- Cogeco Connexion reported a fifth consecutive quarter of
strong Internet subscriber growth, driven by a mix of new customers
added under the Cogeco brand, which include fibre-to-the-home
network expansions, and its digital oxio brand.
- Breezeline to launch mobile service within its U.S.
broadband footprint starting this spring.
- Revenue declined by 0.7% compared to the same period last
year to $751.9 million, as revenue
growth at Cogeco Connexion was offset by lower revenue at
Breezeline.
- Adjusted EBITDA(1) of $347.8 million decreased by 1.1% over last year,
in line with our expectations. Profit for the period amounted to
$93.9 million, a decrease of 8.4%, of
which $24.0 million was attributable
to owners of the Corporation.
- Earnings per share on a diluted basis increased to
$2.30 from $2.15 in the second quarter of fiscal 2023,
reflecting the benefit of the Corporation's repurchase and
cancellation of shares.
- Free cash flow(1) amounted to $98.8 million, a decrease of 16.5% compared to
last year, due to higher net capital expenditures, while cash flow
from operating activities increased by 38.5% to $286.4 million. Free cash flow, excluding network
expansion projects(1) decreased by 23.3% to $123.2 million.
- Cogeco maintains its fiscal 2024 financial
guidelines.
- A quarterly dividend of $0.854
per share was declared, representing a 16.8% increase over the
prior year.
MONTRÉAL, April 11,
2024 /CNW/ - Today, Cogeco Inc. (TSX: CGO)
("Cogeco" or the "Corporation") announced its financial results for
the second quarter ended February 29, 2024.
"During the quarter, we continued to execute on multiple
initiatives, including pursuing several fibre-to-the-home network
expansion projects," stated Frédéric Perron, President and Chief
Executive Officer of Cogeco Inc. "We also leveraged the
technological enhancements we have made to our networks to drive
growth in our Internet customer base, notably those subscribing to
higher speeds. On the wireless front, we recently announced the
launch of Breezeline Mobile, using a capital-light MVNO approach,
and are making progress with our wireless preparations in
Canada. At Cogeco Media, radio
advertising sales continued to build momentum again this quarter.
Meanwhile, our strong listener engagement and intense focus on
providing digital solutions and multi-platform audio content also
helped drive meaningful revenue growth."
"While we operate in a challenging environment, value creation
continues to be at the forefront of our strategy and culture. Our
plans will therefore place a strong focus on driving profitable
growth through digitization and operational effectiveness,"
continued Mr. Perron. "I look forward to leading Cogeco on its
ambitious path of delivering high-quality and cost-effective
telecommunications and media services to our customers across both
of the countries we serve. I want to thank all of our customers,
listeners and stakeholders for their support in this journey,"
concluded Mr. Perron.
Consolidated Financial Highlights
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
Change
|
Change in
constant
currency
|
(1)
|
|
(In thousands of
Canadian dollars, except % and per share data)
(unaudited)
|
$
|
|
$
|
|
%
|
%
|
|
|
Revenue
|
751,908
|
|
757,191
|
|
(0.7)
|
(0.6)
|
|
|
Adjusted EBITDA
(1)
|
347,782
|
|
351,663
|
|
(1.1)
|
(1.0)
|
|
|
Profit for the
period
|
93,930
|
|
102,592
|
|
(8.4)
|
|
|
|
Profit for the period
attributable to owners of the Corporation
|
23,997
|
|
33,788
|
|
(29.0)
|
|
|
|
Adjusted profit
attributable to owners of the Corporation
(1)(3)
|
24,346
|
|
35,609
|
|
(31.6)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
286,382
|
|
206,843
|
|
38.5
|
|
|
|
Free cash flow
(1)
|
98,824
|
|
118,331
|
|
(16.5)
|
(16.8)
|
|
|
Free cash flow,
excluding network expansion projects (1)
|
123,214
|
|
160,573
|
|
(23.3)
|
(23.5)
|
|
|
|
|
|
|
|
|
|
|
Acquisition of
property, plant and equipment
|
181,234
|
|
173,674
|
|
4.4
|
|
|
|
Net capital
expenditures (1)(2)
|
171,756
|
|
156,832
|
|
9.5
|
9.9
|
|
|
Net capital
expenditures, excluding network expansion projects
(1)
|
147,366
|
|
114,590
|
|
28.6
|
29.1
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
2.30
|
|
2.15
|
|
7.0
|
|
|
|
Adjusted diluted
earnings per share (1)(3)
|
2.33
|
|
2.27
|
|
2.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating results
For the second quarter of fiscal 2024 ended on February 29,
2024:
- Revenue decreased by 0.7% to $751.9
million. On a constant currency basis(1), revenue
decreased by 0.6% due to revenue growth in the Canadian
telecommunications segment being offset by a decline in the
American telecommunications segment, as explained below.
- Canadian telecommunications' revenue increased by 1.4%, mainly
driven by the oxio acquisition completed on March 3, 2023 as well as the cumulative effect of
high-speed Internet service additions over the past year.
- American telecommunications' revenue decreased by 3.1%, or 2.8%
in constant currency, mainly due to lower video subscriptions and a
lower customer base over the past year, with an increasing
proportion of customers only subscribing to Internet services,
partly offset by higher revenue per customer and a better product
mix resulting from customers subscribing to increasingly fast
Internet speeds.
- Revenue in the media activities increased by 4.2%.
- Adjusted EBITDA decreased by 1.1% to $347.8 million. On a constant currency basis,
adjusted EBITDA decreased by 1.0%, mainly due to higher corporate
costs, primarily due to the timing of certain operating expenses,
including in relation to its plan to offer mobile services in
Canada, while adjusted EBITDA
remained stable in both the Canadian and American
telecommunications segments, as explained below.
- Canadian telecommunications adjusted EBITDA remained stable
mainly due to revenue growth being offset by higher sales and other
operating expenses to drive and support customer growth.
- American telecommunications adjusted EBITDA remained stable
mostly due to a better product mix of higher margin services and
lower operating expenses driven by cost reduction initiatives and
operating efficiencies, partially offset by a lower customer
base.
- Profit for the period amounted to $93.9
million, of which $24.0
million, or $2.30 per diluted
share, was attributable to owners of the Corporation compared to
$102.6 million, $33.8 million, and $2.15 per diluted share, respectively, in the
comparable period of fiscal 2023. The decreases in profit for the
period and profit attributable to owners of the Corporation
resulted mainly from higher depreciation and amortization expense
and financial expense, and lower adjusted EBITDA, partly offset by
lower income tax expense and acquisition, integration,
restructuring and other costs.
- Adjusted profit attributable to owners of the
Corporation(3) was $24.3
million, or $2.33 per diluted
share(3), compared to $35.6
million, or $2.27 per diluted
share, last year.
- Net capital expenditures were $171.8
million, an increase of 9.5% compared to $156.8 million in the same period of the prior
year. In constant currency, net capital expenditures(1)
were $172.4 million, an increase of
9.9% compared to last year, mainly due to higher costs in relation
to customer premise equipment in the Canadian telecommunications
segment, partly offset by lower spending in the American
telecommunications segment, mainly due to the timing of network
expansion projects.
- Excluding network expansion projects, net capital expenditures
were $147.4 million, an increase of
28.6% compared to $114.6 million in
the same period of the prior year. In constant currency, net
capital expenditures, excluding network expansion
projects(1) were $148.0
million, an increase of 29.1% compared to last year.
- Fibre-to-the-home network expansion projects continued in both
Canada and the United States, with homes passed additions
of more than 32,000 during the first six months of fiscal
2024.
- Acquisition of property, plant and equipment increased by 4.4%
to $181.2 million, mainly due to
higher costs in the Canadian telecommunications segment, partly
offset by lower spending in the American telecommunications
segment.
- Free cash flow decreased by 16.5%, or 16.8% in constant
currency, and amounted to $98.8
million, or $98.5 million in
constant currency, mainly due to higher net capital expenditures.
Free cash flow, excluding network expansion projects decreased by
23.3%, or 23.5% in constant currency, and amounted to $123.2 million, or $122.9
million in constant currency.
- Cash flows from operating activities increased by 38.5% to
$286.4 million, resulting mostly from
the timing of trade and other payables and trade accounts
receivable, lower income taxes paid and acquisition, integration,
restructuring and other costs, offset in part by higher interest
paid and lower adjusted EBITDA.
- Cogeco maintains its fiscal 2024 financial guidelines as issued
on November 1, 2023.
- At its April 11, 2024 meeting,
the Board of Directors of Cogeco declared a quarterly eligible
dividend of $0.854 per share, an
increase of 16.8% compared to $0.731
per share in the comparable quarter of fiscal 2023.
|
|
(1)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Constant
currency basis, adjusted profit attributable to owners of the
Corporation, net capital expenditures, excluding network expansion
projects, free cash flow and free cash flow, excluding network
expansion projects are non-IFRS financial measures. Change in
constant currency and adjusted diluted earnings per share are
non-IFRS ratios. These indicated terms do not have
standardized definitions prescribed by International Financial
Reporting Standards ("IFRS") and, therefore, may not be comparable
to similar measures presented by other companies. For more
information on these financial measures, please consult the
"Non-IFRS and other financial measures" section of this press
release.
|
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
|
(3)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, net of tax
and non-controlling interest.
|
Financial highlights
|
Three and six months
ended
|
February 29,
2024
|
February 28,
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
February 29,
2024
|
February 28,
2023
|
Change
|
Change in
constant
currency
|
(1)
(2)
|
|
(In thousands of
Canadian dollars, except % and per share data)
|
$
|
$
|
%
|
%
|
|
$
|
$
|
%
|
%
|
|
|
Operations
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
751,908
|
757,191
|
(0.7)
|
(0.6)
|
|
1,528,080
|
1,546,881
|
(1.2)
|
(1.4)
|
|
|
Adjusted EBITDA
(2)
|
347,782
|
351,663
|
(1.1)
|
(1.0)
|
|
713,815
|
725,545
|
(1.6)
|
(1.8)
|
|
|
Acquisition,
integration, restructuring and other costs
(3)
|
1,222
|
6,952
|
(82.4)
|
|
|
4,487
|
9,629
|
(53.4)
|
|
|
|
Profit for the
period
|
93,930
|
102,592
|
(8.4)
|
|
|
192,659
|
226,400
|
(14.9)
|
|
|
|
Profit for the period
attributable to owners of the Corporation
|
23,997
|
33,788
|
(29.0)
|
|
|
58,538
|
75,869
|
(22.8)
|
|
|
|
Adjusted profit
attributable to owners of the Corporation
(2)(4)
|
24,346
|
35,609
|
(31.6)
|
|
|
64,384
|
78,371
|
(17.8)
|
|
|
|
Cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
286,382
|
206,843
|
38.5
|
|
|
523,301
|
400,664
|
30.6
|
|
|
|
Free cash flow
(2)
|
98,824
|
118,331
|
(16.5)
|
(16.8)
|
|
240,647
|
227,814
|
5.6
|
5.4
|
|
|
Free cash flow,
excluding network expansion projects (2)
|
123,214
|
160,573
|
(23.3)
|
(23.5)
|
|
296,697
|
335,890
|
(11.7)
|
(11.9)
|
|
|
Acquisition of property, plant and
equipment
|
181,234
|
173,674
|
4.4
|
|
|
335,023
|
408,682
|
(18.0)
|
|
|
|
Net capital
expenditures (2)(5)
|
171,756
|
156,832
|
9.5
|
9.9
|
|
318,423
|
354,174
|
(10.1)
|
(10.2)
|
|
|
Net capital
expenditures, excluding network expansion projects
(2)
|
147,366
|
114,590
|
28.6
|
29.1
|
|
262,373
|
246,098
|
6.6
|
6.5
|
|
|
Per share data
(6)
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
2.32
|
2.17
|
6.9
|
|
|
4.53
|
4.85
|
(6.6)
|
|
|
|
Diluted
|
2.30
|
2.15
|
7.0
|
|
|
4.50
|
4.82
|
(6.6)
|
|
|
|
Adjusted diluted
(2)(4)
|
2.33
|
2.27
|
2.6
|
|
|
4.95
|
4.98
|
(0.6)
|
|
|
|
Dividends per
share
|
0.854
|
0.731
|
16.8
|
|
|
1.708
|
1.462
|
16.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Key performance
indicators presented on a constant currency basis are obtained by
translating financial results from the current period denominated
in US dollars at the foreign exchange rate of the comparable period
of the prior year. For the three and six-month periods ended
February 28, 2023, the average foreign exchange rates used for
translation were 1.3488 USD/CDN and 1.3489 USD/CDN,
respectively.
|
|
(2)
|
Adjusted EBITDA and net
capital expenditures are total of segments measures. Adjusted
profit attributable to owners of the Corporation, free cash flow,
free cash flow, excluding network expansion projects and net
capital expenditures, excluding network expansion projects are
non-IFRS financial measures. Change in constant currency and
adjusted diluted earnings per share are non-IFRS ratios. These
indicated terms do not have standardized definitions prescribed by
IFRS and, therefore, may not be comparable to similar measures
presented by other companies. For more information on these
financial measures, please consult the "Non-IFRS and other
financial measures" section of this press release.
|
|
(3)
|
For the three and
six-month periods ended February 29, 2024, acquisition,
integration, restructuring and other costs mostly related to costs
associated with the configuration and customization related to
cloud computing and other arrangements, partly offset by a $4.2
million reversal of a charge, recognized during the second quarter
following the Copyright Board decision issued in January 2024 on
the redetermination of the 2014-2018 royalty rates. For the three
and six-month periods ended February 28, 2023, acquisition,
integration, restructuring and other costs resulted mostly from a
$5.1 million retroactive adjustment recognized during the second
quarter following the Copyright Board preliminary conclusions on
the redetermination of the 2014-2018 royalty rates.
|
|
(4)
|
Excludes the impact of
acquisition, integration, restructuring and other costs, and
gains/losses on debt modification and/or extinguishment, net of tax
and non-controlling interest.
|
|
(5)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
|
(6)
|
Per multiple and
subordinate voting share.
|
|
As at
|
February 29,
2024
|
August 31,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
|
Financial
condition
|
|
|
|
Cash and cash
equivalents
|
82,488
|
363,854
|
|
Total assets
|
9,710,486
|
9,869,778
|
|
Long-term
debt
|
|
|
|
Current
|
77,236
|
43,325
|
|
Non-current
|
4,988,326
|
5,045,672
|
|
Net indebtedness
(1)
|
5,072,348
|
4,817,113
|
|
Equity attributable to
owners of the Corporation
|
795,177
|
925,863
|
|
|
|
|
(1)
|
Net indebtedness is a
capital management measure. For more information on this financial
measure, please consult the "Non-IFRS and other financial measures"
section of the Corporation's MD&A for the three and six-month
periods ended February 29, 2024, available on SEDAR+
at www.sedarplus.ca.
|
Forward-looking statements
Certain statements contained in this press
release may constitute forward-looking information within the
meaning of securities laws. Forward-looking information may relate
to Cogeco Inc.'s ("Cogeco" or the "Corporation") future outlook and
anticipated events, business, operations, financial performance,
financial condition or results and, in some cases, can be
identified by terminology such as "may"; "will"; "should";
"expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate";
"predict"; "potential"; "continue"; "foresee", "ensure" or other
similar expressions concerning matters that are not historical
facts. Particularly, statements relating to the Corporation's
financial guidelines, future operating results and economic
performance, objectives and strategies are forward-looking
statements. These statements are based on certain factors and
assumptions including expected growth, results of operations,
purchase price allocation, tax rates, weighted average cost of
capital, performance and business prospects and opportunities,
which Cogeco believes are reasonable as of the current date. Refer
in particular to the "Corporate objectives and strategies" section
of the Corporation's 2023 annual MD&A and of the fiscal 2024
second-quarter MD&A, and the "Fiscal 2024 financial guidelines"
section of the Corporation's 2023 annual MD&A for a discussion
of certain key economic, market and operational assumptions we have
made in preparing forward-looking statements. While management
considers these assumptions to be reasonable based on information
currently available to the Corporation, they may prove to be
incorrect. Forward-looking information is also subject to certain
factors, including risks and uncertainties that could cause actual
results to differ materially from what Cogeco currently expects.
These factors include risks such as general market conditions,
competitive risks (including changing competitive ecosystems and
disruptive competitive strategies adopted by our competitors),
business risks, regulatory risks, technology risks (including
cybersecurity), financial risks (including variations in currency
and interest rates), economic conditions (including inflation
pressuring revenue, reduced consumer spending and increasing
costs), talent management risks (including highly competitive
market for limited pool of digitally skilled employees),
human-caused and natural threats to the Corporation's network
(including increased frequency of extreme weather events with the
potential to disrupt operations), infrastructure and systems,
community acceptance risks, ethical behavior risks, ownership
risks, litigation risks and public health and safety, many of which
are beyond the Corporation's control. Moreover, the Corporation's
radio operations are significantly exposed to advertising budgets
from the retail industry, which can fluctuate due to changing
economic conditions. For more exhaustive information on these risks
and uncertainties, the reader should refer to the "Uncertainties
and main risk factors" section of the Corporation's 2023 annual
MD&A and of the fiscal 2024 second-quarter MD&A. These
factors are not intended to represent a complete list of the
factors that could affect Cogeco and future events and results may
vary significantly from what management currently foresees. The
reader should not place undue importance on forward-looking
information contained in this press release and the forward-looking
statements contained in this press release represent Cogeco's
expectations as of the date of this press release (or as of the
date they are otherwise stated to be made) and are subject to
change after such date. While management may elect to do so, the
Corporation is under no obligation (and expressly disclaims any
such obligation) and does not undertake to update or alter this
information at any particular time, whether as a result of new
information, future events or otherwise, except as required by
law.
All amounts are stated in Canadian dollars unless otherwise
indicated. This press release should be read in
conjunction with the Corporation's MD&A for the three and
six-month periods ended February 29, 2024, the Corporation's
condensed interim consolidated financial statements and the notes
thereto for the same periods prepared in accordance with
International Financial Reporting Standards ("IFRS") and the
Corporation's 2023 Annual Report.
Non-IFRS and other financial measures
This press release includes references to non-IFRS and other
financial measures used by Cogeco. These financial measures are
reviewed in assessing the performance of Cogeco and used in the
decision-making process with regard to its business units.
Reconciliations between non-IFRS and other financial measures to
the most directly comparable IFRS financial measures are provided
below. Certain additional disclosures for non-IFRS and other
financial measures used in this press release have been
incorporated by reference and can be found in the "Non-IFRS and
other financial measures" section of the Corporation's MD&A for
the three and six-month periods ended February 29, 2024,
available on SEDAR+ at www.sedarplus.ca. The following non-IFRS
financial measures are used as a component of Cogeco's non-IFRS
ratios.
|
|
|
Specified non-IFRS
financial measures
|
Used in the
component of the following non-IFRS ratios
|
|
Adjusted profit
attributable to owners of the Corporation
|
Adjusted diluted
earnings per share
|
|
Constant currency
basis
|
Change in constant
currency
|
|
|
Financial measures presented on a constant currency basis for
the three and six-month periods ended February 29, 2024
are translated at the average foreign exchange rate of the
comparable periods of the prior year, which were
1.3488 USD/CDN and 1.3489
USD/CDN, respectively.
Constant currency basis and foreign exchange impact
reconciliation
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
751,908
|
|
971
|
|
752,879
|
|
757,191
|
|
(0.7)
|
(0.6)
|
|
Operating
expenses
|
404,126
|
|
554
|
|
404,680
|
|
405,528
|
|
(0.3)
|
(0.2)
|
|
Adjusted
EBITDA
|
347,782
|
|
417
|
|
348,199
|
|
351,663
|
|
(1.1)
|
(1.0)
|
|
Free cash
flow
|
98,824
|
|
(344)
|
|
98,480
|
|
118,331
|
|
(16.5)
|
(16.8)
|
|
Net capital
expenditures
|
171,756
|
|
596
|
|
172,352
|
|
156,832
|
|
9.5
|
9.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
1,528,080
|
|
(3,491)
|
|
1,524,589
|
|
1,546,881
|
|
(1.2)
|
(1.4)
|
|
Operating
expenses
|
814,265
|
|
(1,953)
|
|
812,312
|
|
821,336
|
|
(0.9)
|
(1.1)
|
|
Adjusted
EBITDA
|
713,815
|
|
(1,538)
|
|
712,277
|
|
725,545
|
|
(1.6)
|
(1.8)
|
|
Free cash
flow
|
240,647
|
|
(520)
|
|
240,127
|
|
227,814
|
|
5.6
|
5.4
|
|
Net capital
expenditures
|
318,423
|
|
(464)
|
|
317,959
|
|
354,174
|
|
(10.1)
|
(10.2)
|
|
|
|
|
|
|
|
|
|
|
|
Canadian telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
373,479
|
|
—
|
|
373,479
|
|
368,334
|
|
1.4
|
1.4
|
|
Operating
expenses
|
174,720
|
|
63
|
|
174,783
|
|
170,289
|
|
2.6
|
2.6
|
|
Adjusted
EBITDA
|
198,759
|
|
(63)
|
|
198,696
|
|
198,045
|
|
0.4
|
0.3
|
|
Net capital
expenditures
|
106,345
|
|
428
|
|
106,773
|
|
81,383
|
|
30.7
|
31.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
749,927
|
|
—
|
|
749,927
|
|
740,418
|
|
1.3
|
1.3
|
|
Operating
expenses
|
354,814
|
|
(128)
|
|
354,686
|
|
343,740
|
|
3.2
|
3.2
|
|
Adjusted
EBITDA
|
395,113
|
|
128
|
|
395,241
|
|
396,678
|
|
(0.4)
|
(0.4)
|
|
Net capital
expenditures
|
194,181
|
|
40
|
|
194,221
|
|
196,621
|
|
(1.2)
|
(1.2)
|
|
|
|
|
|
|
|
|
|
|
|
American telecommunications segment
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
357,022
|
|
971
|
|
357,993
|
|
368,312
|
|
(3.1)
|
(2.8)
|
|
Operating
expenses
|
190,672
|
|
487
|
|
191,159
|
|
202,254
|
|
(5.7)
|
(5.5)
|
|
Adjusted
EBITDA
|
166,350
|
|
484
|
|
166,834
|
|
166,058
|
|
0.2
|
0.5
|
|
Net capital
expenditures
|
62,855
|
|
167
|
|
63,022
|
|
73,091
|
|
(14.0)
|
(13.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Revenue
|
728,263
|
|
(3,491)
|
|
724,772
|
|
758,528
|
|
(4.0)
|
(4.5)
|
|
Operating
expenses
|
383,743
|
|
(1,829)
|
|
381,914
|
|
409,964
|
|
(6.4)
|
(6.8)
|
|
Adjusted
EBITDA
|
344,520
|
|
(1,662)
|
|
342,858
|
|
348,564
|
|
(1.2)
|
(1.6)
|
|
Net capital
expenditures
|
118,708
|
|
(505)
|
|
118,203
|
|
153,499
|
|
(22.7)
|
(23.0)
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted profit attributable to owners of the
Corporation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Profit for the
period attributable to owners of the Corporation
|
23,997
|
33,788
|
58,538
|
75,869
|
|
Acquisition,
integration, restructuring and other costs
|
1,222
|
6,952
|
4,487
|
9,629
|
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
|
Tax impact for the
above items
|
(308)
|
(1,842)
|
(5,641)
|
(2,552)
|
|
Non-controlling
interest impact for the above items
|
(565)
|
(3,289)
|
(9,880)
|
(4,575)
|
|
Adjusted profit
attributable to owners of the Corporation
|
24,346
|
35,609
|
64,384
|
78,371
|
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
Free cash flow reconciliation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Cash flows from
operating activities
|
286,382
|
206,843
|
523,301
|
400,664
|
|
Changes in other
non-cash operating activities
|
1,097
|
66,172
|
59,592
|
136,121
|
|
Income taxes paid
(received)
|
(7,639)
|
23,319
|
(4,736)
|
70,612
|
|
Current income
taxes
|
(8,881)
|
(11,332)
|
(16,923)
|
(20,622)
|
|
Interest
paid
|
70,842
|
51,064
|
135,880
|
112,270
|
|
Financial
expense
|
(70,808)
|
(61,985)
|
(155,102)
|
(119,512)
|
|
Loss on debt
extinguishment (1)
|
—
|
—
|
16,880
|
—
|
|
Amortization of
deferred transaction costs and discounts on long-term debt
(1)
|
2,059
|
3,045
|
4,750
|
6,107
|
|
Net capital
expenditures (2)
|
(171,756)
|
(156,832)
|
(318,423)
|
(354,174)
|
|
Repayment of lease
liabilities
|
(2,472)
|
(1,963)
|
(4,572)
|
(3,652)
|
|
Free cash
flow
|
98,824
|
118,331
|
240,647
|
227,814
|
|
|
|
|
|
|
(1)
|
Included within
financial expense.
|
|
(2)
|
Net capital
expenditures exclude non-cash acquisitions of right-of-use assets
and the purchases of spectrum licences, and are presented net of
government subsidies, including the utilization of those received
in advance.
|
Net capital expenditures reconciliation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Acquisition of
property, plant and equipment
|
181,234
|
173,674
|
335,023
|
408,682
|
|
Subsidies received in
advance recognized as a reduction of the cost of property, plant
and equipment during the period
|
(9,478)
|
(16,842)
|
(16,600)
|
(54,508)
|
|
Net capital
expenditures
|
171,756
|
156,832
|
318,423
|
354,174
|
|
|
|
|
|
Adjusted EBITDA reconciliation
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
February 29,
2024
|
February 28,
2023
|
February 29,
2024
|
February 28,
2023
|
|
(In thousands of
Canadian dollars)
|
$
|
$
|
$
|
$
|
|
Profit for the
period
|
93,930
|
102,592
|
192,659
|
226,400
|
|
Income taxes
|
16,993
|
24,801
|
36,374
|
58,281
|
|
Financial
expense
|
70,808
|
61,985
|
155,102
|
119,512
|
|
Depreciation and
amortization
|
164,829
|
155,333
|
325,193
|
311,723
|
|
Acquisition,
integration, restructuring and other costs
|
1,222
|
6,952
|
4,487
|
9,629
|
|
Adjusted
EBITDA
|
347,782
|
351,663
|
713,815
|
725,545
|
|
|
|
|
|
Net capital expenditures and free cash flow excluding network
expansion projects reconciliations
Net capital expenditures
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Net capital
expenditures
|
171,756
|
|
596
|
|
172,352
|
|
156,832
|
|
9.5
|
9.9
|
|
Net capital
expenditures in connection with network expansion
projects
|
24,390
|
|
11
|
|
24,401
|
|
42,242
|
|
(42.3)
|
(42.2)
|
|
Net capital
expenditures, excluding network expansion projects
|
147,366
|
|
585
|
|
147,951
|
|
114,590
|
|
28.6
|
29.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Net capital
expenditures
|
318,423
|
|
(464)
|
|
317,959
|
|
354,174
|
|
(10.1)
|
(10.2)
|
|
Net capital
expenditures in connection with network expansion
projects
|
56,050
|
|
(151)
|
|
55,899
|
|
108,076
|
|
(48.1)
|
(48.3)
|
|
Net capital
expenditures, excluding network expansion projects
|
262,373
|
|
(313)
|
|
262,060
|
|
246,098
|
|
6.6
|
6.5
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Free cash
flow
|
98,824
|
|
(344)
|
|
98,480
|
|
118,331
|
|
(16.5)
|
(16.8)
|
|
Net capital
expenditures in connection with network expansion
projects
|
24,390
|
|
11
|
|
24,401
|
|
42,242
|
|
(42.3)
|
(42.2)
|
|
Free cash flow,
excluding network expansion projects
|
123,214
|
|
(333)
|
|
122,881
|
|
160,573
|
|
(23.3)
|
(23.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months
ended
|
February 29,
2024
|
|
February 28,
2023
|
|
|
Change
|
|
(In thousands of
Canadian dollars, except percentages)
|
Actual
|
|
Foreign
exchange
impact
|
|
In
constant
currency
|
|
Actual
|
|
Actual
|
In
constant
currency
|
|
$
|
|
$
|
|
$
|
|
$
|
|
%
|
%
|
|
Free cash
flow
|
240,647
|
|
(520)
|
|
240,127
|
|
227,814
|
|
5.6
|
5.4
|
|
Net capital
expenditures in connection with network expansion
projects
|
56,050
|
|
(151)
|
|
55,899
|
|
108,076
|
|
(48.1)
|
(48.3)
|
|
Free cash flow,
excluding network expansion projects
|
296,697
|
|
(671)
|
|
296,026
|
|
335,890
|
|
(11.7)
|
(11.9)
|
|
|
|
|
|
|
|
|
|
|
|
Additional information
Additional information relating to the Corporation is available
on SEDAR+ at www.sedarplus.ca and on the Corporation's website
at corpo.cogeco.com.
About Cogeco Inc.
Rooted in the communities it serves, Cogeco Inc. is a growing
competitive force in the North American telecommunications and
media sectors, serving 1.6 million residential and business
customers. Its Cogeco Communications Inc. subsidiary provides
Internet, video and phone services in Canada as well as in thirteen states in
the United States through its
business units Cogeco Connexion and Breezeline. Through Cogeco
Media, it owns and operates 21 radio stations primarily in the
province of Québec as well as a news agency. Cogeco's subordinate
voting shares are listed on the Toronto Stock Exchange (TSX: CGO).
The subordinate voting shares of Cogeco Communications Inc. are
also listed on the Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Troy
Crandall
Head, Investor Relations
Cogeco Inc.
Tel.: 514-764-4600
troy.crandall@cogeco.com
Media
Youann Blouin
Director, Media Relations & Strategic Communications
Cogeco Inc.
Tel.: 514-297-2853
youann.blouin@cogeco.com
|
Conference
Call:
|
Friday, April
12th, 2024 at 11:00 a.m. (Eastern Daylight
Time)
|
|
|
|
A live audio of the
analyst conference call will be available on both the Investor
Relations and the Events and Presentations pages on Cogeco's
website. Financial analysts will be able to access the live
conference call and ask questions. Media representatives may attend
as listeners only. A recording of the conference call will be
available on Cogeco's website for a three-month period.
|
|
|
|
Please use the
following dial-in number to access the conference call 10 minutes
before the start of the conference:
|
|
|
|
Local -
Toronto: 1 289-514-5100
|
|
Toll Free - North
America: 1 800-717-1738
|
|
|
|
To join this conference
call, participants are required to provide the operator with the
name of the company hosting the call, that is, Cogeco Inc. or
Cogeco Communications Inc.
|
SOURCE Cogeco Inc.
