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Cogeco Releases its Financial Results for the Second Quarter of Fiscal 2025

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1 year ago

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Three-year transformation program fully underway.Canadian wireless launch preparation on track, with customer pre-registration now ongoing.Year-over-year increase in customer satisfaction, in both Canada and the United States.Fiscal 2025 financial guidelines maintained.A quarterly dividend of $0.922 per share was declared, representing an 8.0% increase over the prior year.

MONTRÉAL, April 9, 2025 Today, Cogeco Inc. (TSX: CGO) (“Cogeco” or the “Corporation”) announced its financial results for the second quarter ended February 28, 2025.

“Our results for the second quarter of fiscal 2025 demonstrate that our new operating model, focused on increasing our agility and competitiveness, is gaining traction,” stated Frédéric Perron, President and CEO. “We are particularly pleased with the progress we are making on our transformation initiatives, leading to increased customer satisfaction, while alleviating industry revenue headwinds with ongoing cost reductions.

“Our Internet subscriber growth in Canada remained strong, driven by both our Cogeco and oxio brands. We continued to see modest sequential improvements in Internet subscriber metrics in the U.S., began scaling up our U.S. wireless sales, and kept our Canadian wireless launch preparation on schedule.

“At Cogeco Media, the radio advertising market presents ongoing challenges; however, our digital advertising solutions continue to be a growing contributor to revenue, and our listener engagement remains strong, such as in Montréal, where 7 of the 10 most listened-to programs come from our stations, based on independent data from Numeris.

“Our three-year transformation centered on synergies, digitization, advanced analytics, wireless, and network expansion is beginning to bear fruit. We thank our employees for their hard work and dedication, and our customers and stakeholders for their ongoing support.”

Consolidated Financial Highlights

Three months ended

February 28,
2025

February 29,
2024

(1)

Change

Change in

constant
currency

(2)

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

$

$

%

%

Revenue

753,247

751,908

0.2

(2.7)

Adjusted EBITDA (2)

356,905

347,782

2.6

(0.2)

Profit for the period

76,610

93,930

(18.4)

Profit for the period attributable to owners of the Corporation

18,172

23,997

(24.3)

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

20,329

24,346

(16.5)

Cash flows from operating activities

250,080

286,382

(12.7)

Free cash flow (1)(2)

112,805

100,468

12.3

10.5

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

128,378

124,858

2.8

1.4

Acquisition of property, plant and equipment

160,335

181,234

(11.5)

Net capital expenditures (2)(4)

158,859

171,756

(7.5)

(10.6)

Net capital expenditures, excluding network expansion projects (2)

143,286

147,366

(2.8)

(6.3)

Diluted earnings per share

1.88

2.30

(18.3)

Adjusted diluted earnings per share (2)(3)

2.11

2.33

(9.4)

Operating results

For the second quarter of fiscal 2025 ended on February 28, 2025:

Revenue remained stable at $753.2 million. On a constant currency basis(2), revenue decreased by 2.7%, mainly explained as follows:American telecommunications’ revenue decreased by 4.5% on a constant currency basis (increase of 1.5% as reported), mainly due to a decline in our subscriber base, especially for entry-level services, and to a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by a better product mix.Canadian telecommunications’ revenue decreased by 0.9%, mainly due to a lower revenue per customer as a result of a decline in video and wireline phone service subscribers as an increasing proportion of customers subscribe to Internet-only services, as well as a competitive pricing environment, partly offset by the cumulative effect of high-speed Internet service additions over the past years, including from network expansion projects, as well as from the Niagara Regional Broadband Network acquisition completed on February 5, 2024.Revenue in the media activities decreased by 2.7% as competitive dynamics in the radio advertising market remain challenging.Adjusted EBITDA increased by 2.6% to $356.9 million. On a constant currency basis, adjusted EBITDA remained stable, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, offset by lower revenue in both the American and Canadian telecommunications segments, and higher operating expenses in the Canadian telecommunications segment, in part to drive subscriber growth.Canadian telecommunications adjusted EBITDA decreased by 3.2%, or 2.8% in constant currency.American telecommunications adjusted EBITDA increased by 6.8%, or 0.5% in constant currency.Profit for the period amounted to $76.6 million, of which $18.2 million, or $1.88 per diluted share, was attributable to owners of the Corporation compared to $93.9 million, $24.0 million, and $2.30 per diluted share, respectively, in the comparable period of fiscal 2024. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense, acquisition, integration, restructuring and other costs and income tax expense, partly offset by lower financial expense and the impact of the appreciation of the US dollar against the Canadian dollar.Adjusted profit attributable to owners of the Corporation(3) was $20.3 million, or $2.11 per diluted share(3), compared to $24.3 million, or $2.33 per diluted share, last year.Net capital expenditures were $158.9 million, a decrease of 7.5% compared to $171.8 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $153.5 million, a decrease of 10.6% compared to last year, mainly due to lower spending in the Canadian telecommunications segment, primarily resulting from lower capital spending related to customer premise equipment and the timing of certain initiatives, offset in part by higher spending in the American telecommunications segment, mainly due to higher costs in relation to customer premise equipment.Excluding network expansion projects, net capital expenditures were $143.3 million, a decrease of 2.8% compared to $147.4 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $138.0 million, a decrease of 6.3% compared to last year, mainly due to the same factors as above.Fibre-to-the-home network expansion projects continued, mostly in Canada, with the addition of close to 7,000 homes passed during the second quarter of fiscal 2025.Acquisition of property, plant and equipment decreased by 11.5% to $160.3 million, mainly resulting from lower spending.Free cash flow(1) increased by 12.3%, or 10.5% in constant currency, and amounted to $112.8 million, or $111.0 million in constant currency(2), mainly due to lower net capital expenditures and financial expense, offset in part by higher acquisition, integration, restructuring and other costs. Free cash flow, excluding network expansion projects(1) increased by 2.8%, or 1.4% in constant currency, and amounted to $128.4 million, or $126.5 million in constant currency.Cash flows from operating activities decreased by 12.7% to $250.1 million, mostly due to lower cash from other non-cash operating activities, primarily due to the timing of payments of trade and other payables, as well as the timing of grants received in connection with network expansion projects and the collection of trade accounts receivable, and higher income taxes paid, partly offset by lower interest paid.Cogeco maintains its fiscal 2025 financial guidelines as issued on October 31, 2024.At its April 9, 2025 meeting, the Board of Directors of Cogeco declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share in the comparable quarter of fiscal 2024.

__________

(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, which includes proceeds from sale and leaseback transactions. 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. 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 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 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.

Financial highlights

Three and six months ended

February 28,
2025

February 29,
2024

(1)

Change

Change in

constant
currency

(2)

(3)

February 28,
2025

February 29,
2024

(1)

Change

Change in

constant
currency

(2)

(3)

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

$

$

%

%

$

$

%

%

Operations

Revenue

753,247

751,908

0.2

(2.7)

1,518,207

1,528,080

(0.6)

(2.2)

Adjusted EBITDA (3)

356,905

347,782

2.6

(0.2)

727,989

713,815

2.0

0.4

Acquisition, integration, restructuring and other costs (gains) (4)

8,644

1,222

—

(1,004)

4,487

—

Profit for the period

76,610

93,930

(18.4)

185,006

192,659

(4.0)

Profit for the period attributable to owners of the Corporation

18,172

23,997

(24.3)

47,981

58,538

(18.0)

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

20,329

24,346

(16.5)

47,550

64,384

(26.1)

Cash flow

Cash flows from operating activities

250,080

286,382

(12.7)

458,735

523,301

(12.3)

Free cash flow (1)(3)

112,805

100,468

12.3

10.5

265,256

242,546

9.4

8.6

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

128,378

124,858

2.8

1.4

302,628

298,596

1.4

0.7

Acquisition of property, plant and equipment

160,335

181,234

(11.5)

313,849

335,023

(6.3)

Net capital expenditures (3)(6)

158,859

171,756

(7.5)

(10.6)

309,775

318,423

(2.7)

(4.6)

Net capital expenditures, excluding network expansion projects (3)

143,286

147,366

(2.8)

(6.3)

272,403

262,373

3.8

1.6

Per share data (7)

Earnings per share

Basic

1.91

2.32

(17.7)

5.05

4.53

11.5

Diluted

1.88

2.30

(18.3)

4.97

4.50

10.4

Adjusted diluted (3)(5)

2.11

2.33

(9.4)

4.93

4.95

(0.4)

Dividends per share

0.922

0.854

8.0

1.844

1.708

8.0

(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, which includes proceeds from sale and leaseback transactions. Proceeds from sale and leaseback and other disposals of property, plant and equipment amounted to $0.9 million and $20.6 million for the three and six-month periods ended February 28, 2025, respectively ($1.6 million and $1.9 million, respectively, for the same periods of fiscal 2024). 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 rates of the comparable periods of the prior year. For the three and six-month periods ended February 29, 2024, the average foreign exchange rates used for translation were 1.3452 USD/CDN and 1.3553 USD/CDN, respectively.

(3)

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 Accounting Standards measures. Change in constant currency 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 ended February 28, 2025, acquisition, integration, restructuring and other costs were mainly related to restructuring costs incurred, mostly in connection with additional costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives, as well as costs associated with the configuration and customization related to cloud computing and other arrangements. For the six-month period ended February 28, 2025, acquisition, integration, restructuring and other costs (gains) were mostly related to a $13.8 million non-cash gain recognized during the first quarter of fiscal 2025 in connection with a sale and leaseback transaction of a building in Ontario, offset in part by restructuring costs incurred and costs associated with the configuration and customization related to cloud computing and other arrangements. For the three and six-month periods ended February 29, 2024, acquisition, integration, restructuring and other costs were 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.

(5)

Excludes the impact of acquisition, integration, restructuring and other costs (gains), 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

February 28,
2025

August 31,
2024

(In thousands of Canadian dollars)

$

$

Financial condition

Cash and cash equivalents

142,018

77,746

Total assets

10,252,071

9,773,739

Long-term debt

Current

363,288

370,108

Non-current

4,844,968

4,594,057

Net indebtedness (1)

5,137,472

4,957,594

Equity attributable to owners of the Corporation

864,958

810,437

(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 three and six-month periods ended February 28, 2025, 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 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 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, trade tariffs, 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. Moreover, the Corporation’s radio operations are significantly exposed to advertising budgets from the retail industry, which can fluctuate due to increased competition and 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 fiscal 2024 annual MD&A and of the fiscal 2025 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 28, 2025, the Corporation’s condensed interim consolidated financial statements and the notes thereto for the same periods prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and the Corporation’s fiscal 2024 Annual Report.

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. 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 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 three and six-month periods ended February 28, 2025, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco’s 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

Financial measures presented on a constant currency basis for the three and six-month periods ended February 28, 2025 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3452 USD/CDN and 1.3553 USD/CDN, respectively.

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended

February 28, 2025

February 29, 2024

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

753,247

(21,406)

731,841

751,908

0.2

(2.7)

Operating expenses

396,342

(11,558)

384,784

404,126

(1.9)

(4.8)

Adjusted EBITDA

356,905

(9,848)

347,057

347,782

2.6

(0.2)

Free cash flow (1)

112,805

(1,760)

111,045

100,468

12.3

10.5

Net capital expenditures

158,859

(5,343)

153,516

171,756

(7.5)

(10.6)

(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, which includes proceeds from sale and leaseback transactions. Comparative figures were restated to conform to the current presentation.

 

Six months ended

February 28, 2025

February 29, 2024

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

1,518,207

(24,129)

1,494,078

1,528,080

(0.6)

(2.2)

Operating expenses

790,218

(12,998)

777,220

814,265

(3.0)

(4.5)

Adjusted EBITDA

727,989

(11,131)

716,858

713,815

2.0

0.4

Free cash flow (1)

265,256

(1,964)

263,292

242,546

9.4

8.6

Net capital expenditures

309,775

(6,030)

303,745

318,423

(2.7)

(4.6)

(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, which includes proceeds from sale and leaseback transactions. Comparative figures were restated to conform to the current presentation.

Canadian telecommunications segment

Three months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

370,211

—

370,211

373,479

(0.9)

(0.9)

Operating expenses

177,719

(634)

177,085

174,720

1.7

1.4

Adjusted EBITDA

192,492

634

193,126

198,759

(3.2)

(2.8)

Net capital expenditures

74,108

(580)

73,528

106,345

(30.3)

(30.9)

 

Six months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

747,477

—

747,477

749,927

(0.3)

(0.3)

Operating expenses

355,507

(731)

354,776

354,814

0.2

—

Adjusted EBITDA

391,970

731

392,701

395,113

(0.8)

(0.6)

Net capital expenditures

148,269

(700)

147,569

194,181

(23.6)

(24.0)

American telecommunications segment

Three months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

362,215

(21,406)

340,809

357,022

1.5

(4.5)

Operating expenses

184,506

(10,911)

173,595

190,672

(3.2)

(9.0)

Adjusted EBITDA

177,709

(10,495)

167,214

166,350

6.8

0.5

Net capital expenditures

80,402

(4,756)

75,646

62,855

27.9

20.4

 

Six months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Revenue

723,644

(24,129)

699,515

728,263

(0.6)

(3.9)

Operating expenses

367,123

(12,255)

354,868

383,743

(4.3)

(7.5)

Adjusted EBITDA

356,521

(11,874)

344,647

344,520

3.5

—

Net capital expenditures

154,129

(5,319)

148,810

118,708

29.8

25.4

Adjusted profit attributable to owners of the Corporation

Three months ended

Six months ended

February 28,
2025

February 29,
2024

February 28,
2025

February 29,
2024

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period attributable to owners of the Corporation

18,172

23,997

47,981

58,538

Acquisition, integration, restructuring and other costs (gains)

8,644

1,222

(1,004)

4,487

Loss on debt extinguishment (1)

—

—

—

16,880

Tax impact for the above items

(2,023)

(308)

(1,824)

(5,641)

Non-controlling interest impact for the above items

(4,464)

(565)

2,397

(9,880)

Adjusted profit attributable to owners of the Corporation

20,329

24,346

47,550

64,384

(1)

Included within financial expense.

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

Three months ended

Six months ended

February 28,
2025

February 29,
2024

(1)

February 28,
2025

February 29,
2024

(1)

(In thousands of Canadian dollars)

$

$

$

$

Cash flows from operating activities

250,080

286,382

458,735

523,301

Changes in other non-cash operating activities

24,047

1,097

104,699

59,592

Income taxes paid (received)

7,873

(7,639)

22,921

(4,736)

Current income taxes

(9,205)

(8,881)

(24,331)

(16,923)

Interest paid

64,338

70,842

128,154

135,880

Financial expense

(65,091)

(70,808)

(132,889)

(155,102)

Loss on debt extinguishment (2)

—

—

—

16,880

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

2,297

2,059

3,829

4,750

Net capital expenditures (3)

(158,859)

(171,756)

(309,775)

(318,423)

Proceeds from sale and leaseback and other disposals of property, plant and equipment (1)

931

1,644

20,553

1,899

Repayment of lease liabilities

(3,606)

(2,472)

(6,640)

(4,572)

Free cash flow (1)

112,805

100,468

265,256

242,546

Net capital expenditures in connection with network expansion projects

15,573

24,390

37,372

56,050

Free cash flow, excluding network expansion projects (1)

128,378

124,858

302,628

298,596

(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, which includes proceeds from sale and leaseback transactions. 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

Six months ended

February 28,
2025

February 29,
2024

February 28,
2025

February 29,
2024

(In thousands of Canadian dollars)

$

$

$

$

Acquisition of property, plant and equipment

160,335

181,234

313,849

335,023

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

(1,476)

(9,478)

(4,074)

(16,600)

Net capital expenditures

158,859

171,756

309,775

318,423

Adjusted EBITDA reconciliation

Three months ended

Six months ended

February 28,
2025

February 29,
2024

February 28,
2025

February 29,
2024

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period

76,610

93,930

185,006

192,659

Income taxes

22,335

16,993

49,671

36,374

Financial expense

65,091

70,808

132,889

155,102

Depreciation and amortization

184,225

164,829

361,427

325,193

Acquisition, integration, restructuring and other costs (gains)

8,644

1,222

(1,004)

4,487

Adjusted EBITDA

356,905

347,782

727,989

713,815

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

Net capital expenditures

Three months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Net capital expenditures

158,859

(5,343)

153,516

171,756

(7.5)

(10.6)

Net capital expenditures in connection with network expansion projects

15,573

(73)

15,500

24,390

(36.2)

(36.4)

Net capital expenditures, excluding network expansion projects

143,286

(5,270)

138,016

147,366

(2.8)

(6.3)

 

Six months ended

February 28, 2025

February 29, 2024

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

In

constant
currency

Actual

Actual

In

constant
currency

$

$

$

$

%

%

Net capital expenditures

309,775

(6,030)

303,745

318,423

(2.7)

(4.6)

Net capital expenditures in connection with network expansion projects

37,372

(89)

37,283

56,050

(33.3)

(33.5)

Net capital expenditures, excluding network expansion projects

272,403

(5,941)

266,462

262,373

3.8

1.6

Free cash flow

Three months ended

February 28, 2025

February 29, 2024

(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)

112,805

(1,760)

111,045

100,468

12.3

10.5

Net capital expenditures in connection with network expansion projects

15,573

(73)

15,500

24,390

(36.2)

(36.4)

Free cash flow, excluding network expansion projects (1)

128,378

(1,833)

126,545

124,858

2.8

1.4

(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, which includes proceeds from sale and leaseback transactions. Comparative figures were restated to conform to the current presentation.

 

Six months ended

February 28, 2025

February 29, 2024

(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)

265,256

(1,964)

263,292

242,546

9.4

8.6

Net capital expenditures in connection with network expansion projects

37,372

(89)

37,283

56,050

(33.3)

(33.5)

Free cash flow, excluding network expansion projects (1)

302,628

(2,053)

300,575

298,596

1.4

0.7

(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, which includes proceeds from sale and leaseback transactions. Comparative figures were restated to conform to the current presentation.

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.

Cogeco Inc. is a North American leader in the telecommunications and media sectors. Through Cogeco Communications Inc., 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. Through Cogeco Media, we operate 21 radio stations in Canada, primarily in the province of Québec, as well as a news agency. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Both Cogeco Inc.’s and Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO and CCA).

For information:

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

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

Conference Call:

Thursday, April 10, 2025 at 11:00 a.m. (Eastern Daylight Time)

A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of 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.

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Technology

ANGHAMI REPORTS FY2025 REVENUE OF $99.3M, UP 27%, ON 3.5M SUBSCRIBERS AND LANDMARK STRATEGIC PARTNERSHIPS

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54 minutes ago

on

April 30, 2026

By

ABU DHABI, UAE, April 30, 2026 /PRNewswire/ — Anghami Inc. (NASDAQ: ANGH) (“Anghami”), the leading music and entertainment streaming platform in the MENA region, today announced its consolidated financial results for the year ended December 31, 2025, marked by revenue growth and subscribers reaching 3.5 million with a registered user base now exceeding 130 million, supported by landmark strategic partnerships.

HIGHLIGHTS

Revenue increased to $99.3 million in 2025, up 27% from $78.1 million in 2024. Growth came from subscriber gains across OSN+ and Anghami Plus, and the first full-year consolidation of OSN+ (April 1, 2024).Paid Subscribers exceeded 3.5 million across Anghami and OSN+, and registered users crossed 130 million.Warner Bros. Discovery closed its $57 million minority investment in OSN Streaming Limited in March 2025, expanding the content partnership and committing to joint investment in regional original production.Multiple strategic partnerships launched for OSN+ with Noon as well as a regional distribution agreement with talabat and the first-of-its-kind “Epic Bundle” with Shahid and Disney+ in December, delivering strong subscriber traction, high activation rates, and above-average conversion, reinforcing Anghami’s expanding distribution and monetization ecosystem.

Commenting on Anghami’s results, Elie Habib, CEO of Anghami, said: “2025 was the first full year of the combined Anghami and OSN+ business, and a year in which the scale of the opportunity became clear. Revenue grew 27% to $99.3 million. Paying subscribers exceeded 3.5 million, and our registered user base crossed 130 million across the MENA region.

We made important progress across the business. We rebuilt the OSN+ platform in-house, launched our first OSN+ Original, expanded strategic distribution partnerships with talabat and Noon, and signed the Epic Bundle with Shahid and Disney+, bringing three leading entertainment platforms into one subscription for the first time in the region. Warner Bros. Discovery’s investment in OSN Streaming Limited reflects confidence in our model, our market position, and the long-term value of premium regional streaming. Our HBO content commitments remain contractual and unchanged.

With a stronger product, a deeper content slate, Ramadan momentum, and early Epic Bundle traction, we enter 2026 focused on scaling revenue, improving unit economics, and converting momentum into sustainable growth.”

BUSINESS UPDATE

2025 marked a significant year in Anghami’s evolution as it progressed the integration of OSN+ into its multi-media streaming ecosystem and expanded its content, partnerships, and technology capabilities.

Anghami continued to invest in its proprietary technology, including AI-powered content recommendations, and completed the in-house rebuild of the OSN+ streaming platform, delivering improved performance, 4K capabilities, and full control over the user experience. 

In January 2025, OSN+ premiered its original production The Fashionista, reinforcing the platform’s investment in locally relevant content alongside its exclusive HBO catalogue, which includes House of the Dragon, The Last of Us, and Game of Thrones.

In March 2025, Warner Bros. Discovery announced an agreement to acquire a minority stake in OSN Streaming Limited, Anghami’s majority shareholder, investing $57 million. The transaction expands the existing content partnership and includes plans to jointly invest in locally produced content targeting regional audiences.

OSN+ partnerships with talabat and Noon expanded distribution and opened new customer acquisition channels, while high-profile live events including the Amr Diab & Adam Port concert in Abu Dhabi and Nancy Ajram Riyadh Boulevard activation reinforced Anghami’s cultural leadership position. Regional conflicts have impacted live events and regional content production; however, Anghami continued to scale its cultural footprint through flagship initiatives such as “Aktar Men Ayya Waqt,” a pan-Arab collaboration uniting leading artists across the region, alongside a focused Ramadan content strategy that delivered resilient engagement and outperformed industry trends that typically see lower metrics during the period.

As the year drew to a close, OSN+ launched the “Epic Bundle”, a first-of-its-kind bundled subscription with Shahid and Disney+, bringing all three platforms together under a single plan and broadening content access for consumers.

Anghami also continued to expand its telco partnership ecosystem in 2025, maintaining integrations with 45 telco operators across the MENA region. Telco partnerships serve as a dual-purpose growth lever by facilitating frictionless subscription payments, helping Anghami maintain one of the highest paying conversion rates among music streaming services in the MENA region, while also providing a significant marketing channel through co-branded campaigns and data bundle offerings.

From a financial perspective, revenue increased to $99.3 million in 2025, from $78.1 million in 2024, driven by subscriber growth across Anghami Plus and OSN+ and the first full-year contribution from the OSN+ video streaming segment which was consolidated from 1 April 2024. Profitability was impacted by the fixed video content licensing fees reflecting the full 12 month impact compared to 2024.

During 2025 and early 2026, the Company strengthened its Board of Directors with the appointments of Bassil Almouallimi (SRMG), James Cooke (Warner Bros. Discovery), Moustapha Chami (KIPCO), and Eman Al Awadhi (KIPCO).

OUTLOOK

Anghami is positioned to capitalize on continued growth in digital entertainment demand across the MENA region. The Company’s platform-led partnerships enhance distribution, content access and audience reach, further differentiating Anghami within an increasingly competitive streaming market.

Strategic collaborations with leading regional and global platforms, including Shahid, Disney+, talabat, and the expanded Warner Bros. Discovery relationship, are expected to remain key growth drivers. The content lineup is set to remain exceptional throughout the year, featuring highly anticipated global releases and returning flagship series. This includes A Knight of the Seven Kingdoms, Euphoria Season 3, Season 2 of The Pitt, which has emerged as one of the most widely watched series globally, and Season 4 of FROM. This is further reinforced by upcoming seasons of The House of the Dragon and a robust pipeline of award-winning and globally successful films, including major 2025 theatrical releases such as Sinners, Superman, and other leading box office titles.

Building on this early traction, Anghami aims to scale embedded and bundled distribution models to support more efficient user acquisition and deeper engagement across its core markets.

Management remains focused on balancing growth with operational discipline, as continued investment in platform capabilities, reshaping content acquisition costs, advertising optimization and partner integrations support scale benefits over time. As these initiatives mature, Anghami aims to drive improved monetization and stronger operating leverage across its digital entertainment platform that will lead to material unit economics improvements in 2026.

Anghami’s annual report on Form 20-F (the “Form 20-F”) for the year ended December 31, 2025 was filed today with the U.S. Securities and Exchange Commission. The Form 20-F can be accessed by visiting either the SEC’s website at www.sec.gov or the Company’s website at https://www.anghami.com/investors.

About Anghami Inc. (NASDAQ: ANGH)

Anghami is the leading multi-media technology streaming platform in the Middle East and North Africa (“MENA”) region, offering a comprehensive ecosystem of exclusive premium video, music, podcasts, live entertainment, audio services, and more.

With a user base exceeding 130 million registered users and over 3.5 million paid subscribers, Anghami has partnered with 45 telcos across MENA, facilitating customer acquisition and subscription payment, in addition to establishing relationships with major film studios, entertainment giants, and music labels, both regional and international. Headquartered in Abu Dhabi, UAE, Anghami operates in 16 countries across MENA, with offices in Beirut, Dubai, Cairo, and Riyadh.

To learn more about Anghami, please visit: https://anghami.com. Any questions for the Investors Relations Department can be emailed to IR@anghami.com or anghami@apcoworldwide.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Anghami’s actual results may differ from its expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “start,” “project,” “budget,” “forecast,” “preliminary,” “anticipate,” “position,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “continue,” “predicts,” “potential,” “transform,” “commitment” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements. These statements include those related to the effect of the OSN+ integration, Warner Bros. Discovery investment in OSN Streaming, other new partnerships and collaborations, and future growth. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from those discussed in the forward-looking statements. Most of these factors are outside Anghami’s control and are difficult to predict. Factors that may cause such differences include, but are not limited to: the outcome of any legal proceedings that may be instituted against Anghami; wars, conflicts and political instability; foreign exchange fluctuations, changes in applicable laws or regulations; and the possibility that Anghami may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties identified in Anghami’s fiscal 2025 annual report on Form 20-F filed with the SEC on April 30, 2026, including those under “Risk Factors” therein, and in other documents filed or to be filed with the SEC by Anghami and available at the SEC’s website at www.sec.gov. Anghami cautions that the foregoing list of factors is not exclusive. Anghami cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Except as required by law, Anghami does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

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SOURCE Anghami

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Technology

Soliant Health Names Graig Paglieri CEO; Founder David Alexander Transitions to Vice Chairman

Published

54 minutes ago

on

April 30, 2026

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Transition supports Soliant’s continued growth as a leading specialized workforce organization in education and healthcare

PEACHTREE CORNERS, Ga., April 30, 2026 /PRNewswire/ — Soliant Health announced a leadership transition today as Founder and Chief Executive Officer David Alexander transitions to Vice Chairman, and Graig Paglieri has been appointed Chief Executive Officer, effective May 26, 2026. Paglieri joins Soliant following his tenure as Chief Executive of Randstad Digital, the technology staffing and solutions business unit of Randstad, the world’s leading talent company.

Under Alexander’s leadership, Soliant has built a strong national presence as one of the largest specialized workforce organizations serving the education and healthcare sectors. Since founding the company in 1992, Alexander has guided its expansion to more than 1,000 colleagues, supporting over 3,300 school districts and 750 healthcare organizations across 48 states.

“After more than three decades leading the business, I believe this is the right time to transition day-to-day leadership while remaining actively engaged in supporting the company’s long-term strategy. Graig’s experience accelerating growth, integrating acquisitions, and building high-performing global teams will be instrumental, and he is the right leader to build on our foundation and lead Soliant forward,” said David Alexander, Founder and current CEO of Soliant.

Graig Paglieri, Chief Executive Officer

Paglieri joins Soliant after leading large, global staffing and services businesses, most recently serving as Chief Executive of Randstad Digital, spanning North America, Europe, and APAC.During his tenure, he played a central role in unifying Randstad’s global technology businesses under the Randstad Digital brand identity.Paglieri played a key role in three significant strategic acquisitions that strengthened the company’s market position and service offerings, growing the business unit to $3 billion in revenue.He will focus on growing the Soliant business, strengthening relationships with partners, and supporting the team as the company continues to expand.

“I’m honored to join Soliant at this point in its journey. The company has a strong reputation, a differentiated culture, and a clear opportunity to continue growing. I look forward to partnering with David and the leadership team to build on that momentum,” said Graig Paglieri, incoming Chief Executive Officer of Soliant Health effective May 26, 2026.

Differentiated Platform

Soliant helps schools meet growing, legally mandated special education and behavioral support requirements by delivering highly qualified clinicians across a range of therapeutic areas. Soliant’s brands include BlazerWorks, VocoVision, and Spindle, enabling Soliant to deliver high quality solutions to its clients across both physical and virtual modalities.

About Soliant Health
Soliant is a leader in human capital solutions within the education and healthcare sectors. It operates offices in Atlanta, Tampa, Jacksonville, Houston, and Greenville. The company identifies and recruits highly skilled healthcare professionals across a wide range of specialties and connects them with healthcare providers in the education, nursing, and pharmacy segments, primarily on a temporary basis. For more information, visit soliant.com.

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SOURCE Soliant Health

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Technology

Localcoin responds to federal proposal to ban crypto ATMs in Canada, calls for industry consultation

Published

54 minutes ago

on

April 30, 2026

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Proposed nationwide ban raises concerns over lack of industry consultation and evidence-based policymaking

TORONTO, April 30, 2026 /CNW/ – Localcoin, Canada’s largest cryptocurrency ATM operator, is expressing concern following a recent federal government proposal to ban crypto ATMs nationwide, introduced without consultation with industry operators or key stakeholders.

With a network of over 1,000 retail partners across Canada, many of them independent, locally owned businesses, and dozens of contracted service providers nationwide, Localcoin’s mission is to provide accessible, safe, and user-friendly access to digital currency. Through its crypto ATMs, Localcoin served over 250,000 Canadians who value the convenience of buying and selling crypto with cash at familiar retail locations.

“This proposal represents a sweeping measure that risks undermining an entire industry, hundreds of small retail partners, and the Canadian employees and contractors the sector supports,” says Tristan Fong, CEO Localcoin. “It was developed without prior notice to stakeholders, and no one in the industry was aware it was under consideration. As a company committed to expanding the safe and responsible use of cryptocurrency, a blanket ban would disproportionately impact legitimate operators like Localcoin, as well as the hundreds of thousands of Canadians who use crypto ATMs for lawful, financial transactions.”

While Localcoin acknowledges that bad actors can misuse financial technologies, including crypto ATMs, and that fraud remains a concern, it notes that this is not unique to the crypto ATM industry.

“Fraud is a broader challenge across the financial system,” Fong adds. “If we look across sectors in Canada, there have been hundreds of thousands of fraud cases, yet outright bans have not been proposed in response. Eliminating one access point does not stop criminal activity, it simply shifts it elsewhere, often to channels with fewer safeguards and less oversight. Rather than imposing a reactionary ban, effective solutions require targeted enforcement, stronger protections, and collaboration between regulators and industry. The focus should remain on addressing bad actors directly, rather than restricting legitimate access to financial tools.”

“We are ready to work collaboratively with policymakers to strengthen regulation, enhance fraud prevention measures, and improve public education across crypto ATM networks,” says Fong. “Regulatory tightening is a normal part of the financial services sector, and is especially common in the crypto sub-sector as it evolves. We believe there is a time and place for government support to ensure greater protection of Canadians, and that is important. However, an immediate escalation toward a ban, without clear supporting data or industry consultation, is not in the public interest.”

To learn more, visit Localcoinatm.com.

About Localcoin: Founded in 2016 in Toronto, Localcoin is Canada’s largest Bitcoin ATM network, with over 60 full-time staff members in Canada, operating over 2,150 machines across five countries including Canada, Australia, New Zealand, Hong Kong, and Poland. Localcoin makes cryptocurrency accessible to anyone, regardless of technical experience, through physical ATM kiosks that allow customers to buy and sell crypto with cash in minutes.

SOURCE Localcoin

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