November 5, 2009 / 1:55 PM / 9 years ago

UPDATE 2-Quebecor profit jumps as cable grows

* Net income up 51.9 pct at C$69.4 mln, or C$1.08/shr

* Revenue 1 pct higher at C$918.4 mln

* Stock rises 6 percent (Adds details on wireless plans, stock price)

TORONTO, Nov 5 (Reuters) - Media and communications company Quebecor Inc (QBRa.TO) (QBRb.TO) posted a higher quarterly profit on Thursday due to growth at its cable business and cost-cutting in its news media unit, sending its shares 6 percent higher.

The Montreal-based company also said that its plans to roll out a mobile phone service are on track.

Quebecor, which controls the Videotron cable company and the Sun Media chain of newspapers, earned C$69.4 million ($65.5 million), or C$1.08 a share, in the third quarter, up from C$45.7 million, or 71 Canadian cents a share, a year earlier.

Revenue rose to C$918.4 million from C$908.1 million.

Analysts on average had expected earnings of 76 Canadian cents a share on revenue of C$910.4 million, according to Thomson Reuters I/B/E/S.

Quebecor’s class B stock rose C$1.41 to C$24.91 on the Toronto Stock Exchange.

Quebecor said last year it would spend up to C$1 billion to roll out a wireless network to compete with Canada’s Big Three mobile phone service providers, BCE Inc (BCE.TO), Telus Corp (T.TO) and Rogers Communications (RCIb.TO).

On Thursday, Quebecor said it is “pressing ahead” with the project. It said that as of Sept. 30, all service and switching platforms had been installed.

Also, the build-out of antenna sites is proceeding on schedule. For almost 60 percent of the sites, leases have been signed — or tower-sharing requests accepted — and equipment is being installed, the company said.

$1=$1.06 Canadian Reporting by Susan Taylor and Wojtek Dabrowski; editing by Peter Galloway

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