15.4 percent increase in Groupe Videotron's nine month revenue.

MONTREAL--(BUSINESS WIRE)--July 12, 1995-- Le Groupe Videotron Ltee announced today that operating results as at May 31, 1995, the end of its third quarter, show a steady increase in revenue as was experienced in the preceding quarters of the year.

For the first three quarters of the fiscal year, revenue was up 15.4 per cent, from $483.4 million to $557.9 million. The increase stems in large part from cable television and telecommunications activities in the United Kingdom, a sector that continues to grow, as well as from television broadcasting and cable television activities in Canada.

Income from operations before depreciation and amortization rose to $160.3 million from $143 million in 1994, a 12.1 per cent increase. The television broadcasting subsidiary Tele-Metropole Inc. contributed $11.2 million of the $17.3 million increase in operating income, with the balance provided by cable television and telecommunications activities in the United Kingdom and cable television activities in Canada.

Net income totalled $46.6 million or $0.37 per share for the period, compared with $19 million or $0.12 per share in 1994. However, this figure includes a non-recurring gain of $64.5 million stemming mainly from the dilution of Groupe Videotron's interest in its British subsidiary, Videotron Holdings Plc, from 66.3 per cent to 55.8 per cent following this subsidiary's first public share issue last April. Net income also takes into account non-recurring provisions of $22.9 million to reduce the value of certain assets. The largest provision has to do with cable television investments in Canada, as part of the modernization program in progress. If we exclude these two non- recurring items, net income would total $5 million, or a loss of $0.01 per share. The drop in net income from the corresponding period last year can be attributed to the anticipated higher depreciation and amortization costs and financial expenses arising for the most part from construction of the networks in England.

Funds generated by operations rose from $107.5 million or $0.99 per share as at May 31, 1994, to $111.9 million or $0.98 per share as at May 31, 1995. The non-recurring gain on dilution had no impact on funds generated by operations, but certain non- recurring provisions had a negative impact of $3.4 million on these funds.

Cable television activities - Videotron Ltee's revenue was up 7.5 per cent for the nine-month period ending May 31, 1994, from $267.9 million in 1994 to $288 million this year. This performance is due to a new rate structure and a slight increase in the number of basic service subscribers. At the end of the third quarter, the company's income from operations before depreciation and amortization totalled $113.6 million, up 2.5 per cent from May 31, 1994.

Television broadcasting activities - The dominant position of the Tele-Metropole's stations in their respective markets contributed to the increase in revenue of $13.2 million or 9.8 per cent for the first three quarters of the year ending May 31, 1995. During this period, income from operations before depreciation and amortization totalled $32.6 million, up $11.2 million or 52.3 per cent from the corresponding period in 1994.

Cable television and telecommunications in the United Kingdom. - The British subsidiary continued to see its progress in different client bases with the monthly revenue per cable television and residential telephone home being among the highest in the industry due to its strong London orientation and its attractive demographics and business presence. Over a one-year period, i.e. since May 31, 1994, the number of basic cable television subscribers grew by 21.3 per cent, while in telephony the number of residential lines in service was up 56.5 per cent, and the number of commercial lines more than doubled to 10,763. The 73.5 per cent increase in operating revenue for the first nine months of the year, from $52.5 million in 1994 to $91.1 million in 1995, can be attributed to the addition of these new subscriber groups. Income from operations before depreciation and amortization, for its part, totalled $7.3 million for the period, compared with $1.6 million the previous year earlier. "As shown by our nine-month results, our main operating subsidiaries continue to post strong performances. Furthermore, in England, while the penetration rate of our cable subscriber base has momentarily slowed, growth in our telecommunications business compares favourably to that of our cable competitors," commented Serge Gouin, President and Chief Operating Officer of Le Groupe Videotron Ltee. "This reflects our focus on the continued development of the telecommunications business combined with growing customer awareness of the services we offer within our franchise areas," he concluded. Le Groupe Videotron Ltee is an international telecommunications company which is active in cable television, telephone services and interactive multimedia services. The Company has several subsidiaries in Canada, mainly in cable television and television broadcasting. It develops and operates cable television and telephone markets in England and recently entered the American market in wireless cable television and private cable television. Its technological know-how and experience acquired with the Videoway multimedia system enables it to play a leading role in the development of the information highway.

CONTACT: Sylvia Morin, [phone]

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