Investment Thesis
Quebecor (QBCRF) (TSX:QBR.B) delivered solid top and bottom lines growth in Q4 2018. However, its wireless average billing per user growth fell into negative territory and its wireless subscriber adds were below management’s expectations. Despite the weak data, we are not concerned as the negative ABPU growth was due to its new customers choosing bring your own device ((BYOD)) plans. BYOD plans typically have higher margins than term contracts. In addition, the lower subscriber adds in Q4 2018 was due to some technical issues in the quarter. We believe Quebecor remains