# EDGAR Filing Document

**Accession Number:** 0000890746
**File Stem:** 0001104659-25-075021
**Filing Date:** 2025-8
**Character Count:** 88361
**Document Hash:** 3c8533de6abfc23d9fdfac5d1044b050
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-075021.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001104659-25-075021

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** VIDEOTRON LTEE
- **CENTRAL INDEX KEY:** 0000890746
- **STANDARD INDUSTRIAL CLASSIFICATION:** CABLE & OTHER PAY TELEVISION SERVICES [4841]
- **ORGANIZATION NAME:** 06 Technology
- **EIN:** 980655304
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 033-51000
- **FILM NUMBER:** 251191945

**BUSINESS ADDRESS:**
- **STREET 1:** 612 ST. JACQUES STREET, 18TH FLOOR
- **CITY:** MONTREAL
- **STATE:** A8
- **ZIP:** H3C 4M8
- **BUSINESS PHONE:** (514) 380-1941

**MAIL ADDRESS:**
- **STREET 1:** 612 ST. JACQUES STREET, 18TH FLOOR
- **CITY:** MONTREAL
- **STATE:** A8
- **ZIP:** H3C 4M8

**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 August 2025

**VIDEOTRON LTD./VIDÉOTRON LTÉE**

(Name of Registrant)

<u>612 St-Jacques, Montreal, Canada, H3C 4M8</u>

(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-____________.]

![](tm2519902d1_6kimg001.jpg)

**MANAGEMENT DISCUSSION AND ANALYSIS** 

**SECOND QUARTER 2025**

**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 second quarter of 2025 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, 2024 (Form 20-F), which is available on the website of the U.S. Securities and Exchange Commission at www.sec.gov.

The Corporation uses financial measures not standardized under International Financial Reporting Standards ("IFRS"), such as adjusted EBITDA, adjusted cash flows from operations, free cash flows from operating activities and consolidated net debt leverage ratio. It also uses key performance indicators, such as revenue-generating unit ("RGU") and average monthly mobile revenue per unit ("mobile ARPU"). Definitions of these measures are provided in the "Non-IFRS financial measures" and "Key performance indicators" sections.

**Highlights**

**<u>Second quarter 2025</u>**

**Revenues:** Stable at $1.19 billion in the second quarter of 2025.

**Adjusted EBITDA:<sup>1</sup>** $609.5 million, a $1.4 million (0.2%) increase, despite the impact of the $7.4 million increase in stock-based compensation charge, or a $8.8 million (1.4%) increase, excluding this factor.

**Net income attributable to the shareholder:** $254.9 million, a $32.0 million (14.4%) increase.

**Adjusted cash flows from operations:<sup>1</sup>** $459.7 million, a $13.7 million (3.1%) increase.

**Cash flows provided by operating activities:** $503.5 million, a $56.9 million (12.7%) increase.

**<u>Year to date</u>**

**Revenues:** $2.35 billion, a $19.5 million (-0.8%) decrease.

**Adjusted EBITDA:** $1.19 billion, a $7.3 million (0.6%) increase, despite the impact of the $14.0 million increase in stock-based compensation charge, or a $21.3 million (1.8%) increase, excluding this factor.

**Net income attributable to the shareholder:** $490.7 million, a $73.3 million (17.6%) increase.

**Adjusted cash flows from operations:** $898.9 million, a $10.3 million (1.2%) increase.

**Cash flows provided by operating activities:** $965.4 million, a $125.9 million (15.0%) increase.

<sup>1</sup> See "Non-IFRS financial measures."

**Table 1**

**Consolidated summary of income, cash flows and balance sheet**

(in millions of Canadian dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended <br> June 30 | Three months ended <br> June 30 | Six months ended <br> June 30 | Six months ended <br> June 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| **Revenues** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Mobile telephony | $**435.8** | $410.3 | $**864.6** | $819.4 |
| &nbsp;&nbsp;&nbsp;Internet | **311.2** | 315.7 | **623.8** | 636.2 |
| &nbsp;&nbsp;&nbsp;Television | **187.5** | 195.9 | **377.7** | 395.1 |
| &nbsp;&nbsp;&nbsp;Wireline telephony | **58.6** | 62.8 | **118.5** | 127.5 |
| &nbsp;&nbsp;&nbsp;Mobile equipment sales | **151.0** | 147.6 | **277.3** | 278.9 |
| &nbsp;&nbsp;&nbsp;Other | **42.7** | 54.6 | **85.0** | 109.3 |
|  | **1186.8** | 1186.9 | **2346.9** | 2366.4 |
| Employee costs | **(117.1)** | (122.2) | **(237.8)** | (245.4) |
| Purchase of goods and services | **(460.2)** | (456.6) | **(918.2)** | (937.4) |
| Adjusted EBITDA | **609.5** | 608.1 | **1190.9** | 1183.6 |
| Depreciation and amortization | **(198.7)** | (223.2) | **(398.0)** | (444.4) |
| Financial expenses | **(68.4)** | (88.5) | **(143.7)** | (179.1) |
| Restructuring, impairment of assets and other | **(9.9)** | (5.6) | **(10.8)** | (7.6) |
| Income taxes | **(77.6)** | (67.9) | **(147.7)** | (135.1) |
| **Net income attributable to shareholder** | $**254.9** | $222.9 | $**490.7** | $417.4 |
| **Capital expenditures** | $**149.8** | $162.1 | $**292.0** | $295.0 |
| **Acquisition of spectrum licences** | **–** | 239.1 | **–** | 298.9 |
| **Cash flows:** |  |  |  |  |
| Adjusted cash flows from operations | **459.7** | 446.0 | **898.9** | 888.6 |
| Free cash flows from operating activities<sup>1</sup> | **344.3** | 286.9 | **630.6** | 518.8 |
| Cash flows provided by operating activities | **503.5** | 446.6 | **965.4** | 839.5 |

---

---

| | | |
|:---|:---|:---|
|  | **June 30, <br> 2025** | Dec. 31, <br> 2024 |
| **Balance sheet** |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**7.9** | $39.9 |
| &nbsp;&nbsp;&nbsp;Working capital | **(504.6** | (207.1) |
| &nbsp;&nbsp;&nbsp;Net assets related to derivative financial instruments | **5.6** | 141.2 |
| &nbsp;&nbsp;&nbsp;Total assets | **11856.6** | 12229.4 |
| &nbsp;&nbsp;&nbsp;Bank indebtedness | **1.5** | 3.0 |
| &nbsp;&nbsp;&nbsp;Total long-term debt (including current portion) | **7097.6** | 7619.7 |
| &nbsp;&nbsp;&nbsp;Lease liabilities (current and long term) | **374.9** | 378.5 |
| &nbsp;&nbsp;&nbsp;Equity attributable to the shareholder | **613.1** | 338.9 |
| **Consolidated net debt leverage ratio<sup>1</sup>** | **3.18** | 3.35 |

---

<sup>1</sup> See "Non-IFRS financial measures."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from mobile services increased by $25.5 million (6.2%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· There
 was a net increase of 33,700 RGUs<sup>1</sup> (0.4%) in the second quarter of 2025,
 including 72,000 connections (1.7%) to the mobile telephony service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· On
 June 11, 2025, Videotron announced a major expansion of its GIGA Internet service in
 the Québec City, Outaouais, Saguenay–Lac-Saint-Jean, Hautes-Laurentides and
 Rivière-du-Loup regional county municipalities (RCMs). In all, more than 350,000 additional
 households can now enjoy higher download speeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· On
 April 4, 2025, in keeping with its ongoing commitment to improving customer experience,
 Freedom Mobile Inc. ("Freedom") began the phased rollout of 3800 MHz
 spectrum across its 5G+ network in Ontario, Alberta and British Columbia. This rollout will
 significantly increase Freedom's network capacity and deliver improved connectivity
 for customers with 5G+ compatible devices and plans, with theoretical download speeds in
 excess of 1 Gbps.

**<u>Financing operations</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· On
 June 16, 2025, Videotron redeemed at maturity its Senior Notes in aggregate principal
 amount of $400.0 million, bearing interest at 5.625%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· On
 February 26, 2025, Videotron amended and restated its credit agreement to, among other
 things, amend its existing $500.0 million revolving credit facility (which had been
 reduced from $2.00 billion to $500.0 million on January 29, 2025) by creating
 two tranches: (i) a first tranche in the amount of $250.0 million maturing in February 2030,
 and (ii) a second tranche in the amount of $250.0 million maturing in February 2026
 and providing for a conversion option into a term facility maturing in February 2027.
 On May 27, 2025, each of the two tranches of the revolving credit facility was subsequently
 increased from $250.0 million to $400.0 million.

<sup>1</sup> See "Key performance indicators."

**ANALYSIS OF CONSOLIDATED RESULTS**

**<u>2025/2024 second quarter comparison</u>**

**Revenues:** Stable at $1.19 billion in the second quarter of 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from mobile telephony services increased $25.5 million (6.2%) to $435.8 million,
 mainly because of an increase in the number of subscriber connections, partially offset by
 lower average per-connection revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from Internet access services decreased $4.5 million (-1.4%) to $311.2 million,
 essentially because of a reduction in the subscriber base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from television services decreased $8.4 million (-4.3%) to $187.5 million, mainly
 because of a reduction in the subscriber base.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from wireline telephony services decreased $4.2 million (-6.7%) to $58.6 million,
 mainly because of the impact of the decrease in subscriber connections, partially offset
 by higher average per-connection revenues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from mobile equipment sales to customers increased $3.4 million (2.3%) to $151.0 million,
 mainly because of price increases, partially offset by a decrease in the number of mobile
 devices sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Other
 revenues decreased $11.9 million (-21.8%) to $42.7 million, essentially because
 of the decrease in revenues from wireline equipment sales due to the availability of Helix
 equipment on a rental basis since the beginning of June 2024.

**Mobile ARPU:<sup>1</sup>** $34.35 in the second quarter of 2025 compared with $35.32 in the same period of 2024, a $0.97 (-2.7%) 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**

Table 2 shows changes in RGUs for the three-month, six-month and twelve-month periods ended June 30, 2025 and 2024.

**Table 2**

**Change in RGUs**

(in thousands of units)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Three months ended<br> June 30 | Three months ended<br> June 30 | Six months ended<br> June 30 | Six months ended<br> June 30 | Twelve months ended<br> June 30 | Twelve months ended<br> June 30 |
|  | **2025** | 2024 | **2025** | 2024 | **2025** | 2024 |
| Mobile telephony | **72.0** | 93.5 | **126.4** | 153.7 | **346.0** | 308.5 |
|  | **1.7%** | 2.4% | **3.1%** | 4.1% | **8.8%** | 8.5% |
| Internet access | **(3.2)** | 1.4 | **(6.7)** | (5.1) | **3.4** | 5.7 |
|  | **-0.2%** | 0.1% | **-0.4%** | -0.3% | **0.2%** | 0.3% |
| Television | **(19.3)** | (13.8) | **(20.2)** | (33.7) | **(47.7)** | (52.6) |
|  | **-1.5%** | -1.0% | **-1.6%** | -2.5% | **-3.6%** | -3.8% |
| Wireline telephony | **(15.8)** | (14.9) | **(31.5)** | (31.3) | **(66.0)** | (68.7) |
|  | **-2.7%** | -2.3% | **-5.2%** | -4.6% | **-10.3%** | -9.6% |
| Total RGUs | **33.7** | 66.2 | **68.0** | 83.6 | **235.7** | 192.9 |
|  | **0.4%** | 0.9% | **0.9%** | 1.1% | **3.1%** | 2.6% |

---

<sup>1</sup> See "Key performance indicators."

**Table 3**

**Quarter-end RGUs**

(in thousands of units)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **June 2025** | Mar. 2025 | Dec. 2024 | Sept. 2024 | June 2024 | Mar. 2024 | Dec. 2023 | Sept. 2023 |
| Mobile telephony | **4264.6** | 4192.6 | 4138.2 | 4050.7 | 3918.6 | 3825.1 | 3764.9 | 3698.8 |
| Internet access | **1725.9** | 1729.1 | 1732.6 | 1734.3 | 1722.5 | 1721.1 | 1727.6 | 1721.3 |
| Television | **1274.2** | 1293.5 | 1294.4 | 1311.9 | 1321.9 | 1335.7 | 1355.6 | 1362.5 |
| Wireline telephony | **577.4** | 593.2 | 608.9 | 627.5 | 643.4 | 658.3 | 674.7 | 691.9 |
| **Total** | **7842.1** | 7808.4 | 7774.1 | 7724.4 | 7606.4 | 7540.2 | 7522.8 | 7474.5 |

---

**Adjusted EBITDA:** $609.5 million, a $1.4 million (0.2%) increase, mainly due to the impact of the increase in revenues from mobile services and disciplined management of promotional discounts and of costs related to mobile device sales, partially offset by the impact of the decrease in revenues from wireline services and the increase in the stock-based compensation charge.

**Cost/revenue ratio:** Employee costs and purchases of goods and services for all operations, expressed as a percentage of revenues, were 48.6% in the second quarter of 2025 compared with 48.8% in the same period of 2024.

**Net income attributable to the shareholder:** $254.9 million in the second quarter of 2025, compared with $222.9 million in the same period of 2024, an increase of $32.0 million or 14.4%.

· The
 main favourable variances were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $24.5 million
 decrease in the depreciation and amortization charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $20.1 million
 decrease in financial expenses.

· The
 unfavourable variances were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $9.7 million
 increase in the income tax expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $4.3 million
 unfavourable variance in the charge for restructuring, impairment of assets and other.

**Adjusted cash flows from operations:** $459.7 million in the second quarter of 2025 compared with $446.0 million in the same period of 2024 (Table 8). The $13.7 million (3.1%) increase mainly reflects a $12.3 million decrease in capital expenditures due primarily to the timing of certain investments.

**Cash flows provided by operating activities:** $503.5 million, a $56.9 million (12.7%) increase in the second quarter of 2025 due primarily to the favourable net change in non-cash balances related to operating activities and a decrease in the cash portion of financial expenses, partially offset by the increase in current income taxes.

**Depreciation and amortization charge:** $198.7 million in the second quarter of 2025, a $24.5 million decrease due mainly to the slowdown in capital expenditures in recent years, including the impact of government credits for certain large investment projects.

**Financial expenses:** $68.4 million in the second quarter of 2025, a $20.1 million decrease due primarily to the impact of lower average interest rates on long-term debt and lower average indebtedness.

**Charge for restructuring, impairment of assets and other:** $9.9 million in the second quarter of 2025, an unfavourable variance of $4.3 million due mainly to a charge for retroactive costs arising from an appeal court decision in the second quarter of 2025 on tariffs for the retransmission of distant television signals.

**Income tax expense:** $77.6 million in the second quarter of 2025 (effective tax rate of 27.1%), compared with $67.9 million in the same period of 2024 (effective tax rate of 26.2%), a $9.7 million unfavourable variance caused mainly by the impact of the increase in taxable income. The effective tax rate is calculated considering only taxable and deductible items.

**<u>2025/2024 year-to-date comparison</u>**

**Revenues:** $2.35 billion in the first half of 2025, a $19.5 million (-0.8%) decrease, essentially due to the same factors as those noted above in the discussion of second quarter 2025 results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from mobile telephony services increased $45.2 million (5.5%) to $864.6 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from Internet access services decreased $12.4 million (-1.9%) to $623.8 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from television services decreased $17.4 million (-4.4%) to $377.7 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from wireline telephony services decreased $9.0 million (-7.1%) to $118.5 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Revenues
 from mobile equipment sales to customers decreased $1.6 million (-0.6%) to $277.3 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Other
 revenues decreased $24.3 million (-22.2%) to $85.0 million

**Mobile ARPU**:**<sup>1</sup>** $34.33 in the first half of 2025 compared with $35.63 in the same period of 2024, a $1.30 (-3.6%) decrease due mainly to the same factors as those noted above in the discussion of second quarter 2025 results.

**Adjusted EBITDA:** $1.19 billion in the first half of 2025, a $7.3 million (0.6%) increase essentially due to the same factors as those noted above in the discussion of second quarter 2025 operating results.

**Cost/revenue ratio:** Employee costs and purchases of goods and services for all operations, expressed as a percentage of revenues, were 49.3% in the first half of 2025 compared with 50.0% in the same period of 2024.

**Net income attributable to the shareholder:** $490.7 million in the first half of 2025, compared with $417.4 million in the same period of 2024, an increase of $73.3 million or 17.6%.

· The
 favourable variances were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $46.4 million
 decrease in the depreciation and amortization charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $35.4 million
 decrease in financial expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $7.3 million
 increase in adjusted EBITDA.

· The
 unfavourable variances were:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $12.6 million
 increase in the income tax expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $3.2 million
 unfavourable variance in the charge for restructuring, impairment of assets and other.

**Adjusted cash flows from operations:** $898.9 million in the first half of 2025 compared with $888.6 million in the same period of 2024 (Table 8). The $10.3 million (1.2%) increase was due to the $7.3 million increase in adjusted EBITDA and the $3.0 million decrease in capital expenditures.

**Cash flows provided by operating activities:** $965.4 million, a $125.9 million (15.0%) increase due primarily to the favourable net change in non-cash balances related to operating activities and a decrease in the cash portion of financial expenses.

**Depreciation and amortization charge:** $398.0 million in the first half of 2025, a $46.4 million decrease due mainly to the same factors as those noted above in the discussion of second quarter 2025 results.

**Financial expenses:** $143.7 million in the first half of 2025, a $35.4 million decrease due primarily to the impact of lower average interest rates on long-term debt and lower average indebtedness.

**Charge for restructuring, impairment of assets and other:** $10.8 million in the first half of 2025, an unfavourable variance of $3.2 million due mainly to the charge for retroactive costs arising from an appeal court decision in the second quarter of 2025 on tariffs for the retransmission of distant television signals.

<sup>1</sup> See "Key performance indicators."

**Income tax expense:** $147.7 million in the first half of 2025 (effective tax rate of 27.0%), compared with $135.1 million in the same period of 2024 (effective tax rate of 26.1%), a $12.6 million unfavourable variance caused mainly by the impact of the increase in taxable income. The effective tax rate is calculated considering only taxable and deductible items.

**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.

**<u>Operating activities</u>**

*Second quarter 2025*

**Cash flows provided by operating activities:** $503.5 million in the second quarter of 2025 compared with $446.6 million in the same period of 2024.

The $56.9 million (12.7%) increase was primarily due to:

· $48.7 million
 favourable net change in non-cash balances related to operating activities, due primarily
 to favourable variances in income tax payable, inventory, contract assets and provisions
 for stock-based compensation plans, partially offset by an unfavourable variance accounts
 receivable;

· $20.1 million
 decrease in the cash portion of financial expenses.

Partially offset by:

· $10.2 million
 increase in current income taxes.

*Year to date*

**Cash flows provided by operating activities:** $965.4 million in the first half of 2025 compared with $839.5 million in the same period of 2024.

The $125.9 million (15.0%) increase was primarily due to:

· $94.0 million
 favourable net change in non-cash balances related to operating activities, due primarily
 to favourable variances in inventory, contract assets, accounts receivable and provisions
 for stock-based compensation plans, partially offset by an unfavourable variance in accounts
 payable, accrued charges and provisions;

· $35.3 million
 decrease in the cash portion of financial expenses.

**Working capital:** Negative $504.6 million as at June 30, 2025, compared with negative $207.1 million as at December 31, 2024. The unfavourable variance of $297.5 million was mainly due to the evolution of short- and long-term debt maturities and decreases in accounts receivable, inventory and cash and cash equivalents, partially offset by the redemption upon maturity by Videotron of the entirety of its Senior Notes in the aggregate principal amount of $400.0 million and a decrease in accounts payable, accrued charges and provisions.

**<u>Investing activities</u>**

*Second quarter 2025*

**Cash flows used for capital expenditures:** $159.8 million in the second quarter of 2025, compared with $160.0 million in the same period of 2024. The $0.2 million decrease was due to a $12.3 million reduction in capital expenditures, primarily as a result of the timing of certain investments, mainly offset by the $12.1 million unfavourable net change in current non-cash items.

**Net subsidies used to finance capital expenditures:** $3.4 million in the second quarter of 2025. This figure represents the use of subsidies recorded as a reduction of capital expenditures that were received under the Québec government's initiative to improve wireless coverage in outlying regions of Québec.

**Acquisition of spectrum licences:** $239.1 million in the second quarter of 2024. 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).

**Proceeds from disposal of assets:** $0.6 million in the second quarter of 2025 compared with $0.3 million in the same period of 2024.

**Business acquisitions:** $1.8 million in the second quarter of 2024.

*Year to date*

**Cash flows used for capital expenditures:** $335.5 million in the first half of 2025, compared with $321.0 million in the same period of 2024. The $14.5 million increase was due to a $17.5 million unfavourable net change in current non-cash items, partially offset by the $3.0 million reduction in capital expenditures.

**Net subsidies received to finance capital expenditures**: $14.9 million in the first half of 2025, compared with $37.0 million in the same period of 2024. These subsidies were received in advance under the Québec government's initiative to improve wireless coverage in outlying regions of Québec.

**Acquisitions of spectrum licences:** $298.9 million in the first half of 2024. On May 29, 2024, Videotron acquired 305 blocks of spectrum in the 3800 MHz band across the country.

**Proceeds from disposal of assets:** $0.7 million in the first half of 2025, compared with $0.3 million in the same period of 2024.

**Business acquisitions:** $1.8 million in the first half of 2024.

**<u>Free cash flows from operating activities</u>**

*Second quarter 2025*

**Free cash flows from operating activities:** $344.3 million in the second quarter of 2025 compared with $286.9 million in the same period of 2024 (Table 9). The $57.4 million increase was due mainly to a $56.9 million increase in cash flows provided by operating activities.

*Year to date*

**Free cash flows from operating activities**: $630.6 million in the first half of 2025 compared with $518.8 million in the same period of 2024 (Table 9). The $111.8 million increase was due mainly to a $125.9 million increase in cash flows provided by operating activities, partially offset by an $14.5 million increase in cash flows used for capital expenditures.

**<u>Financing activities</u>**

**Consolidated debt** (long-term debt plus bank indebtedness): $519.1 million reduction in the first half of 2025; $135.6 million net unfavourable variance in assets and liabilities related to derivative financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The
 $519.1 million reduction in debt in the first half of 2025 essentially consisted of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o redemption
 upon maturity by Videotron on June 16, 2025 of the entirety of its 5.625% Senior Notes
 in the aggregate principal amount of $400.0 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $181.6 million
 favourable impact of average exchange rate variance. The consolidated debt decrease attributable
 to this item was offset by the decrease in the net asset related to derivative financial
 instruments.

Partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o $59.4 million
 increase in total drawings on Videotron's revolving bank credit facility.

· The
 $135.6 million net unfavourable variance in the net asset related to derivative financial
 instruments in the first half of 2025 was mainly due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o unfavourable
 impact of exchange rate fluctuations on the value of derivative financial instruments;

Partially offset by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o favourable
 impact of interest rate fluctuations on the fair value of derivative financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· On
 February 26, 2025, Videotron amended and restated its credit agreement to, among other
 things, amend its existing $500.0 million revolving credit facility (which had been
 reduced from $2.00 billion to $500.0 million on January 29, 2025) by creating
 two tranches: (i) a first tranche in the amount of $250.0 million maturing in February 2030,
 and (ii) a second tranche in the amount of $250.0 million maturing in February 2026
 and providing for a conversion option into a term facility maturing in February 2027.
 On May 27, 2025, each of the two tranches of the revolving credit facility was subsequently
 increased from $250.0 million to $400.0 million.

**<u>Financial position</u>**

**Net available liquidity:** $746.1 million at June 30, 2025 for the Corporation and its wholly owned subsidiaries, consisting of available unused revolving credit facilities of $740.4 million, plus cash and cash equivalents of $5.7 million.

**Consolidated debt** : $7.07 billion at June 30, 2025, a $519.1 million decrease compared with December 31, 2024.

As of June 30, 2025, minimum principal repayments on long-term debt in the coming years were as follows:

**Table 4**

**Minimum principal repayments on long-term debt**

**12-month periods ended June 30**

(in millions of Canadian dollars)

---

| | |
|:---|:---|
| 2026 | $695.4 |
| 2027 | 1511.9 |
| 2028 | 750.0 |
| 2029 | 680.4 |
| 2030 | 1459.1 |
| 2031 and thereafter | 2000.8 |
| **Total** | $**7097.6** |

---

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 4.4 years as of June 30, 2025 (4.7 years as of December 31, 2024). After taking into account hedging instruments, the debt consisted of approximately 89.3% fixed-rate debt (84.9% at December 31, 2024) and 10.7% floating-rate debt (15.1% at December 31, 2024).

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 June 30, 2025, the Corporation was in compliance with all required financial ratios.

**Dividends declared and paid to the parent corporation**

The Corporation paid $260.0 million in common dividends to the parent corporation in the first half of 2025 ($285.1 million in the same period of 2024). 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.

**<u>Analysis of consolidated balance sheet</u>**

**Table 5**

**Consolidated balance sheet**

**Analysis of main differences between June 30, 2025 and December 31, 2024**

(in millions of Canadian dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, <br> 2025<sup>1</sup>** | Dec. 31, <br> 2024<sup>1</sup> | Difference | Main reasons for difference |
| **Assets** |  |  |  |  |
| Cash and cash equivalents | $**7.9** | $39.9 | $(32.0) | See "Cash flows and financial position" |
| Accounts receivable | **907.9** | 1003.8 | (95.9) | Impact of current variances in activity |
| Inventories | **265.5** | 302.3 | (36.8) | Impact of current variances in activity |
| Property, plant and equipment | **3007.2** | 3034.3 | (27.1) | Depreciation exceeded additions during the period |
| Intangible assets | **3377.9** | 3401.3 | (23.4) | Amortization exceeded additions during the period |
| Derivative financial instruments<sup>2</sup> | **5.6** | 141.2 | (135.6) | See "Financing activities" |
| Other assets | **459.3** | 509.6 | (50.3) | Decrease in long-term operating assets due to the impact of current variances in activity |
| **Liabilities** |  |  |  |  |
| Accounts payable, accrued charges and provisions | **758.5** | 981.4 | (222.9) | Impact of current variances in activity |
| Income taxes<sup>3</sup> | **62.9** | 19.8 | 43.1 | Current income taxes for the period less current disbursements |
| Long-term debt, including current portion and bank indebtedness | **7066.2** | 7585.3 | (519.1) | See "Financing activities" |

---

<sup>1</sup> The "restricted cash" and "deferred subsidies" line items are combined for the purposes of the analysis.

<sup>2</sup> Assets less liabilities.

<sup>3</sup> Liabilities less assets.

**ADDITIONAL INFORMATION**

**Contractual obligations**

Material contractual obligations of the Corporation include principal repayment and interest on long-term debt and lease liabilities; capital expenditure and other commitments, including mobile devices; and obligations related to derivative financial instruments. For a summary of the Corporation's contractual obligations, please refer to the Corporation's Management Discussion and Analysis for the year ended December 31, 2024, as well as Table 4 for the update to June 30, 2025 of principal repayments on long-term debt. As of June 30, 2025, there have been no material changes in the Corporation's major contractual obligations since December 31, 2024, other than the financing transactions described in the "financing activities" section in this report.

**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 second quarter of 2025, the Corporation incurred various expenses, including lease charges, from the parent and affiliated corporations, in the amount of $32.2 million ($29.0 million in 2024), 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 ($0.9 million in 2024). During the first six months of 2025, the Corporation incurred various expenses, including lease charges, from the parent and affiliated corporations, in the amount of $63.6 million ($60.6 million in 2024), which are included in purchase of goods and services. The Corporation generated revenues from the parent and affiliated corporations in the amount of $1.9 million ($2.0 million in 2024).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 second quarter of 2025, the Corporation incurred management fees of $7.6 million with its parent corporation ($8.9 million in 2024). During the six months of 2025, the Corporation incurred management fees of $15.2 million with its parent corporation ($17.7 million in 2024).

**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.

The carrying value and fair value of long-term debt and derivative financial instruments as of June 30, 2025 and December 31, 2024 are as follows:

**Table 6**

**Fair value of long-term debt and derivative financial instruments**

(in millions of Canadian dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 |
| **Asset (liability)** | **Carrying<br> value** | **Fair <br> value** | Carrying <br> value | Fair <br> value |
| **Long-term debt<sup>1</sup>** | $**(7097.6)** | $**(7088.3)** | $(7619.7) | $(7540.0) |
| **Derivative financial instruments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Foreign exchange forward contracts | **(3.4)** | **(3.4)** | 6.9 | 6.9 |
| &nbsp;&nbsp;&nbsp;Interest rate swaps | **(8.3)** | **(8.3)** | (7.2) | (7.2) |
| &nbsp;&nbsp;&nbsp;Cross-currency swaps | **17.3** | **17.3** | 141.5 | 141.5 |

---

<sup>1</sup> The carrying value of long-term debt excludes 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 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. 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.

Gains of $38.0 million and $46.0 million were recorded under "Other comprehensive income" in the second quarter and first half of 2025 respectively (losses of $13.7 million and $5.8 million in the second quarter and first half of 2024 respectively).

**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, adjusted cash flows from operations, free cash flows from operating activities and consolidated net debt leverage ratio, are not calculated in accordance with, or recognized by, IFRS. 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, impairment of assets 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. This measure should not be considered in isolation or as a substitute for other performance measures prepared in accordance with IFRS. The Corporation's management uses 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<br> June 30 | Three months ended<br> June 30 | Six months ended<br> June 30 | Six months ended<br> June 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Adjusted EBITDA | $**609.5** | $608.1 | $**1190.9** | $1183.6 |
| Depreciation and amortization | **(198.7)** | (223.2) | **(398.0)** | (444.4) |
| Financial expenses | **(68.4)** | (88.5) | **(143.7)** | (179.1) |
| Restructuring, acquisition costs and other | **(9.9)** | (5.6) | **(10.8)** | (7.6) |
| Income taxes | **(77.6)** | (67.9) | **(147.7)** | (135.1) |
| **Net income attributable to the shareholder** | $**254.9** | $222.9 | $**490.7** | $417.4 |

---

**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 and Board of Directors 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.

**Table 8**

**Adjusted cash flows from operations**

(in millions of Canadian dollars)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended<br> June 30 | Three months ended<br> June 30 | Six months ended <br> June 30 | Six months ended <br> June 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Adjusted EBITDA | $**609.5** | $608.1 | $**1190.9** | $1183.6 |
| Capital expenditures<sup>1</sup> | **(149.8)** | (162.1) | **(292.0)** | (295.0) |
| **Adjusted cash flows from operations** | $**459.7** | $446 | $**898.9** | $888.6 |
| **<sup>1</sup> Reconciliation to cash flows used for capital expenditures as per** | Three months ended June 30 | Three months ended June 30 | Six months ended June 30 | Six months ended June 30 |
| **condensed consolidated financial statements:** | **2025** | 2024 | **2025** | 2024 |
| Capital expenditures | $**(149.8)** | $(162.1) | $**(292.0)** | $(295.0) |
| Net variance in current operating items related to capital expenditures (excluding government credits receivable for large investment projects) | (10.0) | 2.1 | (43.5) | (26.0) |
| Cash flows used for capital expenditures | $**(159.8)** | $(160.0) | $**(335.5)** | $(321.0) |

---

**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<br> June 30 | Three months ended<br> June 30 | Six months ended<br> June 30 | Six months ended<br> June 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| **Adjusted cash flows from operations from Table 8** | $**459.7** | $446.0 | $**898.9** | $888.6 |
| **<u>Plus (minus)</u>** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash portion of financial expenses | **(66.1)** | (86.2) | **(139.2)** | (174.5) |
| &nbsp;&nbsp;&nbsp;Cash portion of restructuring, impairment of assets and other | **(9.6)** | (7.5) | **(10.3)** | (7.1) |
| &nbsp;&nbsp;&nbsp;Current income taxes | **(75.9)** | (65.7) | **(151.2)** | (146.5) |
| &nbsp;&nbsp;&nbsp;Other | **0.2** | 0.9 | **(0.1)** | 2.3 |
| &nbsp;&nbsp;&nbsp;Net change in non-cash balances related to operating activities | **46.0** | (2.7) | **76.0** | (18.0) |
| &nbsp;&nbsp;&nbsp;Net variance in current operating items related to capital expenditures (excluding government credits receivable for large investment projects) | **(10.0)** | 2.1 | **(43.5)** | (26.0) |
| **Free cash flows from operating activities** | **344.3** | 286.9 | **630.6** | 518.8 |
| **<u>Plus (minus)</u>** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Cash flows used for capital expenditures (excluding spectrum licence acquisitions) | **159.8** | 160.0 | **335.5** | 321.0 |
| &nbsp;&nbsp;&nbsp;Proceeds from disposal of assets | **(0.6)** | (0.3) | **(0.7)** | (0.3) |
| **Cash flows provided by operating activities** | $**503.5** | $446.6 | $**965.4** | $839.5 |

---

**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 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 the Corporation's financial position. The Corporation's definition of consolidated net debt leverage ratio may not be identical to similarly titled measures reported by other companies.

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)

---

| | | |
|:---|:---|:---|
|  | **June 30,<br> 2025** | Dec. 31,<br> 2024 |
| **Total long-term debt<sup>1</sup>** | $**7097.6** | $7619.7 |
| **<u>Plus (minus)</u>** |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities<sup>2</sup> | **374.9** | 378.5 |
| &nbsp;&nbsp;&nbsp;Bank indebtedness | **1.5** | 3.0 |
| &nbsp;&nbsp;&nbsp;Derivative financial instruments<sup>3</sup> | **(5.6** | (141.2) |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | **(7.9** | (39.9 |
| Consolidated net debt | **7460.5** | 7820.1 |
| Divided by: |  |  |
| &nbsp;&nbsp;&nbsp;Trailing 12-month adjusted EBITDA | $**2342.7** | $2335.4 |
| **Consolidated net debt leverage ratio** | **3.18** | 3.35 |

---

<sup>1</sup> Excluding financing costs.

<sup>2</sup> Total liabilities.

<sup>3</sup> Assets less liabilities.

**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**

The statements in this report 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 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. 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:

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

&nbsp;&nbsp;&nbsp;&nbsp;· general
 economic climate, financial and economic market conditions, global business challenges, such
 as tariffs and trade barriers, as well as market conditions in its businesses;

&nbsp;&nbsp;&nbsp;&nbsp;· Videotron's
 ability to implement its business and growth strategies successfully;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 intensity of competitive activity in the industries in which Videotron operates and its ability
 to penetrate new markets and successfully develop its business, including in growth sectors
 and new geographies;

&nbsp;&nbsp;&nbsp;&nbsp;· new
 technologies that might change consumer behaviour with respect to Videotron's product
 suites;

&nbsp;&nbsp;&nbsp;&nbsp;· 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 the Corporation's businesses;

&nbsp;&nbsp;&nbsp;&nbsp;· risks
 relating to the ongoing integration of Freedom, acquired in 2023, which could result
 in additional and unforeseen expenses, capital expenditures and financial risks, such as
 the incurrence of unexpected write-offs, unanticipated or unknown liabilities, or unforeseen
 litigation. In addition, the anticipated benefits of the Freedom acquisition may not be fully
 realized or could take longer to realize than expected;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 impacts of the significant and recurring investments that will be required for development
 and expansion and to compete effectively with the incumbent local exchange carriers ("ILECs")
 and other current or potential competitors in the target markets;

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

&nbsp;&nbsp;&nbsp;&nbsp;· labour
 disputes and strikes, service interruptions resulting from equipment breakdown, network failure,
 the threat of natural disasters, epidemics, public-health crises and political instability
 in some countries;

&nbsp;&nbsp;&nbsp;&nbsp;· impacts
 related to environmental issues, cybersecurity and the protection of personal information;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in Videotron's ability to obtain services and equipment critical to its operations;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in laws and regulations, or in their interpretations, which could result, among other things,
 in increased competition, changes in Videotron's markets, increased operating expenses,
 capital expenditures or tax expenses, or a reduction in the value of some assets; and

&nbsp;&nbsp;&nbsp;&nbsp;· Videotron's
 substantial indebtedness, interest rate and exchange rate fluctuations, the tightening of
 credit markets and the restrictions on its business imposed by the terms of its 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.

Condensed consolidated financial statements of

**VIDEOTRON LTD.**

Three-month and six-month periods ended June 30, 2025 and 2024

**VIDEOTRON LTD.**

**CONSOLIDATED STATEMENTS OF INCOME** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in millions of Canadian dollars) |  | Three months ended | Three months ended | Six months ended | Six months ended |
| (unaudited) |  | June 30 | June 30 | June 30 | June 30 |
|  | Note | **2025** | 2024 | **2025** | 2024 |
| **Revenues** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mobile telephony |  | $**435.8** | $410.3 | $**864.6** | $819.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet |  | **311.2** | 315.7 | **623.8** | 636.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Television |  | **187.5** | 195.9 | **377.7** | 395.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wireline telephony |  | **58.6** | 62.8 | **118.5** | 127.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mobile equipment sales |  | **151.0** | 147.6 | **277.3** | 278.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | **42.7** | 54.6 | **85.0** | 109.3 |
|  |  | **1186.8** | 1186.9 | **2346.9** | 2366.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee costs | 2 | **117.1** | 122.2 | **237.8** | 245.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchase of goods and services | 2 | **460.2** | 456.6 | **918.2** | 937.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization |  | **198.7** | 223.2 | **398.0** | 444.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial expenses | 3 | **68.4** | 88.5 | **143.7** | 179.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring, impairment of assets and other | 4 | **9.9** | 5.6 | **10.8** | 7.6 |
| **Income before income taxes** |  | **332.5** | 290.8 | **638.4** | 552.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes (recovery): |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current |  | **75.9** | 65.7 | **151.2** | 146.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred |  | **1.7** | 2.2 | **(3.5)** | (11.4) |
|  |  | **77.6** | 67.9 | **147.7** | 135.1 |
| **Net income attributable to shareholder** |  | $**254.9** | $222.9 | $**490.7** | $417.4 |

---

See accompanying notes to condensed consolidated financial statements.

**VIDEOTRON LTD.**

**CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in millions of Canadian dollars) |  | Three months ended | Three months ended | Six months ended | Six months ended |
| (unaudited) |  | June 30 | June 30 | June 30 | June 30 |
|  | Note | **2025** | 2024 | **2025** | 2024 |
| **Net income** |  | $**254.9** | $222.9 | $**490.7** | $417.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss): | 10 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Items that may be reclassified to income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash flow hedges: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain (loss) on valuation of derivative financial instruments |  | **38.0** | (13.7) | **46.0** | (5.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | **(1.6**) | 2.4 | **(2.5)** | (0.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Items that will not be reclassified to income: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined benefit plans: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re-measurement gain |  | **-** | 5.9 | **-** | 34.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | **-** | (1.5) | **-** | (9.0) |
|  |  | **36.4** | (6.9) | **43.5** | 19.6 |
| **Comprehensive income attributable to shareholder** |  | $**291.3** | $216.0 | $**534.2** | $437.0 |

---

See accompanying notes to condensed consolidated financial statements.

**VIDEOTRON LTD.**

**CONSOLIDATED STATEMENTS OF EQUITY**

(in millions of Canadian dollars)

(unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Equity attributable to shareholder** | **Equity attributable to shareholder** | **Equity attributable to shareholder** | | |
|  |<br>**Capital**<br>**stock** |<br>**(Deficit)**<br>**Retained**<br>**earnings** | **Accumulated**<br>**other com-**<br>**prehensive**<br>**loss** | **Equity**<br>**attributable**<br>**to non-**<br>**controlling**<br>**interests** |<br><br>**Total**<br>**equity** |
|  | (note 8) | | (note 10) | | |
| **Balance as of December 31, 2023** | $312.9 | $(150.9) | $(6.4) | $0.3 | $155.9 |
| Net income |  | 417.4 |  |  | 417.4 |
| Other comprehensive income |  |  | 19.6 |  | 19.6 |
| Dividends | - | (285.0) | - | (0.1) | (285.1) |
| **Balance as of June 30, 2024** | 312.9 | (18.5) | 13.2 | 0.2 | 307.8 |
| Net income |  | 410.9 |  |  | 410.9 |
| Other comprehensive loss |  |  | (74.6) |  | (74.6) |
| Dividends | - | (305.0) | - | (0.1) | (305.1) |
| **Balance as of December 31, 2024** | 312.9 | 87.4 | (61.4) | 0.1 | 339.0 |
| Net income |  | 490.7 |  |  | 490.7 |
| Other comprehensive income |  |  | 43.5 |  | 43.5 |
| Dividends | - | (260.0) | - | - | (260.0) |
| **Balance as of June 30, 2025** | $**312.9** | $**318.1** | $**(17.9)** | $**0.1** | $**613.2** |

---

See accompanying notes to condensed consolidated financial statements.

**VIDEOTRON LTD.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (in millions of Canadian dollars) |  | Three months ended | Three months ended | Six months ended | Six months ended |
| (unaudited) |  | June 30 | June 30 | June 30 | June 30 |
|  | Note | **2025** | 2024 | **2025** | 2024 |
| **Cash flows related to operating activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income |  | $**254.9** | $222.9 | $**490.7** | $417.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments for: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of property, plant and equipment |  | **119.1** | 134.5 | **238.0** | 268.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of intangible assets |  | **48.0** | 56.1 | **97.2** | 114.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation of right-of-use assets |  | **31.6** | 32.6 | **62.8** | 61.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets |  | **0.5** | 0.2 | **1.1** | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of financing costs | 3 | **2.3** | 2.3 | **4.5** | 4.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | **1.7** | 2.2 | **(3.5)** | (11.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | **(0.6)** | (1.5) | **(1.4)** | (0.1) |
|  |  | **457.5** | 449.3 | **889.4** | 857.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in non-cash balances related to operating activities |  | **46.0** | (2.7) | **76.0** | (18.0) |
| Cash flows provided by operating activities |  | **503.5** | 446.6 | **965.4** | 839.5 |
| **Cash flows related to investing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | 13 | **(159.8)** | (160.0) | **(335.5)** | (321.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred subsidies (used) received to finance capital expenditures | 5 | **(3.4)** |  | **14.9** | 37.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of spectrum licences | 6 | **-** | (239.1) | **-** | (298.9) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business acquisitions |  | **-** | (1.8) | **-** | (1.8) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from disposal of assets |  | **0.6** | 0.3 | **0.7** | 0.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of preferred shares of an affiliated corporation | 12 | **-** | (1530.0) | **-** | (1530.0) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other |  | **(0.3)** | (0.1) | **(0.3)** | (0.1) |
| Cash flows used in investing activities |  | **(162.9)** | (1930.7) | **(320.2)** | (2114.5) |
| **Cash flows related to financing activities** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in bank indebtedness |  | **0.1** | 1.2 | **(1.5)** | 1.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change under revolving facility, net of financing costs |  | **59.4** | (124.2) | **59.4** | (209.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of long-term debt, net of financing costs | 7 | **-** | 992.6 | **-** | 992.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt | 7 | **(400.0)** | (825.3) | **(400.0)** | (825.3) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Settlement of hedging contracts | 7 | **-** | 163.0 | **-** | 163.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of lease liabilities |  | **(30.3)** | (31.9) | **(60.2)** | (60.5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends |  | **(140.0)** | (240.1) | **(260.0)** | (285.1) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of a loan from the parent corporation | 12 | **-** | 1530.0 | **-** | 1530.0 |
| Cash flows (used in) provided by financing activities |  | **(510.8)** | 1465.3 | **(662.3)** | 1306.8 |
| Net change in cash, cash equivalents and restricted cash |  | **(170.2)** | (18.8) | **(17.1)** | 31.8 |
| Cash, cash equivalents and restricted cash at beginning of period |  | **227.2** | 58.6 | **74.1** | 8.0 |
| **Cash, cash equivalents and restricted cash at end of period** | 13 | $**57.0** | $39.8 | $**57.0** | $39.8 |

---

See accompanying notes to condensed consolidated financial statements.

**VIDEOTRON LTD.**

**CONSOLIDATED BALANCE SHEETS** 

---

| | | | |
|:---|:---|:---|:---|
| (in millions of Canadian dollars) |  |  |  |
| (unaudited) |  | **June 30** | December 31 |
|  | Note | **2025** | 2024 |
| **Assets** |  |  |  |
| **Current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $**7.9** | $39.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 5 | **49.1** | 34.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | **907.9** | 1003.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets |  | **115.8** | 139.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes |  | **17.3** | 16.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories |  | **265.5** | 302.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets |  | **181.6** | 173.8 |
|  |  | **1545.1** | 1710.0 |
| **Non-current assets** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment |  | **3007.2** | 3034.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets |  | **3377.9** | 3401.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right-of-use assets |  | **344.2** | 349.7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill |  | **550.1** | 550.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  | **46.8** | 148.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments |  | **1530.0** | 1530.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promissory notes to the parent corporation |  | **996.0** | 996.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets |  | **459.3** | 509.6 |
|  |  | **10311.5** | 10519.4 |
| **Total assets** |  | $**11856.6** | $12229.4 |
| **Liabilities and equity** |  |  |  |
| **Current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank indebtedness |  | $**1.5** | $3.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable, accrued charges and provisions |  | **758.5** | 981.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue |  | **354.6** | 353.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred subsidies | 5 | **49.1** | 34.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes |  | **80.2** | 36.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt | 7 | **695.4** | 400.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of lease liabilities |  | **110.4** | 108.5 |
|  |  | **2049.7** | 1917.1 |
| **Non-current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term debt | 7 | **6369.3** | 7182.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liabilities |  | **264.5** | 270.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordinated loan from parent corporation |  | **1530.0** | 1530.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative financial instruments |  | **41.2** | 7.2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes |  | **763.5** | 764.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities |  | **225.2** | 219.2 |
|  |  | **9193.7** | 9973.3 |
| **Equity** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital stock | 8 | **312.9** | 312.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings |  | **318.1** | 87.4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | 10 | **(17.9)** | (61.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Equity attributable to the shareholder** |  | **613.1** | 338.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests |  | **0.1** | 0.1 |
|  |  | **613.2** | 339.0 |
| **Total liabilities and equity** |  | $**11856.6** | $12229.4 |

---

See accompanying notes to condensed consolidated financial statements.

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements**

For the three-month and six-month periods ended June 30, 2025 and 2024

(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 Saint-Jacques Street, 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). However, 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 2024 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 August 6, 2025.

Comparative figures for previous periods have been restated to conform to the presentation adopted for the three-month and six-month periods ended June 30, 2025.

**2.** **EMPLOYEE COSTS AND PURCHASE OF GOODS AND SERVICES** 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three months ended June 30 | Three months ended June 30 | Six months ended June 30 | Six months ended June 30 |
|  | **2025** | 2024 | **2025** | 2024 |
| Employee costs | $**175.6** | $167.9 | $**351.0** | $336.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less employee costs capitalized to property, plant and equipment and to intangible assets | **(58.5)** | (45.7) | **(113.2)** | (90.7) |
|  | **117.1** | 122.2 | **237.8** | 245.4 |
| Purchase of goods and services: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Royalties and rights | **96.1** | 77.6 | **205.5** | 183.6 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of products sold | **210.6** | 203.2 | **400.1** | 400.5 |
| &nbsp;&nbsp;&nbsp;&nbsp; Subcontracting costs | **27.6** | 25.1 | **59.2** | 49.4 |
| &nbsp;&nbsp;&nbsp;&nbsp; Marketing and distribution expenses | **18.9** | 17.7 | **31.9** | 36.0 |
| &nbsp;&nbsp;&nbsp;&nbsp; Other | **107.0** | 133.0 | **221.5** | 267.9 |
|  | **460.2** | 456.6 | **918.2** | 937.4 |
|  | $**577.3** | $578.8 | $**1156.0** | $1182.8 |

---

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**3.** **FINANCIAL EXPENSES** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended June 30 | Three months ended June 30 | Six months ended June 30 | Six months ended June 30 |
| | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;Third parties: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on long-term debt | $**81.4** | $94.8 | $**164.0** | $191.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of financing costs | **2.3** | 2.3 | **4.5** | 4.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on lease liabilities | **4.8** | 4.9 | **9.7** | 8.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on foreign currency translation on short-term monetary items | **(3.3)** | 0.4 | **(2.3)** | 2.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other | **–** | 2.9 | **1.2** | 5.3 |
|  | **85.2** | 105.3 | **177.1** | 212 |
| &nbsp;&nbsp;&nbsp;&nbsp;Affiliated corporations: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | **35.3** | 29.1 | **70.2** | 29.1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income | **(35.6)** | (29.4) | **(70.9)** | (29.4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest on lease liabilities | **0.2** | 0.2 | **0.4** | 0.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | **(16.7)** | (16.7) | **(33.1)** | (33.1) |
|  | **(16.8)** | (16.8) | **(33.4)** | (32.9) |
|  | $**68.4** | $88.5 | $**143.7** | $179.1 |

---

**4.** **RESTRUCTURING, IMPAIRMENT OF ASSETS AND OTHER** 

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended June 30 | Three months ended June 30 | Six months ended June 30 | Six months ended June 30 |
| | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring | $**2.6** | $5.0 | $**2.6** | $4.3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Impairment of assets | **0.5** | 0.2 | **1.1** | 2.6 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other<sup>1</sup> | **6.8** | 0.4 | **7.1** | 0.7 |
|  | $**9.9** | $5.6 | $**10.8** | $7.6 |

---

<sup>1</sup> Includes the retroactive costs relating to an appeal court decision made in the second quarter of 2025 on tariffs for the retransmission of distant television signals and other items.

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**5.** **RESTRICTED CASH AND DEFERRED SUBSIDIES** 

As part of the government's initiative to improve wireless coverage in outlying regions of Québec, Videotron received an advance payment of $18.3 million in 2025 ($37.0 million in 2024) for the construction of new cell towers in certain regions. The unused balance of subsidies received in advance is presented as restricted cash and as deferred subsidies on the consolidated balance sheets ($49.1 million as of June 30, 2025 and $34.2 million as of December 31, 2024).

**6.** **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.

**7.** **LONG-TERM DEBT** 

Components of long-term debt are as follows:

---

| | | |
|:---|:---|:---|
| | **June 30,<br> 2025** | December 31,<br> 2024 |
| &nbsp;&nbsp;Total long-term debt | $**7097.6** | $7619.7 |
| &nbsp;&nbsp;Financing costs, net of amortization | **(32.9)** | (37.4) |
|  | **7064.7** | 7582.3 |
| &nbsp;&nbsp;Less current portion | **(695.4)** | (400.0) |
|  | $**6369.3** | $7182.3 |

---

As of June 30, 2025, the carrying value of long-term debt denominated in U.S. dollars, excluding financing costs, was $3,839.6 million ($4,021.2 million as of December 31, 2024) while the net fair value of related hedging derivative instruments was in an asset position of $17.3 million ($141.5 million as of December 31, 2024).

<u>2025</u>

On February 26, 2025, Videotron amended and restated its credit agreement to, among other things, amend its existing revolving credit facility by creating two tranches: (i) a first tranche in the amount of $250.0 million maturing in February 2030, and (ii) a second tranche in the amount of $250.0 million maturing in February 2026 and providing for a conversion option into a term facility maturing in February 2027. On May 27, 2025, each of the two tranches of the revolving credit facility were subsequently increased from $250.0 million to $400.0 million.

On June 16, 2025, Videotron redeemed at maturity its Senior Notes in aggregate principal amount of $400.0 million, bearing interest at 5.625%.

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**7.** **LONG-TERM DEBT (continued)** 

<u>2024</u>

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.

**8.** **CAPITAL STOCK** 

&nbsp;&nbsp;&nbsp;&nbsp;**(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.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Issued and outstanding capital stock** 

---

| | | |
|:---|:---|:---|
| | **Common Shares** | **Common Shares** |
| | Number | Amount |
| &nbsp;&nbsp;**Balance as of December 31, 2024 and June 30, 2025** | **10739285** | $**312.9** |

---

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**9.** **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 six-month period ended June 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Outstanding options** | **Outstanding options** |
|  | Number | Weighted <br> average <br> exercise price |
| &nbsp;&nbsp;As of December 31, 2024 | 3728227 | $31.14 |
| &nbsp;&nbsp;Exercised | (496663) | 32.42 |
| &nbsp;&nbsp;**As of June 30, 2025** | **3231564** | $**30.95** |
| &nbsp;&nbsp;**Vested options as of June 30, 2025** | **384925** | $**32.55** |

---

During the three-month period ended June 30, 2025, 279,999 stock options of Quebecor were exercised for a cash consideration of $1.5 million (none in 2024). During the six-month period ended June 30, 2025, 496,663 stock options of Quebecor were exercised for a cash consideration of $2.5 million (none in 2024).

For the three-month period ended June 30, 2025, a $7.4 million charge was recorded related to all stock-based compensation plans (no charge in 2024). For the six-month period ended June 30, 2025, a $13.6 million charge was recorded related to all stock-based compensation plans (a $0.4 million reversal of the charge in 2024).

**10.** **ACCUMULATED OTHER COMPREHENSIVE LOSS ATTRIBUTABLE TO SHAREHOLDER** 

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| | | | |
|:---|:---|:---|:---|
| | **Cash flow <br> hedges**<sup>1</sup> | **Defined <br> benefit plans** | **Total** |
| &nbsp;&nbsp;Balance as of December 31, 2023 | $(20.7) | $14.3 | $(6.4) |
| &nbsp;&nbsp;Other comprehensive (loss) income | (5.9) | 25.5 | 19.6 |
| &nbsp;&nbsp;Balance as of June 30, 2024 | (26.6) | 39.8 | 13.2 |
| &nbsp;&nbsp;Other comprehensive loss | (65.9) | (8.7) | (74.6) |
| &nbsp;&nbsp;Balance as of December 31, 2024 | (92.5) | 31.1 | (61.4) |
| &nbsp;&nbsp;Other comprehensive income | 43.5 | – | 43.5 |
| &nbsp;&nbsp;**Balance as of June 30, 2025** | $**(49.0)** | $**31.1** | $**(17.9)** |

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<sup>1</sup> 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 9½-year period.

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**11.** **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.

The carrying value and fair value of long-term debt and derivative financial instruments as of June 30, 2025 and December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 |
| **Asset (liability)** | **Carrying<br> value** | **Fair <br> value** | Carrying<br> value | Fair <br> value |
|  **Long-term debt**<sup>1</sup>** | $**(7097.6)** | $**(7088.3)** | $(7619.7) | $(7540.0) |
|  **Derivative financial instruments** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange forward contracts | **(3.4)** | **(3.4)** | 6.9 | 6.9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest rate swaps | **(8.3)** | **(8.3)** | (7.2) | (7.2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cross-currency swaps | **17.3** | **17.3** | 141.5 | 141.5 |

---

<sup>1</sup> The carrying value of long-term debt excludes financing costs.

**12.** **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.

**VIDEOTRON LTD.**

**notes to condensed consolidated financial statements** **(continued)**

For the three-month and six-month periods ended June 30, 2025 and 2024

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

(unaudited)

**13.** **ADDITIONAL INFORMATION ON THE CONSOLIDATED STATEMENTS OF CASH FLOWS** 

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| | | | | |
|:---|:---|:---|:---|:---|
| | Three months ended June 30 | Three months ended June 30 | Six months ended June 30 | Six months ended June 30 |
| | **2025** | 2024 | **2025** | 2024 |
| &nbsp;&nbsp;**Cash flows used for capital expenditures** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to property, plant and equipment | $**120.8** | $119.2 | $**261.6** | $243.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to intangible assets (excluding acquisitions of spectrum licences) | **39.0** | 40.8 | **73.9** | 78.0 |
|  | **159.8** | 160.0 | **335.5** | 321.0 |
| &nbsp;&nbsp;**Cash, cash equivalents and restricted cash consist of** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $**7.9** | $2.8 | $**7.9** | $2.8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | **49.1** | 37.0 | **49.1** | 37.0 |
|  | **57.0** | 39.8 | **57.0** | 39.8 |
| **Interest and income taxes reflected as operating activities** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash interest payments | $**99.2** | $138.9 | $**168.0** | $201.5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash income tax payments (net of refunds) | **34.1** | 54.5 | **108.1** | 110.3 |

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In the three-month and six-month periods ended June 30, 2025, deferred subsidies of $3.4 million (none in 2024) 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.

**<u>SIGNATURE</u>**

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.

**<u>VIDEOTRON LTD.</u>**

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

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Date: August 7, 2025