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 /CNW/ – Today, Cogeco Communications Inc. (TSX: CCA) (“Cogeco Communications” 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.
“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
732,426
730,501
0.3
(2.7)
Adjusted EBITDA (2)
356,499
347,112
2.7
(0.1)
Adjusted EBITDA margin (2)
48.7 %
47.5 %
Profit for the period
79,637
96,562
(17.5)
Profit for the period attributable to owners of the Corporation
74,674
93,681
(20.3)
Adjusted profit attributable to owners of the Corporation (2)(3)
80,693
94,054
(14.2)
Cash flows from operating activities
253,212
285,434
(11.3)
Free cash flow (1)(2)
116,603
101,799
14.5
12.8
Free cash flow, excluding network expansion projects (1)(2)
132,176
126,189
4.7
3.3
Acquisition of property, plant and equipment
159,371
180,247
(11.6)
Net capital expenditures (2)(4)
157,895
170,769
(7.5)
(10.7)
Net capital expenditures, excluding network expansion projects (2)
142,322
146,379
(2.8)
(6.4)
Capital intensity (2)
21.6 %
23.4 %
Capital intensity, excluding network expansion projects (2)
19.4 %
20.0 %
Diluted earnings per share
1.76
2.20
(20.0)
Adjusted diluted earnings per share (2)(3)
1.90
2.21
(14.0)
Operating results
For the second quarter of fiscal 2025 ended on February 28, 2025:
Revenue increased by 0.3% to $732.4 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.Adjusted EBITDA increased by 2.7% to $356.5 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 $79.6 million, of which $74.7 million, or $1.76 per diluted share, was attributable to owners of the Corporation compared to $96.6 million, $93.7 million, and $2.20 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 $80.7 million, or $1.90 per diluted share(3), compared to $94.1 million, or $2.21 per diluted share, last year.Net capital expenditures were $157.9 million, a decrease of 7.5% compared to $170.8 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $152.6 million, a decrease of 10.7% 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 $142.3 million, a decrease of 2.8% compared to $146.4 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $137.1 million, a decrease of 6.4% 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.Capital intensity was 21.6% compared to 23.4% last year. Excluding network expansion projects, capital intensity was 19.4% compared to 20.0% in the same period of the prior year.Acquisition of property, plant and equipment decreased by 11.6% to $159.4 million, mainly resulting from lower spending.Free cash flow(1) increased by 14.5%, or 12.8% in constant currency, and amounted to $116.6 million, or $114.8 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 4.7%, or 3.3% in constant currency, and amounted to $132.2 million, or $130.3 million in constant currency.Cash flows from operating activities decreased by 11.3% to $253.2 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 Communications maintains its fiscal 2025 financial guidelines as issued on October 31, 2024.At its April 9, 2025 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share 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. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(3)
Excludes the impact of 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
Change in
constant
currency
Change in
constant
currency
Three and six months ended
February 28, 2025
February 29, 2024
(1)
Change
(2) (3)
February 28, 2025
February 29, 2024
(1)
Change
(2) (3)
(In thousands of Canadian dollars, except % and per share data)
$
$
%
%
$
$
%
%
Operations
Revenue
732,426
730,501
0.3
(2.7)
1,471,121
1,478,190
(0.5)
(2.1)
Adjusted EBITDA (3)
356,499
347,112
2.7
(0.1)
721,714
706,072
2.2
0.6
Adjusted EBITDA margin (3)
48.7 %
47.5 %
49.1 %
47.8 %
Acquisition, integration, restructuring and other costs (gains) (4)
8,035
885
—
(1,923)
3,501
—
Profit for the period
79,637
96,562
(17.5)
186,797
192,314
(2.9)
Profit for the period attributable to owners of the Corporation
74,674
93,681
(20.3)
175,262
183,174
(4.3)
Adjusted profit attributable to owners of the Corporation (3)(5)
80,693
94,054
(14.2)
171,367
197,780
(13.4)
Cash flow
Cash flows from operating activities
253,212
285,434
(11.3)
472,077
522,416
(9.6)
Free cash flow (1)(3)
116,603
101,799
14.5
12.8
265,461
239,647
10.8
10.0
Free cash flow, excluding network expansion projects (1)(3)
132,176
126,189
4.7
3.3
302,833
295,697
2.4
1.7
Acquisition of property, plant and equipment
159,371
180,247
(11.6)
312,614
333,796
(6.3)
Net capital expenditures (3)(6)
157,895
170,769
(7.5)
(10.7)
308,540
317,196
(2.7)
(4.6)
Net capital expenditures, excluding network expansion projects (3)
142,322
146,379
(2.8)
(6.4)
271,168
261,146
3.8
1.6
Capital intensity (3)
21.6 %
23.4 %
21.0 %
21.5 %
Capital intensity, excluding network expansion projects (3)
19.4 %
20.0 %
18.4 %
17.7 %
Per share data (7)
Earnings per share
Basic
1.77
2.21
(19.9)
4.17
4.23
(1.4)
Diluted
1.76
2.20
(20.0)
4.13
4.21
(1.9)
Adjusted diluted (3)(5)
1.90
2.21
(14.0)
4.04
4.55
(11.2)
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 $20.5 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 EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(4)
For the three-month period 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
141,073
76,335
Total assets
10,152,322
9,675,009
Long-term debt
Current
353,486
361,808
Non-current
4,688,512
4,448,261
Net indebtedness (1)
4,971,544
4,803,629
Equity attributable to owners of the Corporation
3,176,747
2,979,691
(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 Communications Inc.’s (“Cogeco Communications” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”; “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, 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. 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 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 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 Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the 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 Communications’ non-IFRS Accounting Standards ratios.
Specified non-IFRS Accounting Standards measures
Used in the component of the following non-IFRS Accounting Standards ratios
Adjusted profit attributable to owners of the Corporation
Adjusted diluted earnings per share
Constant currency basis
Change in constant currency
Net capital expenditures, excluding network expansion projects
Capital intensity, excluding network expansion projects
Financial measures presented on a constant currency basis for the three 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
732,426
(21,406)
711,020
730,501
0.3
(2.7)
Operating expenses
371,006
(11,558)
359,448
378,151
(1.9)
(4.9)
Management fees – Cogeco Inc.
4,921
—
4,921
5,238
(6.1)
(6.1)
Adjusted EBITDA
356,499
(9,848)
346,651
347,112
2.7
(0.1)
Free cash flow (1)
116,603
(1,760)
114,843
101,799
14.5
12.8
Net capital expenditures
157,895
(5,343)
152,552
170,769
(7.5)
(10.7)
(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
1,471,121
(24,129)
1,446,992
1,478,190
(0.5)
(2.1)
Operating expenses
739,564
(12,998)
726,566
761,642
(2.9)
(4.6)
Management fees – Cogeco Inc.
9,843
—
9,843
10,476
(6.0)
(6.0)
Adjusted EBITDA
721,714
(11,131)
710,583
706,072
2.2
0.6
Free cash flow (1)
265,461
(1,964)
263,497
239,647
10.8
10.0
Net capital expenditures
308,540
(6,030)
302,510
317,196
(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
74,674
93,681
175,262
183,174
Acquisition, integration, restructuring and other costs (gains)
8,035
885
(1,923)
3,501
Loss on debt extinguishment (1)
—
—
—
16,880
Tax impact for the above items
(1,861)
(219)
(1,580)
(5,380)
Non-controlling interest impact for the above items
(155)
(293)
(392)
(395)
Adjusted profit attributable to owners of the Corporation
80,693
94,054
171,367
197,780
(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
253,212
285,434
472,077
522,416
Changes in other non-cash operating activities
24,343
2,253
98,517
55,188
Income taxes paid (received)
7,443
(7,628)
14,082
(4,725)
Current income taxes
(9,670)
(9,189)
(24,298)
(16,417)
Interest paid
62,195
68,288
123,666
132,260
Financial expense
(63,003)
(68,163)
(128,492)
(151,457)
Loss on debt extinguishment (2)
—
—
—
16,880
Amortization of deferred transaction costs and discounts on long-term debt (2)
2,228
2,007
3,692
4,681
Net capital expenditures (3)
(157,895)
(170,769)
(308,540)
(317,196)
Proceeds from sale and leaseback and other disposals of property, plant and equipment (1)
931
1,644
20,544
1,899
Repayment of lease liabilities
(3,181)
(2,078)
(5,787)
(3,882)
Free cash flow (1)
116,603
101,799
265,461
239,647
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)
132,176
126,189
302,833
295,697
(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
159,371
180,247
312,614
333,796
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
157,895
170,769
308,540
317,196
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
79,637
96,562
186,797
192,314
Income taxes
22,904
17,820
49,529
35,918
Financial expense
63,003
68,163
128,492
151,457
Depreciation and amortization
182,920
163,682
358,819
322,882
Acquisition, integration, restructuring and other costs (gains)
8,035
885
(1,923)
3,501
Adjusted EBITDA
356,499
347,112
721,714
706,072
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
157,895
(5,343)
152,552
170,769
(7.5)
(10.7)
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
142,322
(5,270)
137,052
146,379
(2.8)
(6.4)
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
$
$
$
$
%
%
Net capital expenditures
308,540
(6,030)
302,510
317,196
(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
271,168
(5,941)
265,227
261,146
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)
116,603
(1,760)
114,843
101,799
14.5
12.8
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)
132,176
(1,833)
130,343
126,189
4.7
3.3
(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)
265,461
(1,964)
263,497
239,647
10.8
10.0
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)
302,833
(2,053)
300,780
295,697
2.4
1.7
(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 Communications Inc.
Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Claudja Joseph
Director, Communications
Cogeco Communications 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 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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