FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF November 2024

VIDEOTRON LTD./VIDÉOTRON LTÉE

(Name of Registrant)

612 St-Jacques, Montreal, Canada, H3C 4M8

(Address of principal executive offices)

[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.]

Form 20-F x Form 40-F ¨

[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g 3-2(b) under the Securities Exchange Act of 1934.]

Yes ¨ No x

[If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g 3-2(b): 82-____________.]

MANAGEMENT DISCUSSION AND ANALYSIS

THIRD QUARTER 2024

CORPORATE PROFILE

Videotron Ltd., a wholly owned subsidiary of Quebecor Media Inc. (“Quebecor Media” or the “parent corporation”), is governed by the Business Corporations Act (Québec) and is one of Canada’s largest telecommunications corporations. Unless the context otherwise requires, “Videotron” or the “Corporation” refers to Videotron Ltd. and its subsidiaries.

The following Management Discussion and Analysis covers the Corporation’s main activities in the third quarter of 2024 and the major changes from the previous financial year. All amounts are stated in Canadian dollars (“CAN”) unless otherwise indicated. This report should be read in conjunction with the information in the Corporation’s Annual Report for the financial year ended December 31, 2023 (Form 20-F), which is available on the website of the U.S. Securities and Exchange Commission at www.sec.gov.

Videotron acquired Freedom Mobile Inc. (“Freedom”) from Shaw Communications Inc. on April 3, 2023. Videotron paid $2.07 billion in cash and assumed certain liabilities, mainly lease obligations. The acquisition included the Freedom brand’s entire wireless and Internet customer base, as well as its owned infrastructure, spectrum and retail outlets.

The Corporation uses financial measures not standardized under International Financial Reporting Standards (“IFRS”), such as adjusted EBITDA and adjusted cash flows from operations. Beginning in the third quarter of 2023, the Corporation added two financial measures not standardized under IFRS: free cash flows from operating activities and consolidated net debt leverage ratio. These two measures help to better understand and analyze the financing performance of the Corporation, as well as its financial position as at balance sheet date. Also, the Corporation used key performance indicators, such as revenue-generating unit (“RGU”) and average monthly mobile revenue per unit (“mobile ARPU”). The Corporation discontinued the use of total ARPU as of the first quarter of 2024. With the evolution of the product mix as a result of the Corporation’s geographic diversification, total ARPU is no longer meaningful. Definitions of the non-IFRS measures and key performance indicators used by the Corporation are provided in the “Non-IFRS financial measures” and “Key performance indicators” sections.

Highlights

Third quarter 2024

Revenues: $1.20 billion, a $26.9 million (-2.2%) decrease.

Adjusted EBITDA:¹ $585.9 million, a $3.6 million (-0.6%) decrease.

Net income attributable to the shareholder: $218.5 million, a $5.1 million (2.4%) increase.

Adjusted cash flows from operations:¹ $437.1 million, a $16.7 million (-3.7%) decrease.

Cash flows provided by operating activities: $539.6 million, a $61.5 million (12.9%) increase.

Year to date

Revenues: $3.57 billion, a $213.3 million (6.4%) increase due to the contribution of Freedom.

Adjusted EBITDA: $1.77 billion, a $98.2 million (5.9%) increase, mainly due to the contribution of Freedom.

Net income attributable to the shareholder: $635.9 million, a $26.8 million (4.4%) increase.

Adjusted cash flows from operations: $1.33 billion, a $30.7 million (2.4%) increase, including the contribution of the Freedom acquisition.

Cash flows provided by operating activities: $1.38 billion, a $112.3 million (8.9%) increase.

 ¹ See “Non-IFRS financial measures.”

1 

Table 1

Consolidated summary of income, cash flows and balance sheet

(in millions of Canadian dollars)

	Three months ended September 30						Nine months ended September 30
	2024			2023			2024			2023
Revenues
Mobile telephony	$	422.0		$	411.9		$	1,241.4		$	1,014.6
Internet		307.8			323.2			944.0			959.8
Television		191.8			200.8			586.9			603.4
Wireline telephony		61.4			68.9			188.9			211.2
Mobile equipment sales		177.1			159.9			456.0			374.1
Wireline equipment sales		1.1			18.9			26.3			52.8
Other		42.0			46.5			126.1			140.4
		1,203.2			1,230.1			3,569.6			3,356.3
Employee costs		(121.3	)		(123.7	)		(366.7	)		(347.2	)
Purchase of goods and services		(496.0	)		(516.9	)		(1,433.4	)		(1,337.8	)
Adjusted EBITDA		585.9			589.5			1,769.5			1,671.3
Depreciation and amortization		(219.1	)		(222.9	)		(663.5	)		(628.6	)
Financial expenses		(82.9	)		(91.0	)		(262.0	)		(243.3	)
Restructuring, acquisition costs and other		(3.4	)		(1.0	)		(11.0	)		(16.2	)
Income taxes		(62.0	)		(61.2	)		(197.1	)		(174.0	)
Net income	$	218.5		$	213.4		$	635.9		$	609.2

2 

Table 1 (continued)

	Three months ended September 30				Nine months ended September 30
	2024		2023		2024			2023
Capital expenditures	$	148.8	$	135.7	$	443.8		$	376.3
Acquisition of spectrum licences		–		–		298.9			9.9
Cash flows:
Adjusted cash flows from operations		437.1		453.8		1,325.7			1,295.0
Free cash flows from operating activities1		377.9		343.8		896.7			878.3
Cash flows provided by operating activities		539.6		478.1		1,379.1			1,266.8
						Sept. 30, 2024			Dec. 31, 2023
Balance sheet
Cash and cash equivalents					$	15.1		$	8.0
Working capital						(228.5	)		(1,142.5	)
Net assets related to derivative financial instruments						33.1			110.8
Total assets						12,142.5			10,510.7
Bank indebtedness						2.3			–
Total long-term debt (including current portion)						7,565.1			7,645.3
Lease liabilities (current and long term)						362.1			346.1
Equity attributable to the shareholder						325.6			155.6
Consolidated net debt leverage ratio1						3.38	x		3.38	x

· The Corporation’s revenues decreased by $26.9million (-2.2%) and itsadjusted EBITDA decreased slightly by $3.6million (-0.6%) in the third quarter of 2024.

· There was a net increase of 118,000 RGUs² (1.6%) in the third quarter of 2024, driven by an increase of 132,100 connections (3.4%) to the mobile telephony service and an increase of 11,800 subscriptions (0.7%) to Internet access services. The combined wireless customer base of the Videotron, Freedom Mobile and Fizz brands passed the 4,000,000-connection mark during the quarter. This significant milestone is indicative of the Corporation’s continued growth and its strengthening position as Canada’s fourth major telecommunications player.

· On September 26, 2024, Videotron announced the expansion of its wireless service area to the Gaspésie and Côte-Nord regions and the enlargement of its service area in the Bas-Saint-Laurent region. Residents of Sept-Îles, Baie-Comeau, Port-Cartier, Gaspé, Matane, Chandler, Rimouski, Amqui and Sayabec, among others, can now subscribe to Videotron wireless services.

· On September 5, 2024, Fizz announced the expansion of its footprint with the addition of new service areas in British Columbia, Alberta, Manitoba, Ontario and Québec, bringing Fizz's 100% digital universe to an additional 2.2 million Canadians.

· On August 29, 2024, Videotron announced that, according to a survey conducted by Léger between August 5 and 15, 2024, Quebecers again rated Videotron as the telecommunications company with the best customer service in 2024. Videotron was picked by almost twice as many respondents as its nearest rival, confirming its status as the leader in customer service.

Financing operations

· On November 4, 2024, Videotron announced the pricing of its US$700 millionaggregate principalamount of 5.700% SeniorNotes due January 15, 2035. The closing of the offering is expected on or about November 8, 2024. Videotron intends to use the net proceeds, together with drawings under its revolving credit facility, for repayment in full of its $700.0 million tranche A term loan due October 2025 and for the redemption in full of its $375.0 million 5.750% Senior Notes due 2026.

¹ See “Non-IFRS financial measures.”

² See “Key performance indicators.”

3 

ANALYSIS OF CONSOLIDATED RESULTS OF OPERATIONS AND CASH FLOWS

2024/2023 third quarter comparison

Revenues: $1.20 billion in the third quarter of 2024, a $26.9 million (-2.2%) decrease.

· Revenues from mobile telephony services increased $10.1 million (2.5%) to $422.0 million, mainly because of an increase in the number of subscriber connections, partially offset by lower average per-connection revenues.

· Revenues from Internet access services decreased $15.4 million (-4.8%) to $307.8 million, mainly because of a decrease in average per-subscriber revenues.

· Revenues from television services decreased $9.0 million (-4.5%) to $191.8 million, mainly because of decreases in the subscriber base and in average per-subscriber revenues.

· Revenues from wireline telephony services decreased $7.5 million (-10.9%) to $61.4 million, mainly because of decreases in the number of subscriber connections and in average per-connection revenues.

· Revenues from mobile equipment sales to customers increased $17.2 million (10.8%) to $177.1 million, mainly because of price increases, partially offset by a decrease in the number of mobile devices sold.

· Revenues from wireline equipment sales to customers decreased $17.8 million (-94.2%) to $1.1 million, essentially because of the availability of Helix equipment on a rental basis since the beginning of June 2024.

· Other revenues decreased $4.5 million (-9.7%) to $42.0 million, mainly reflecting lower revenues from over-the-top (”OTT”) video services and Videotron Business.

Mobile ARPU:¹ $35.31 in the third quarter of 2024 compared with $37.60 in the same period of 2023, a $2.29 (-6.1%) decrease, mainly attributable to higher promotional discounts, lower overage revenues and a change in the customer mix, including the dilutive effect of Freedom’s and Fizz’s prepaid services.

Customer statistics

Acquisition of Freedom

The acquisition of Freedom on April 3, 2023 was significantly accretive to growth, adding 1,844,400 RGUs, consisting of 1,824,400 subscriber connections to the mobile telephony service and 20,000 subscriptions to the Internet access service.

Analysis of current business

RGUs – The total number of RGUs was 7,724,400 at September 30, 2024, an increase of 118,000 (1.6%) in the third quarter of 2024 (compared with an increase of 61,000 in the same period of 2023), and a 12-month increase of 249,900 (3.3%) (Table 2).

Mobile telephony – The number of subscriber connections to the mobile telephony service stood at 4,050,700 at September 30, 2024, an increase of 132,100 (3.4%) in the third quarter of 2024 (compared with an increase of 88,700 in the same period of 2023), and a 12-month increase of 351,900 (9.5%) (Table 2).

Internet access – The number of subscribers to the Internet access service stood at 1,734,300 at September 30, 2024, an increase of 11,800 (0.7%) in the third quarter of 2024 (compared with an increase of 4,500 in the same period of 2023), and a 12-month increase of 13,000 (0.8%) (Table 2).

Cable television – The number of subscribers to cable television services stood at 1,311,900 at September 30, 2024, a decrease of 10,000 (-0.8%) in the third quarter of 2024 (compared with a decrease of 12,000 in the same period of 2023), and a 12-month decrease of 50,600 (-3.7%) (Table 2).

Wireline telephony – The number of subscriber connections to wireline telephony services stood at 627,500 at September 30, 2024, a decrease of 15,900 (-2.5%) in the third quarter of 2024 (compared with a decrease of 20,200 in the same period of 2023), and a 12-month decrease of 64,400 (-9.3%) (Table 2).

¹ See “Key performance indicators.”

4 

Table 2

Quarter-end RGUs for the last eight quarters

(in thousands of units)

	Sept. 2024		June 2024		Mar. 2024		Dec. 2023		Sept. 2023		June 2023		Mar. 2023		Dec. 2022
Mobile telephony		4,050.7		3,918.6		3,825.1		3,764.9		3,698.8		3,610.1		1,736.6		1,710.4
Internet access		1,734.3		1,722.5		1,721.1		1,727.6		1,721.3		1,716.8		1,691.5		1,682.7
Television		1,311.9		1,321.9		1,335.7		1,355.6		1,362.5		1,374.5		1,385.6		1,396.1
Wireline telephony		627.5		643.4		658.3		674.7		691.9		712.1		730.8		751.2
Total		7,724.4		7,606.4		7,540.2		7,522.8		7,474.5		7,413.5		5,544.5		5,540.4

Adjusted EBITDA: $585.9 million, a $3.6 million (-0.6%) decrease, mainly due to the impact of the decrease in revenues, partially offset by a decrease in operating expenses, despite the increase in the stock-based compensation charge, resulting from stringent cost control and synergies from the integration of Freedom.

Cost/revenue ratio: Employee costs and purchases of goods and services for all operations, expressed as a percentage of revenues, were 51.3% in the third quarter of 2024 compared with 52.1% in the same period of 2023.

Net income attributable to the shareholder: $218.5 million in the third quarter of 2024, compared with $213.4 million in the same period of 2023, an increase of $5.1 million.

· The favourable variances were:

o $8.1 million decrease related to financial expenses;

o $3.8 million decrease in the depreciation and amortization charge.

· The main unfavourable variances were:

o $3.6 million decrease in adjusted EBITDA;

o $2.4 million increase in the charge for restructuring, acquisition costs and other.

Adjusted cash flows from operations: $437.1 million in the third quarter of 2024 compared with $453.8 million in the same period of 2023 (Table 8). The $16.7 million (-3.7%) decrease was mainly due to a $13.1 million increase in capital expenditures, mainly reflecting higher network investments.

Cash flows provided by operating activities: $539.6 million, a $61.5 million (12.9%) increase in the third quarter of 2024 due primarily to the favourable net change in non-cash balances related to operating activities.

Depreciation and amortization charge: $219.1 million in the third quarter of 2024, a $3.8 million decrease due mainly to the slowdown in capital expenditures in recent years following the review of strategic priorities.

Financial expenses: $82.9 million in the third quarter of 2024, a $8.1 million decrease due primarily to the impact of lower average interest rates on long-term debt and lower average indebtedness.

Charge for restructuring, acquisition costs and other: $3.4 million, a $2.4 million unfavourable variance.

In the third quarter of 2024, the Corporation recorded a $0.5 million charge in connection with cost-reduction measures in various segments ($0.3 million in 2023), and a $2.9 million net charge for other items ($0.7 million in 2023), including a $1.4 million asset impairment charge ($0.3 million in 2023).

Income tax expense: $62.0 million in the third quarter of 2024 (effective tax rate of 25.7%), compared with $61.2 million in the same period of 2023 (effective tax rate of 26.2%), a $0.8 million unfavourable variance. The effective tax rates are calculated considering only taxable and deductible items.

5 

2024/2023 year-to-date comparison

Revenues: $3.57 billion in the first nine months of 2024, a $213.3 million (6.4%) increase due to the impact of the Freedom acquisition in April 2023 and the same factors as those noted above in the discussion of third quarter 2024 results.

· Revenues from mobile telephony services increased $226.8 million (22.4%) to $1.24 billion, due primarily to the contribution of Freedom.

· Revenues from Internet access services decreased $15.8 million (-1.6%) to $944.0 million.

· Revenues from television services decreased $16.5 million (-2.7%) to $586.9 million.

· Revenues from wireline telephony services decreased $22.3 million (-10.6%) to $188.9 million.

· Revenues from mobile equipment sales to customers increased $81.9 million (21.9%) to $456.0 million, mainly because of the contribution of Freedom.

· Revenues from wireline equipment sales to customers decreased $26.5 million (-50.2%) to $26.3 million.

· Other revenues decreased $14.3 million (-10.2%) to $126.1 million.

Mobile ARPU: $35.52 in the first nine months of 2024, compared with $37.92 in the same period of 2023, a $2.40 (-6.3%) decrease due primarily to the same factors as those noted above in the discussion of third quarter 2024 results.

Customer statistics

Analysis of current business

RGUs – 201,600 (2.7%) unit increase in the first nine months of 2024, compared with an increase of 89,700 in the same period of 2023.

Mobile telephony – 285,800 (7.6%) subscriber-connection increase in the first nine months of 2024, compared with an increase of 164,000 in the same period of 2023.

Internet access – 6,700 (0.4%) subscriber increase in the first nine months of 2024, compared with an increase of 18,600 in the same period of 2023.

Television – 43,700 (-3.2%) subscriber decrease in the first nine months of 2024, compared with a decrease of 33,600 in the same period of 2023.

Wireline telephony – 47,200 (-7.0%), subscriber-connection decrease in the first nine months of 2024, compared with a decrease of 59,300 in the same period of 2023.

Adjusted EBITDA: $1.77 billion, a $98.2 million (5.9%) increase, mainly due to the impact of the Freedom acquisition, as well as a decrease in operating expenses, on a same-store basis, as a result of stringent cost control, partially offset by the impact of lower revenues, on a same-store basis.

Cost/revenue ratio: Employee costs and purchases of goods and services for all operations, expressed as a percentage of revenues, were 50.4% in the first nine months of 2024, compared with 50.2% in the same period of 2023.

Net income attributable to the shareholder: $635.9 million in the first nine months of 2024, compared with $609.1 million in the same period of 2023, an increase of $26.8 million.

· The main favourable variances were:

o $98.2 million increase in adjusted EBITDA;

o $5.2 million favourable variance in the charge for restructuring, acquisition costs and other;

· The unfavourable variances were:

o $34.9 million increase in the depreciation and amortization charge;

o $23.1 million increase in the income tax expense;

o $18.7 million increase related to financial expenses;

6 

Adjusted cash flows from operations: $1.33 billion in the first nine months of 2024 compared with $1.30 billion in the same period of 2023 (Table 8). The $30.7 million (2.4%) increase was due to the $98.2 million increase in adjusted EBITDA, partially offset by a $67.5 million increase in capital expenditures, both of which were due primarily to the impact of the Freedom acquisition.

Cash flows provided by operating activities: $1.38 billion, a $112.3 million (8.9%) increase due primarily to the increase in adjusted EBITDA and the favourable net change in non-cash balances related to operating activities, partially offset by increases in current income taxes and the cash portion of financial expenses.

Depreciation and amortization charge: $663.5 million, a $34.9 million increase due primarily to the impact of the Freedom acquisition.

Financial expenses: $262.0 million, a $18.7 million increase due primarily to higher average indebtedness, including the impact of the financing of the Freedom acquisition, partially offset by the impact of lower average interest on long-term debt.

Charge for restructuring, acquisition costs and other: $11.0 million, a $5.2 million favourable variance.

For the first nine months of 2024, the Corporation recorded a $4.8 million charge in connection with cost-reduction measures in various segments ($1.4 million in 2023), acquisition costs of $0.8 million ($14.7 million in 2023, including acquisition costs related to the Freedom transaction), a $4.0 million asset impairment charge ($0.3 million in 2023), and a $1.4 million net charge on other items (net gain of $0.2 million in 2023).

Income tax expense: $197.1 million in the first nine months of 2024 (effective tax rate of 26.0%), compared with $174.0 million in the same period of 2023 (effective tax rate of 26.3%), a $23.1 million unfavourable variance caused mainly by the impact of the increase in taxable income. The effective tax rates are calculated considering only taxable and deductible items.

7 

CASH FLOWS AND FINANCIAL POSITION

This section provides an analysis of the Corporation’s sources and uses of cash flows, as well as a financial position analysis as of the balance sheet date.

Operating activities

Third quarter 2024

Cash flows provided by operating activities: $539.6 million in the third quarter of 2024 compared with $478.1 million in the same period of 2023.

The $61.5 million (12.9%) increase was primarily due to:

· $66.3 million favourable net change in non-cash balances related to operating activities, due primarily to favourable variances in accounts receivable, inventories and contract assets, partially offset by unfavourable variances in accounts payable, accrued charges and provisions;

· $8.2 million decrease in the cash portion of financial expenses.

Partially offset by:

· $6.2 million increase in current income taxes;

· $3.6 million decrease in adjusted EBITDA.

Year to date

Cash flows provided by operating activities: $1.38 billion in the first nine months of 2024 compared with $1.27 billion in the same period of 2023.

The $112.3 million (8.9%) increase was primarily due to:

· $98.2 million increase in adjusted EBITDA;

· $52.3 million favourable net change in non-cash balances related to operating activities, due primarily to favourable variances in income tax payable, accounts receivable, contract assets and inventories, partially offset by unfavourable variances in accounts payable, accrued charges and provisions;

· $7.3 million decrease in the cash portion of the charge for restructuring, acquisition costs and other.

Partially offset by:

· $26.2 million increase in current income taxes;

· $17.6 million increase in the cash portion of financial expenses.

Compared with the first nine months of 2023, cash flows provided by operating activities were favourably impacted in 2024 by the Freedom acquisition (which accounted for a large portion of the increase in the adjusted EBITDA), despite the financial expenses associated with the financing of this acquisition.

Working capital: Negative $228.5 million as at September 30, 2024, compared with negative $1.14 billion as at December 31, 2023. The favourable variance of $914.0 million was mainly due to the redemption upon maturity by Videotron of the entirety of its Senior Notes in the aggregate principal amount of US$600.0 million and the evolution of current and long-term debt maturities.

8 

Investing activities

Third quarter 2024

Cash flows used for capital expenditures: $161.7 million in the third quarter of 2024 compared with $134.3 million in the same period of 2023. The $27.4 million increase was due to a $14.3 million unfavourable net change in current non-cash items and a $13.1 million increase in capital expenditures, including increased investment in the network.

Net subsidies used to finance capital expenditures: $5.4 million in the third quarter of 2023. This amount represents the use of subsidies received under the program to roll out high-speed Internet services, recorded as a reduction of capital expenditures.

Business acquisitions: $1.8 million in the third quarter of 2023.

Year to date

Cash flows used for capital expenditures: $482.7 million in the first nine months of 2024 compared with $389.3 million in the same period of 2023. The $93.4 million increase was due to a $67.5 million increase in capital expenditures, including the impact of the Freedom acquisition, and a $25.9 million unfavourable net change in current non-cash items.

Net subsidies received to finance capital expenditures: $37.0 million in the first nine months of 2024, compared with deferred subsidies of $39.3 million used in the same period of 2023. In the first nine months of 2024, a $37.0 million subsidy was received in advance as part of the Québec government’s new initiative to improve wireless coverage in outlying regions of Québec. The amount for the first nine months of 2023 represents the use of subsidies received under the program to roll out high-speed Internet services, recorded as a reduction of capital expenditures.

Acquisitions of spectrum licences and other: $298.9 million in the first nine months of 2024 compared with $9.9 million in the same period of 2023. On May 29, 2024, Videotron acquired 305 blocks of spectrum in the 3800 MHz band across the country for a total price of $298.9 million.

Business acquisitions: $1.8 million in the first nine months of 2024 compared with $2.07 billion in the same period of 2023. The Corporation disbursed $2.07 billion to acquire Freedom in the first nine months of 2023.

Proceeds from disposal of assets: $0.3 million in the first nine months of 2024 compared with $0.8 million in the same period of 2023.

Issuance of a promissory note to the parent corporation: $836.0 million in the first nine months of 2023. On January 17, 2023, Quebecor Media issued a $836.0 million promissory note to Videotron, bearing interest at 7.000%. Drawings from the secured revolving credit facility were used to finance this promissory note.

Free cash flows from operating activities

Third quarter 2024

Free cash flows from operating activities: $377.9 million in the third quarter of 2024 compared with $343.8 million in the same period of 2023 (Table 9). The $34.1 million increase was due mainly to a $61.5 million increase in cash flows provided by operating activities, partially offset by a $27.4 million increase in cash flows used for capital expenditures.

Year to date

Free cash flows from operating activities: $896.7 million in the first nine months of 2024 compared with $878.3 million in the same period of 2023 (Table 9). The $18.4 million increase was due mainly to a $112.3 million increase in cash flows provided by operating activities, partially offset by a $93.4 million increase in cash flows used for capital expenditures.

9 

Financing activities

Consolidated debt (long-term debt plus bank indebtedness): $75.0 million decrease in the first nine months of 2024; $77.7 million net unfavourable variance in the net asset related to derivative financial instruments.

· Debt reductions in the first nine months of 2024 essentially consisted of:

o redemption upon maturity by Videotron on June 17, 2024 of the entirety of its 5.375% Senior Notes in the aggregate principal amount of US$600.0 million;

o $357.4 million decrease in total drawings on the revolving bank credit facilities of Videotron.

· Additions to debt in the first nine months of 2024 essentially consisted of:

o issuance by Videotron on June 21, 2024 of $600.0 million aggregate principal amount of Senior Notes bearing interest at 4.650% and maturing on July 15, 2029, and $400.0 million aggregate principal amount of Senior Notes bearing interest at 5.000% and maturing on July 15, 2034, for total net proceeds of $992.6 million;

o $104.1 million unfavourable impact of exchange rate fluctuations. The consolidated debt increase attributable to this item was offset by the increase in the net asset related to derivative financial instruments.

· Derivative financial instruments totalled a net asset of $33.1 million at September 30, 2024 compared with $110.8 million at December 31, 2023. The $77.7 million net unfavourable variance was mainly due to:

o receipt of the $163.0 million asset related to the hedging contracts on the Senior Notes redeemed on June 17, 2024;

o unfavourable impact of interest rate trends on the value of derivative financial instruments, mainly affecting interest rate swaps.

Partially offset by:

o favourable impact of exchange rate fluctuations on the value of derivative financial instruments.

· On November 4, 2024, Videotron announced the pricing of its US$700 million aggregate principal amount of 5.700% Senior Notes due January 15, 2035. The closing of the offering is expected on or about November 8, 2024. Videotron intends to use the net proceeds, together with drawings under its revolving credit facility, for repayment in full of its $700.0 million tranche A term loan due October 2025 and for the redemption in full of its $375.0 million 5.750% Senior Notes due 2026.

· On June 13, 2024, Videotron amended its term credit facility by extending the maturity of the first tranche of $700.0 million from October 2024 to October 2025 and transitioning to the Canadian Overnight Repo Rate Average (CORRA).

· On June 13, 2024, following the new credit ratings obtained by Videotron in May 2024, all liens on Videotron's assets granted to bank lenders were terminated and all the related debt instruments (including derivative financial instruments) are now unsecured.

Financial position

Net available liquidity: $2.01 billion at September 30, 2024 for the Corporation and its wholly owned subsidiaries, consisting of $1.99 billion in available unused revolving credit facilities and $12.2 million in cash and cash equivalents.

As at September 30, 2024, minimum principal payments on long-term debt in the coming years were as follows:

10 

Table 3

Minimum principal payments on long-term debt

12-month periods ended September 30

(in millions of Canadian dollars)

2025	$	400.0
2026		1,779.7
2027		1,510.8
2028		750.0
2029		1,275.9
2030 and thereafter		1,848.7
Total	$	7,565.1

From time to time, the Corporation may (but is under no obligation to) seek to retire or purchase its outstanding Senior Notes, in open market purchases, privately negotiated transactions, or otherwise. Such repurchases, if any, will depend on its liquidity position and requirements, prevailing market conditions, contractual restrictions, and other factors. The amounts involved may be material.

The weighted average term of the Corporation’s consolidated debt was approximately 3.7 years as of September 30, 2024 (3.5 years as of December 31, 2023). After taking into account hedging instruments, the debt consisted of approximately 75.9% fixed-rate debt (67.9% at December 31, 2023) and 24.1% floating-rate debt (32.1% at December 31, 2023).

Management of the Corporation believes that cash flows and available sources of financing should be sufficient to cover committed cash requirements for capital expenditures, acquisitions of spectrum licences, working capital, interest payments, income tax payments, debt and lease repayments, share repurchases, and dividend payments to shareholders. The Corporation believes it will be able to meet future debt and lease liability maturities, which are staggered over the coming years.

Pursuant to its financing agreements, the Corporation is required to maintain certain financial ratios. At September 30, 2024, the Corporation was in compliance with all required financial ratios.

Dividends declared and paid to the parent corporation

The Corporation paid $470.0 million in common dividends to the parent corporation in the first nine months of 2024 ($351.0 million in 2023). The Corporation expects to make cash distributions to its parent corporation in the future, as determined by the Board of Directors, and within the limits set by the terms of the indebtedness and applicable laws.

Tax consolidation arrangements with the parent corporation

On April 17, 2024, the Corporation contracted a subordinated loan of $1.53 billion from Quebecor Media, bearing interest at a rate of 9.25%, payable semi-annually, and maturing on April 17, 2054. On the same day, the Corporation invested the total proceeds of $1.53 billion into 1,530,000 preferred shares, Series G, of 9511-8063 Quebec Inc., an affiliated corporation. These shares carry the right to receive an annual dividend of 9.35%, payable semi-annually. These transactions are carried out for tax consolidation purposes of Quebecor Media and its subsidiaries.

Spectrum licences

On May 29, 2024, Videotron acquired 305 blocks of spectrum in the 3800 MHz band across the country for a total price of $298.9 million (of which $59.8 million was paid in January 2024 and $239.1 million in May 2024). Approximately 61% of the 305 blocks of wireless spectrum are located outside Québec, mainly in southern Ontario, Alberta and British Columbia.

11 

Analysis of consolidated balance sheet

Table 4

Consolidated balance sheet

Analysis of main differences between September 30, 2024 and December 31, 2023

(in millions of Canadian dollars)

	Sept. 30, 20241		Dec. 31, 2023		Difference			Main reasons for difference
Assets
Inventories	$	272.9	$	348.7	$	(75.8	)	Impact of current variances in activities and Helix equipment rental offer in 2024
Property, plant and equipment		3,101.3		3,152.9		(51.6	)	Depreciation for the period less acquisitions
Intangible assets		3,539.1		3,299.3		239.8		Acquisitions, including spectrum licences, less amortization for the period
Derivative financial instruments2		33.1		110.8		(77.7	)	See “Financing activities”
Liabilities
Accounts payable, accrued charges and provisions		822.1		920.9		(98.8	)	Impact of current variances in activities
Net amounts payable to affiliated corporations3		96.8		65.9		30.9		Redemption of all convertible debentures by conversion into shares
Long-term debt, including current portion and bank indebtedness		7,534.9		7,609.9		(75.0	)	See “Financing activities”

¹ The “restricted cash” and “deferred subsidies” line items are combined for the purposes of the analysis.

² Current and long-term assets less long-term liabilities.

³ Current liabilities less current assets.

12 

ADDITIONAL INFORMATION

Contractual obligations

At September 30, 2024, material contractual obligations of operating activities included: capital repayment and interest on long-term debt and lease liabilities; capital expenditures and other commitments, including mobile devices; and obligations related to derivative financial instruments, less estimated future receipts on derivative financial instruments. Table 5 below shows a summary of these contractual obligations.

Table 5

Contractual obligations as of September 30, 2024

(in millions of Canadian dollars)

	Total			Under 1 year		1–3 years			3–5 years			5 years or more
Long-term debt1,2	$	7,565.1		$	400.0	$	3,290.5		$	2,025.9		$	1,848.7
Interest payments3		1,215.2			274.2		499.0			284.5			157.5
Lease liabilities		362.1			104.5		148.7			79.7			29.2
Interest payments on lease liabilities		84.2			25.1		34.4			17.7			7.0
Capital expenditures and other commitments		1,674.7			879.7		688.9			87.7			18.4
Derivative financial instruments4		(75.5	)		2.3		(7.0	)		(70.8	)		–
Total contractual obligations	$	10,825.8		$	1,685.8	$	4,654.5		$	2,424.7		$	2,060.8

¹ Excludes obligations under subordinated loans due to the parent corporation; the proceeds of which are used to invest in preferred shares of an affiliated corporation for tax consolidation purposes.

² The carrying value of long-term debt excluding financing costs.

³ Estimated interest payable on long-term debt, based on interest rates, hedging of interest rates and hedging of foreign exchange rates, as of September 30, 2024.

⁴ Estimated future receipts, net of future disbursements, related to foreign exchange hedging on the principal of U.S.-dollar-denominated debt using derivative financial instruments.

Related party transactions

The following describes transactions in which the Corporation and its directors, executive officers and affiliates are involved. The Corporation believes that each of the transactions described below was on terms no less favourable to the Corporation than could have been obtained from independent third parties.

Operating transactions

During the third quarter of 2024, the Corporation incurred various expenses, including lease charges, from the parent and affiliated corporations, in the amount of $31.9 million ($40.2 million in 2023), which are included in purchase of goods and services. The Corporation generated revenues from the parent and affiliated corporations in the amount of $1.0 million ($0.8 million in 2023). These transactions were accounted for at the consideration agreed between the parties.

During the first nine months of 2024, the Corporation incurred various expenses, including lease charges, from the parent and affiliated corporations, in the amount of $92.5 million ($97.7 million in 2023), which are included in purchase of goods and services. The Corporation generated revenues from the parent and affiliated corporations in the amount of $3.0 million ($3.3 million in 2023). These transactions were accounted for at the consideration agreed between the parties.

Management arrangements

The Corporation has entered into management arrangements with its parent corporation. Under these management arrangements, the parent corporation provides management services on a cost-reimbursement basis. During the third quarter of 2024, the Corporation incurred management fees of $3.9 million with its parent corporation ($8.8 million in 2023). During the first nine months of 2024, the Corporation incurred management fees of $21.6 million with its parent corporation ($26.0 million in 2023).

13 

Financial instruments

The Corporation uses a number of financial instruments, mainly cash and cash equivalents, restricted cash, trade receivables, contract assets, long-term investments, bank indebtedness, trade payables, accrued liabilities, long-term debt, lease liabilities and derivative financial instruments.

In order to manage its foreign exchange and interest rate risks, the Corporation uses derivative financial instruments: (i) to set in CAN dollars future payments on debts denominated in U.S. dollars (interest and principal) and certain purchases of inventories and other capital expenditures denominated in a foreign currency; and (ii) to achieve a targeted balance of fixed- and floating-rate debt. The Corporation does not intend to settle its derivative financial instruments prior to their maturity as none of these instruments is held or issued for speculative purposes.

Certain cross-currency swaps and interest rate swaps entered into by the Corporation include an option that allows each party to unwind the transaction on a specific date at the then settlement amount.

The carrying value and fair value of long-term debt and derivative financial instruments as of September 30, 2024 and December 31, 2023 were as follows:

Table 6

Fair value of long-term debt and derivative financial instruments

(in millions of Canadian dollars)

	September 30, 2024						December 31, 2023
Asset (liability)	Carrying value			Fair value			Carrying value			Fair value
Long-term debt1	$	(7,565.1	)	$	(7,524.0	)	$	(7,645.3	)	$	(7,368.1	)
Derivative financial instruments
Foreign exchange forward contracts		(0.3	)		(0.3	)		(1.5	)		(1.5	)
Interest rate swaps		(7.6	)		(7.6	)		5.4			5.4
Cross-currency swaps		41.0			41.0			106.9			106.9

¹ The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs.

The fair value of long-term debt is estimated based on quoted market prices when available or on valuation models. When the Corporation uses valuation models, the fair value is estimated based on discounted cash flows using period-end market yields or the market value of similar instruments with the same maturity.

The fair value of derivative financial instruments recognized in the consolidated balance sheets is estimated as per the Corporation’s valuation models. These models project future cash flows and discount the future amounts to a present value using the contractual terms of the derivative financial instrument and factors observable in external market data, such as period-end swap rates and foreign exchange rates. An adjustment is also included to reflect non-performance risk, impacted by the financial and economic environment prevailing at the date of the valuation, in the recognized measure of the fair value of the derivative financial instruments by applying a credit default premium, estimated using a combination of observable and unobservable inputs in the market, to the net exposure of the counterparty or the Corporation.

Losses on cash flow hedges of $15.2 million and $21.0 million were recorded under “Other comprehensive income” in the third quarter and first nine months of 2024 respectively (gains of $20.3 million and $47.5 million in the third quarter and first nine months of 2023).

14 

Non-IFRS financial measures

The financial measures not standardized under IFRS that are used by the Corporation to assess its financial performance, such as adjusted EBITDA and adjusted cash flows from operations, are not calculated in accordance with, or recognized by IFRS. Beginning in the third quarter of 2023, the Corporation added two financial measures not standardized under IFRS: free cash flows from continuing operating activities and consolidated net debt leverage ratio. These two measures will help to better understand and analyze the financing performance of the Corporation, as well as its financial position as at balance sheet date.

The Corporation’s method of calculating these non-IFRS financial measures may differ from the methods used by other companies and, as a result, the non-IFRS financial measures presented in this document may not be comparable to other similarly titled measures disclosed by other companies.

Adjusted EBITDA

In its analysis of operating results, the Corporation defines adjusted EBITDA, as reconciled to net income under IFRS, as net income before depreciation and amortization, financial expenses, restructuring, acquisition costs and other, and income taxes. Adjusted EBITDA 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 IFRS financial 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’s management and Board of Directors use this measure in evaluating its consolidated results. This measure eliminates the significant level of impairment and depreciation/amortization of tangible and intangible assets and is unaffected by the capital structure or investment activities of the Corporation.

Adjusted EBITDA is also relevant because it is a component of the Corporation’s annual incentive compensation programs. A limitation of this measure, however, is that it does not reflect the capital expenditures and acquisitions of spectrum licences needed to generate revenues. The Corporation also uses other measures that do reflect capital expenditures, such as adjusted cash flows from operations and free cash flows from operating activities. The Corporation’s definition of adjusted EBITDA may not be the same as similarly titled measures reported by other companies.

Table 7 provides a reconciliation of adjusted EBITDA to net income as disclosed in the Corporation’s condensed consolidated financial statements.

Table 7

Reconciliation of the adjusted EBITDA measure used in this report to the net income measure used in the condensed consolidated financial statements

(in millions of Canadian dollars)

	Three months ended September 30						Nine months ended September 30
	2024			2023			2024			2023
Adjusted EBITDA	$	585.9		$	589.5		$	1,769.5		$	1,671.3
Depreciation and amortization		(219.1	)		(222.9	)		(663.5	)		(628.6	)
Financial expenses		(82.9	)		(91.0	)		(262.0	)		(243.3	)
Restructuring, acquisition costs and other		(3.4	)		(1.0	)		(11.0	)		(16.2	)
Income taxes		(62.0	)		(61.2	)		(197.1	)		(174.0	)
Net income	$	218.5		$	213.4		$	635.9		$	609.2

15 

Adjusted cash flows from operations and free cash flows from operating activities

Adjusted cash flows from operations

Adjusted cash flows from operations represents adjusted EBITDA less capital expenditures (excluding spectrum licence acquisitions). Adjusted cash flows from operations represents funds available for interest and income tax payments, expenditures related to restructuring programs, business acquisitions, acquisitions of spectrum licences, payment of dividends, reduction of paid-up capital, repayment of long-term debt and lease liabilities, and share repurchases. Adjusted cash flows from operations is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. Adjusted cash flows from operations is used by the Corporation’s management and Board of Directors to evaluate the cash flows generated by its operations. Adjusted cash flows from operations is also relevant because it is a component of the Corporation’s annual incentive compensation programs. The Corporation’s definition of adjusted cash flows from operations may not be identical to similarly titled measures reported by other companies.

Free cash flows from operating activities

Free cash flows from operating activities represents cash flows provided by operating activities calculated in accordance with IFRS, less cash flows used for capital expenditures (excluding spectrum licence acquisitions), plus proceeds from disposal of assets. Free cash flows from operating activities is used by the Corporation’s management to evaluate cash flows generated by the Corporation’s operations. Free cash flows from operating activities represents available funds for business acquisitions, acquisitions of spectrum licences, payment of dividends, repayment of long-term debt and lease liabilities, and share repurchases. Free cash flows from operating activities is not a measure of liquidity that is consistent with IFRS. It is not intended to be regarded as an alternative to IFRS financial performance measures or to the statement of cash flows as a measure of liquidity. The Corporation’s definition of free cash flows from operating activities may not be identical to similarly titled measures reported by other companies.

Tables 8 and 9 provide a reconciliation of adjusted cash flows from operations and free cash flows from operating activities to cash flows provided by operating activities reported in the condensed consolidated financial statements.

16 

Table 8

Adjusted cash flows from operations

(in millions of Canadian dollars)

	Three months ended September 30						Nine months ended September 30
	2024			2023			2024			2023
Adjusted EBITDA	$	585.9		$	589.5		$	1,769.5		$	1,671.3
Capital expenditures1		(148.8	)		(135.7	)		(443.8	)		(376.3	)
Adjusted cash flows from operations	$	437.1		$	453.8		$	1,325.7		$	1,295.0

1 Reconciliation to cash flows used for capital expenditures as per	Three months ended September 30						Nine months ended September 30
condensed consolidated financial statements:	2024			2023			2024			2023
Capital expenditures	$	(148.8	)	$	(135.7	)	$	(443.8	)	$	(376.3	)
Net variance in current operating items related to capital expenditures (excluding government credits receivable for major capital projects)		(12.9	)		1.4			(38.9	)		(13.0	)
Cash flows used for capital expenditures	$	(161.7	)	$	(134.3	)	$	(482.7	)	$	(389.3	)

17

Table 9

Free cash flows from operating activities and cash flows provided by operating activities reported in the condensed consolidated financial statements

(in millions of Canadian dollars)

	Three months ended September 30						Nine months ended September 30
	2024			2023			2024			2023
Adjusted cash flows from operations from Table 8	$	437.1		$	453.8		$	1,325.7		$	1,295.0
Plus (minus)
Cash portion of financial expenses		(80.6	)		(88.8	)		(255.1	)		(237.5	)
Cash portion of restructuring, acquisition costs and other		(2.2	)		(1.4	)		(9.3	)		(16.6	)
Current income taxes		(54.2	)		(48.0	)		(200.7	)		(174.5	)
Other		(0.4	)		2.0			1.9			4.1
Net change in non-cash balances related to operating activities		91.1			24.8			73.1			20.8
Net variance in current operating items related to capital expenditures (excluding government credits receivable for major capital projects)		(12.9	)		1.4			(38.9	)		(13.0	)
Free cash flows from operating activities		377.9			343.8			896.7			878.3
Plus (minus)
Cash flows used for capital expenditures (excluding spectrum licence acquisitions)		161.7			134.3			482.7			389.3
Proceeds from disposal of assets		–			–			(0.3	)		(0.8	)
Cash flows provided by operating activities	$	539.6		$	478.1		$	1,379.1		$	1,266.8

Consolidated net debt leverage ratio

The consolidated net debt leverage ratio represents consolidated net debt, divided by the trailing 12-month adjusted EBITDA. Consolidated net debt, represents total long-term debt plus bank indebtedness, lease liabilities and liabilities related to derivative financial instruments, less assets related to derivative financial instruments and cash and cash equivalents. The consolidated net debt leverage ratio serves to evaluate the Corporation’s financial leverage and is used by management in its decisions on the Corporation’s capital structure, including its financing strategy, and in managing debt maturity risks. Consolidated net debt leverage ratio is not a measure established in accordance with IFRS. It is not intended to be used as an alternative to IFRS measures or the balance sheet to evaluate its financial position. The Corporation’s definition of consolidated net debt leverage ratio may not be identical to similarly titled measures reported by other companies.

18

Table 10 provides the calculation of consolidated net debt leverage ratio and the reconciliation to balance sheet items reported in the Corporation’s condensed consolidated financial statements.

Table 10

Consolidated net debt leverage ratio

(in millions of Canadian dollars)

	Sept. 30, 2024			Dec. 31, 2023
Total long-term debt1	$	7,565.1		$	7,645.3
Plus (minus)
Lease liabilities2		362.1			346.1
Bank indebtedness		2.3			–
Derivative financial instruments3		(33.1	)		(110.8	)
Cash and cash equivalents		(15.1	)		(8.0	)
Consolidated net debt		7,881.3			7,872.6
Divided by:
Trailing 12-month adjusted EBITDA4	$	2,328.5		$	2,329.6
Consolidated net debt leverage ratio4		3.38	x		3.38	x

¹ Excluding changes in the fair value of long-term debt related to hedged interest rate risk and financing costs.

² Current and long-term liabilities.

³ Current and long-term assets less long-term liabilities.

⁴ On a pro forma basis as at December 31, 2023, using Freedom’s trailing 12-month adjusted EBITDA.

Key performance indicators

Revenue-generating unit

The Corporation uses RGU, an industry metric, as a key performance indicator. An RGU represents, as the case may be, subscriber connections to the mobile and wireline telephony services and subscriptions to the Internet access and television services. RGU is not a measurement that is consistent with IFRS and the Corporation’s definition and calculation of RGU may not be the same as identically titled measurements reported by other companies or published by public authorities.

Average monthly mobile revenue per unit

The Corporation uses mobile ARPU, an industry metric, as a key performance indicator. This indicator is calculated by dividing mobile telephony revenues by the average number of mobile RGUs during the applicable period, and then dividing the resulting amount by the number of months in the applicable period. Mobile ARPU is not a measurement that is consistent with IFRS and the Corporation’s definition and calculation of mobile ARPU may not be the same as identically titled measurements reported by other companies.

Cautionary statement regarding forward-looking statements

This report contains forward-looking statements with respect to the Corporation’s financial condition, results of operations, business, and certain of its plans and objectives. These forward-looking statements are made pursuant to the “Safe Harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which the Corporation operates as well as beliefs and assumptions made by its management. Such statements include, in particular, statements about the Corporation’s plans, prospects, financial position and business strategies. Words such as “may,” “will,” “expect,” “continue,” “intend,” “estimate,” “anticipate,” “plan,” “foresee,” “believe” or “seek,” or the negatives of those terms or variations of them or similar terminology are intended to identify such forward-looking statements. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, these statements, by their nature, involve risks and uncertainties and are not guarantees of future performance. Such statements are also subject to assumptions concerning, among other things: the Corporation’s anticipated business strategies; anticipated trends in its business; anticipated reorganizations of any of its businesses, and any related restructuring provisions or impairment charges; and its ability to continue to control costs. The Corporation can give no assurance that these estimates and expectations will prove to have been correct. Actual outcomes and results may, and often do, differ from what is expressed, implied or projected in such forward-looking statements, and such differences may be material. Some important factors that could cause actual results to differ materially from those expressed in these forward-looking statements include, but are not limited to:

· Videotron’s ability to continue successfully developing its network and the facilities that support its mobile services;

19

· general economic, financial or market conditions and variations in its businesses;

· the intensity of competitive activity in the industries in which Videotron operates;

· Videotron's ability to penetrate new, highly competitive markets and the accuracy of estimates of the size of potential markets;

· new technologies that might change consumer behavior towards Videotron’s product suites;

· unanticipated higher capital spending required for developing Videotron’s network or to address the continued development of competitive alternative technologies, or the inability to obtain additional capital to continue the development of Videotron’s businesses;

· Videotron’s ability to implement its business and operating strategies successfully and to manage its growth and expansion;

· risks relating to the acquisition of Freedom and the strategy for expanding outside Québec, including ability to successfully integrate Freedom’s operations and to capture synergies, and potential unknown liabilities or costs associated with the acquisition of Freedom;

· the anticipated benefits and effects of the acquisition of Freedom, which may not be realized in a timely manner or at all, and ongoing operating costs and capital expenditures, which could be different than anticipated, as well as unanticipated litigation or other regulatory proceedings associated with the acquisition of Freedom, which could result in changes to the parameters of the transaction;

· the impacts of the significant and recurring investments that will be required in the new markets of Freedom and Videotron as mobile virtual network operators (MVNOs) and other markets for development and expansion and to compete effectively with the incumbent local exchange carriers (ILECs) and other current or potential competitors in these markets, including the fact that the post-acquisition Videotron business will continue to face the same risks that Videotron currently faces, but will also face increased risks relating to new geographies and markets;

· disruptions to the network through which Videotron provides its television, Internet access, mobile and wireline telephony and OTT services, and its ability to protect such services against piracy, unauthorized access and other security breaches;

· labor disputes or strikes;

· service interruptions resulting from equipment breakdown, network failure, the threat of natural disasters, epidemics, pandemics and other public health crises, and political instability in some countries;

· impact of emergency measures that have been or may be implemented by various levels of government;

· changes in Videotron’s ability to obtain services and equipment critical to its operations;

· changes in laws and regulations, or in their interpretations, which could result, among other things, in the loss (or reduction in value) of Videotron’s licenses or markets, or in an increase in competition, compliance costs or capital expenditures;

· Videotron’s substantial indebtedness, the tightening of credit markets, and the restrictions on its business imposed by the terms of its debt; and

· interest rate fluctuations that could affect a portion of Videotron’s interest payment requirements on long-term debt.

The Corporation cautions investors and others that the above list of cautionary statements is not exhaustive. These and other factors are discussed in further detail in the Annual Report on Form 20-F under “Item 3. Key Information – B. Risk Factors”. Each of these forward-looking statements speaks only as of the date of this report. The Corporation disclaims any obligation to update these statements unless applicable securities laws require it to do so. The Corporation advises investors and others to consult any documents it may file with or furnish to the U.S. Securities and Exchange Commission.

20

Condensed consolidated financial statements of

VIDEOTRON LTD.

Three-month and nine-month periods ended September 30, 2024 and 2023

VIDEOTRON LTD.

CONSOLIDATED STATEMENTS OF INCOME

(in millions of Canadian dollars)		Three months ended				Nine months ended
(unaudited)		September 30				September 30
	Note		2024		2023		2024		2023
Revenues
Mobile telephony		$	422.0	$	411.9	$	1,241.4	$	1,014.6
Internet			307.8		323.2		944.0		959.8
Television			191.8		200.8		586.9		603.4
Wireline telephony			61.4		68.9		188.9		211.2
Mobile equipment sales			177.1		159.9		456.0		374.1
Wireline equipment sales			1.1		18.9		26.3		52.8
Other			42.0		46.5		126.1		140.4
			1,203.2		1,230.1		3,569.6		3,356.3
Employee costs	2		121.3		123.7		366.7		347.2
Purchase of goods and services	2		496.0		516.9		1,433.4		1,337.8
Depreciation and amortization			219.1		222.9		663.5		628.6
Financial expenses	3		82.9		91.0		262.0		243.3
Restructuring, acquisition costs and other	4		3.4		1.0		11.0		16.2
Income before income taxes			280.5		274.6		833.0		783.2
Income taxes (recovery):
Current			54.2		48.0		200.7		174.5
Deferred			7.8		13.2		(3.6)		(0.5)
			62.0		61.2		197.1		174.0
Net income		$	218.5	$	213.4	$	635.9	$	609.2
Net income attributable to
Shareholder		$	218.5	$	213.4	$	635.9	$	609.1
Non-controlling interests			-		-		-		0.1
See accompanying notes to condensed consolidated financial statements.

1

VIDEOTRON LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 

(in millions of Canadian dollars)		Three months ended				Nine months ended
(unaudited)		September 30				September 30
	Note		2024		2023		2024		2023
Net income		$	218.5	$	213.4	$	635.9	$	609.2
Other comprehensive (loss) income:	11
Items that may be reclassified to income:
Cash flow hedges:
(Loss) gain on valuation of derivative financial instruments			(15.2)		20.3		(21.0)		47.5
Deferred income taxes			4.7		(4.8)		4.6		(9.9)
Items that will not be reclassified to income:
Defined benefit plans:
Re-measurement (loss) gain			(6.8)		-		27.7		-
Deferred income taxes			1.8		-		(7.2)		-
			(15.5)		15.5		4.1		37.6
Comprehensive income		$	203.0	$	228.9	$	640.0	$	646.8
Comprehensive income attributable to
Shareholder		$	203.0	$	228.9	$	640.0	$	646.7
Non-controlling interests			-		-		-		0.1
See accompanying notes to condensed consolidated financial statements.

2

VIDEOTRON LTD.

CONSOLIDATED STATEMENTS OF EQUITY

(in millions of Canadian dollars)

(unaudited)

	Equity attributable to shareholder							Equity
					Accumulated			attributable
					other com-			to non-
		Capital			prehensive			controlling		Total
		stock		Deficit	(loss) income			interests		equity
		(note 9)				(note 11)
Balance as of  December 31, 2022	$	312.9	$	(527.3)	$	(16.7)	$	0.3	$	(230.8)
Net income		-		609.1		-		0.1		609.2
Other comprehensive income		-		-		37.6		-		37.6
Dividends		-		(351.0)		-		(0.1)		(351.1)
Balance as of  September 30, 2023		312.9		(269.2)		20.9		0.3		64.9
Net income		-		188.3		-		-		188.3
Other comprehensive loss		-		-		(27.3)		-		(27.3)
Dividends		-		(70.0)		-		-		(70.0)
Balance as of December 31, 2023		312.9		(150.9)		(6.4)		0.3		155.9
Net income		-		635.9		-		-		635.9
Other comprehensive income		-		-		4.1		-		4.1
Dividends		-		(470.0)		-		(0.2)		(470.2)
Balance as of September 30, 2024	$	312.9	$	15.0	$	(2.3)	$	0.1	$	325.7
See accompanying notes to condensed consolidated financial statements.

3

VIDEOTRON LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS 

 

(in millions of Canadian dollars)		Three months ended				Nine months ended
(unaudited)		September 30				September 30
	Note		2024		2023		2024		2023
Cash flows related to operating activities
Net income		$	218.5	$	213.4	$	635.9	$	609.2
Adjustments for:
Depreciation of property, plant and equipment			132.3		143.1		401.1		417.5
Amortization of intangible assets			55.7		50.4		169.9		141.4
Depreciation of right-of-use assets			31.1		29.4		92.5		69.7
Impairment of assets	4		1.4		0.3		4.0		0.3
Amortization of financing costs	3		2.3		2.2		6.9		5.8
Deferred income taxes			7.8		13.2		(3.6)		(0.5)
Other			(0.6)		1.3		(0.7)		2.6
			448.5		453.3		1,306.0		1,246.0
Net change in non-cash balances related to operating activities			91.1		24.8		73.1		20.8
Cash flows provided by operating activities			539.6		478.1		1,379.1		1,266.8
Cash flows related to investing activities
Capital expenditures	14		(161.7)		(134.3)		(482.7)		(389.3)
Deferred subsidies (used) received to finance capital expenditures	6, 14		-		(5.4)		37.0		(39.3)
Acquisitions of spectrum licences	7		-		-		(298.9)		(9.9)
Business acquisition	5		-		(1.8)		(1.8)		(2,069.6)
Proceeds from disposal of assets			-		-		0.3		0.8
Promissory note to the parent corporation			-		-		-		(836.0)
Acquisition of preferred shares of an affiliated corporation	13		-		-		(1,530.0)		-
Other			-		-		(0.1)		(0.2)
Cash flows used in investing activities			(161.7)		(141.5)		(2,276.2)		(3,343.5)
Cash flows related to financing activities
Net change in bank indebtedness			1.1		-		2.3		(0.4)
Net change under revolving facility, net of financing costs			(148.6)		(272.2)		(357.7)		379.0
Issuance of long-term debt, net of financing costs	8		-		-		992.6		2,092.5
Repayment of long-term debt	8		-		-		(825.3)		-
Settlement of hedging contracts	8		-		-		163.0		-
Repayment of lease liabilities			(33.0)		(30.4)		(93.5)		(63.5)
Dividends			(185.1)		(35.0)		(470.2)		(351.1)
Issuance of a loan from the parent corporation	13		-		-		1,530.0		-
Cash flows (used in) provided by financing activities			(365.6)		(337.6)		941.2		2,056.5
Net change in cash, cash equivalents and restricted cash			12.3		(1.0)		44.1		(20.2)
Cash, cash equivalents and restricted cash at beginning of period			39.8		21.9		8.0		41.1
Cash, cash equivalents and restricted cash at end of period	14	$	52.1	$	20.9	$	52.1	$	20.9
See accompanying notes to condensed consolidated financial statements.

4

VIDEOTRON LTD.

CONSOLIDATED BALANCE SHEETS

(in millions of Canadian dollars) (unaudited)		September 30			December 31
	Note	2024			2023
Assets
Current assets
Cash and cash equivalents		$	15.1		$	8.0
Restricted cash	6		37.0			-
Accounts receivable			948.4			963.2
Contract assets			138.7			125.4
Amounts receivable from affiliated corporations			77.9			25.1
Income taxes			14.6			35.3
Inventories			272.9			348.7
Derivative financial instruments			-			129.3
Other current assets			180.7			180.1
			1,685.3			1,815.1
Non-current assets
Property, plant and equipment			3,101.3			3,152.9
Intangible assets	7		3,539.1			3,299.3
Right-of-use assets			332.1			313.0
Goodwill			550.1			550.1
Derivative financial instruments			43.3			35.8
Investments	13		1,530.0			-
Promissory notes to the parent corporation			996.0			996.0
Other assets			365.3			348.5
			10,457.2			8,695.6
Total assets		$	12,142.5		$	10,510.7
Liabilities and equity
Current liabilities
Bank indebtedness		$	2.3		$	-
Accounts payable, accrued charges and provisions			822.1			920.9
Amounts payable to affiliated corporations			174.7			91.0
Deferred revenue			357.1			347.4
Deferred subsidies	6		37.0			-
Income taxes			16.1			18.4
Current portion of long-term debt	8		400.0			1,480.6
Current portion of lease liabilities			104.5			99.3
			1,913.8			2,957.6
Non-current liabilities
Long-term debt	8		7,132.6			6,129.3
Lease liabilities			257.6			246.8
Subordinated loan from parent corporation	13		1,530.0			-
Derivative financial instruments			10.2			54.3
Deferred income taxes			759.8			759.2
Other liabilities			212.8			207.6
			9,903.0			7,397.2
Equity
Capital stock	9		312.9			312.9
Deficit			15.0			(150.9	)
Accumulated other comprehensive loss	11		(2.3	)		(6.4	)
Equity attributable to the shareholder			325.6			155.6
Non-controlling interests			0.1			0.3
			325.7			155.9
Subsequent event	16
Total liabilities and equity		$	12,142.5		$	10,510.7

See accompanying notes to condensed consolidated financial statements.

5

VIDEOTRON LTD.

notes to condensed consolidated financial statements

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

Videotron Ltd. (“Videotron” or the "Corporation") is incorporated under the laws of Québec. The Corporation is a wholly owned subsidiary of Quebecor Media Inc. (“Quebecor Media” or the “parent corporation”) and the ultimate parent corporation is Quebecor Inc. Unless the context otherwise requires, Videotron or the Corporation refer to Videotron Ltd. and its subsidiaries. The Corporation’s head office and registered office is located at 612 rue Saint-Jacques, Montreal, Québec, Canada.

The Corporation offers Internet access, television distribution, mobile and wireline telephony, business solutions and over-the-top (OTT) video services in Canada.

1. BASIS OF PRESENTATION

These consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (IASB), except that they do not include all disclosures required under IFRS for annual consolidated financial statements. In particular, these consolidated financial statements were prepared in accordance with IAS 34, Interim Financial Reporting, and, accordingly, they are condensed consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the Corporation’s 2023 annual consolidated financial statements, which contain a description of the material accounting policies used in the preparation of these condensed consolidated financial statements.

These condensed consolidated financial statements were approved for issue by the Board of Directors of Videotron on November 6, 2024.

Comparative figures for previous periods have been restated to conform to the presentation adopted for the three-month and nine-month periods ended September 30, 2024.

2. EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES

	Three months ended September 30				Nine months ended September 30
		2024		2023		2024		2023
Employee costs	$	161.2	$	162.0	$	497.3	$	469.8
Less employee costs capitalized to property, plant and equipment and to intangible assets		(39.9)		(38.3)		(130.6)		(122.6)
		121.3		123.7		366.7		347.2
Purchase of goods and services:
Royalties and rights		102.4		107.1		286.0		322.4
Cost of products sold		211.3		216.7		611.8		503.2
Subcontracting costs		29.5		34.9		78.9		82.3
Marketing and distribution expenses		23.4		28.8		59.4		58.8
Other		129.4		129.4		397.3		371.1
		496.0		516.9		1,433.4		1,337.8
	$	617.3	$	640.6	$	1,800.1	$	1,685.0

6

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

3. FINANCIAL EXPENSES

	Three months ended September 30				Nine months ended September 30
		2024		2023		2024		2023
Third parties:
Interest on long-term debt	$	91.3	$	97.2	$	282.4	$	268.7
Amortization of financing costs		2.3		2.2		6.9		5.8
Interest on lease liabilities		4.8		4.9		13.7		11.5
(Gain) loss on foreign currency translation on short-term monetary items		(0.2)		1.3		1.9		0.9
Other		1.5		2.2		6.8		3.8
		99.7		107.8		311.7		290.7
Affiliated corporations:
Interest expense		35.7		38.2		64.8		113.3
Dividend income		(36.1)		(38.6)		(65.5)		(114.5)
Interest on lease liabilities		0.3		0.3		0.8		1.0
Interest income		(16.7)		(16.7)		(49.8)		(47.2)
		(16.8)		(16.8)		(49.7)		(47.4)
	$	82.9	$	91.0	$	262.0	$	243.3

4. RESTRUCTURING, ACQUISITION COSTS AND OTHER

	Three months ended September 30				Nine months ended September 30
		2024		2023		2024		2023
Restructuring	$	0.5	$	0.3	$	4.8	$	1.4
Acquisition costs1		0.2		0.6		0.8		14.7
Impairment of assets		1.4		0.3		4.0		0.3
Other		1.3		(0.2)		1.4		(0.2)
	$	3.4	$	1.0	$	11.0	$	16.2

¹ Includes acquisition costs mainly related to the Freedom acquisition in 2023 (note 5).

7

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

5. BUSINESS ACQUISITION

On April 3, 2023, Videotron acquired all the issued shares of Freedom Mobile Inc. (“Freedom”) from Shaw Communications Inc. (“Shaw”) for a cash consideration of $2.07 billion, net of cash acquired of $103.2 million. As part of this transaction, Videotron assumed certain debts, mainly lease obligations. The consideration paid is still subject to certain post-closing adjustments. This acquisition immediately preceded the acquisition of Shaw by Rogers Communications Inc. (“Rogers”). The acquisition of Freedom included the Freedom Mobile brand’s entire wireless and Internet customer base, as well as its owned infrastructure, spectrum and retail outlets. It also includes a long-term undertaking by Shaw and Rogers to provide Videotron with transport services (including backhaul and backbone), roaming services and wholesale Internet services. Videotron has also made certain commercial commitments to the Minister of Innovation, Science and Industry. These transactions support the expansion of the Corporation’s telecommunications services in Ontario and Western Canada.

The table below presents the fair value of the net assets acquired as of the acquisition date:

Assets
Accounts receivable	$	257.3
Other current assets1		181.3
Property, plant and equipment2		709.1
Intangible assets3		1,177.7
Right-of-use of assets		226.2
Other assets		65.8
		2,617.4
Liabilities
Accounts payable, accrued charges and provisions		(127.2)
Other current liabilities		(94.2)
Lease liabilities		(226.2)
Deferred income taxes		(17.9)
Other liabilities		(84.1)
		(549.6)
Net assets acquired	$	2,067.8
Cash consideration paid	$	2,171.0
Cash acquired		(103.2)
	$	2,067.8

¹ Includes mainly inventories and contract assets.

² Includes mainly the wireless network.

³ Includes mainly spectrum licences, software, customer relationships, the Freedom brand and others.

8

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

6. RESTRICTED CASH AND DEFERRED SUBSIDIES

In March 2024, Videotron and the Québec government signed an agreement under the government’s new initiative to improve wireless coverage in outlying regions of Québec. The government has committed to provide financial assistance in the amount of approximately $63.0 million for the construction of new cell towers in certain regions. In accordance with the agreement, an amount of $37.0 million received in advance from the government in March 2024 was recorded as restricted cash and as deferred subsidies on the consolidated balance sheet as of September 30, 2024.

7. SPECTRUM LICENCES

On May 29, 2024, Videotron acquired 305 blocks of spectrum in the 3800 MHz band across the country for a total price of $298.9 million (of which $59.8 million was paid in January 2024 and $239.1 million was paid in May 2024). Approximately 61% of the 305 blocks of wireless spectrum are located outside Québec, mainly in southern Ontario, Alberta and British Columbia.

8. LONG-TERM DEBT

Components of long-term debt are as follows:

	September 30, 2024		December 31, 2023
Total long-term debt	$	7,565.1	$	7,645.3
Change in fair value related to hedged interest rate risk		–		(2.2)
Financing costs, net of amortization		(32.5)		(33.2)
		7,532.6		7,609.9
Less current portion		(400.0)		(1,480.6)
	$	7,132.6	$	6,129.3

As of September 30, 2024, the carrying value of long-term debt denominated in U.S. dollars, excluding financing costs, was $3,585.5 million ($4,484.5 million as of December 31, 2023) while the net fair value of related hedging derivative instruments was in an asset position of $41.0 million ($106.9 million as of December 31, 2023).

2024

On June 13, 2024, Videotron amended its term credit facility by extending the maturity of the first tranche of $700.0 million from October 2024 to October 2025 and transitioning to the Canadian Overnight Repo Rate Average (CORRA).

On June 13, 2024, all liens on Videotron’s assets granted to the bank lenders were terminated and all the related debt instruments (including derivative financial instruments) are now unsecured.

On June 17, 2024, Videotron redeemed at maturity its Senior Notes in aggregate principal amount of US$600.0 million, bearing interest at 5.375%, and unwound the related hedging contracts for a total cash consideration of $662.3 million.

On June 21, 2024, Videotron issued $600.0 million aggregate principal amount of Senior Notes bearing interest at 4.650% and maturing on July 15, 2029, and $400.0 million aggregate principal amount of Senior Notes bearing interest at 5.000% and maturing on July 15, 2034, for total proceeds of $992.6 million, net of $7.4 million related to the discount at issuance and financing costs. The proceeds were used to redeem its 5.375% Senior Notes on June 17, 2024 and to reduce drawings on Videotron’s revolving credit facility.

9

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

8. LONG-TERM DEBT (continued)

2023

On April 3, 2023, Videotron entered into a new $2.10 billion term credit facility with a syndicate of financial institutions, consisting of three tranches of equal size maturing in October 2024, April 2026 and April 2027, respectively. On April 10, 2023, Videotron also entered into a floating-to-fixed interest rate swap in relation with the $700.0 million tranche maturing in April 2027.

9. CAPITAL STOCK

(a) Authorized capital stock

An unlimited number of common shares, without par value, voting and participating.

An unlimited number of preferred shares, Series B, Series C, Series D, Series E, Series F, and Series H, without par value, ranking prior to the common shares with regards to payment of dividends and repayment of capital, non-voting, non-participating, a fixed monthly non-cumulative dividend of 1%, retractable and redeemable.

An unlimited number of preferred shares, Series G, ranking prior to all other shares with regards to payment of dividends and repayment of capital, non-voting, non-participating carrying the rights and restrictions attached to the class as well as a fixed annual cumulative preferred dividend of 11.25%, retractable and redeemable.

(b) Issued and outstanding capital stock

	Common Shares
	Number		Amount
Balance as of December 31, 2023 and September 30, 2024	10,739,285	$	312.9

10. STOCK-BASED COMPENSATION PLANS

The following table provides details of changes to outstanding options in the stock-based compensation plan of Quebecor in which management of the Corporation participates, for the nine-month period ended September 30, 2024:

	Outstanding options
	Number	Weighted average exercise price
As of December 31, 2023	2,741,560	$	31.43
Granted	1,060,000		29.82
Exercised	(53,334)		28.42
Cancelled	(345,000)		30.64
As of September 30, 2024	3,403,226	$	31.06
Vested options as of September 30, 2024	531,586	$	31.94

For the three-month period ended September 30, 2024, a $4.8 million charge was recorded related to all stock-based compensation plans (a $0.7 million reversal of the charge in 2023). For the nine-month period ended September 30, 2024, a $4.4 million charge was recorded related to all stock-based compensation plans (a $1.3 million charge in 2023).

10

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

11. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO SHAREHOLDER

	Cash flow hedges1		Defined benefit plans2		Total
Balance as of December 31, 2022	$	(26.3)	$	9.6	$	(16.7)
Other comprehensive income		37.6		–		37.6
Balance as of September 30, 2023		11.3		9.6		20.9
Other comprehensive (loss) income		(32.0)		4.7		(27.3)
Balance as of December 31, 2023		(20.7)		14.3		(6.4)
Other comprehensive (loss) income		(16.4)		20.5		4.1
Balance as of September 30, 2024	$	(37.1)	$	34.8	$	(2.3)

¹ No significant amount is expected to be reclassified in income over the next 12 months in connection with derivatives designated as cash flow hedges. The balance is expected to reverse over a 4 3/4-year period.

² The re-measurement gain in the consolidated statement of comprehensive income for the nine-month period ended September 30, 2024 is mainly due to an increase in the fair value of defined pension plan assets.

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with IFRS 13, Fair Value Measurement, the Corporation considers the following fair value hierarchy, which reflects the significance of the inputs used in measuring its financial instruments:

· Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;

· Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

· Level 3: inputs that are not based on observable market data (unobservable inputs).

The fair value of long-term debt is estimated based on quoted market prices when available or on valuation models using Level 1 and Level 2 inputs. When the Corporation uses valuation models, the fair value is estimated based on discounted cash flows using period-end market yields or the market value of similar instruments with the same maturity.

The fair value of derivative financial instruments recognized on the consolidated balance sheets is estimated as per the Corporation’s valuation models. These models project future cash flows and discount the future amounts to a present value using the contractual terms of the derivative financial instrument and factors observable in external market data, such as period-end swap rates and foreign exchange rates (Level 2 inputs). An adjustment is also included to reflect non-performance risk, impacted by the financial and economic environment prevailing at the date of the valuation, in the recognized measure of the fair value of the derivative financial instruments by applying a credit default premium, estimated using a combination of observable and unobservable inputs in the market (Level 3 inputs), to the net exposure of the counterparty or the Corporation. Derivative financial instruments are classified as Level 2.

11

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

12. FAIR VALUE OF FINANCIAL INSTRUMENTS (continued)

The carrying value and fair value of long-term debt and derivative financial instruments as of September 30, 2024 and December 31, 2023 are as follows:

	September 30, 2024				December 31, 2023
Asset (liability)	Carrying value		Fair value		Carrying value		Fair value
Long-term debt1	$	(7,565.1)	$	(7,524.0)	$	(7,645.3)	$	(7,368.1)
Derivative financial instruments
Foreign exchange forward contracts		(0.3)		(0.3)		(1.5)		(1.5)
Interest rate swaps		(7.6)		(7.6)		5.4		5.4
Cross-currency swaps		41.0		41.0		106.9		106.9

¹ The carrying value of long-term debt excludes changes in the fair value of long-term debt related to hedged interest rate risk and financing costs.

13. RELATED PARTY TRANSACTIONS

On April 17, 2024, the Corporation contracted a subordinated loan of $1,530.0 million from Quebecor Media, bearing interest at a rate of 9.25%, payable semi-annually, and maturing on April 17, 2054. On the same day, the Corporation invested the total proceeds of $1,530.0 million into 1,530,000 preferred shares, Series G, of 9511-8063 Quebec Inc., an affiliated corporation. These shares carry the right to receive an annual dividend of 9.35%, payable semi-annually. These transactions are carried out for tax consolidation purposes of Quebecor Media and its subsidiaries.

12

VIDEOTRON LTD.

notes to condensed consolidated financial statements (continued)

For the three-month and nine-month periods ended September 30, 2024 and 2023

(tabular amounts in millions of Canadian dollars, except for option data)

(unaudited)

14. ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three months ended September 30				Nine months ended September 30
		2024		2023		2024		2023
Cash flows used for capital expenditures
Additions to property, plant and equipment	$	123.1	$	94.3	$	366.1	$	279.2
Additions to intangible assets (excluding acquisitions of spectrum licences)		38.6		40.0		116.6		110.1
		161.7		134.3		482.7		389.3
Cash, cash equivalents and restricted cash consist of
Cash and cash equivalents	$	15.1	$	20.9	$	15.1	$	20.9
Restricted cash		37.0		–		37.0		–
		52.1		20.9		52.1		20.9
Interest and income taxes reflected as operating activities
Cash interest payments	$	57.7	$	67.2	$	259.2	$	234.4
Cash income tax payments (net of refunds)		71.9		63.7		182.2		238.1

In the respective three-month and nine-month periods ended September 30, 2023, deferred subsidies of $5.4 million and $39.3 million, related to the roll-out of telecommunications services in various regions of Québec, have been used and are presented as a reduction of the related additions to plant, property and equipment.

15. INCOME TAXES

In the second quarter of 2024, Pillar Two legislation, which introduces new taxing mechanisms that could impose a minimum tax on income from the Corporation and its subsidiaries, was substantively enacted in Canada. The Corporation does not expect any impact related to the implementation of these new tax rules that are effective on January 1, 2024.

16. SUBSEQUENT EVENT

On November 4, 2024, Videotron announced the pricing of its US$700 million aggregate principal amount of 5.700% Senior Notes due January 15, 2035. The closing of the offering is expected on or about November 8, 2024. Videotron intends to use the net proceeds, together with drawings under its revolving credit facility, for repayment in full of its $700.0 million tranche A term loan due October 2025 under its credit agreement, and for the redemption in full of its $375.0 million 5.750% Senior Notes due 2026.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

VIDEOTRON LTD.

/s/ Jean-François Lescadres
By:	Jean-François Lescadres
	Vice President Finance

Date: November 7, 2024