2011, an increase of $4.6 million ($0.11 per basic share).

2012/2011 fourth quarter comparison

The fourth quarter of the 2011 financial year contained an additional week in the News Media, Broadcasting, Leisure and Entertainment, and Interactive Technologies and Communications segments.

Revenues: $1.14 billion, a decrease of $5.6 million (-0.5%).


--  Revenues decreased in News Media ($31.1 million or -11.3% of segment
    revenues), Leisure and Entertainment ($16.7 million or -15.7%) and
    Broadcasting ($2.7 million or -2.1%).

--  Revenues increased in Telecommunications ($43.5 million or 6.9%).

Operating income: $370.8 million, an increase of $1.6 million (0.4%).


--  Operating income increased in Telecommunications ($15.7 million or 5.3%
    of segment operating income) and Interactive Technologies and
    Communications ($0.9 million or 36.0%).

--  Operating income decreased in News Media ($8.4 million or -17.9%),
    Broadcasting ($3.4 million or -16.5%), and Leisure and Entertainment
    ($2.6 million or -34.2%).

--  The change in the fair value of Quebecor Media stock options resulted in
    a $3.1 million unfavourable variance in the consolidated stock-based
    compensation charge in the fourth quarter of 2012 compared with the same
    period of 2011. The change in the fair value of Quebecor stock options
    resulted in a $3.7 million unfavourable variance in the Corporation's
    consolidated stock-based compensation charge in the fourth quarter of
    2012.

Net income attributable to shareholders: $9.2 million ($0.15 per basic share) compared with $85.4 million ($1.34 per basic share) in the fourth quarter of 2011, a decrease of $76.2 million ($1.19 per basic share).


--  The unfavourable variance was due primarily to:

    --  $126.5 million unfavourable variance in gains and losses on
        valuation and translation of financial instruments;

    --  recognition of a $60.4 million loss on debt refinancing;

    --  $29.2 million increase in amortization charge;

    --  $17.7 million increase in financial expenses.

        Partially offset by:


    --  $10.6 million decrease in charge for restructuring of operations,
        impairment of assets and other special items.

Adjusted income from continuing operations: $56.0 million in the fourth quarter of 2012 ($0.89 per basic share) compared with $55.6 million ($0.87 per basic share) in the same quarter of 2011, an increase of $0.4 million ($0.02 per basic share).

Financing

A number of financial transactions were carried out during 2012.


--  On December 17, 2012, Quebecor Media prepaid the balance outstanding
    under its term loan "B" credit facility for a cash consideration of
    $153.9 million.

--  On October 11, 2012, the Corporation increased its interest in Quebecor
    Media further to the closing of the following transactions:

    --  Quebecor Media repurchased 20,351,307 of its common shares held by
        CDP Capital for an aggregate purchase price of $1.0 billion, paid in
        cash. All the repurchased shares were cancelled;

    --  Quebecor purchased 10,175,653 common shares of Quebecor Media held
        by CDP Capital. To evidence the obligation of the Corporation to pay
        the purchase price of such shares, the Corporation issued to CDP
        Capital $500.0 million aggregate principal amount of subordinated
        debentures, bearing interest at 4.125% and maturing in 2018, which
        are convertible into Class B Subordinate Voting Shares ("Class B
        shares") of Quebecor.

--  Further to the completion of these transactions, Quebecor's interest in
    Quebecor Media increased from 54.7% to 75.4% and CDP Capital's interest
    decreased from 45.3% to 24.6%.

--  To carry out the repurchase of 20,351,307 of its common shares for an
    aggregate purchase price of $1.0 billion, Quebecor Media was able to
    take advantage of favourable conditions on the debt markets. The
    following financial operations were carried out by Quebecor Media as
    part of this major transaction:

    --  Issuance, on October 11, 2012, of US$850.0 million aggregate
        principal amount of Senior Notes bearing interest at 5.75% and
        maturing in 2023, and $500.0 million aggregate principal amount of
        Senior Notes bearing interest at 6.625% and maturing in 2023, the
        latter being one of the largest single-tranche high-yield offerings
        ever completed in Canada;

    --  Quebecor Media increased the size of the offering as a result of
        oversubscription and favourable financing terms, which provided an
        opportunity to extend the maturities of its credit instruments by
        redeeming, in November 2012, US$320.0 million in aggregate principal
        amount of its 7.75% Senior Notes issued in 2007 and maturing in
        2016.

--  In March 2012, Videotron issued US$800.0 million aggregate principal
    amount of 5.0% Senior Notes maturing in 2022.

--  In March 2012, Videotron redeemed all of its 6.875% Senior Notes
    maturing in January 2014 in the aggregate principal amount of US$395.0
    million.

--  In March and April 2012, Quebecor Media redeemed US$260.0 million
    principal amount of its 7.75% Senior Notes maturing in March 2016 and
    settled the related hedging contracts.

--  Quebecor Media and TVA Group amended their bank credit facilities to
    extend the maturity dates to 2016 and 2017 respectively and to increase
    Quebecor Media's revolving credit facility maturing in 2016 by $200.0
    million.

--  The Corporation amended its $150.0 million revolving credit facility to
    extend the maturity from November 2014 to November 2015 and modify
    certain terms and conditions of the facility.

--  Finally, Sun Media Corporation repaid the $37.6 million balance on its
    term loan credit facility and cancelled all its credit facilities.

Dividends

On March 13, 2013, the Board of Directors of Quebecor declared a quarterly dividend of $0.05 per share on its Class A Multiple Voting Shares ("Class A shares") and Class B shares, payable on April 22, 2013 to shareholders of record at the close of business on March 28, 2013. This dividend is designated to be an eligible dividend, as provided under subsection 89(14) of the Canadian Income Tax Act and its provincial counterpart.

Normal course issuer bid

On August 9, 2012, the Corporation filed a normal course issuer bid for a maximum of 980,357 Class A shares, representing approximately 5% of the issued and outstanding Class A shares, and for a maximum of 4,351,276 Class B shares, representing approximately 10% of the public float of the Class B shares as of July 31, 2012. Purchases can be made from August 13, 2012 to August 12, 2013 at prevailing market prices, on the open market, through the facilities of the Toronto Stock Exchange. All shares purchased under the bid have been or will be cancelled.

In 2012, the Corporation purchased and cancelled 1,058,800 Class B shares for a total cash consideration of $38.3 million (928,100 Class B shares for a total cash consideration of $30.2 million in 2011). The excess of $30.3 million of the purchase price over the carrying value of Class B shares repurchased was recorded in reduction of retained earnings in 2012 ($23.1 million in 2011).

Detailed financial information

For a detailed analysis of Quebecor's fourth quarter and full-year 2012 results, please refer to the Management Discussion and Analysis and consolidated financial statements of Quebecor, available on the Corporation's website at: www.quebecor.com/en/quarterly_doc_quebecor_inc or from the SEDAR filing service at www.sedar.com.

Conference call for investors and webcast

Quebecor will hold a conference call to discuss Quebecor's fourth quarter and full-year 2012 results on March 14, 2013, at 11:00 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 1 877 293-8052, access code for participants 58308#. A tape recording of the call will be available from March 14 to June 14, 2013 by dialling 1 877 293-8133, conference number 656419#, access code for participants 58308#. The conference call will also be broadcast live on Quebecor's website at www.quebecor.com/en/content/conference-call. It is advisable to ensure the appropriate software is installed before accessing the call. Instructions and links to free player downloads are available at the Internet address shown above.

Cautionary Statement Regarding Forward-Looking Statements

The statements in this press release that are not historical facts are forward-looking statements and are subject to significant known and unknown risks, uncertainties and assumptions that could cause the Corporation's actual results for future periods to differ materially from those set forth in the forward-looking statements. Forward-looking statements may be identified by the use of the conditional or by forward-looking terminology such as the terms "plans," "expects," "may," "anticipates," "intends," "estimates," "projects," "seeks," "believes," or similar terms, variations of such terms or the negative of such terms. Certain factors that may cause actual results to differ from current expectations include seasonality (including seasonal fluctuations in customer orders), operating risk (including fluctuations in demand for Quebecor's products and pricing actions by competitors), insurance risk, risks associated with capital investment (including risks related to technological development and equipment availability and breakdown), environmental risks, risks associated with labour agreements, risks associated with commodities and energy prices (including fluctuations in the cost and availability of raw materials), credit risk, financial risks, debt risks, risks related to interest rate fluctuations, foreign exchange risks, risks associated with government acts and regulations, risks related to changes in tax legislation, and changes in the general political and economic environment. Investors and others are cautioned that the foregoing list of factors that may affect future results is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause Quebecor's actual results to differ from current expectations, please refer to Quebecor's public filings available at www.sedar.com and www.quebecor.com including, in particular, the "Risks and Uncertainties" section of Quebecor's Management Discussion and Analysis for the year ended December 31, 2012.

The forward-looking statements in this press release reflect Quebecor's expectations as of March 14, 2013, and are subject to change after that date. Quebecor 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.

The Corporation

Quebecor Inc. (TSX: QBR.A)(TSX: QBR.B) is a holding company with a 75.4% interest in Quebecor Media Inc., one of Canada's largest media groups, with more than 16,000 employees. Quebecor Media Inc., through its subsidiary Videotron Ltd., is an integrated communications company engaged in cable television, interactive multimedia development, Internet access services, cable telephony and mobile telephony. Through Sun Media Corporation, Quebecor Media Inc. is the largest publisher of newspapers in Canada. It also operates Canoe.ca and its network of English- and French-language Internet properties in Canada. In the broadcasting segment, Quebecor Media Inc. operates, through TVA Group Inc., the number one French-language conventional television network in Quebec, a number of specialty channels and, through Sun Media Corporation, the English-language SUN News channel. Another subsidiary of Quebecor Media Inc., Nurun Inc., is a major interactive technologies and communications agency with offices in Canada, the United States, Europe and Asia. Quebecor Media Inc. is also active in magazine publishing (Publications TVA Inc.), book publishing and distribution (Sogides Group Inc., CEC Publishing Inc.), the production, distribution and retailing of cultural products (Archambault Group Inc., TVA Films), video game development (BlooBuzz Studios, L.P.), DVD, Blu-ray disc and videogame rental and retailing (Le SuperClub Videotron ltee), the printing and distribution of community newspapers and flyers (Quebecor Media Printing Inc., Quebecor Media Network Inc.), outdoor advertising (Quebecor Media Out of Home), news content production and distribution (QMI Agency), and multiplatform advertising solutions (QMI Sales).

DEFINITIONS

Operating income

In its analysis of operating results, the Corporation defines operating income, as reconciled to net income under IFRS, as net income before amortization, financial expenses, gain (loss) on valuation and translation of financial instruments, charge for restructuring of operations, impairment of assets and other special items, charge for impairment of goodwill and of intangible assets, loss on debt refinancing, and income tax. Operating income as defined above is not a measure of results that is consistent with IFRS. It is not intended to be regarded as an alternative to other financial operating performance measures or to the statement of cash flows as a measure of liquidity. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Corporation uses operating income in order to assess the performance of its investment in Quebecor Media. The Corporation's management and Board of Directors use this measure in evaluating its consolidated results as well as the results of the Corporation's operating segments. This measure eliminates the significant level of impairment and amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of the Corporation and its segments. Operating income is also relevant because it is a significant component of the Corporation's annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the periodic costs of tangible and intangible assets used in generating revenues in the Corporation's segments. The Corporation also uses other measures that do reflect such costs, such as cash flows from segment operations and free cash flows from continuing operating activities. In addition, measures like operating income are commonly used by the investment community to analyze and compare the performance of companies in the industries in which the Corporation is engaged. The Corporation's definition of operating income may not be the same as similarly titled measures reported by other companies.

Table 2 below provides a reconciliation of operating income with net income as disclosed in Quebecor's consolidated financial statements. The consolidated financial information for the three-month periods ended December 31, 2012 and 2011 presented in Table 2 is drawn from the unaudited consolidated statements of income.


Table 2
Reconciliation of the operating income measure used in this press release to
the net income measure used in the consolidated financial statements
(in millions of Canadian dollars)

                                            Year ended   Three months ended
                                            December 31         December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                             2012       2011       2010      2012      2011
----------------------------------------------------------------------------

Operating (loss)
 income:
  Telecommunications    $ 1,225.0  $ 1,098.8  $ 1,047.3  $  310.4  $  294.7
  News Media                115.1      150.1      191.4      38.6      47.0
  Broadcasting               38.1       50.5       74.9      17.2      20.6
  Leisure and
   Entertainment             13.1       26.6       27.6       5.0       7.6
  Interactive
   Technologies and
   Communications             9.8        7.9        6.0       3.4       2.5
  Head Office                 2.5        7.8      (13.8)     (3.8)     (3.2)
----------------------------------------------------------------------------
                          1,403.6    1,341.7    1,333.4     370.8     369.2
Amortization               (600.3)    (512.2)    (399.2)   (167.4)   (138.2)
Financial expenses         (334.6)    (322.9)    (322.6)    (95.4)    (77.7)
Gain (loss) on
 valuation and
 translation of
 financial instruments      197.5       54.6       46.1     (44.0)     82.5
Restructuring of
 operations, impairment
 of assets and other
 special items              (29.4)     (30.2)     (37.1)     (0.6)    (11.2)
Impairment of goodwill
 and intangible assets     (201.5)         -          -         -         -
Loss on debt
 refinancing                (67.7)      (6.6)     (12.3)    (60.4)        -
Income taxes               (100.1)    (141.4)    (151.7)      6.3     (60.2)
----------------------------------------------------------------------------
Net income              $   267.5  $   383.0  $   456.6  $    9.3  $  164.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Adjusted Income from Continuing Operating Activities

The Corporation defines adjusted income from continuing operations, as reconciled to net income attributable to shareholders under IFRS, as net income attributable to shareholders before gain (loss) on valuation and translation of financial instruments, charge for restructuring of operations, impairment of assets and other special items, charge for impairment of goodwill and of intangible assets, and loss on debt refinancing, net of income tax related to adjustments and net income attributable to non-controlling interests related to adjustments. Adjusted income from continuing operations, as defined above, is not a measure of results that is consistent with IFRS. It should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. The Corporation's definition of adjusted income from continuing operating activities may not be identical to similarly titled measures reported by other companies.

Table 3 provides a reconciliation of adjusted income from continuing operations to the net income attributable to shareholders measure used in Quebecor's consolidated financial statements.


Table 3
Reconciliation of the adjusted income from continuing operations measure
used in this press release to the net income attributable to shareholders
measure used in the consolidated financial statements
(in millions of Canadian dollars)

                                            Year ended   Three months ended
                                            December 31         December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               2012      2011      2010      2012      2011
----------------------------------------------------------------------------

Adjusted income from
 continuing operations     $  196.1  $  191.5  $  220.6  $   56.0  $   55.6
Gain (loss) on valuation
 and translation of
 financial instruments        197.5      54.6      46.1     (44.0)     82.5
Restructuring of
 operations, impairment of
 assets and other special
 items                        (29.4)    (30.2)    (37.1)     (0.6)    (11.2)
Impairment of goodwill and
 intangible assets           (201.5)        -         -         -         -
Loss on debt refinancing      (67.7)     (6.6)    (12.3)    (60.4)        -
Income taxes related to
 adjustments(1)                24.3      (3.8)      7.9      31.1     (17.5)
Net income (loss)
 attributable to non-
 controlling interests
 related to adjustments        48.4      (4.5)      0.1      27.1     (24.0)
----------------------------------------------------------------------------
Net income attributable to
 shareholders              $  167.7  $  201.0  $  225.3  $    9.2  $   85.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1)  Includes impact of fluctuations in income tax applicable to adjusted
     items, either for statutory reasons or in connection with tax
     transactions.

Average Monthly Revenue per User

ARPU is an industry metric that the Corporation uses to measure its monthly cable television, Internet access, cable and mobile telephony revenues per average basic cable customer. ARPU is not a measurement that is consistent with IFRS and the Corporation's definition and calculation of ARPU may not be the same as identically titled measurements reported by other companies. The Corporation calculates ARPU by dividing its combined cable television, Internet access, and cable and mobile telephony revenues by the average number of basic customers during the applicable period, and then dividing the resulting amount by the number of months in the applicable period.


QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME

(in millions of Canadian
 dollars, except for earnings
 per share data)                 Three months ended     Twelve months ended
(unaudited)                             December 31             December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2012        2011        2012        2011
----------------------------------------------------------------------------


Revenues                    $   1,142.3 $   1,147.9 $   4,351.8 $   4,206.6

Employee costs                    267.6       273.7     1,060.6     1,005.6
Purchase of goods and
 services                         503.9       505.0     1,887.6     1,859.3
Amortization                      167.4       138.2       600.3       512.2
Financial expenses                 95.4        77.7       334.6       322.9
Loss (gain) on valuation and
 translation of financial
 instruments                       44.0       (82.5)     (197.5)      (54.6)
Restructuring of operations,
 impairment of assets and
 other special items                0.6        11.2        29.4        30.2
Impairment of goodwill and
 intangible assets                    -           -       201.5           -
Loss on debt refinancing           60.4           -        67.7         6.6
                            ------------------------------------------------
Income before income taxes          3.0       224.6       367.6       524.4

Income taxes:
  Current                          20.8       (12.8)       57.0       (17.7)
  Deferred                        (27.1)       73.0        43.1       159.1
                            ------------------------------------------------
                                   (6.3)       60.2       100.1       141.4
                            ------------------------------------------------
Net income                  $       9.3 $     164.4 $     267.5 $     383.0
                            ------------------------------------------------
                            ------------------------------------------------

Net income attributable to
  Shareholders              $       9.2 $      85.4 $     167.7 $     201.0
  Non-controlling interests         0.1        79.0        99.8       182.0
                            ------------------------------------------------
                            ------------------------------------------------

Earnings per share
 attributable to
 shareholders
  Basic                     $      0.15 $      1.34 $      2.65 $      3.14
  Diluted                          0.15        1.34        2.56        3.11
                            ------------------------------------------------
                            ------------------------------------------------
Weighted average number of
 shares outstanding (in
 millions)                         62.7        63.5        63.2        64.0
Weighted average number of
 diluted shares (in
 millions)                         74.3        63.8        66.1        64.4
                            ------------------------------------------------
                            ------------------------------------------------



QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions of Canadian
 dollars)                        Three months ended     Twelve months ended
(unaudited)                             December 31             December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                   2012        2011        2012        2011
----------------------------------------------------------------------------


Net income                  $       9.3 $     164.4 $     267.5 $     383.0

Other comprehensive loss:
  Gain (loss) on translation
   of net investments in
   foreign operations               2.3           -        (1.4)        1.6
  Cash flow hedges:
    Gain (loss) on valuation
     of derivative financial
     instruments                    1.9       (22.9)       33.1        (9.5)
    Deferred income taxes           1.5         5.1         2.9        (2.0)
  Defined benefit plans:
    Acturial loss and net
     change in asset limit
     and in minimum funding
     liability                    (36.8)      (89.7)      (36.8)      (90.0)

    Deferred income taxes           9.8        23.6         9.8        23.7
  Reclassification to
   income:
    Other comprehensive
     (gain) loss related to
     cash flow hedges             (12.0)          -       (15.3)        0.8
    Deferred income taxes           1.7           -         0.5        (0.2)
                            ------------------------------------------------
                                  (31.6)      (83.9)       (7.2)      (75.6)
                            ------------------------------------------------
                            ------------------------------------------------
Comprehensive (loss) income $     (22.3)$      80.5 $     260.3 $     307.4
                            ------------------------------------------------
                            ------------------------------------------------
Conprehensive (loss) income
 attributable to
  Shareholders              $     (12.0)$      44.1 $     159.9 $     164.4
  Non-controlling interests       (10.3)       36.4       100.4       143.0
                            ------------------------------------------------
                            ------------------------------------------------



QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION

(in millions of Canadian dollars)
(unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                          Three months ended
                                                           December 31, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
                          --------------------------------------------------

Revenues                   $       678.3 $     244.5 $     128.9 $      89.5

Employee costs                      96.6        79.1        38.0        14.6
Purchase of goods and
 services                          271.3       126.8        73.7        69.9
----------------------------------------------------------------------------
Operating income(1)                310.4        38.6        17.2         5.0

Amortization
Financial expenses
Loss on valuation and
 translation of financial
 instruments
Restructuring of
 operations, impairment of
 assets and other special
 items
Loss on debt refinancing
----------------------------------------------------------------------------
Income before income taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Additions to property,
 plant and equipment      $        150.1 $       1.0 $       4.2 $       2.7

Additions to intangible
 assets                             32.7         2.7         1.1         0.3
----------------------------------------------------------------------------
----------------------------------------------------------------------------






QUEBECOR INC. AND ITS SUBSIDIARIES
SEGMENTED INFORMATION

(in millions of Canadian dollars)
(unaudited)
-------------------------------------------------------------------
-------------------------------------------------------------------

                                                 Three months ended
                                                  December 31, 2012
-------------------------------------------------------------------
-------------------------------------------------------------------
                             Interactive
                                 Techno-          Head
                              logies and        office
                                Communi-    and Inter-
                                 cations      segments        Total
                          -----------------------------------------

Revenues                   $        35.8 $       (34.7) $   1,142.3

Employee costs                      20.5          18.8        267.6
Purchase of goods and
 services                           11.9         (49.7)       503.9
-------------------------------------------------------------------
Operating income(1)                  3.4          (3.8)       370.8

Amortization                                                  167.4
Financial expenses                                             95.4
Loss on valuation and
 translation of financial
 instruments                                                   44.0
Restructuring of
 operations, impairment of
 assets and other special
 items                                                          0.6
Loss on debt refinancing                                       60.4
-------------------------------------------------------------------
Income before income taxes                              $       3.0
-------------------------------------------------------------------
-------------------------------------------------------------------


Additions to property,
 plant and equipment       $         1.2 $        (0.2) $     159.0

Additions to intangible
 assets                                -          (0.8)        36.0
-------------------------------------------------------------------
-------------------------------------------------------------------




                                                          Three months ended
                                                           December 31, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------

Revenues                   $       634.8 $     275.6 $     131.6 $     106.2

Employee costs                      87.1        93.9        39.1        15.9
Purchase of goods and
 services                          253.0       134.7        71.9        82.7
----------------------------------------------------------------------------
Operating income(1)                294.7        47.0        20.6         7.6

Amortization
Financial expenses
Gain on valuation and
 translation of financial
 instruments
Restructuring of
 operations, impairment of
 assets and other special
 items
----------------------------------------------------------------------------
Income before income taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Additions to property,
 plant and equipment       $       193.5 $       2.4 $       8.0 $       2.3

Additions to intangible
 assets                             23.8         2.7         2.4         0.2
----------------------------------------------------------------------------
----------------------------------------------------------------------------




                                                  Three months ended
                                                   December 31, 2011
---------------------------------------------------------------------
---------------------------------------------------------------------
                             Interactive
                                 Techno-           Head
                              logies and         office
                                Communi-     and Inter-
                                 cations       segments        Total
---------------------------------------------------------------------

Revenues                   $        36.0 $        (36.3) $   1,147.9

Employee costs                      23.4           14.3        273.7
Purchase of goods and
 services                           10.1          (47.4)       505.0
---------------------------------------------------------------------
Operating income(1)                  2.5           (3.2)       369.2

Amortization                                                   138.2
Financial expenses                                              77.7
Gain on valuation and
 translation of financial
 instruments                                                   (82.5)
Restructuring of
 operations, impairment of
 assets and other special
 items                                                          11.2
---------------------------------------------------------------------
Income before income taxes                               $     224.6
---------------------------------------------------------------------
---------------------------------------------------------------------


Additions to property,
 plant and equipment       $         0.6 $          0.1  $     206.9

Additions to intangible
 assets                                -              -         29.1
---------------------------------------------------------------------
---------------------------------------------------------------------




----------------------------------------------------------------------------

                                                         Twelve months ended
                                                           December 31, 2012
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------

Revenues                   $     2,635.1 $     960.0 $     461.1 $     292.5

Employee costs                     365.1       345.3       152.3        55.3
Purchase of goods and
 services                        1,045.0       499.6       270.7       224.1
----------------------------------------------------------------------------
Operating income(1)              1,225.0       115.1        38.1        13.1

Amortization
Financial expenses
Gain on valuation and
 translation of financial
 instruments
Restructuring of
 operations, impairment of
 assets and other special
 items
Impairment of goodwill and
 intangible assets
Loss on debt refinancing
----------------------------------------------------------------------------
Income before income taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Additions to property,
 plant and equipment       $       669.6 $       6.5 $      22.1 $       6.3

Additions to intangible
 assets                             78.3        11.9         3.3         3.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------



---------------------------------------------------------------------

                                                 Twelve months ended
                                                   December 31, 2012
---------------------------------------------------------------------
---------------------------------------------------------------------
                             Interactive
                                 Techno-           Head
                              logies and         office
                                Communi-     and Inter-
                                 cations       segments        Total
---------------------------------------------------------------------

Revenues                   $       145.5 $       (142.4) $   4,351.8

Employee costs                      89.3           53.3      1,060.6
Purchase of goods and
 services                           46.4         (198.2)     1,887.6
---------------------------------------------------------------------
Operating income(1)                  9.8            2.5      1,403.6

Amortization                                                   600.3
Financial expenses                                             334.6
Gain on valuation and
 translation of financial
 instruments                                                  (197.5)
Restructuring of
 operations, impairment of
 assets and other special
 items                                                          29.4
Impairment of goodwill and
 intangible assets                                             201.5
Loss on debt refinancing                                        67.7
---------------------------------------------------------------------
Income before income taxes                               $     367.6
---------------------------------------------------------------------
---------------------------------------------------------------------


Additions to property,
 plant and equipment       $         4.2 $          1.9  $     710.6

Additions to intangible
 assets                                -           (2.2)        94.9
---------------------------------------------------------------------
---------------------------------------------------------------------




                                                         Twelve months ended
                                                           December 31, 2011
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                     Leisure
                                                                         and
                              Telecommu-        News      Broad-      Enter-
                               nications       Media     casting    tainment
----------------------------------------------------------------------------

Revenues                   $     2,430.7 $   1,018.4 $     445.5 $     312.9

Employee costs                     326.7       363.6       142.7        54.0
Purchase of goods and
 services                        1,005.2       504.7       252.3       232.3
----------------------------------------------------------------------------
Operating income(1)              1,098.8       150.1        50.5        26.6

Amortization
Financial expenses
Gain on valuation and
 translation of financial
 instruments
Restructuring of
 operations, impairment of
 assets and other special
 items
Loss on debt refinancing
----------------------------------------------------------------------------
Income before income taxes
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Additions to property,
 plant and equipment      $        725.3 $      13.7 $      30.5 $       6.3

Additions to intangible
 assets                             73.2        10.8         5.8         1.8
----------------------------------------------------------------------------
----------------------------------------------------------------------------




                                                Twelve months ended
                                                  December 31, 2011
--------------------------------------------------------------------
--------------------------------------------------------------------
                            Interactive
                                Techno-           Head
                             logies and         office
                               Communi-     and Inter-
                                cations       segments        Total
--------------------------------------------------------------------

Revenues                   $      120.9 $       (121.8) $   4,206.6

Employee costs                     78.7           39.9      1,005.6
Purchase of goods and
 services                          34.3         (169.5)     1,859.3
--------------------------------------------------------------------
Operating income(1)                 7.9            7.8      1,341.7

Amortization                                                  512.2
Financial expenses                                            322.9
Gain on valuation and
 translation of financial
 instruments                                                  (54.6)
Restructuring of
 operations, impairment of
 assets and other special
 items                                                         30.2
Loss on debt refinancing                                        6.6
--------------------------------------------------------------------
Income before income taxes                              $     524.4
--------------------------------------------------------------------
--------------------------------------------------------------------


Additions to property,
 plant and equipment       $        4.3 $          0.9  $     781.0

Additions to intangible
 assets                               -              -         91.6
--------------------------------------------------------------------
--------------------------------------------------------------------

(1)The Chief Executive Officer uses operating income as the measure of profit to assess the performance of each segment. Operating income is referred as a non-IFRS measure and is defined as net income before amortization, financial expenses, gain on valuation and translation of financial instruments, restructuring of operations, impairment of assets and other special items, impairment of goodwill and intangible assets, loss on debt refinancing and income taxes.

QUEBECOR INC. AND ITS SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in millions of Canadian dollars) (unaudited)



                                        Equity attributable to shareholders
              --------------------------------------------------------------
                                           Equity
                                        component               Accumulated
                                               of                other com-
               Capital  Contributed   convertible    Retained    prehensive
                 stock      surplus    debentures    earnings        income
----------------------------------------------------------------------------

Balance as of
 December 31,
 2010         $  346.6 $        0.9  $          - $     943.6  $       13.7
Net income           -            -             -       201.0             -
Other
 comprehensive
 loss                -            -             -       (31.5)         (5.1)
Issuance of
 shares of a
 subsidiary          -            -             -           -             -
Repurchase of
 Class B
 shares           (7.1)           -             -       (23.1)            -
Dividends            -            -             -       (12.8)            -
----------------------------------------------------------------------------
Balance as of
 December 31,
 2011            339.5          0.9             -     1,077.2           8.6
Net income           -            -             -       167.7             -
Other
 comprehensive
 (loss) income       -            -             -       (17.8)         10.0
Issuance of
 Class B
 shares            3.6          1.5             -           -             -
Repurchase of
 Class B
 shares           (8.0)           -             -       (30.3)            -
Acquisition of
 non-
 controlling
 interests           -         (0.1)            -      (635.0)          8.3
Issuance of
 convertible
 debentures          -            -         398.3           -             -
Dividends            -            -             -       (12.6)            -
----------------------------------------------------------------------------
Balance as of
 December 31,
 2012         $  335.1 $        2.3  $      398.3 $     549.2  $       26.9
----------------------------------------------------------------------------
----------------------------------------------------------------------------



              -------------------------------
                         Equity
                   attributable
                        to non-
                    controlling        Total
                      interests       equity
---------------------------------------------

Balance as of
 December 31,
 2010          $        1,346.9  $   2,651.7
Net income                182.0        383.0
Other
 comprehensive
 loss                     (39.0)       (75.6)
Issuance of
 shares of a
 subsidiary                 1.0          1.0
Repurchase of
 Class B
 shares                       -        (30.2)
Dividends                 (46.5)       (59.3)
---------------------------------------------
Balance as of
 December 31,
 2011                   1,444.4      2,870.6
Net income                 99.8        267.5
Other
 comprehensive
 (loss) income              0.6         (7.2)
Issuance of
 Class B
 shares                       -          5.1
Repurchase of
 Class B
 shares                       -        (38.3)
Acquisition of
 non-
 controlling
 interests               (873.2)    (1,500.0)
Issuance of
 convertible
 debentures                   -        398.3
Dividends                 (40.6)       (53.2)
---------------------------------------------
Balance as of
 December 31,
 2012          $          631.0  $   1,942.8
---------------------------------------------
---------------------------------------------


QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions of Canadian
 dollars)                      Three months ended       Twelve months ended
(unaudited)                           December 31               December 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                2012         2011         2012         2011
----------------------------------------------------------------------------

Cash flows related to
 operating activities
  Net income             $       9.3  $     164.4  $     267.5  $     383.0
  Adjustments for:
    Amortization of
     property, plant and
     equipment                 128.5        105.9        459.7        391.3
    Amortization of
     intangible assets          38.9         32.3        140.6        120.9
    Loss (gain) on
     valuation and
     translation of
     financial
     instruments                44.0        (82.5)      (197.5)       (54.6)
    Gain on disposal of
     assets and
     businesses                    -            -        (12.9)           -
    Impairment of assets           -            -          7.5          1.5
    Impairment of
     goodwill and
     intangible assets             -            -        201.5            -
    Loss on debt
     refinancing                60.4            -         67.7          6.6
    Amortization of
     financing costs and
     long-term debt
     discount                    3.6          3.6         14.5         12.8
    Deferred income taxes      (27.1)        73.0         43.1        159.1
    Other                        4.5         (3.0)         5.6         (2.1)
                         ---------------------------------------------------
                               262.1        293.7        997.3      1,018.5
  Net change in non-cash
   balances related to
   operating activities         16.5       (117.6)       125.3       (152.2)
                         ---------------------------------------------------
Cash flows provided by
 operating activities          278.6        176.1      1,122.6        866.3
                         ---------------------------------------------------
Cash flows related to
 investing activities
  Non-controlling
   interests acquisition    (1,000.0)           -     (1,000.0)           -
  Business acquisitions         (1.2)           -         (2.0)       (55.7)
  Business disposals               -            -         18.7            -
  Additions to property,
   plant and equipment        (159.0)      (206.9)      (710.6)      (781.0)
  Additions to intangible
   assets                      (36.0)       (29.1)       (94.9)       (91.6)
  Proceeds from disposals
   of assets                     2.3          4.5          8.4         12.0
  Other                         (0.9)           -         (1.5)         3.2
                         ---------------------------------------------------
Cash flows used in
 investing activities       (1,194.8)      (231.5)    (1,781.9)      (913.1)
                         ---------------------------------------------------
Cash flows related to
 financing activities
  Net change in bank
   indebtedness                 (0.2)        (0.5)        (2.9)        (1.5)
  Net change under
   revolving facilities        (11.2)         6.7        (23.6)         2.7
  Issuance of long-term
   debt, net of financing
   fees                      1,314.2         71.0      2,136.7        685.8
  Repayments of long-term
   debt                       (487.5)        (6.8)    (1,236.8)      (487.9)
  Settlement of hedging
   contracts                    (3.1)           -        (43.6)      (160.2)
  Issuance of Class B
   shares                          -            -          3.6            -
  Repurchase of Class B
   shares                      (12.5)        (6.2)       (38.3)       (30.2)
  Dividends                     (3.1)        (3.2)       (12.6)       (12.8)
  Dividends paid to non-
   controlling
   shareholders                 (6.5)       (11.3)       (40.6)       (46.5)
  Other                         (0.3)        (0.1)        (0.3)         1.0
                         ---------------------------------------------------
Cash flows provided by
 (used in) financing
 activities                    789.8         49.6        741.6        (49.6)
                         ---------------------------------------------------
Net change in cash and
 cash equivalents             (126.4)        (5.8)        82.3        (96.4)

Effect of exchange rate
 changes on cash and cash
 equivalents denominated
 in foreign currencies           0.5         (0.2)           -          0.1
Cash and cash equivalents
 at beginning of period        354.6        152.4        146.4        242.7
                         ---------------------------------------------------
Cash and cash equivalents
 at end of period        $     228.7  $     146.4  $     228.7  $     146.4
                         ---------------------------------------------------
                         ---------------------------------------------------

Cash and cash equivalents
 consist of
  Cash                   $      76.0  $      29.9  $      76.0  $      29.9
  Cash equivalents             152.7        116.5        152.7        116.5
                         ---------------------------------------------------
                         $     228.7  $     146.4  $     228.7  $     146.4
                         ---------------------------------------------------
                         ---------------------------------------------------

Interest and taxes
 reflected as operating
 activities
  Cash interest payments $     137.3  $     134.4  $     305.6  $     320.5
  Cash income tax
   payments (net of
   refunds)                      0.6          0.4          6.6         30.7
                         ---------------------------------------------------
                         ---------------------------------------------------



QUEBECOR INC. AND ITS SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(in millions of Canadian dollars)
(unaudited)                                          December 31 December 31
----------------------------------------------------------------------------
                                                            2012        2011
----------------------------------------------------------------------------

Assets

Current assets
  Cash and cash equivalents                        $       228.7 $     146.4
  Accounts receivable                                      578.7       603.7
  Income taxes                                              10.6        29.0
  Inventories                                              255.5       283.6
  Prepaid expenses                                          38.0        31.3
                                                   -------------------------
                                                         1,111.5     1,094.0
Non-current assets
  Property, plant and equipment                          3,405.8     3,211.1
  Intangible assets                                        956.7     1,041.0
  Goodwill                                               3,371.6     3,543.8
  Derivative financial instruments                          35.7        34.9
  Deferred income taxes                                     23.9        20.6
  Other assets                                             102.6        93.4
                                                   -------------------------
                                                         7,896.3     7,944.8
                                                   -------------------------
Total assets                                       $     9,007.8 $   9,038.8
                                                   -------------------------
                                                   -------------------------
Liabilities and equity

Current liabilities
  Bank indebtedness                                $         1.3 $       4.2
  Accounts payable and accrued charges                     804.5       776.5
  Provisions                                                45.9        33.7
  Deferred revenue                                         289.0       295.7
  Income taxes                                              33.9         2.7
  Derivative financial instruments                          28.5           -
  Current portion of long-term debt                         22.2       114.5
                                                   -------------------------
                                                         1,225.3     1,227.3
Non-current liabilities
  Long-term debt                                         4,507.8     3,688.3
  Derivative financial instruments                         270.1       315.4
  Other liabilities                                        467.1       344.7
  Deferred income taxes                                    594.7       592.5
                                                   -------------------------
                                                         5,839.7     4,940.9
Equity
  Capital stock                                            335.1       339.5
  Contributed surplus                                        2.3         0.9
  Equity component of convertible debentures               398.3           -
  Retained earnings                                        549.2     1,077.2
  Accumulated other comprehensive income                    26.9         8.6
                                                   -------------------------
  Equity attributable to shareholders                    1,311.8     1,426.2
  Non-controlling interests                                631.0     1,444.4
                                                   -------------------------
                                                         1,942.8     2,870.6
                                                   -------------------------
Total liabilities and equity                       $     9,007.8 $   9,038.8
                                                   -------------------------
                                                   -------------------------

7

Contacts:
Jean-Francois Pruneau
Chief Financial Officer
Quebecor Inc. and Quebecor Media Inc.
jean-francois.pruneau@quebecor.com
514 380-4144

Martin Tremblay
Vice President, Public Affairs
Quebecor Media Inc.
martin.tremblay@quebecor.com
514 380-1985

Source: Quebecor Inc.

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