Expert says silence in B.C. port lockout unusual while retailers call for urgency

Average asking rents declined nationally on a year-over-year basis for the first time in more than three years in October, said a report out Thursday.

The report from Rentals.ca and Urbanation found average asking rents across Canada sat at $2,152 in October, down 1.2 per cent from the same month in 2023 — the first national decrease since July 2021.

The decline is mainly concentrated in Canada’s major urban centres, with cities like Toronto, Vancouver, Calgary, and Montreal seeing rent decreases.

Urbanation president Shaun Hildebrand said it is rare for rents to decline year-over-year at the national level.

“This is happening as the key drivers of rent growth in recent years — a strengthening economy, quickly rising population, and worsening homeownership affordability — are beginning to reverse,” said Hildebrand.

“As a result, we can likely expect this trend for rents to continue in the near-term, particularly as apartment completions remain at record highs.”

B.C. and Ontario recorded the most significant annual rent decreases among the provinces, with the former seeing average asking rents for apartments down 3.4 per cent to $2,549 and the latter recording a 5.7 per cent drop to $2,350.

Rents rose 17.1 per cent in Saskatchewan, which remained the fastest-growing province in the country in terms of asking price, after seeing 23.5 per cent annual growth in September.

By city, Toronto recorded the largest annual decline in asking rents for apartments in October, at 9.2 per cent, to reach an average of $2,642. Vancouver saw an 8.4 per cent year-over-year rent decline to an average of $2,945, while Calgary apartment rents fell 4.7 per cent to $1,995.

In Montreal, average rents were down 2.9 per cent at $1,987. Ottawa apartment rents held steady with a 0.4 per cent annual increase to reach $2,207.

However, Edmonton led rent growth in Canada’s largest markets as apartment rents rose 8.4 per cent annually to an average of $1,584.

Based on the report, the average asking rent for a one-bedroom unit in Canada was $1,923 in October, down 0.8 per cent from a year ago. The average asking price for a two-bedroom unit was $2,308, down 0.2 per cent.

Overall, asking rents for purpose-built rental apartments in October rose 1.7 per cent compared with a year earlier to reach an average of $2,100.

Meanwhile, condominium apartment rents, which averaged $2,265, were down 3.8 per cent.

This report by The Canadian Press was first published Nov. 7, 2024.

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Quebecor Inc. says it recorded its best quarter for wireless customer acquisitions in its history during the three-month period that ended Sept. 30, though it reported its profit and revenue edged lower.

During the quarter, Quebecor said it added 132,100 mobile phone subscriptions, compared with an increase of 88,700 in the same period of 2023 — an increase of 3.4 per cent year-over-year.

The company said it now has a total of more than four million wireless connections under its Videotron, Freedom Mobile and Fizz brands.

Chief executive Pierre Karl Péladeau called it an “important milestone” for Quebecor, adding his company’s long-term strategy to act as a “lower price, better and faster alternative” to Canada’s Big 3 telecom companies is paying off.

“We continue to outperform our competitors,” Péladeau told analysts on the company’s third-quarter earnings call on Thursday.

“We have created a healthy, competitive environment, giving Canadians more choice, lower prices and better experience.”

But Quebecor said its net income attributable to shareholders amounted to $189 million or 81 cents per share for the quarter. The result compared with a profit of $209.3 million or 91 cents per share in the same quarter last year.

Its adjusted income from operating activities amounted to 82 cents per share, down from 88 cents per share in the same quarter last year. Revenue for the quarter totalled $1.39 billion, down from $1.42 billion a year earlier.

Péladeau said Quebecor’s long-term strategy comes with “short-term sacrifices.”

“We are confident that our business model of putting the customer first will always prevail, as proven by our momentum that keeps improving,” he said.

Quebecor reported its mobile phone average revenue per user (ARPU) was $35.31 in the third quarter, down $2.29, or 6.2 per cent, from the third quarter of the prior year.

It said that was mainly due 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.

“Realistically, we do not expect ARPU growth until we reach a better balance between our brands, but we anticipate that customer growth would largely offset the pressure on ARPU,” said Péladeau.

Desjardins analyst Jerome Dubreuil called Quebecor’s ARPU decline “weak,” with the figures slightly worse than forecasted. He said the results show that competitive dynamics in the industry are “also apparent for the challenger.”

But he noted the company appears motivated to maintain pressure on its three largest competitors through “aggressive pricing” on its Freedom Mobile wireless plans.

“In light of current wireless pricing and Quebecor’s decent margins, we believe Quebecor continues to be well-positioned with its Freedom offering for either market share gains or improving ARPU performance,” Dubreuil said in a note.

Chief financial officer Hugues Simard said the company’s potential to grow its ARPU would depend on the future of an ongoing “price war” in the Canadian telecom market.

He said Quebecor has been “disciplined” in its back-to-school offers along with its plans for upcoming Black Friday promotions.

“We can’t speak for our competitors. If they go crazy again, or if they continue to go crazy in Quebec, then I’m not sure where ARPU is going to end up,” said Simard.

“We’re doing our share and now I think the ball is in the incumbents’ court.”

Although Quebecor did not disclose exact figures for its customer churn — a measure of subscribers who cancelled their service — Simard said it was lower across all its brands from last year.

On a monthly basis, he said churn was just above one per cent for Videotron and around 1.5 per cent for Freedom Mobile and Fizz.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:QBR.B)

MONTREAL – Steady demand for private jets, and the maintenance they require, helped push earnings and revenue higher at Bombardier Inc. last quarter.

The company said Thursday that its earnings amounted to US$117 million, compared with a loss of US$37 million a year earlier, as its revenue rose 12 per cent, boosted by growth in its services business.

Bombardier saw revenue for the maintenance and repair side of the business increase 28 per cent to US$528 million, to make up about a quarter of revenue, as the company has been working to boost its aftermarket side.

The company has more than doubled the segment since launching a strategy to grow the segment about five years ago, and is looking at expanding capacity further.

“This is growing so fast around the globe that every single region right now, we have things in consideration,” chief executive Éric Martel told a conference call to discuss the company’s latest results.

Bombardier’s push further into services has seen it grow from around 33 per cent of market share to approaching 50 per cent, he said.

The company’s growing number of aircraft in operation, adding about 100 net per year, also creates the potential for more business on the service side.

“The trend moving forward is this business is going continue to grow for us significantly.”

More potential on the service side comes as Bombardier has been able to maintain the same level of order backlog as a year earlier, with demand steady in most areas outside of Europe, Martel said.

While there have been some concerns about a slowdown after the pandemic-fuelled jump in demand, he said he’s not seeing that.

“A lot of people were concerned that that new normal was not going to stay. But I’m telling you after two years, post COVID, it’s sticking.”

The jump in demand for private jets has also led to a 46 per cent jump in emissions between 2019 and 2023, a study out Thursday said.

Emissions from private aviation produced at least 15.6 million tonnes of carbon dioxide, the study published in Communications Earth & Environment found, with extensive travel for leisure as part of the growth.

Bombardier did not immediately provide comment on the results of the study.

Martel said the U.S. market remains positive.

“The whole election, you know, was creating a bit of a uncertainty. I think having clarity on the results yesterday is probably a positive for us to complete the quarter, and to engage into next year.”

Bombardier reported revenue of US$2.07 billion, up from US$1.86 billion a year earlier.

The aircraft maker, which keeps its books in U.S. dollars, says its profit amounted to US$1.09 per diluted share for the quarter ended Sept. 30 compared with a loss of 47 cents US per diluted share in the same quarter last year.

On an adjusted basis, Bombardier says it earned 74 cents US per share in its latest quarter compared with an adjusted profit of 73 cents US per share in the same quarter last year.

Analysts on average had expected the company to earn 73 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

Companies in this story: (TSX:BBD.B)

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