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

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New operating model focused on customer experience and operational excellence to power future growth.Expanded our customer value proposition with Breezeline Mobile launched across most of Breezeline’s U.S. broadband footprint.Revenue increased by 1.2% compared to the same period last year to $750.6 million, reflecting revenue growth at Cogeco Connexion and stable revenue at Breezeline, in line with expectations.Adjusted EBITDA(1) of $365.8 million increased by 4.1% over last year.Profit for the period amounted to $76.3 million, a decrease of 24.8%, of which $70.4 million was attributable to owners of the Corporation, reflecting restructuring costs recognized during the quarter. Excluding the impact of restructuring and certain other costs, adjusted profit attributable to owners of the Corporation(1)(3) remained stable.Earnings per share on a diluted basis decreased to $1.67 from $2.16 in the third quarter of fiscal 2023, while adjusted diluted earnings per share(1)(3) rose by 4.7% to $2.45, which excludes the impact of restructuring and certain other costs.Free cash flow(1) amounted to $87.3 million, a decrease of 16.4% compared to last year reflecting restructuring costs recognized during the quarter, while cash flow from operating activities increased by 17.3% to $333.6 million due to the timing of certain working capital items. Free cash flow, excluding network expansion projects(1) decreased by 18.0% to $111.7 million.Cogeco Communications maintains its fiscal 2024 financial guidelines.A quarterly dividend of $0.854 per share was declared, representing a 10.1% increase over the prior year.

Montréal, July 11, 2024 /CNW/ – Today, Cogeco Communications Inc. (TSX: CCA) (“Cogeco Communications” or the “Corporation”) announced its financial results for the third quarter ended May 31, 2024.

“We demonstrated solid performance again in the third quarter of 2024, with revenue growth and healthy expansion of our adjusted EBITDA margin due to an improving product mix, combined with an acceleration of our efforts to drive operational efficiency,” said Frédéric Perron, President and CEO. “In the third quarter, we implemented the initial steps of a new operating model designed to deliver future growth and increase our focus on customer experience and operational excellence.

“Growth in our Canadian telecommunications business was driven by the ongoing expansion of our Internet subscriber base under our Cogeco Connexion and oxio brands. We continue to be impressed by oxio’s performance and its robust adoption by consumers and are cascading our learnings from this digital brand across our organization.

“In the U.S., we rolled out Breezeline Mobile across most of our footprint, which will provide an even stronger incentive for new and existing customers to bundle their digital services with us. In addition, our Internet-first strategy and persistent endeavors to drive operational efficiency helped deliver adjusted EBITDA growth over last year.

“Lastly, the new operating model and transformation we began during the quarter will allow us to sustain our growth, take our competitive agility to new heights, better serve our customers, and continue to build a strong culture where our colleagues thrive and succeed. We expect it to result in significant value creation for Cogeco over the coming years as the benefits of the transformation are realized.”

Consolidated Financial Highlights

Three months ended May 31

2024

2023

Change

Change in

constant

currency

(1)

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

$

$

%

%

Revenue

750,583

741,785

1.2

0.9

Adjusted EBITDA (1)

365,824

351,328

4.1

3.9

Adjusted EBITDA margin (1)

48.7 %

47.4 %

Profit for the period

76,334

101,538

(24.8)

Profit for the period attributable to owners of the Corporation

70,402

95,892

(26.6)

Adjusted profit attributable to owners of the Corporation (1)(3)

103,597

103,826

(0.2)

Cash flows from operating activities

333,626

284,377

17.3

Free cash flow (1)

87,300

104,422

(16.4)

(16.3)

Free cash flow, excluding network expansion projects (1)

111,733

136,253

(18.0)

(18.0)

Acquisition of property, plant and equipment

171,034

189,656

(9.8)

Net capital expenditures (1)(2)

168,384

169,793

(0.8)

(1.2)

Net capital expenditures, excluding network expansion projects (1)

143,951

137,962

4.3

3.9

Capital intensity (1)

22.4 %

22.9 %

Capital intensity, excluding network expansion projects (1)

19.2 %

18.6 %

Diluted earnings per share

1.67

2.16

(22.7)

Adjusted diluted earnings per share (1)(3)

2.45

2.34

4.7

Operating results

For the third quarter of fiscal 2024 ended on May 31, 2024:

Revenue increased by 1.2% to $750.6 million. On a constant currency basis(1), revenue increased by 0.9% driven by revenue growth in the Canadian telecommunications segment, while revenue remained stable in the American telecommunications segment, as explained below.Canadian telecommunications’ revenue increased by 2.2%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year as well as the Niagara Regional Broadband Network acquisition (“NRBN”) completed on February 5, 2024.American telecommunications’ revenue remained stable as reported and in constant currency, mainly resulting from a higher revenue per subscriber and a better product mix resulting from customers subscribing to increasingly fast Internet speeds, offset by lower video subscriptions and a lower Internet subscriber base over the past year, with an increasing proportion of customers only subscribing to Internet services.Adjusted EBITDA increased by 4.1% to $365.8 million. On a constant currency basis, adjusted EBITDA increased by 3.9%, mainly due to higher adjusted EBITDA in both the American and Canadian telecommunications segments, as explained below, and lower corporate costs primarily due to the timing of certain operating expenses.American telecommunications adjusted EBITDA increased by 4.5%, or 3.9% in constant currency, mostly due to lower operating expenses driven by cost reduction initiatives and operating efficiencies.Canadian telecommunications adjusted EBITDA increased by 2.9%, mainly due to revenue growth, partly offset by higher sales and other operating expenses to drive subscriber growth.Profit for the period amounted to $76.3 million, of which $70.4 million, or $1.67 per diluted share, was attributable to owners of the Corporation compared to $101.5 million, $95.9 million, and $2.16 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 restructuring costs and depreciation and amortization expense, partly offset by higher adjusted EBITDA and lower income tax expense.Adjusted profit attributable to owners of the Corporation(3) was $103.6 million, or $2.45 per diluted share(3), compared to $103.8 million, or $2.34 per diluted share, last year. While adjusted profit attributable to owners of the Corporation remains stable, the increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s repurchase and cancellation of shares.Net capital expenditures were $168.4 million, a decrease of 0.8% compared to $169.8 million in the same period of the prior year. In constant currency, net capital expenditures(1) were $167.8 million, a decrease of 1.2% compared to last year, mainly due to lower spending in the American telecommunications segment as expected due to the timing of network expansion projects, partly offset by higher purchases of customer premise equipment and other capital spending related to fibre-to-the-home network expansions in the Canadian telecommunications segment.Excluding network expansion projects, net capital expenditures were $144.0 million, an increase of 4.3% compared to $138.0 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(1) were $143.4 million, an increase of 3.9% compared to last year.Fibre-to-the-home network expansion projects continued in both Canada and the United States, with homes passed additions close to 44,000(4) during the first nine months of fiscal 2024.Capital intensity was 22.4% compared to 22.9% last year. Excluding network expansion projects, capital intensity was 19.2% compared to 18.6% in the same period of the prior year.Acquisition of property, plant and equipment decreased by 9.8% to $171.0 million, mainly resulting from lower spending.Free cash flow decreased by 16.4%, or 16.3% in constant currency, and amounted to $87.3 million as reported and in constant currency, mainly due to higher restructuring costs. Free cash flow, excluding network expansion projects decreased by 18.0% as reported and in constant currency, and amounted to $111.7 million.Cash flows from operating activities increased by 17.3% to $333.6 million, mostly due to the timing of payments of trade and other payables and the collection of trade accounts receivable, lower income taxes paid and higher adjusted EBITDA.Cogeco Communications maintains its fiscal 2024 financial guidelines as issued on November 1, 2023.At its July 11, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.854 per share, an increase of 10.1% compared to $0.776 per share in the comparable quarter of fiscal 2023.

__________________________________

(1)

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 financial measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS and other financial measures” section of this press release.

(2)

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

(3)

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

(4)

Organic growth calculated by excluding additions resulting from acquisitions.

Financial highlights  

Three and nine months ended May 31

2024

2023

Change

Change in

constant

currency

(1)
(2)

2024

2023

Change

Change in

constant

currency

(1)
(2)

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

$

$

%

%

$

$

%

%

Operations

Revenue

750,583

741,785

1.2

0.9

2,228,773

2,240,731

(0.5)

(0.8)

Adjusted EBITDA (2)

365,824

351,328

4.1

3.9

1,071,896

1,069,766

0.2

—

Adjusted EBITDA margin (2)

48.7 %

47.4 %

48.1 %

47.7 %

Acquisition, integration, restructuring and other costs (3)

45,669

11,368

—

49,170

20,997

—

Profit for the period

76,334

101,538

(24.8)

268,648

326,175

(17.6)

Profit for the period attributable to owners of the Corporation

70,402

95,892

(26.6)

253,576

305,774

(17.1)

Adjusted profit attributable to owners of the Corporation (2)(4)

103,597

103,826

(0.2)

301,377

320,785

(6.1)

Cash flow

Cash flows from operating activities

333,626

284,377

17.3

856,042

681,579

25.6

Free cash flow (2)

87,300

104,422

(16.4)

(16.3)

325,048

327,489

(0.7)

(0.9)

Free cash flow, excluding network expansion projects (2)

111,733

136,253

(18.0)

(18.0)

405,531

467,396

(13.2)

(13.4)

Acquisition of property, plant and equipment

171,034

189,656

(9.8)

504,830

597,260

(15.5)

Net capital expenditures (2)(5)

168,384

169,793

(0.8)

(1.2)

485,580

522,889

(7.1)

(7.3)

Net capital expenditures, excluding network expansion projects (2)

143,951

137,962

4.3

3.9

405,097

382,982

5.8

5.5

Capital intensity (2)

22.4 %

22.9 %

21.8 %

23.3 %

Capital intensity, excluding network expansion projects (2)

19.2 %

18.6 %

18.2 %

17.1 %

Per share data (6)

Earnings per share

Basic

1.68

2.17

(22.6)

5.91

6.83

(13.5)

Diluted

1.67

2.16

(22.7)

5.89

6.80

(13.4)

Adjusted diluted (2)(4)

2.45

2.34

4.7

7.00

7.13

(1.8)

Dividends per share

0.854

0.776

10.1

2.562

2.328

10.1

(1)

Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current period denominated in US dollars at the foreign exchange rate of the comparable period of the prior year. For the three and nine-month periods ended May 31, 2023, the average foreign exchange rates used for translation were 1.3562 USD/CDN and 1.3513 USD/CDN, respectively.

(2)

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 financial measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS and other financial measures” section of this press release.

(3)

For the three and nine-month periods ended May 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the third quarter of fiscal 2024. For the three and nine-month periods ended May 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions and from a $3.3 million retroactive adjustment recognized during the third quarter, in addition to a $5.1 million adjustment recognized during the second quarter 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.

(4)

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

(5)

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

(6)

Per multiple and subordinate voting share.

 

As at

May 31, 2024

August 31, 2023

(In thousands of Canadian dollars)

$

$

Financial condition

Cash and cash equivalents

54,271

362,921

Total assets

9,778,333

9,768,370

Long-term debt

Current

72,108

41,765

Non-current

4,874,315

4,979,241

Net indebtedness (1)

4,967,156

4,749,214

Equity attributable to owners of the Corporation

2,976,075

2,957,797

(1)

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

Forward-looking statements

Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco 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 strategies” section of the Corporation’s 2023 annual MD&A and of the fiscal 2024 third-quarter MD&A, and the “Fiscal 2024 financial guidelines” section of the Corporation’s 2023 annual MD&A for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including highly competitive market for limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, community acceptance risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s 2023 annual MD&A and of the fiscal 2024 third-quarter 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 Corporation’s MD&A for the three and nine-month periods ended May 31, 2024, the Corporation’s condensed interim consolidated financial statements and the notes thereto for the same periods prepared in accordance with International Financial Reporting Standards (“IFRS”) and the Corporation’s 2023 Annual Report.

Non-IFRS and other financial measures

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

Specified non-IFRS financial measures

Used in the component of the following non-IFRS ratios

Adjusted profit attributable to owners of the Corporation

Adjusted diluted earnings per share

Constant currency basis

Change in constant currency

Net capital expenditures, excluding network expansion projects

Capital intensity, excluding network expansion projects

Financial measures presented on a constant currency basis for the three and nine-month periods ended May 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3562 USD/CDN and 1.3513 USD/CDN, respectively.

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

750,583

(1,802)

748,781

741,785

1.2

0.9

Operating expenses

379,521

(934)

378,587

386,373

(1.8)

(2.0)

Management fees – Cogeco Inc.

5,238

—

5,238

4,084

28.3

28.3

Adjusted EBITDA

365,824

(868)

364,956

351,328

4.1

3.9

Free cash flow

87,300

50

87,350

104,422

(16.4)

(16.3)

Net capital expenditures

168,384

(622)

167,762

169,793

(0.8)

(1.2)

 

Nine months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

 exchange

 impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

2,228,773

(5,293)

2,223,480

2,240,731

(0.5)

(0.8)

Operating expenses

1,141,163

(2,887)

1,138,276

1,156,081

(1.3)

(1.5)

Management fees – Cogeco Inc.

15,714

—

15,714

14,884

5.6

5.6

Adjusted EBITDA

1,071,896

(2,406)

1,069,490

1,069,766

0.2

—

Free cash flow

325,048

(470)

324,578

327,489

(0.7)

(0.9)

Net capital expenditures

485,580

(1,086)

484,494

522,889

(7.1)

(7.3)

Canadian telecommunications segment

Three months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

 impact

In

constant

 currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

381,877

—

381,877

373,743

2.2

2.2

Operating expenses

180,204

(31)

180,173

177,794

1.4

1.3

Adjusted EBITDA

201,673

31

201,704

195,949

2.9

2.9

Net capital expenditures

91,093

(258)

90,835

84,415

7.9

7.6

 

Nine months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

In

constant

 currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

1,131,804

—

1,131,804

1,114,161

1.6

1.6

Operating expenses

535,018

(159)

534,859

521,534

2.6

2.6

Adjusted EBITDA

596,786

159

596,945

592,627

0.7

0.7

Net capital expenditures

285,274

(218)

285,056

281,036

1.5

1.4

American telecommunications segment

Three months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

368,706

(1,802)

366,904

368,042

0.2

(0.3)

Operating expenses

190,327

(887)

189,440

197,273

(3.5)

(4.0)

Adjusted EBITDA

178,379

(915)

177,464

170,769

4.5

3.9

Net capital expenditures

72,782

(349)

72,433

82,923

(12.2)

(12.7)

 

Nine months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

 impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Revenue

1,096,969

(5,293)

1,091,676

1,126,570

(2.6)

(3.1)

Operating expenses

574,070

(2,716)

571,354

607,237

(5.5)

(5.9)

Adjusted EBITDA

522,899

(2,577)

520,322

519,333

0.7

0.2

Net capital expenditures

191,490

(854)

190,636

236,422

(19.0)

(19.4)

Adjusted profit attributable to owners of the Corporation

Three months ended May 31

Nine months ended May 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period attributable to owners of the Corporation

70,402

95,892

253,576

305,774

Acquisition, integration, restructuring and other costs

45,669

11,368

49,170

20,997

Loss on debt extinguishment (1)

—

—

16,880

—

Tax impact for the above items

(12,081)

(2,989)

(17,461)

(5,541)

Non-controlling interest impact for the above items

(393)

(445)

(788)

(445)

Adjusted profit attributable to owners of the Corporation

103,597

103,826

301,377

320,785

(1)

Included within financial expense.

Free cash flow reconciliation

Three months ended May 31

Nine months ended May 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Cash flows from operating activities

333,626

284,377

856,042

681,579

Changes in other non-cash operating activities

(76,679)

(26,238)

(21,491)

107,797

Income taxes paid (received)

3,918

20,170

(807)

89,648

Current income taxes

(3,177)

(5,944)

(19,594)

(26,359)

Interest paid

62,509

63,335

194,769

174,159

Financial expense

(64,308)

(63,385)

(215,765)

(181,420)

Loss on debt extinguishment (1)

—

—

16,880

—

Amortization of deferred transaction costs and discounts on long-term debt (1)

2,272

3,334

6,953

9,406

Net capital expenditures (2)

(168,384)

(169,793)

(485,580)

(522,889)

Repayment of lease liabilities

(2,477)

(1,434)

(6,359)

(4,432)

Free cash flow

87,300

104,422

325,048

327,489

(1)

Included within financial expense.

(2)

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 May 31

Nine months ended May 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Acquisition of property, plant and equipment

171,034

189,656

504,830

597,260

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

(2,650)

(19,863)

(19,250)

(74,371)

Net capital expenditures

168,384

169,793

485,580

522,889

Adjusted EBITDA reconciliation

Three months ended May 31

Nine months ended May 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

$

$

$

$

Profit for the period

76,334

101,538

268,648

326,175

Income taxes

11,199

19,996

47,117

76,642

Financial expense

64,308

63,385

215,765

181,420

Depreciation and amortization

168,314

155,041

491,196

464,532

Acquisition, integration, restructuring and other costs

45,669

11,368

49,170

20,997

Adjusted EBITDA

365,824

351,328

1,071,896

1,069,766

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

Net capital expenditures

Three months ended May 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

168,384

(622)

167,762

169,793

(0.8)

(1.2)

Net capital expenditures in connection with network expansion projects

24,433

(53)

24,380

31,831

(23.2)

(23.4)

Net capital expenditures, excluding network expansion projects

143,951

(569)

143,382

137,962

4.3

3.9

 

Nine months ended May 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

485,580

(1,086)

484,494

522,889

(7.1)

(7.3)

Net capital expenditures in connection with network expansion projects

80,483

(204)

80,279

139,907

(42.5)

(42.6)

Net capital expenditures, excluding network expansion projects

405,097

(882)

404,215

382,982

5.8

5.5

Free cash flow

Three months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Free cash flow

87,300

50

87,350

104,422

(16.4)

(16.3)

Net capital expenditures in connection with network expansion projects

24,433

(53)

24,380

31,831

(23.2)

(23.4)

Free cash flow, excluding network expansion projects

111,733

(3)

111,730

136,253

(18.0)

(18.0)

 

Nine months ended May 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign

exchange

impact

In

constant

currency

Actual

Actual

In

constant

currency

$

$

$

$

%

%

Free cash flow

325,048

(470)

324,578

327,489

(0.7)

(0.9)

Net capital expenditures in connection with network expansion projects

80,483

(204)

80,279

139,907

(42.5)

(42.6)

Free cash flow, excluding network expansion projects

405,531

(674)

404,857

467,396

(13.2)

(13.4)

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 Communications Inc.

Rooted in the communities it serves, Cogeco Communications Inc. is a growing competitive force in the North American telecommunications sector, serving 1.6 million residential and business subscribers. Cogeco Communications provides Internet, video and wireline phone services in Canada, and in thirteen states in the United States under the Cogeco Connexion, oxio and Breezeline brand names. Breezeline also offers wireless services in most of the U.S. states in which it operates. 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 
Youann Blouin
Director, Media Relations & Strategic Communications
Cogeco Communications Inc.
Tel.: 514 297-2853
youann.blouin@cogeco.com

Conference Call:

Friday, July 12th, 2024 at 11:00 a.m. (Eastern Daylight Time)

A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco 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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ECARX Announces Third Quarter 2026 Unaudited Financial Results

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LONDON, Nov. 4, 2026 /PRNewswire/ — ECARX Holdings Inc. (Nasdaq: ECX) (“ECARX” or the “Company”), a leading global automotive intelligence company, today announced unaudited financial results for the quarter ended September 30, 2026.

Ziyu Shen, ECARX CEO, commented, “The third quarter was defined by disciplined execution across our product pipeline and financial results. Our continued shift toward higher-end Antora® and Pikes® solutions, together with the careful management of our supply chain and higher memory costs, are directly supporting revenue growth.

Strategically, we continue to move up the value chain by owning more of our technology stack. At the end of the quarter, we completed the acquisition of the Flyme software business, giving us ownership of the application layer that drivers use every day and opening up new recurring software revenue opportunities. We have entered into a non-binding MOU with Arm to co-develop next-generation AI compute systems that can be applied in automotive and beyond. And, we are also finalizing a partnership with a leading European luxury automaker on a Joint Cockpit AI Innovation Lab built on Flyme OS to further drive growth up the value chain.

Our technology is proven in more than 12 million vehicles, and the same stack can now bring AI from the cloud to the edge across a much wider range of intelligent devices. By expanding our product portfolio, growing our partner ecosystem and accelerating global market penetration, we are building ECARX into a technology partner for a substantially larger market.”

Third Quarter 2026 Financial Results:

During the quarter, ECARX acquired 100% equity interest in Hubei Qiguang Technology Co., Ltd. (“Qiguang”), an entity under common control. Comparative financial information is restated by combining assets, liabilities, revenues, expenses and equity of ECARX and Qiguang using the pooling-of interests method. All intercompany transactions and balances between the combining entities have been eliminated.

During this quarter, the Company identified errors in its previously issued consolidated financial statements relating to the accounting for certain government subsidies recognized in 2021 and 2022. Management evaluated the errors and concluded that they were not material to the previously issued financial statements, but would be material to the current-period financial statements if left uncorrected. Accordingly, to correct these errors and enhance the comparability of the financial information presented, the Company has made correcting adjustments to other current liabilities and equity as of the beginning of the earliest comparative period presented.

Total revenue was US$240.8 million, up 10% year-over-year (“YoY”).Sales of goods revenue was US$222.7 million, up 23% YoY. The increase was mainly attributable to the pricing adjustment implemented to offset the impact of elevated memory costs, as well as the sales volume increase compared to the third quarter last year.Software license revenue was US$0.4 million, down 56% YoY, primarily due to a decrease of sales volume for software licenses compared to the third quarter last year.Service revenue was US$17.7 million, down 53% YoY. The decline is attributable to the seasonal nature of vehicle model launches by our partners. While new model launches peaked in the second quarter of 2026, the pace of project launches subsequently experienced a notable deceleration in the third quarter.Total cost of revenue was US$223.9 million, up 30% YoY, driven primarily by rising memory costs associated with the sales of goods.Gross profit was US$16.9 million, down 65% YoY, resulting in a gross margin of 7.0%. Cost escalation in the third quarter exceeded what our current pricing was able to offset. Consequently, passing on further cost increases proved more challenging, with a larger portion being absorbed internally to support volume growth and maintain partnership commitments, and therefore memory costs remain a drag on profitability. In addition, the decrease in service revenue also led to a decline in service margin. As a result, gross margin decreased from 21.9% to 7.0% YoY.Research and development expenses were US$27.5 million, down 12% YoY, primarily driven by the continued resource prioritization that enhanced operational efficiencies and synergies from R&D integration and the internal deployment of AI across our business to reduce structural costs.Selling, general and administrative expenses and others, net were US$25.6 million, up 11% YoY, reflecting a US$6.7 million impairment recorded in the third quarter of 2026 against the convertible bonds previously issued by DreamSmart. Excluding this amount, the remaining expenses declined by US$4.2 million, or down 18% YoY, primarily driven by the continued improvement in global operating efficiencies and lower share-based compensation expenses incurred during the quarter.Net loss was US$48.6 million, compared with US$8.4 million during the same period last year. The change was mainly driven by the decrease of gross margin, as well as an increase in fair value losses of an equity security and finance expenses.Adjusted EBITDA (non-GAAP) loss was US$37.7 million, compared with adjusted EBITDA (non-GAAP) loss of US$0.9 million in the same period last year. See “Non-GAAP Financial Measure.”Total cash as of September 30, 2026 was US$53.7 million, compared with $165.5 million at June 30, 2026. During the quarter, we paid $191.5 million for the acquisition of Flyme software business, funded by a combination of cash reserves and $67.8 million of bank financing drawn in the quarter. The remaining change primarily reflects changes in operating cash outflow and working capital to support new program launches, funded through $30.5 million in bank financing.Looking ahead, our visibility into the remainder of the year gives us the confidence around our strategic trajectory:Based on our current backlog and accelerating commercial pipeline, we are reiterating our full-year 2026 guidance of US$1.0-US$1.1 billion in total revenue.We expect global memory costs to continue to weigh on our gross margin and operating profitability over the next few quarters, including the fourth quarter of 2026. However, we have been proactive in managing this environment, as demonstrated in the prior quarters and again now. We continue to work with customers and suppliers to mitigate the impact through pricing adjustments, operational efficiencies, and product mix optimization. We continue to view these pressures as manageable and remain focused on protecting the long-term profitability profile of the business.

Recent Business Development Highlights and Updates:

Expanding Global Footprint and Automaker Partnerships

More than 12 million vehicles on the road globally with ECARX technologies as of September 30, 2026, spanning across 18 OEMs, 28 brands, and 159 markets, with multiple additional partnership discussions advancing.Flyme Auto recorded more than 1.2 million vehicle deployments from January to September 2026, bringing total cumulative deployments of Flyme Auto by ECARX to over 3.5 million vehicles.Finalizing partnership with a leading European luxury automaker to establish a Joint Cockpit AI Innovation Lab based on Flyme OS, developing next-generation intelligent cockpit systems customized for the automaker’s vehicles in China.Continued industrialization of the Volkswagen Group program, remaining firmly on track with engineering, supply chain and support infrastructure build-out across Latin America ahead of the expected 2027 launch.

Deepening Innovation-Driven R&D Ecosystem

Completed the acquisition of the Flyme software business on September 30, 2026, expanding capabilities beyond hardware into higher-value software ecosystem services, with Flyme operating as an independent software division.Tencent Cloud’s WorkBuddy AI-powered smart work assistant will be integrated with Flyme AIOS, expanding AI capabilities across the Flyme ecosystem.Signed a non-binding memorandum of understanding with Arm to co-develop AI compute platforms for automotive applications. The partnership builds upon the years-long relationship with Arm China, with whom ECARX co-incubated SiEngine.

Technological Advancements and Product Launches

Shipped approximately 721,000 units during the quarter, with high-end Antora® solutions accounting for 30% of shipments, compared to 25% in the same period last year.Initiated mass production for 21 new vehicle models across 5 brands, 6 of which are designated for markets outside of China, such as Korea.Secured 23 vehicle design wins during the quarter, further strengthening the Company’s commercial pipeline and long-term revenue momentum.

Conference Call and Webcast Details

ECARX will host a webcast of its earnings conference call today, Wednesday, November 4, 2026, at 8:00 a.m. EST. To access the webcast, visit the News and Events section of the ECARX Investor Relations website, or visit the following link – https://edge.media-server.com/mmc/p/e4i8peb6/lan/en

To join the earnings call by telephone, participants must preregister at https://register-conf.media-server.com/register/BI9ffd14a76c2a4f01aa0a3d8d55eed7b0 to receive dial-in information.

A replay of the webcast and presentation materials will be available on the Company’s Investor Relations website under the results and reports section following the event.

About ECARX

ECARX (Nasdaq: ECX), headquartered in London, is a leading global automotive intelligence company. ECARX provides the intelligent brain that powers the next generation of software-defined and AI defined vehicles. The company delivers end-to-end, full-stack solutions spanning advanced system-on-chip hardware, high-performance central computing platforms, intelligent cockpit technology, Advanced Driver Assistance Systems, cloud connectivity and physical AI, alongside bespoke vehicle software and intelligent operating systems.

As automakers transition to software-first and AI-first vehicle architectures, ECARX empowers automakers to streamline integration, reduce systemic complexity and optimize long-term cost efficiency. ECARX’s proven technology is deployed in around 12 million vehicles worldwide, and is currently partnered with 18 global automakers and 28 vehicle brands to shape the future of automotive intelligence.

Founded in 2017 and listed on Nasdaq in 2022, ECARX operates from 15 major international locations across Europe, the Americas and Asia, with a global team of over 1,400 employees.

Forward-Looking Statements

This release contains statements that are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s beliefs and expectations as well as on assumptions made by and data currently available to management, appear in a number of places throughout this document and include statements regarding, amongst other things, results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which we operate. The use of words “expects”, “intends”, “anticipates”, “estimates”, “predicts”, “believes”, “should”, “potential”, “may”, “preliminary”, “forecast”, “objective”, “plan”, or “target”, and other similar expressions are intended to identify forward-looking statements. Forward-looking statements, including statements regarding our intentions, beliefs or current expectations concerning, among other things, results of operations, financial condition, liquidity, prospects, growth, strategies, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance, and the markets in which we operate, are not guarantees of future performance and are subject to a number of risks and uncertainties that could cause actual results to differ materially.

For a discussion of these and other risks and uncertainties that could cause actual results to differ materially from those expressed in any forward-looking statement, see ECARX’s filings with the U.S. Securities and Exchange Commission. ECARX undertakes no obligation to update or revise forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law.

Non-GAAP Financial Measure

The Company uses adjusted EBITDA (non-GAAP) in evaluating its operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.

The Company presents this non-GAAP financial measure because it is used by the management to evaluate the Company’s operating performance and formulate business plans. The Company believes that the non-GAAP measure helps identify underlying trends in its business that could otherwise be distorted by the effects of certain expenses that are included in net loss. The Company also believes that the use of the non-GAAP measure facilitates investors’ assessment of its operating performance.

Adjusted EBITDA (non-GAAP) should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of the Company’s operating performance. Investors are encouraged to compare the Company’s historical adjusted EBITDA (non-GAAP) to the most directly comparable GAAP measure, net loss. Adjusted EBITDA (non-GAAP) presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to the Company’s data. The Company encourages investors and others to review the financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measure, please see the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.

 

ECARX Holdings Inc.

Unaudited Condensed Consolidated Balance Sheets

As of

December 31,
2025

As of

September 30,
2026

Millions, except otherwise noted

US$

US$

ASSETS

Current assets

Cash

87.1

42.2

Restricted cash

6.1

11.5

Short-term investments

31.2

47.2

Accounts receivable – third parties, net

14.8

55.8

Accounts receivable – related parties, net

190.0

221.9

Notes receivable

6.0

3.3

Inventories

62.3

244.5

Amounts due from related parties

53.7

24.2

Prepayments and other current assets

36.3

70.3

Total current assets

487.5

720.9

Non-current assets

Long-term investments

61.5

50.8

Property and equipment, net

28.2

41.8

Intangible assets, net

45.6

45.8

Operating lease right-of-use assets

16.8

15.4

Goodwill

16.5

17.2

Other non-current assets – third parties

30.2

46.1

Other non-current assets – related parties

—

9.5

Total non-current assets

198.8

226.6

Total assets

686.3

947.5

LIABILITIES

Current liabilities

Short-term borrowings

310.7

366.7

Accounts payable – third parties

194.2

390.5

Accounts payable – related parties

102.6

106.1

Notes payable

19.3

28.1

Amounts due to related parties

54.6

115.1

Contract liabilities, current – third parties

0.1

0.1

Contract liabilities, current – related parties

7.3

3.1

Operating lease liabilities – current

5.0

5.4

Convertible notes payable-current

38.8

16.7

Accrued expenses and other current liabilities

99.9

100.1

Income tax payable

1.0

0.7

Total current liabilities

833.5

1,132.6

Non-current liabilities

Long-term borrowings

5.6

181.8

Convertible notes payable, non-current

60.3

116.6

Operating lease liabilities, non-current

15.7

14.0

Warrant liabilities, non-current

1.1

0.5

Provisions

17.8

19.7

Other non-current liabilities – third parties

20.7

29.4

Deferred tax liabilities

5.2

4.8

Total non-current liabilities

126.4

366.8

Total liabilities

959.9

1,499.4

Mezzanine equity

Redeemable non-controlling interests

—

15.0

Total mezzanine equity

—

15.0

SHAREHOLDERS’ DEFICIT

Ordinary shares

—

—

Additional paid-in capital

1,018.0

831.6

Treasury shares, at cost

(30.0)

(39.9)

Accumulated deficit

(1,237.1)

(1,321.4)

Accumulated other comprehensive loss

(21.1)

(33.6)

Total deficit attributable to ordinary shareholders

(270.2)

(563.3)

Noncontrolling interests

(3.4)

(3.6)

Total shareholders’ deficit

(273.6)

(566.9)

Liabilities and shareholders’ deficit

686.3

947.5

 

 

 

ECARX Holdings Inc.

Unaudited Condensed Consolidated Statements of Comprehensive Loss

Nine Months Ended

September 30

Three Months Ended

September 30

2025

2026

2025

2026

Millions, except share data and per share data, or otherwise noted

US$

US$

US$

US$

Revenue

Sales of goods revenue

433.6

532.9

181.7

222.7

Software license revenue

27.7

2.7

0.9

0.4

Service revenue

82.0

61.9

37.3

17.7

Total revenue

543.3

597.5

219.9

240.8

Cost of goods sold

(380.2)

(477.7)

(153.3)

(213.2)

Cost of software licenses

(1.1)

(1.1)

(0.3)

(0.3)

Cost of services

(48.2)

(28.2)

(18.1)

(10.4)

Total cost of revenue

(429.5)

(507.0)

(171.7)

(223.9)

Gross profit

113.8

90.5

48.2

16.9

Research and development expenses

(116.1)

(88.2)

(31.4)

(27.5)

Selling, general and administrative expenses and others, net

(75.6)

(70.2)

(23.1)

(25.6)

Total operating expenses

(191.7)

(158.4)

(54.5)

(53.1)

Loss from operation

(77.9)

(67.9)

(6.3)

(36.2)

Interest income

3.2

3.4

1.6

0.9

Interest expense

(13.6)

(26.0)

(3.5)

(8.0)

Share of results of equity method investments

0.4

13.7

0.3

(0.5)

Others, net

3.3

(6.7)

(0.6)

(5.2)

Loss before income taxes

(84.6)

(83.5)

(8.5)

(49.0)

Income tax expense

(2.0)

(0.6)

0.1

0.4

Net loss

(86.6)

(84.1)

(8.4)

(48.6)

Net loss (income) attributable to nonredeemable noncontrolling interests

3.1

0.1

(0.5)

(0.2)

Net loss attributable to redeemable noncontrolling interests

—

2.1

—

0.4

Net loss attributable to ECARX Holdings Inc.

(83.5)

(81.9)

(8.9)

(48.4)

Accretion of redeemable noncontrolling interests

—

(2.4)

—

(0.6)

Net loss attributable to ECARX Holdings Inc. ordinary shareholders

(83.5)

(84.3)

(8.9)

(49.0)

Net loss

(86.6)

(84.1)

(8.4)

(48.6)

Other comprehensive loss (income):

Fair value change of available-for-sale debt investment, net of nil income
taxes

—

(1.9)

—

0.9

Foreign currency translation adjustments, net of nil income taxes

(4.9)

(10.7)

0.2

(2.5)

Comprehensive loss

(91.5)

(96.7)

(8.2)

(50.2)

Comprehensive loss (income) attributable to nonredeemable noncontrolling
interests

3.0

0.2

(0.7)

(0.1)

Comprehensive loss attributable to redeemable noncontrolling interests

—

2.1

—

0.4

Accretion of redeemable noncontrolling interests

—

(2.4)

—

(0.6)

Comprehensive loss attributable to ECARX Holdings Inc.

(88.5)

(96.8)

(8.9)

(50.5)

Loss per ordinary share

 – Basic loss  per share, ordinary shares

(0.25)

(0.22)

(0.03)

(0.13)

 – Diluted loss per share, ordinary shares

(0.25)

(0.22)

(0.03)

(0.13)

Weighted average number of ordinary shares used in computing loss per
ordinary share

 – Weighted average number of ordinary shares – Basic

337,824,547

375,154,378

339,033,301

388,748,348

 – Weighted average number of ordinary shares – Diluted 

337,824,547

375,154,378

339,033,301

388,748,348

Unaudited Reconciliation of GAAP and Non-GAAP Results

We use adjusted EBITDA in evaluating our operating results and for financial and operational decision-making purposes. Adjusted EBITDA is defined as net loss excluding interest income, interest expense, income tax expense, depreciation of property and equipment, amortization of intangible assets, and share-based compensation expenses.

Adjusted EBITDA should not be considered in isolation or construed as alternatives to net loss or any other measures of performance or as indicators of our operating performance. Investors are encouraged to compare our historical adjusted EBITDA to the most directly comparable GAAP measure, net loss. Adjusted EBITDA presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Nine Months Ended

September 30

Three Months Ended

September 30

2025

2026

2025

2026

Millions, except otherwise noted

US$

US$

US$

US$

Net Loss

(86.6)

(84.1)

(8.4)

(48.6)

Interest income

(3.2)

(3.4)

(1.6)

(0.9)

Interest expense

13.6

26.0

3.5

8.0

Income tax expense

2.0

0.6

(0.1)

(0.4)

Depreciation of property and equipment

6.3

5.6

2.1

1.5

Amortization of intangible assets

6.6

7.2

2.2

2.0

EBITDA

(61.3)

(48.1)

(2.3)

(38.4)

Share-based compensation expenses

7.9

2.2

1.4

0.7

Adjusted EBITDA

(53.4)

(45.9)

(0.9)

(37.7)

 

 

View original content:https://www.prnewswire.com/news-releases/ecarx-announces-third-quarter-2026-unaudited-financial-results-302928981.html

SOURCE ECARX Holdings Inc.

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Criteo Expands Performance CTV Capabilities Across Global Markets

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Expanding Performance CTV through differentiated commerce audiences, flexible activation, and connected measurement

NEW YORK, Nov. 4, 2026 /PRNewswire/ — Criteo (NASDAQ: CRTO), the global commerce intelligence platform, today announced the expansion of its Performance Connected TV (CTV) capabilities beyond the U.S. to additional markets. The rollout will begin in Brazil and Mexico by the end of 2026, followed by Canada, the UK, France, Germany, Italy, Spain, Australia, and select additional markets in 2027. As advertisers seek to tie CTV investment to business outcomes, this expansion harnesses Criteo’s commerce audiences, flexible activation, and connected measurement to make CTV a more powerful performance channel.

Criteo forms real-time, deterministic commerce signals from more than $1 trillion in annual transactions, 740 million daily active users (DAUs), and more than 5 billion stock keeping units (SKUs). Its proprietary household graph then links these real shopping behaviors and purchase intent signals to personal connected TVs. Building on 20 years of performance optimization expertise, Criteo’s bidding engine uses this intelligence to optimize bids, helping advertisers reach high-intent shoppers on the largest screen in the home and activate CTV as a performance channel.

Criteo’s clients are already seeing strong results from their Performance CTV campaigns. A global travel platform generated a 61x return on ad spend while delivering a 9% lower cost per acquisition compared to their Display campaign serving to the same audience.

Criteo is also winning budgets in competitive evaluations, driven by the strong performance delivered through its differentiated commerce audiences. Looking ahead, the company continues to invest in its commercial resources and is on track for its CTV business to double in Q4 2026 compared with Q3 2026.

“As advertisers increasingly look to connect the impact of television with their broader digital advertising strategies, CTV represents a significant growth opportunity for Criteo,” said Michael Komasinski, Chief Executive Officer of Criteo. “The early momentum we’re seeing in the U.S. is fueling our global expansion as we bring our Performance CTV offering to a broader advertiser base and look to capture a greater share of this growing market.”

CTV is part of a wider shopper journey that spans social media, the open internet, AI-powered discovery, and retail, and Criteo is uniquely positioned to drive results across those environments. The company’s global expansion into CTV advances its cross-channel strategy, helping advertisers connect with consumers from initial discovery through purchase and beyond. Criteo provides closed-loop measurement capabilities to help advertisers connect CTV ad exposure to corresponding shopper visits, conversions, and sales as consumers move across channels and devices.

Advertiser demand is increasing, with active campaigns now spanning several verticals, including apparel, travel, home and furnishing, consumer electronics, and automotive. Criteo’s opportunity pipeline has doubled over the past three months, and clients are renewing with larger budgets after successful initial campaigns.

To deliver this growing demand, Criteo has broad and diversified access to CTV supply, combining direct relationships with media owners with access through leading supply technology partners, and expects to expand this footprint further over the coming quarters.

Customer perspectives bring the Performance CTV opportunity into focus:

“CTV is becoming an increasingly important part of our broader media strategy, but its real value comes from how it connects with the rest of the customer journey,” said Jared Lee, Vice President of Ecommerce at Franklin Planner. “Criteo’s cross-channel activation capabilities help us reach consumers with tailored ads while they stream TV at home and continue engaging them as they move closer to purchase. That connected approach creates exciting opportunities to drive stronger outcomes across our advertising efforts.”

“We’re always looking for ways to make our advertising investments more effective, and CTV represents a compelling opportunity to reach consumers within this emerging environment,” said Christina Bylin, Chief Marketing Officer at CarParts.com. “With Criteo, we can harness real shopping behaviors and purchase intent to reach more relevant audiences on CTV and then connect our investment to meaningful business outcomes.”

“The holiday season is one of the most important times of year for our business, and we’re always looking for new ways to connect with shoppers as they discover and choose gifts,” said Patrick Ahrendt, Senior Director of Marketing at Wine Country Gift Baskets. “By bringing CTV into our media mix with Criteo, we can reach high-intent audiences in a new environment and turn holiday shopping inspiration into measurable results.”

“Criteo makes sequential campaigns easy to run by automatically linking living-room CTV impressions to personalized follow-up ads across mobile and desktop without complex manual setup,” said Rudy Tan, CTO at TripMasters. “This seamlessly bridges high-impact brand awareness with measurable, mid/lower-funnel conversions in just a few clicks.”

CTV activation is available through demand platform Commerce Growth. To learn more about Criteo’s Performance CTV offerings, visit our website.

About Criteo

Criteo (NASDAQ: CRTO) is the global commerce intelligence platform that drives performance for brands, agencies, retailers, and publishers. Built on proprietary commerce data from more than $1 trillion in annual sales and two decades of AI innovation, Criteo helps companies across the ecosystem make smarter decisions and achieve better outcomes, while delivering more relevant experiences for shoppers. With thousands of clients and deep partnerships across global retail and digital commerce, Criteo provides the technology and insights businesses need to compete and grow. For more information, please visit www.criteo.com.

Contacts

Investor Relations & Corporate Communications
Melanie Dambre, m.dambre@criteo.com 

Public Relations
Amanda Echavarri, a.echavarri@criteo.com

Forward Looking Statements Disclosure

This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include statements regarding our financial condition, results of operations, cash flows, plans, objectives, future performance and business, our expectations regarding our market opportunity and future growth prospects, including the expansion and growth of our CTV business, and other statements that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially.

Factors that might cause or contribute to such differences include, but are not limited to: failure related to our technology and our ability to innovate and respond to changes in technology, including our use and expected use of AI; uncertainty regarding our ability to access a consistent supply of internet display and CTV advertising inventory and expand access to such inventory; investments in new business opportunities and the timing of these investments; our ability to expand and grow our CTV business as anticipated; whether the projected benefits of acquisitions or strategic transactions, including the completed redomiciliation from France to Luxembourg (the “Conversion”) and the proposed transfer of our legal domicile from Luxembourg to the United States via the merger of the Company into a newly incorporated and wholly-owned U.S. subsidiary (the “U.S. Merger”), materialize as expected; uncertainty regarding our international operations and expansion, including related to changes in a specific country’s or region’s political or economic conditions or policies and related uncertainties (such as the imposition and enforceability of tariffs); the impact of competition or client in-housing; uncertainty regarding legislative, regulatory or self-regulatory developments regarding data privacy matters and the impact of efforts by other participants in our industry to comply therewith; our ability to obtain and utilize certain data as a result of consumer concerns regarding data collection and sharing, as well as potential limitations in accessing data from third parties; failure to enhance our brand cost-effectively, recent growth rates, including in our CTV business, not being indicative of future growth; client flexibility to increase or decrease spend; our ability to manage growth, potential fluctuations in operating results, our ability to grow our base of clients, and the financial impact of maximizing Contribution ex-TAC, as well as risks related to future opportunities and plans, including the uncertainty of expected future financial performance and results; changes in general political, economic and competitive conditions and specific market conditions; adverse changes in the advertising industry; changes in applicable laws or accounting practices; failure to obtain the required shareholder vote to adopt the proposals needed to complete the U.S. Merger; failure to satisfy any of the other conditions to the U.S. Merger; the U.S. Merger not being completed; the impact or outcome of any legal proceedings or regulatory actions that may be instituted against us in connection with the Conversion or the U.S. Merger; failure to maintain the listing of our shares on Nasdaq or failure to list our stock on the New York Stock Exchange following the U.S. Merger or maintain our listing thereafter; inability to take advantage of the potential strategic opportunities provided by, and realize the potential benefits of, the Conversion or the U.S. Merger; the disruption of current plans and operations by the Conversion or the U.S. Merger; the disruption to the Company’s relationships, including with employees, landowners, suppliers, lenders, partners, governments and shareholders; the future financial performance of Criteo, including our anticipated growth rate and market opportunity; changes in shareholders’ rights as a result of the Conversion or the U.S. Merger; difficulty in adapting to operating under the laws of Luxembourg or the United States; the delay or abandonment of the U.S. Merger; costs or taxes related to the Conversion or the U.S. Merger; and those risks detailed from time-to-time under the caption “Risk Factors” and elsewhere in the Company’s SEC filings and reports, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 26, 2026, as amended, and in subsequent Quarterly Reports on Form 10-Q and the Registration Statement on Form S-4 filed in connection with the U.S. Merger, as well as future filings and reports by the Company and any filings made in connection with the U.S. Merger. Importantly, at this time, macro-economic conditions including inflation and fluctuating interest rates in the U.S. have impacted and may continue to impact Criteo’s business, financial condition, cash flow and results of operations. Accordingly, a forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur. You should not place undue reliance on the forward-looking statements, which speak only as of the date of this release.

Except as required by law, the Company is under no obligation, and expressly disclaims any obligation, to update or alter any forward-looking statements contained in this release, whether as a result of new information, future events, changes in expectations or otherwise.

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Mach Travel Solutions Limited Records Highest-Ever H1 Revenue in FY27 with Strong PAT

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Q2 FY27 Revenue Jumps 174.7% YoY to ₹204.53 Cr; H1 FY27 Revenue at Record ₹348.86 Cr

PAT Rises 46.9% YoY to ₹9.26 Cr in Q2 FY27; H1 FY27 PAT at ₹15.42 Cr, up 97.2% YoY

NEW DELHI, Nov. 4, 2026 /PRNewswire/ — Mach Travel Solutions Limited (BSE: MACHLTD), formerly known as Mach Conferences & Events Limited, announced its unaudited consolidated financial results for the second quarter and half year ended September 30, 2026.

H1 FY27 marked the Company’s highest-ever first-half Revenue from Operations since its incorporation in 2004, reflecting the growing scale of its business and continued expansion across diversified travel verticals.

During Q2 FY27, Mach Travel Solutions continued its transformation from a predominantly MICE-focused organisation into a diversified, technology-enabled integrated travel solutions platform. The Company continued to execute across Corporate Travel, MICE, B2B, Leisure, Inbound and Government & Institutional Projects, while advancing its B2C digital offering. The period also saw progress in corporate travel, institutional credentials and digital platform initiatives, supporting the Company’s strategy to build a broader travel ecosystem.

Consolidated Key Financials (₹ Cr.):

Particulars

Q2 FY27

Q2 FY26

YoY %

Q1 FY27

Q-o-Q %

H1 FY27

H1 FY26

YoY %

Revenue from Operations

204.53

74.46

174.69 %

144.33

41.70 %

348.86

97.08

259.36 %

EBITDA (incl. Other
Income)

14.39

9.67

48.82 %

9.23

55.98 %

23.62

11.34

108.29 %

EBITDA Margin %

7.00 %

12.81 %

6.30 %

6.71 %

11.49 %

PAT

9.26

6.30

46.87 %

6.16

50.15 %

15.42

7.82

97.16 %

PAT Margin %

4.50 %

8.35 %

4.21 %

4.38 %

7.93 %

EPS (in Rs.)

4.40

2.97

2.92

7.32

3.70

Note: EBITDA includes Other Income and is calculated as Profit Before Tax plus Finance Cost and Depreciation. EBITDA and PAT margins
are calculated on Total Income. Growth rates are calculated using unrounded figures.

Financial Performance Review

Revenue from Operations stood at ₹204.53 crore in Q2 FY27 as compared to ₹74.46 crore in Q2 FY26, representing year-on-year growth of 174.7%, and sequential growth of 41.7% over ₹144.33 crore in Q1 FY27. For H1 FY27, Revenue from Operations stood at ₹348.86 crore as compared to ₹97.08 crore in H1 FY26, representing year-on-year growth of 259.4%.EBITDA (including Other Income) stood at ₹14.39 crore in Q2 FY27 as compared to ₹9.67 crore in Q2 FY26, a year-on-year growth of 48.8%, and a sequential growth of 55.98% over ₹9.23 crore in Q1 FY27. EBITDA Margin was 7.00% in Q2 FY27, a sequential improvement of approximately 69 basis points from 6.30% in Q1 FY27. For H1 FY27, EBITDA stood at ₹23.62 crore as compared to ₹11.34 crore in H1 FY26, a growth of 108.3%, with an EBITDA Margin of 6.71% against 11.49%.Profit After Tax (PAT) stood at ₹9.26 crore in Q2 FY27 as compared to ₹6.30 crore in Q2 FY26, representing year-on-year growth of 46.9%, and sequential growth of 50.2% over ₹6.16 crore in Q1 FY27. PAT Margin was 4.50% in Q2 FY27 as compared to 8.35% in Q2 FY26 and 4.21% in Q1 FY27. For H1 FY27, PAT stood at ₹15.42 crore as compared to ₹7.82 crore in H1 FY26, representing year-on-year growth of 97.2%, with a PAT Margin of 4.38% against 7.93%.Gross Merchandise Value (GMV) stood at approximately ₹532.54 crore in Q2 FY27, reflecting the overall scale of travel transactions handled across the Company’s diversified business verticals during the quarter. For H1 FY27, GMV stood at approximately ₹784.54 crore, comprising ₹252 crore in Q1 FY27 and ₹532.54 crore in Q2 FY27. The Company has commenced disclosure of GMV from Q1 FY27 to provide stakeholders with greater visibility into the scale of its underlying business activity.The Company’s performance during Q2 FY27 and H1 FY27 reflects continued execution across its integrated travel solutions platform, with ongoing efforts to scale newer verticals, strengthen technology-enabled offerings and build a more diversified mix of business.

FY27 Revenue Outlook

In view of the Company’s business performance and continued expansion across its diversified travel verticals, Mach Travel Solutions Limited has revised its FY27 revenue target upwards to more than 2.5x its FY26 Revenues.

The revised target reflects management’s expectations for the current financial year, supported by its expanding Corporate Travel business, established MICE operations and opportunities across the Company’s other travel segments.

The Company remains focused on translating business opportunities into sustainable revenue growth while maintaining operational discipline and strengthening its technology-enabled travel ecosystem.

Q2 & H1 FY27 Business & Operational Highlights

During Q2 FY27, the Company continued to build on its transition into an integrated travel solutions platform, with progress across Corporate Travel, MICE, Government & Institutional Projects and its emerging B2C digital offering.

Continued the Company’s strategic evolution from a predominantly MICE-focused organisation into an integrated travel solutions platform spanning Corporate Travel, MICE, B2B, Leisure and Government & Institutional Projects, alongside the development of its B2C Online Travel Agency (OTA) platform.Strengthened its credentials in Government & Institutional Projects after being recognised by the Ministry of Tourism, Government of India, through the National Integrated Database of Hospitality Industry (NIDHI), as an Experienced MICE Tour Operator. The recognition supports participation in government and institutional tenders where such credentials are required.Onboarded more than 140 corporate clients for its Corporate Ticketing services and Self-Booking Tool as of September 30, 2026. Since the launch of the dedicated Corporate Travel vertical in April 2026, the client base has expanded across a broad range of industries, including automotive and engineering, pharmaceuticals, financial services, technology, healthcare, education, FMCG, infrastructure, media and manufacturing. This milestone supports the Company’s focus on building long-term corporate relationships and recurring travel business.Opened Machtravel.com and the Mach Travel mobile application for public beta testing on August 31, 2026. The B2C platform brings together travel services including Flights, Hotels, Holidays, MICE, Cruises and Visa services, and will be further refined using user feedback.Continued to leverage its pan-India operating presence across Noida, New Delhi, Ahmedabad, Mumbai, Kolkata, Bengaluru and Bhubaneswar, alongside its international MICE execution capabilities, to serve corporate, institutional and leisure travel requirements.Maintained its focus on scaling the Company’s newer business verticals, deepening technology integration and identifying cross-selling opportunities across its customer base, while progressing the pipeline across its diversified travel businesses.With the foundations of the Company’s diversified travel platform continuing to take shape, the focus is increasingly shifting towards scaling each business vertical, strengthening client relationships and leveraging technology and cross-selling to support sustainable growth.

Commenting on the performance, Mr. Amit Bhatia, Chairman & Managing Director, Mach Travel Solutions Limited, said:

“H1 FY27 marks an important milestone for Mach Travel Solutions Limited, as we have achieved our highest-ever first-half Revenue from Operations of ₹348.86 crore since the Company’s inception in 2004, surpassing our entire FY26 revenue. Our Q2 FY27 revenue and PAT stood at ₹204.53 crore and ₹9.26 crore, respectively, while H1 FY27 revenue and PAT stood at ₹348.86 crore and ₹15.42 crore, respectively.

Over the years, we have strategically transformed Mach from a predominantly MICE-focused organisation into an integrated, technology-enabled travel solutions company. Our approach has been to build multiple complementary business verticals, strengthen our leadership capabilities and leverage technology to create a scalable business model.

The rapid expansion of our Corporate Travel business, alongside our established MICE operations, growing institutional presence and investments in digital platforms, reinforces our confidence in the direction we have chosen.

In light of our performance and the opportunities ahead, we have revised our FY27 revenue target upwards to more than 2.5x our FY26 revenue. This reflects our confidence in the Company’s growth potential and the progress of our diversification strategy.

Our ambition is not merely to grow revenue, but to build a strong, sustainable and future-ready travel solutions company with multiple growth engines. We remain committed to disciplined execution, long-term relationships and creating enduring value for our shareholders.”

About Mach Travel Solutions Limited

Mach Travel Solutions Limited (formerly Mach Conferences & Events Ltd.) is a publicly listed technology-enabled travel solutions company listed on the Bombay Stock Exchange (BSE: MACHLTD). Incorporated in 2004, the Company provides technology-enabled end-to-end travel solutions across Corporate Travel, MICE, B2B, Leisure, Inbound Travel and Government & Institutional Projects.

The Company has a strong pan-India presence with offices in Noida, New Delhi, Kolkata, Mumbai, Bengaluru, Bhubaneswar and Ahmedabad, and is accredited by and associated with leading national and international travel associations, including IATA, GBTA, PATA, IATO, ADTOI, OTOAI, SKÅL International, JATA, ICPB, EGAC and NIMA.

For more information, please visit https://www.machtravelsolutions.com.

The Company is also developing its B2C Online Travel Agency platform, Machtravel.com, as part of its strategy to build a comprehensive travel ecosystem.

Mach Travel Solutions Ltd.
Mrs. Swati Aggarwal
Company Secretary & Compliance Officer
Email:
compliance@machtravel.com 
Website:
machtravelsolutions.com 

Adfactors PR Pvt. Ltd.
Mrs. Disha Mody / Mr. Vaibhav Gupta / Ms. Kareena Jain
Investor Relations
Email:
disha.mody@adfactorspr.com 
vaibhav.gupta@adfactorspr.com 
kareena.jain@adfactorspr.com 
Website:
www.adfactorspr.com

Safe Harbour

This release contains statements that contain “forward looking statements” including, but without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to Mach Travel’s future business developments and economic performance. While these forward-looking statements indicate our assessment and future expectations concerning the development of our business, several risks, uncertainties and other unknown factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, general market, macro-economic, governmental and regulatory trends, movements in currency exchange and interest rates, competitive pressures, technological developments, changes in the financial conditions of third parties dealing with us, legislative developments, and other key factors that could affect our business and financial performance. Mach Travel Solutions undertakes no obligation to publicly revise any forward-looking statements to reflect future / likely events or circumstances.

 

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