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Cogeco Communications Releases its Financial Results for the Fourth Quarter of Fiscal 2024

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1 year ago

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Strong progress on the strategic priorities announced last quarter centered on synergies, digitization, advanced analytics, network expansion and wireless.Successfully completed the combination of our Canadian and U.S. telecommunications teams.Signed strategic partnerships to enable an upcoming launch of wireless services in Canada, in a capital-efficient manner as an MVNO.Met or exceeded all financial guidelines set for fiscal 2024; issuing fiscal 2025 financial guidelines.Increasing quarterly eligible dividend by 8.0% to $0.922 per share.

MONTRÉAL, Oct. 31, 2024 /CNW/ – Today, Cogeco Communications Inc. (TSX: CCA) (“Cogeco Communications” or the “Corporation”) announced its financial results for the fourth quarter ended August 31, 2024 and is issuing its fiscal 2025 financial guidelines.

“Fiscal 2024 has been a year of tremendous progress for Cogeco,” said Frédéric Perron, President and CEO. “Over the last six months alone, we set clear priorities to achieve sustainable growth, launched wireless in the U.S., assembled the building blocks to launch wireless in Canada as an MVNO, successfully combined our Canadian and U.S. organizations and refreshed our executive team. The recently completed restructuring, which simplified our operating model, was the first phase of a structured three-year program. We are now in a position to accelerate our digital capabilities, drive bundling across wireline and wireless, and continue to optimize our operations for ongoing growth and value creation.

“Our Canadian telecommunications business continued to perform well in Q4, driven by growth of our Internet subscriber base through Cogeco Connexion, oxio, and our network expansion program. We’re particularly excited about our oxio brand’s performance as its digital model has not only become a growth engine for the organization, but has also become a model for key transformation initiatives within the Corporation more broadly.

“In the U.S., the launch of Breezeline Mobile provides customers even more compelling reasons to bundle their services with us. Our Internet-led strategy and focus on operational efficiency contributed to another quarter of strong margin growth.

“Over the past year, we have maintained our balanced approach to allocating capital to growth initiatives including network expansion, product improvements, and a capital-light approach to growing wireless services in both countries, as well as returning capital through an increased dividend and share buybacks, all while progressively reducing our leverage. We will continue with our balanced approach in fiscal 2025 and with that, we are delighted to announce an increase in our quarterly dividend per share to $0.922.”

Consolidated Financial Highlights

 

Three months ended August 31

2024

2023

(1)

Change

Change in

constant
currency

(2)

(In thousands of Canadian dollars, except % and per share data) (unaudited)

$

$

%

%

Revenue

747,751

743,397

0.6

(0.7)

Adjusted EBITDA (2)

370,418

351,300

5.4

4.2

Adjusted EBITDA margin (2)

49.5 %

47.3 %

Profit for the period

85,484

91,797

(6.9)

Profit for the period attributable to owners of the Corporation

81,958

86,499

(5.2)

Adjusted profit attributable to owners of the Corporation (2)(3)

99,054

97,175

1.9

Cash flows from operating activities

319,177

281,326

13.5

Free cash flow (1)(2)

148,189

88,953

66.6

66.1

Free cash flow, excluding network expansion projects (1)(2)

205,100

121,881

68.3

67.4

Acquisition of property, plant and equipment

154,260

205,570

(25.0)

Net capital expenditures (2)(4)

152,253

176,617

(13.8)

(15.1)

Net capital expenditures, excluding network expansion projects (2)

95,342

143,689

(33.6)

(34.8)

Capital intensity (2)

20.4 %

23.8 %

Capital intensity, excluding network expansion projects (2)

12.8 %

19.3 %

Diluted earnings per share

1.94

1.95

(0.5)

Adjusted diluted earnings per share (2)(3)

2.35

2.19

7.3

Operating results

For the fourth quarter of fiscal 2024 ended on August 31, 2024:

Revenue increased by 0.6% to $747.8 million. On a constant currency basis(2), revenue decreased by 0.7% due to a decline in revenue in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.Adjusted EBITDA increased by 5.4% to $370.4 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.Profit for the period amounted to $85.5 million, of which $82.0 million, or $1.94 per diluted share, was attributable to owners of the Corporation compared to $91.8 million, $86.5 million, and $1.95 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 non-cash pre-tax impairment charges of $14.9 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA, lower financial expense and lower acquisition, integration, restructuring and other costs.Adjusted profit attributable to owners of the Corporation(3) was $99.1 million, or $2.35 per diluted share(3), compared to $97.2 million, or $2.19 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.Net capital expenditures were $152.3 million, a decrease of 13.8% compared to $176.6 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $150.0 million, a decrease of 15.1% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.Excluding network expansion projects, net capital expenditures were $95.3 million, a decrease of 33.6% compared to $143.7 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $93.7 million, a decrease of 34.8% compared to last year.Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.Capital intensity was 20.4% compared to 23.8% last year. Excluding network expansion projects, capital intensity was 12.8% compared to 19.3% in the same period of the prior year.Acquisition of property, plant and equipment decreased by 25.0% to $154.3 million, mainly resulting from lower spending.Free cash flow(1) increased by 66.6%, or 66.1% in constant currency, and amounted to $148.2 million, or $147.7 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 68.3%, or 67.4% in constant currency, and amounted to $205.1 million, or $204.1 million in constant currency.Cash flows from operating activities increased by 13.5% to $319.2 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.At its October 31, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.

FISCAL 2025 FINANCIAL GUIDELINES

Cogeco Communications released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $650 and $725 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Capital intensity is expected to range between 22% and 24%, or 17% and 19% excluding network expansion projects. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.

October 31, 2024

Projections

(i)

Actual

Fiscal 2025

(constant currency)

(ii)

Fiscal 2024

(In millions of Canadian dollars, except percentages)

$

$

Financial guidelines

Revenue

Stable

2,977

Adjusted EBITDA

Stable

1,442

Net capital expenditures

$650 to $725

638

Net capital expenditures in connection with network expansion projects

$140 to $190

137

Capital intensity

22% to 24%

21.4 %

Capital intensity, excluding network expansion projects

17% to 19%

16.8 %

Free cash flow

Decrease of 0% to 10%

(iii)

476

Free cash flow, excluding network expansion projects

Decrease of 0% to 10%

(iii)

613

(i)

Percentage of changes compared to fiscal 2024.

(ii)

Fiscal 2025 financial guidelines are based on a USD/CDN constant exchange rate of 1.3606 USD/CDN.

(iii)

The assumed current income tax effective rate is approximately 14%.

These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the “Forward-looking statements” section of this press release.

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release.

(2)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial 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 Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) 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 Accounting Standards and other financial measures” section of this press release.

(3)

Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest.

(4)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

(5)

Organic growth calculated by excluding additions resulting from acquisitions.

Financial highlights

Change in

constant
currency

Change in

constant
currency

Three months and years ended August 31

2024

2023

(1)

Change

(2)  (3)

2024

2023

(1)

Change

(2)  (3)

(In thousands of Canadian dollars, except % and per share data)

$

$

%

%

$

$

%

%

Operations

Revenue

747,751

743,397

0.6

(0.7)

2,976,524

2,984,128

(0.3)

(0.8)

Adjusted EBITDA (3)

370,418

351,300

5.4

4.2

1,442,314

1,421,066

1.5

1.0

Adjusted EBITDA margin (3)

49.5 %

47.3 %

48.5 %

47.6 %

Acquisition, integration, restructuring and other costs (4)

10,561

15,228

(30.6)

59,731

36,225

64.9

Impairment of property, plant and equipment

14,862

—

—

14,862

—

—

Profit for the period

85,484

91,797

(6.9)

354,132

417,972

(15.3)

Profit for the period attributable to owners of the Corporation

81,958

86,499

(5.2)

335,534

392,273

(14.5)

Adjusted profit attributable to owners of the Corporation (3)(5)

99,054

97,175

1.9

400,431

417,960

(4.2)

Cash flow

Cash flows from operating activities

319,177

281,326

13.5

1,175,219

962,905

22.0

Free cash flow (1)(3)

148,189

88,953

66.6

66.1

476,021

418,056

13.9

13.6

Free cash flow, excluding network expansion projects (1)(3)

205,100

121,881

68.3

67.4

613,415

590,891

3.8

3.5

Acquisition of property, plant and equipment

154,260

205,570

(25.0)

659,090

802,830

(17.9)

Net capital expenditures (3)(6)

152,253

176,617

(13.8)

(15.1)

637,833

699,506

(8.8)

(9.3)

Net capital expenditures, excluding network expansion projects (3)

95,342

143,689

(33.6)

(34.8)

500,439

526,671

(5.0)

(5.5)

Capital intensity (3)

20.4 %

23.8 %

21.4 %

23.4 %

Capital intensity, excluding network expansion projects (3)

12.8 %

19.3 %

16.8 %

17.6 %

Per share data (7)

Earnings per share

Basic

1.95

1.95

—

7.87

8.78

(10.4)

Diluted

1.94

1.95

(0.5)

7.83

8.75

(10.5)

Adjusted diluted (3)(5)

2.35

2.19

7.3

9.35

9.32

0.3

Dividends per share

0.854

0.776

10.1

3.416

3.104

10.1

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Proceeds on disposals of property, plant and equipment amounted to $0.6 million and $3.4 million for the three-month period and year ended August 31, 2024, respectively ($1.0 million and $2.7 million, respectively, in fiscal 2023). Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release.

(2)

Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three-month period and year ended August 31, 2023, the average foreign exchange rates used for translation were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.

(3)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial 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 Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards 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 Accounting Standards and other financial measures” section of this press release.

(4)

For the three-month period and year ended August 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the second half of the year, including costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives. For the three-month period and year ended August 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions, as well as acquisition and integration costs incurred in connection with the acquisition of oxio, completed on March 3, 2023, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2023 within the Canadian and the American telecommunications segments and from configuration and customization costs related to cloud computing arrangements. Furthermore, a retroactive adjustment of $8.4 million was recognized in fiscal 2023 following the Copyright Board preliminary conclusions on the redetermination of the 2014-2018 royalty rates, of which $4.2 million was reversed during the second quarter of fiscal 2024 following the Copyright Board decision issued in January 2024.

(5)

Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, all net of tax and non-controlling interest.

(6)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

(7)

Per multiple and subordinate voting share.

As at

August 31, 2024

August 31, 2023

(In thousands of Canadian dollars, except %)

$

$

Financial condition

Cash and cash equivalents

76,335

362,921

Total assets

9,675,009

9,768,370

Long-term debt

Current

361,808

41,765

Non-current

4,448,261

4,979,241

Net indebtedness (1)

4,803,629

4,749,214

Equity attributable to owners of the Corporation

2,979,691

2,957,797

Return on equity (2)

11.3 %

13.7 %

(1)

Net indebtedness is a capital management measure. For more information on this financial measure, please consult the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca.

(2)

Return on equity is a supplementary financial measure and is calculated as profit attributable to owners of the Corporation for the year divided by the average of the equity attributable to owners of the Corporation for the year.

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 Communications Inc.’s (“Cogeco Communications” 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 Communications believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“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 Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax 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 the highly competitive market for a 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, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. 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 Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications 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 Communications’ 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 MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.

Non-IFRS Accounting Standards and other financial measures

This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.

Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications’ non-IFRS Accounting Standards ratios.

Specified non-IFRS Accounting Standards measures

Used in the component of the following non-IFRS Accounting Standards ratios

Adjusted profit attributable to owners of the Corporation

Adjusted diluted earnings per share

Constant currency basis

Change in constant currency

Net capital expenditures, excluding network expansion projects

Capital intensity, excluding network expansion projects

Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

747,751

(9,731)

738,020

743,397

0.6

(0.7)

Operating expenses

372,095

(5,234)

366,861

388,381

(4.2)

(5.5)

Management fees – Cogeco Inc.

5,238

—

5,238

3,716

41.0

41.0

Adjusted EBITDA

370,418

(4,497)

365,921

351,300

5.4

4.2

Free cash flow (1)

148,189

(462)

147,727

88,953

66.6

66.1

Net capital expenditures

152,253

(2,254)

149,999

176,617

(13.8)

(15.1)

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.

 

Years ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign exchange impact

In

constant currency

Actual

Actual

In

constant currency

$

$

$

$

%

%

Revenue

2,976,524

(15,024)

2,961,500

2,984,128

(0.3)

(0.8)

Operating expenses

1,513,258

(8,121)

1,505,137

1,544,462

(2.0)

(2.5)

Management fees – Cogeco Inc.

20,952

—

20,952

18,600

12.6

12.6

Adjusted EBITDA

1,442,314

(6,903)

1,435,411

1,421,066

1.5

1.0

Free cash flow (1)

476,021

(932)

475,089

418,056

13.9

13.6

Net capital expenditures

637,833

(3,340)

634,493

699,506

(8.8)

(9.3)

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.

Canadian telecommunications segment

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

378,702

—

378,702

375,754

0.8

0.8

Operating expenses

175,688

(288)

175,400

180,183

(2.5)

(2.7)

Adjusted EBITDA

203,014

288

203,302

195,571

3.8

4.0

Net capital expenditures

71,000

(245)

70,755

73,348

(3.2)

(3.5)

 

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

1,510,506

—

1,510,506

1,489,915

1.4

1.4

Operating expenses

710,706

(447)

710,259

701,717

1.3

1.2

Adjusted EBITDA

799,800

447

800,247

788,198

1.5

1.5

Net capital expenditures

356,274

(463)

355,811

354,384

0.5

0.4

American telecommunications segment

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

369,049

(9,731)

359,318

367,643

0.4

(2.3)

Operating expenses

185,588

(4,916)

180,672

193,172

(3.9)

(6.5)

Adjusted EBITDA

183,461

(4,815)

178,646

174,471

5.2

2.4

Net capital expenditures

76,238

(2,011)

74,227

100,488

(24.1)

(26.1)

 

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

1,466,018

(15,024)

1,450,994

1,494,213

(1.9)

(2.9)

Operating expenses

759,658

(7,632)

752,026

800,409

(5.1)

(6.0)

Adjusted EBITDA

706,360

(7,392)

698,968

693,804

1.8

0.7

Net capital expenditures

267,728

(2,865)

264,863

336,910

(20.5)

(21.4)

Adjusted profit attributable to owners of the Corporation  

Three months ended August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period attributable to owners of the Corporation

81,958

86,499

335,534

392,273

Impairment of property, plant and equipment

14,862

—

14,862

—

Acquisition, integration, restructuring and other costs

10,561

15,228

59,731

36,225

Loss on debt extinguishment (1)

—

—

16,880

—

Tax impact for the above items

(6,648)

(3,829)

(24,109)

(9,370)

Non-controlling interest impact for the above items

(1,679)

(723)

(2,467)

(1,168)

Adjusted profit attributable to owners of the Corporation

99,054

97,175

400,431

417,960

(1)    Included within financial expense.

Free cash flow and free cash flow, excluding network expansion projects reconciliations

Three months ended August 31

Years ended August 31

2024

2023

(1)

2024

2023

(1)

(In thousands of Canadian dollars)

$

$

$

$

Cash flows from operating activities

319,177

281,326

1,175,219

962,905

Changes in other non-cash operating activities

(34,878)

(9,946)

(56,369)

97,851

Income taxes paid

6,526

2,025

5,719

91,673

Current income taxes

(553)

(5,708)

(20,147)

(32,067)

Interest paid

71,695

65,489

266,464

239,648

Financial expense

(61,925)

(70,222)

(277,690)

(251,642)

Loss on debt extinguishment (2)

—

—

16,880

—

Amortization of deferred transaction costs and discounts on long-term debt (2)

2,190

3,195

9,143

12,601

Net capital expenditures (3)

(152,253)

(176,617)

(637,833)

(699,506)

Proceeds on disposals of property, plant and equipment (1)

594

1,037

3,378

2,651

Repayment of lease liabilities

(2,384)

(1,626)

(8,743)

(6,058)

Free cash flow (1)

148,189

88,953

476,021

418,056

Net capital expenditures in connection with network expansion projects

56,911

32,928

137,394

172,835

Free cash flow, excluding network expansion projects (1)

205,100

121,881

613,415

590,891

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.

(2)

Included within financial expense.

(3)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, 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 August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Acquisition of property, plant and equipment

154,260

205,570

659,090

802,830

Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period

(2,007)

(28,953)

(21,257)

(103,324)

Net capital expenditures

152,253

176,617

637,833

699,506

Adjusted EBITDA reconciliation

Three months ended August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period

85,484

91,797

354,132

417,972

Income taxes

15,225

18,119

62,342

94,761

Financial expense

61,925

70,222

277,690

251,642

Impairment of property, plant and equipment

14,862

—

14,862

—

Depreciation and amortization

182,361

155,934

673,557

620,466

Acquisition, integration, restructuring and other costs

10,561

15,228

59,731

36,225

Adjusted EBITDA

370,418

351,300

1,442,314

1,421,066

Net capital expenditures and free cash flow excluding network expansion projects reconciliations

Net capital expenditures

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign exchange impact

In

constant currency

Actual

Actual

In

constant currency

$

$

$

$

%

%

Net capital expenditures

152,253

(2,254)

149,999

176,617

(13.8)

(15.1)

Net capital expenditures in connection with network expansion projects

56,911

(576)

56,335

32,928

72.8

71.1

Net capital expenditures, excluding network expansion projects

95,342

(1,678)

93,664

143,689

(33.6)

(34.8)

 

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign exchange impact

In

constant currency

Actual

Actual

In

constant currency

$

$

$

$

%

%

Net capital expenditures

637,833

(3,340)

634,493

699,506

(8.8)

(9.3)

Net capital expenditures in connection with network expansion projects

137,394

(780)

136,614

172,835

(20.5)

(21.0)

Net capital expenditures, excluding network expansion projects

500,439

(2,560)

497,879

526,671

(5.0)

(5.5)

Free cash flow

Three months ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign exchange impact

In

constant currency

Actual

Actual

In

constant currency

$

$

$

$

%

%

Free cash flow (1)

148,189

(462)

147,727

88,953

66.6

66.1

Net capital expenditures in connection with network expansion projects

56,911

(576)

56,335

32,928

72.8

71.1

Free cash flow, excluding network expansion projects (1)

205,100

(1,038)

204,062

121,881

68.3

67.4

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.

 

Years ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign exchange impact

In

constant currency

Actual

Actual

In

constant currency

$

$

$

$

%

%

Free cash flow (1)

476,021

(932)

475,089

418,056

13.9

13.6

Net capital expenditures in connection with network expansion projects

137,394

(780)

136,614

172,835

(20.5)

(21.0)

Free cash flow, excluding network expansion projects (1)

613,415

(1,712)

611,703

590,891

3.8

3.5

(1)

During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.

Additional information

Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.

About Cogeco Communications Inc.

Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

For information:

Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com 

Media
Claudja Joseph
Director, Communications & DEI
Cogeco Communications Inc.
Tel.: 514 764-4600
claudja.joseph@cogeco.com                                                                                                

Conference Call:                                  

Friday, November 1st, 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 Communications’ 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 Communications’ 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 Communications Inc.

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Technology

KTGHR leverages AI-powered real-time transaction capabilities to expand its e-commerce infrastructure, reshaping the engine of enterprise growth.

Published

38 minutes ago

on

April 18, 2026

By

DALLAS, April 18, 2026 /PRNewswire-PRWeb/ — Against the backdrop of artificial intelligence continuously reshaping the global business landscape, KTGHR officially launched its new B2B AI-powered intelligent solution for enterprises, dedicated to helping them achieve comprehensive upgrades in cost reduction and efficiency improvement, precise customer acquisition, and intelligent operations.

KTGHR Launches New B2B AI Solution, Reshaping the Engine of Enterprise Growth

As an innovative platform focused on the deep integration of AI technology and business scenarios, KTGHR’s newly released system integrates core functions such as intelligent data analysis, AI-automated marketing, customer behavior prediction, and intelligent customer service. This enables enterprises to make rapid decisions in a complex and ever-changing market environment, achieving sustained business growth.

AI-Driven Precise Customer Acquisition, Comprehensively Improving Conversion Efficiency KTGHR uses advanced algorithm models to conduct in-depth analysis of global market data, helping enterprises accurately target potential customer groups. The system can automatically generate high-conversion marketing content and intelligently distribute it through multiple channels, significantly improving customer reach and conversion rates, enabling enterprises to truly achieve “automated customer acquisition.”

Intelligent Operation System, Relieving Pressure on Human Resource Costs With AI-automated processes, KTGHR can intelligently handle order management, customer follow-up, and data statistics, reducing manual intervention and improving overall operational efficiency. Enterprises can complete global business layouts without a large team.

Integrated B2B Ecosystem, Connecting the Global Supply Chain KTGHR is not just an AI tool platform, but a complete B2B ecosystem. By integrating supply chain resources and intelligent matching mechanisms, it achieves efficient connections between supply and demand, helping companies rapidly expand into international markets and build a borderless business network.

Technology Empowering the Future, Driving Enterprise Digital Transformation KTGHR states that it will continue to increase investment in artificial intelligence, promoting the implementation of more innovative functions to help companies seize opportunities in the digital economy era. With the continuous maturation of AI technology, the B2B industry is ushering in unprecedented development opportunities.

The launch of KTGHR is not only a technological upgrade but also a revolution in business models. For companies seeking breakthroughs and growth, this may be a key step towards the next stage of success.

KTGHR leverages advanced AI algorithms and big data analytics capabilities to achieve a leap from “information matching” to “intelligent decision-making.” The platform can automatically match supply and demand, accurately recommending high-potential partners, significantly reducing the time and cost for companies to find customers and supply chain resources.

By intelligently analyzing market trends and user behavior, KTGHR helps businesses anticipate opportunities, making every transaction more efficient and precise.

End-to-End Intelligent Management, Creating a Seamless Business Ecosystem

KTGHR is not just a transaction platform, but a complete AI business ecosystem. Its core functions include:

AI-powered Intelligent Customer Matching and RecommendationReal-time Data Analysis and Business ForecastingAutomated Order and Supply Chain ManagementSeamless Global Market Connection

Whether you are a small or medium-sized enterprise (SME) or a large multinational corporation, you can achieve digital transformation and global expansion through KTGHR.

Cost Reduction and Efficiency Improvement, Unleashing Business Growth Potential In the traditional B2B model, high communication costs, information asymmetry, and low conversion rates have long been problems. KTGHR, through AI-automated processes, significantly reduces human intervention, helping businesses: Reduce operating costs Increase conversion rates Shorten transaction cycles Enhance customer experience Allow businesses to truly focus on core business and strategic growth.

Seize the AI Business Opportunities and Win the Future As artificial intelligence technology matures, the B2B industry is entering a new era of “intelligent-driven” growth. KTGHR stands at the forefront of this transformation, providing businesses with a sustainable competitive advantage. Choosing KTGHR is not just choosing a platform, but choosing a high-speed gateway to the future of business. For more information, please visit the official KTGHR platform and begin your AI-powered business journey.

Media Contact

William, Ktghr.com, 1 +14255550100 99762, service@ktghr.it.com, Ktghr.com

View original content:https://www.prweb.com/releases/ktghr-leverages-ai-powered-real-time-transaction-capabilities-to-expand-its-e-commerce-infrastructure-reshaping-the-engine-of-enterprise-growth-302745582.html

SOURCE Ktghr.com

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Technology

Link Infinite: Hollyland Pyro Ultra Simplifies Multi-User Monitoring with 4K60 Wireless

Published

2 hours ago

on

April 18, 2026

By

SHENZHEN, China, April 18, 2026 /PRNewswire/ — Hollyland, a global provider of professional wireless audio and video solutions, today announced the launch of Pyro Ultra, the new flagship in its Pyro series, featuring next-gen wireless video transmission technology that enables streamlined setup and uncompromised real-time performance. Engineered for professional creators and high-end production environments, Pyro Ultra balances high-performance transmission with practical on-set usability.

Building on Hollyland’s self-developed TWiFi technology, Pyro Ultra delivers one-to-many transmission, native 4K60 support, and a dedicated ultra-low-latency mode for focus pulling. Fully integrated into the Pyro ecosystem and equipped with DFS-ready operation, it is built to meet the demands of modern digital cinema workflows.

The New Standard for One-to-Many On-Set Transmission

In today’s production landscape, the video village is no longer confined to a single monitor. Directors, assistants, clients, and multiple departments require simultaneous, high-fidelity access to the live image across different positions on set.

While existing systems often force a choice between costly, over-engineered solutions and entry-level gear that struggles in demanding environments, Pyro Ultra offers a third approach. As one-to-many transmission becomes increasingly common across productions, it can introduce practical limits on device count and system stability in larger setups. Pyro Ultra’s Broadcast Mode addresses the issue by enabling a single transmitter to connect with an unlimited number of receivers, creating a fluid workflow. Every department, from lighting to hair and makeup, can monitor independently, which helps eliminate bottlenecks and accelerate decision-making.

Cinematic 4K60 Clarity Without Compromise

Image integrity is central to Pyro Ultra. With support for 4K60 transmission, the system delivers the detail and color accuracy required for high-end videography work. It also supports fractional frame rates, including 23.98 and 59.94 fps, commonly used in broadcast and professional pipelines. Its native compatibility enables direct connection to switchers and monitors without external converters, simplifying the signal path and reducing potential points of failure.

20ms Latency for Precise Focus Pulling

For first assistant camera operators and focus pullers, every millisecond counts. Pyro Ultra’s dedicated Focus Mode cuts latency to just 20ms, ensuring the real-time responsiveness needed for razor-sharp adjustments at any distance. The technical edge provides the freedom to navigate tight spaces or complex choreography with absolute confidence.

Powered by TWiFi Technology

At the core of Pyro Ultra is Hollyland’s TWiFi (dual-band wireless) technology. It leverages intelligent frequency management across the 2.4 GHz and 5 GHz bands to enable automatic hopping, ensuring a stable, high-bitrate connection even in congested RF environments. Pyro Ultra’s robust link supports a 1.5 km (4,900 ft) range and is fully DFS-ready, providing professional crews with reliable, globally compliant operation

Engineered for Modern Workflows & Seamless Integration

Pyro Ultra is built for today’s hybrid production workflows. With UVC (USB Video Class) support, it can connect directly to a computer for instant webcam functionality, removing the need for a capture card. Its RTMP support enables direct streaming to web platforms, simplifying remote collaboration. As part of the Pyro ecosystem, Ultra integrates seamlessly with existing Pyro devices. The modular design allows production teams to scale their setups based on project requirements, ensuring consistent performance across different production scenarios.

Pricing and Availability

Launched on April 18, 2026, Hollyland’s Pyro Ultra is now available through local distributors, the official Hollyland online store, and the Hollyland Amazon store.

The 1TX/1RX kit is priced at $1,199, and the 1TX/2RX kit at $1,699. Individual units can also be purchased separately, with transmitters starting at $699 and receivers at $579.

For more information, visit https://www.hollyland.com/product/pyro-ultra

About Hollyland

Hollyland is a leading provider of wireless products, specializing in wireless intercom systems, video transmission systems, monitors, wireless microphones, and live streaming cameras. Since 2013, Hollyland has been serving millions of users around the world in various sectors, including filmmaking, telecasting, video production, live events, exhibitions, theaters, houses of worship, and individual content creators. It has built a sales network covering approximately 150 countries and regions with support from dozens of localized operation offices worldwide. For more information, please visit https://www.hollyland.com/, Hollyland Facebook, and Hollyland Instagram.

View original content to download multimedia:https://www.prnewswire.com/news-releases/link-infinite-hollyland-pyro-ultra-simplifies-multi-user-monitoring-with-4k60-wireless-302742508.html

SOURCE Hollyland

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Technology

Three Papers Published Consecutively in Nature Energy: JinkoSolar’s Breakthroughs in TOPCon/Perovskite Tandem Technology Receive Authoritative Recognition

Published

3 hours ago

on

April 18, 2026

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SHANGHAI, April 18, 2026 /PRNewswire/ — JinkoSolar, the global leading PV and ESS supplier, recently published three research papers in succession within a single month in Nature Energy, one of the premier journals in the field of energy research. This series of papers showcases JinkoSolar’s multiple major breakthroughs in TOPCon and perovskite tandem cell technologies.

26.66%! Setting a New Record for Industrial-Scale TOPCon Cell Conversion Efficiency

JinkoSolar, in collaboration with the research team from the Ningbo Institute of Materials Technology and Engineering of the Chinese Academy of Sciences, successfully developed a dual-sided electrical synergy optimization strategy. This approach achieved a certified efficiency of up to 26.66% on M10-sized silicon wafers, setting a new efficiency record for industrial-scale TOPCon cells and significantly narrowing the gap between industrial-scale TOPCon cells and the theoretical efficiency of 29.4%.

Additionally, the research reduced carrier transport losses through a high-resistance boron emitter on the front side and an optimized fine-line grid design, while the back side employs an innovative double-layer tunneling silicon oxide/polysilicon structure on the rear side to effectively suppress performance degradation caused by silver paste puncture. Furthermore, by utilizing localized polysilicon thinning technology, the research achieved outstanding performance metrics, including an open-circuit voltage of 744.6 mV, a fill factor of 85.57%, and a bifaciality of 88.3%. This achievement provides a feasible and comprehensive solution for narrowing the efficiency gap between TOPCon cells and the theoretical limit, significantly enhancing the core competitiveness of TOPCon technology in the future photovoltaic market.

Reference link: Dual-side electrical refinement enables efficient industrial tunnel oxide passivating contact silicon solar cells:
https://www.nature.com/articles/s41560-026-01982-2

Certified Efficiency of 32.73%! Paving the Way for Scalable Compatibility of Perovskite/TOPCon Tandem Cells

JinkoSolar, in collaboration with the research team from Soochow University, has successfully developed a full-size bifacial TOPCon crystalline silicon solar cell with a certified photoconversion efficiency of 26.34%. This research abandons the traditional TOPCon cell design featuring a boron-diffused emitter on the front surface. Instead, it innovatively introduces patterned n-type TOPCon finger contacts on the front surface while retaining the full-area p-type TOPCon contact on the back. By localizing the polycrystalline silicon contact area, this structure significantly reduces parasitic absorption and recombination losses on the front surface, achieving a certified efficiency of 26.34% and significantly improving the open-circuit voltage.

Furthermore, to address the issues of poor contact performance and susceptibility to metal paste corrosion in P-type TOPCon, a “polysilicon/silicon dioxide/polysilicon” double-layer composite structure was designed. Combined with optimized rear-side polishing and a specially formulated silver paste, this structure not only achieves extremely low contact resistance and recombination current but, more importantly, the ultra-thin oxide layer in the middle effectively prevents silver crystal spikes from penetrating the silicon substrate, significantly enhancing the device’s reliability and high-temperature resistance. In the future, by improving the precision of laser patterning to further narrow the finger width and introducing localized contacts on the back side to reduce the polycrystalline silicon layer thickness, parasitic absorption can be reduced, and mass production efficiency is expected to approach 27%.

Using a high-efficiency bifacial TOPCon cell with a textured front surface as the bottom cell, the research team fabricated a monolithic perovskite/TOPCon tandem cell, achieving a certified efficiency of 32.73% and a high open-circuit voltage of 1.961 V. These results not only set a new performance record for this class of tandem cells but also demonstrated excellent long-term operational stability (maintaining 80% of the initial efficiency after 2,000 hours), proving the immense potential of this TOPCon technology route in tandem applications. They also provide a scalable and industrially compatible technical pathway for the development of higher-efficiency TOPCon and perovskite/TOPCon tandem photovoltaic modules.

Reference link: Bifacial tunnel oxide passivating contacts for silicon and perovskitesilicon tandem solar cells with improved efficiency: 
https://www.nature.com/articles/s41560-026-02007-8

32.76%! Breaking Through the Efficiency Barrier for Industrial TOPCon Silicon-Based Perovskite Tandem Cells

To address the critical challenge of rapid perovskite crystallization and film quality degradation caused by the high thermal conductivity of industrial thin silicon substrates, JinkoSolar, in collaboration with the National University of Singapore and other research institutions, innovatively proposed a strategy to regulate the major organic cation (FA⁺) using a dual-mode-coupled ligand (MBT), successfully achieving effective control over crystallization kinetics. A perovskite/TOPCon tandem solar cell fabricated using this strategy was certified by the National Photovoltaic Industry Metrology and Testing Center (NPVM) with a conversion efficiency of 32.76%, approaching the current efficiency record for tandem photovoltaic cells. Additionally, the cell maintained 91% of its initial efficiency after 1,700 hours of continuous operation, demonstrating excellent long-term operational reliability.

This research is of significant importance as it achieves high efficiency (certified at 32.76%) in TOPCon silicon-back-contact cells, which hold the greatest potential for market dominance. Not only does it elevate the efficiency of perovskite/TOPCon tandem cells to new heights, but more importantly, it provides critical scientific insights and a practical pathway for integrating high-performance perovskite materials from the laboratory with market-dominant TOPCon silicon technology, marking a solid step toward the mainstream industrialization of perovskite/ crystalline silicon tandem technology toward mainstream industrialization. In the future, this strategy is expected to be combined with solution-based production processes — which offer the potential for large-scale fabrication and low costs — to drive the industrial application of these research findings.

Reference link: Additive-assisted perovskite crystallization on industrial TOPCon silicon for tandem solar cells with improved efficiency: 
https://www.nature.com/articles/s41560-026-02010-z

View original content to download multimedia:https://www.prnewswire.com/news-releases/three-papers-published-consecutively-in-nature-energy-jinkosolars-breakthroughs-in-topconperovskite-tandem-technology-receive-authoritative-recognition-302746483.html

SOURCE JinkoSolar

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