In This Article:
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Revenue: Consolidated revenue declined by 0.7%.
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Adjusted EBITDA: Increased by 4.2% due to margin expansion and reduced corporate expenses.
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Free Cash Flow: Increased by 66% year-over-year.
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Net Debt to EBITDA Ratio: Improved to 3.3 turns.
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Dividend Increase: Dividend increased by 8% to $0.922 per share.
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Capital Intensity: Improved to 20% from 24% last year.
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Canadian Internet Subscriber Growth: Nearly 10,000 new subscribers this quarter.
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Homes Passed: Added close to 14,000 new homes passed in the quarter, totaling 253,000 since fiscal 2022.
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Breezeline EBITDA Growth: Increased by 2.4% in constant currency.
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Cogeco Connexion Revenue Growth: Increased by 0.8% driven by higher Internet service subscriber base.
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Breezeline Revenue Decline: Declined by 2.3% due to a lower subscriber base.
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Cogeco Media Revenue Decline: Decreased by 10% due to competitive advertising markets.
Release Date: November 01, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cogeco Communications Inc (CGEAF) reported a strong free cash flow performance, exceeding guidance for the year.
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The successful merger of US and Canadian teams has generated cost savings and optimized talent deployment.
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The AI-powered customer service chatbot managed over 80,000 inquiries in September, enhancing customer experience.
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The company expanded its fiber-to-the-home network, adding close to 58,000 new homes passed for the year.
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Cogeco Connexion achieved 18 consecutive quarters of subscriber growth in Canada, with nearly 10,000 new Internet subscribers this quarter.
Negative Points
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Breezeline experienced a decline in revenue by 2.3% due to a lower subscriber base and competitive pressures.
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Cogeco Media faced lower than anticipated revenue due to competitive dynamics in the radio advertising market.
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The company anticipates a low single-digit decline in revenue and EBITDA for Cogeco Connexion in fiscal 2025.
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There is ongoing ARPU pressure in both Canadian and US markets, impacting financial performance.
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The transformation program requires significant reinvestment, which may compress EBITDA margins in the short term.
Q & A Highlights
Q: Can you provide details on the contribution of the NRBN acquisition to Cogeco Connexion's revenue and EBITDA growth in Q4? A: The NRBN acquisition contributed about 1% to revenue growth. In terms of EBITDA, NRBN is a small business with slightly higher margins, but it doesn't significantly impact the overall margin percentage. The growth mainly comes from the rest of the business.