Technology

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

Published

2 months ago

October 31, 2024

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

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

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

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

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

“While competitive dynamics in the radio advertising market remain challenging, many of Cogeco Media’s radio stations remained high in the ratings again this quarter. Furthermore, our digital advertising solutions continue to provide a growing contribution to our overall revenue.

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

Consolidated Financial Highlights

Three months ended August 31

2024

2023

(1)

Change

Change in

constant
currency

(2)

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

Revenue

768,656

766,652

0.3

(1.0)

Adjusted EBITDA (2)

371,216

351,925

5.5

4.2

Profit for the period

81,437

90,521

(10.0)

Profit for the period attributable to owners of the Corporation

19,248

29,234

(34.2)

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

25,562

33,006

(22.6)

Cash flows from operating activities

326,723

284,370

14.9

Free cash flow (1)(2)

143,055

87,274

63.9

63.4

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

199,966

120,202

66.4

65.5

Acquisition of property, plant and equipment

156,577

207,434

(24.5)

Net capital expenditures (2)(4)

154,570

178,481

(13.4)

(14.7)

Net capital expenditures, excluding network expansion projects (2)

97,659

145,553

(32.9)

(34.1)

Diluted earnings per share

1.99

1.87

6.4

Adjusted diluted earnings per share (2)(3)

2.65

2.12

25.0

Operating results

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

Revenue remained stable at $768.7 million. On a constant currency basis(2), revenue decreased by 1.0% due to a decline in revenue in the American telecommunications segment and in the media activities, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.Revenue in the media activities decreased by 10.1% as competitive dynamics in the radio advertising market remain challenging.Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.Adjusted EBITDA increased by 5.5% to $371.2 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.Profit for the period amounted to $81.4 million, of which $19.2 million, or $1.99 per diluted share, was attributable to owners of the Corporation compared to $90.5 million, $29.2 million, and $1.87 per diluted share, respectively, in the comparable period of fiscal 2023. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense and non-cash pre-tax impairment charges of $15.2 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA and lower financial expense.Adjusted profit attributable to owners of the Corporation(3) was $25.6 million, or $2.65 per diluted share(3), compared to $33.0 million, or $2.12 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.Net capital expenditures were $154.6 million, a decrease of 13.4% compared to $178.5 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $152.3 million, a decrease of 14.7% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.Excluding network expansion projects, net capital expenditures were $97.7 million, a decrease of 32.9% compared to $145.6 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $96.0 million, a decrease of 34.1% compared to last year.Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.Acquisition of property, plant and equipment decreased by 24.5% to $156.6 million, mainly resulting from lower spending.Free cash flow(1) increased by 63.9%, or 63.4% in constant currency, and amounted to $143.1 million, or $142.6 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 66.4%, or 65.5% in constant currency, and amounted to $200.0 million, or $198.9 million in constant currency.Cash flows from operating activities increased by 14.9% to $326.7 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.At its October 31, 2024 meeting, the Board of Directors of Cogeco declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.

FISCAL 2025 FINANCIAL GUIDELINES

Cogeco released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $660 and $735 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.

October 31, 2024

Projections

(i)

Actual

Fiscal 2025

(constant currency)

(ii)

Fiscal 2024

(In millions of Canadian dollars, except percentages)

Financial guidelines

Revenue

Stable

3,074

Adjusted EBITDA

Stable

1,455

Net capital expenditures

$660 to $735

643

Net capital expenditures in connection with network expansion projects

$140 to $190

137

Free cash flow

Decrease of 0% to 10%

(iii)

476

Free cash flow, excluding network expansion projects

Decrease of 0% to 10%

(iii)

613

(i)

Percentage of changes compared to fiscal 2024.

(ii)

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

(iii)

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

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

(1)

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

(2)

Adjusted EBITDA and net capital expenditures are total of segments measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.

(3)

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

(4)

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

(5)

Organic growth calculated by excluding additions resulting from acquisitions.

Financial highlights

Three months and years ended August 31

2024

2023

(1)

Change

Change in

constant
currency

(2)

(3)

2024

2023

(1)

Change

Change in

constant
currency

(2)

(3)

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

Operations

Revenue

768,656

766,652

0.3

(1.0)

3,073,985

3,081,136

(0.2)

(0.7)

Adjusted EBITDA (3)

371,216

351,925

5.5

4.2

1,454,817

1,432,929

1.5

1.0

Acquisition, integration, restructuring and other costs (4)

12,177

15,239

(20.1)

63,298

36,245

74.6

Impairment of property, plant and equipment, intangible assets and goodwill

15,229

—

15,229

88,000

(82.7)

Profit for the period

81,437

90,521

(10.0)

349,381

350,235

(0.2)

Profit for the period attributable to owners of the Corporation

19,248

29,234

(34.2)

96,746

70,630

37.0

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

25,562

33,006

(22.6)

119,048

149,298

(20.3)

Cash flow

Cash flows from operating activities

326,723

284,370

14.9

1,185,150

968,214

22.4

Free cash flow (1)(3)

143,055

87,274

63.9

63.4

475,765

424,083

12.2

12.0

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

199,966

120,202

66.4

65.5

613,159

596,918

2.7

2.4

Acquisition of property, plant and equipment

156,577

207,434

(24.5)

664,004

806,237

(17.6)

Net capital expenditures (3)(6)

154,570

178,481

(13.4)

(14.7)

642,747

702,913

(8.6)

(9.0)

Net capital expenditures, excluding network expansion projects (3)

97,659

145,553

(32.9)

(34.1)

505,353

530,078

(4.7)

(5.1)

Per share data (7)

Earnings per share

Basic

2.02

1.89

6.9

8.63

4.53

90.5

Diluted

1.99

1.87

6.4

8.55

4.51

89.6

Adjusted diluted (3)(5)

2.65

2.12

25.0

10.52

9.53

10.4

Dividends per share

0.854

0.731

16.8

3.416

2.924

16.8

(1)

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

(2)

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

(3)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.

(4)

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

(5)

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

(6)

(7)

Per multiple and subordinate voting share.

As at

August 31, 2024

August 31, 2023

(In thousands of Canadian dollars, except %)

Financial condition

Cash and cash equivalents

77,746

363,854

Total assets

9,773,739

9,869,778

Long-term debt

Current

370,108

43,325

Non-current

4,594,057

5,045,672

Net indebtedness (1)

4,957,594

4,817,113

Equity attributable to owners of the Corporation

810,437

925,863

Return on equity (2)

11.1 %

7.7 %

(1)

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

(2)

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

Forward-looking statements

Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Inc.’s (“Cogeco” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”, “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. Moreover, the Corporation’s radio operations are significantly exposed to advertising budgets from the retail industry, which can fluctuate due to increased competition and changing economic conditions. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco’s expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.

All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.

Non-IFRS Accounting Standards and other financial measures

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

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

Specified non-IFRS Accounting Standards measure

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

Adjusted profit attributable to owners of the Corporation

Adjusted diluted earnings per share

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

Constant currency basis and foreign exchange impact reconciliation

Consolidated

Three months ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

768,656

(9,731)

758,925

766,652

0.3

(1.0)

Operating expenses

397,440

(5,234)

392,206

414,727

(4.2)

(5.4)

Adjusted EBITDA

371,216

(4,497)

366,719

351,925

5.5

4.2

Free cash flow (1)

143,055

(462)

142,593

87,274

63.9

63.4

Net capital expenditures

154,570

(2,254)

152,316

178,481

(13.4)

(14.7)

(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. Comparative figures were restated to conform to the current presentation.

Years ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

3,073,985

(15,024)

3,058,961

3,081,136

(0.2)

(0.7)

Operating expenses

1,619,168

(8,121)

1,611,047

1,648,207

(1.8)

(2.3)

Adjusted EBITDA

1,454,817

(6,903)

1,447,914

1,432,929

1.5

1.0

Free cash flow (1)

475,765

(932)

474,833

424,083

12.2

12.0

Net capital expenditures

642,747

(3,340)

639,407

702,913

(8.6)

(9.0)

(1)

Canadian telecommunications segment

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

378,702

—

378,702

375,754

0.8

Operating expenses

175,688

(288)

175,400

180,183

(2.5)

(2.7)

Adjusted EBITDA

203,014

288

203,302

195,571

3.8

4.0

Net capital expenditures

71,000

(245)

70,755

73,348

(3.2)

(3.5)

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

1,510,506

—

1,510,506

1,489,915

1.4

Operating expenses

710,706

(447)

710,259

701,717

1.3

1.2

Adjusted EBITDA

799,800

447

800,247

788,198

1.5

Net capital expenditures

356,274

(463)

355,811

354,384

0.5

0.4

American telecommunications segment

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

369,049

(9,731)

359,318

367,643

0.4

(2.3)

Operating expenses

185,588

(4,916)

180,672

193,172

(3.9)

(6.5)

Adjusted EBITDA

183,461

(4,815)

178,646

174,471

5.2

2.4

Net capital expenditures

76,238

(2,011)

74,227

100,488

(24.1)

(26.1)

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Revenue

1,466,018

(15,024)

1,450,994

1,494,213

(1.9)

(2.9)

Operating expenses

759,658

(7,632)

752,026

800,409

(5.1)

(6.0)

Adjusted EBITDA

706,360

(7,392)

698,968

693,804

1.8

0.7

Net capital expenditures

267,728

(2,865)

264,863

336,910

(20.5)

(21.4)

Adjusted profit attributable to owners of the Corporation

Three months ended August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

Profit for the period attributable to owners of the Corporation

19,248

29,234

96,746

70,630

Impairment of property, plant and equipment, intangible assets and goodwill

15,229

—

15,229

88,000

Acquisition, integration, restructuring and other costs

12,177

15,239

63,298

36,245

Loss on debt extinguishment (1)

—

16,880

—

Tax impact for the above items

(7,173)

(3,832)

(25,151)

(27,770)

Non-controlling interest impact for the above items

(13,919)

(7,635)

(47,954)

(17,807)

Adjusted profit attributable to owners of the Corporation

25,562

33,006

119,048

149,298

(1)

Included within financial expense.

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

Three months ended August 31

Years ended August 31

2024

2023

(1)

2024

2023

(1)

(In thousands of Canadian dollars)

Cash flows from operating activities

326,723

284,370

1,185,150

968,214

Changes in other non-cash operating activities

(44,264)

(12,970)

(58,459)

102,422

Income taxes paid

6,124

2,190

4,890

91,968

Current income taxes

(682)

(5,523)

(20,995)

(31,973)

Interest paid

74,150

66,544

275,283

243,321

Financial expense

(64,461)

(71,198)

(286,672)

(255,010)

Loss on debt extinguishment (2)

—

16,880

—

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

2,257

3,212

9,336

12,672

Net capital expenditures (3)

(154,570)

(178,481)

(642,747)

(702,913)

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

594

1,037

3,381

2,653

Repayment of lease liabilities

(2,816)

(1,907)

(10,282)

(7,271)

Free cash flow (1)

143,055

87,274

475,765

424,083

Net capital expenditures in connection with network expansion projects

56,911

32,928

137,394

172,835

Free cash flow, excluding network expansion projects (1)

199,966

120,202

613,159

596,918

(1)

(2)

Included within financial expense.

(3)

Net capital expenditures reconciliation

Three months ended August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

Acquisition of property, plant and equipment

156,577

207,434

664,004

806,237

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

(2,007)

(28,953)

(21,257)

(103,324)

Net capital expenditures

154,570

178,481

642,747

702,913

Adjusted EBITDA reconciliation

Three months ended August 31

Years ended August 31

2024

2023

2024

2023

(In thousands of Canadian dollars)

Profit for the period

81,437

90,521

349,381

350,235

Income taxes

14,262

17,827

61,808

78,379

Financial expense

64,461

71,198

286,672

255,010

Impairment of property, plant and equipment, intangible assets and goodwill

15,229

—

15,229

88,000

Depreciation and amortization

183,650

157,140

678,429

625,060

Acquisition, integration, restructuring and other costs

12,177

15,239

63,298

36,245

Adjusted EBITDA

371,216

351,925

1,454,817

1,432,929

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

Net capital expenditures

Three months ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Net capital expenditures

154,570

(2,254)

152,316

178,481

(13.4)

(14.7)

Net capital expenditures in connection with network expansion projects

56,911

(576)

56,335

32,928

72.8

71.1

Net capital expenditures, excluding network expansion projects

97,659

(1,678)

95,981

145,553

(32.9)

(34.1)

Years ended August 31

2024

2023

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Net capital expenditures

642,747

(3,340)

639,407

702,913

(8.6)

(9.0)

Net capital expenditures in connection with network expansion projects

137,394

(780)

136,614

172,835

(20.5)

(21.0)

Net capital expenditures, excluding network expansion projects

505,353

(2,560)

502,793

530,078

(4.7)

(5.1)

Free cash flow

Three months ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Free cash flow (1)

143,055

(462)

142,593

87,274

63.9

63.4

Net capital expenditures in connection with network expansion projects

56,911

(576)

56,335

32,928

72.8

71.1

Free cash flow, excluding network expansion projects (1)

199,966

(1,038)

198,928

120,202

66.4

65.5

(1)

Years ended August 31

2024

2023

(1)

Change

(In thousands of Canadian dollars, except percentages)

Actual

Foreign
exchange
impact

constant
currency

Actual

constant
currency

Free cash flow (1)

475,765

(932)

474,833

424,083

12.2

12.0

Net capital expenditures in connection with network expansion projects

137,394

(780)

136,614

172,835

(20.5)

(21.0)

Free cash flow, excluding network expansion projects (1)

613,159

(1,712)

611,447

596,918

2.7

2.4

(1)

Additional information

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

About Cogeco Inc.

Cogeco Inc. is a North American leader in the telecommunications and media sectors. Through Cogeco Communications Inc., we provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Through Cogeco Media, we operate 21 radio stations in Canada, primarily in the province of Québec, as well as a news agency. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Both Cogeco Inc.’s and Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO and CCA).

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

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

Conference Call:

Friday, November 1st, 2024 at 11:00 a.m. (Eastern Daylight Time)

A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco’s website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco’s website for a three-month period.

Please use the following dial-in number to access the conference call 10 minutes before the start of the conference:

Local – Toronto: 1 289 514-5100

Toll Free – North America: 1 800 717-1738

To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.

SOURCE Cogeco Inc.

Technology

TORRAS to Showcase Pioneering Personal Air-Conditioning Cooling Tech and More at CES 2025

Published

14 minutes ago

January 3, 2025

HONG KONG, Jan. 2, 2025 /PRNewswire/ — TORRAS, a pioneering consumer electronics and accessories brand, will participate in CES 2025, the world’s largest electronics trade conference from January 7-10, 2025. At TORRAS’ booth (#30847, South Hall 1), the brand will showcase its innovative personal cooling gadgets, charging technology and signature cases.

“At TORRAS, we are committed to delivering high-quality experiences through innovation. We are thrilled to join CES 2025 to not only showcase our best products and technology in front of the world, but also experience them in person,” said Carrie Kong, CEO of TORRAS.

Revolutionizing Cooling Tech
TORRAS will present its cooling products featuring its updated cooling innovation, Coology, which utilizes cutting-edge TEC semiconductors and proprietary materials to realize rapid heat dissipation. The TORRAS COOLiFY series of neck air conditioners leverage this technology to deliver cool air against hot zones around a user’s neck, helping them stay cool during hot weather and outdoor work. COOLiFY serves as a refuge from oppressive heat, a catalyst for enhanced productivity in high-temperature work environments, and a reliable safeguard against the risks of heat stroke.

Also incorporating Coology, the PolarCircle wireless charger features over 200 fins to help both itself and a charging smartphone maintain a cool temperature as low as 16°C/60.8°F for an optimized and safe charging experience. The PolarCircle does not only prolongs the lifespan of the battery but also enhances safety by vigilantly monitoring every aspect of the charging cycle.

Innovation and High Quality
As the brand behind the world’s first Ostand phone case, TORRAS attributes great importance to product innovation and quality. Visitors to TORRAS’ CES 2025 booth can hold in their hands the brand’s premium smartphone cases and learn more about the engineering behind the case finishes, stand bearings, the eight-layer magnetic case structure fitted in the 3mm back panel, and much more.

Beyond CES 2025
TORRAS will also participate in two premier media events, Pepcom and CES Unveiled, where visitors can experience TORRAS’ innovative products firsthand and take part in an immersive experience designed to provide a vivid demonstration of the brand’s vision.

The TORRAS booth (#30847) is in South Hall 1, Las Vegas Convention Center. The booth is staffed from 09:00 – 18:00 PST for the duration of CES 2025, which takes place January 7-10, 2025.

About TORRAS
TORRAS is an innovative and award-winning consumer electronics and accessories brand. We strive to constantly shatter the ordinary so consumers can enjoy a high-quality lifestyle. TORRAS aims to assist users in fully engaging in every aspect of life and enabling them to unleash their full potential anytime and anywhere. Since 2012, TORRAS has served over 100 million people in more than 148 regions with its products and services. For more information, please visit www.torraslife.com.

Media Contact
TORRAS Marketing: marketing@torraslife.com
TORRAS PR Manager: ashley@torras-global.com

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SOURCE TORRAS

Technology

SK hynix to Unveil ‘Full Stack AI Memory Provider’ Vision at CES 2025

Published

14 minutes ago

January 3, 2025

– SK hynix to showcase technological capabilities, participating in the world’s largest consumer electronics show, CES 2025, from January 7-10

– Featuring a wide range of products driving the AI era, from HBM, the core of AI infrastructure, to next-gen memories like PIM

– Company to present new possibilities in the AI era through technological innovation and provide irreplaceable value

SEOUL, South Korea, Jan. 2, 2025 /PRNewswire/ — SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it will showcase its innovative AI memory technologies at CES 2025, to be held in Las Vegas from January 7 to 10 (local time).

A large number of C-level executives, including CEO Kwak No-jung, CMO (Chief Marketing Officer) Justin Kim and Chief Development Officer (CDO) Ahn Hyun, will attend the event. “We will broadly introduce solutions optimized for on-device AI and next-generation AI memories, as well as representative AI memory products such as HBM and eSSD at this CES,” said Justin Kim. “Through this, we will publicize our technological competitiveness to prepare for the future as a ‘Full Stack AI Memory Provider1’.”

1Full Stack AI Memory Provider: Refers to an all-round AI memory provider, which provides comprehensive AI-related memory products and technologies

SK hynix will also run a joint exhibition booth with SK Telecom, SKC and SK Enmove, under the theme “Innovative AI, Sustainable Tomorrow.” The booth will showcase how SK Group’s AI infrastructure and services are transforming the world, represented in waves of light.

SK hynix, which is the world’s first to produce 12-layer HBM products for 5th generation and supply them to customers, will showcase samples of HBM3E 16-layer products, which were officially developed in November last year. This product uses the advanced MR-MUF process to achieve the industry’s highest 16-layer configuration while controlling chip warpage and maximizing heat dissipation performance.

In addition, the company will display high-capacity, high-performance enterprise SSD products, including the ‘D5-P5336’ 122TB model developed by its subsidiary Solidigm in November last year. This product, with the largest existing capacity, high power and space efficiency, has been attracting considerable interest from AI data center customers.

“As SK hynix succeeded in developing QLC2 (Quadruple Level Cell)-based 61TB products in December, we expect to maximize synergy based on a balanced portfolio between the two companies in the high-capacity eSSD market” said Ahn Hyun, CDO at SK hynix. The company will also showcase on-device AI products such as ‘LPCAMM23’ and ‘ZUFS 4.04,’ which improve data processing speed and power efficiency to implement AI in edge devices like PCs and smartphones. The company will also present CXL and PIM (Processing in Memory) technologies, along with modularized versions, CMM(CXL Memory Module)-Ax and AiMX5, designed to be core infrastructures for next-generation data centers.

2QLC: NAND flash is divided into SLC (Single Level Cell), MLC (Multi Level Cell), TLC (Triple Level Cell), QLC (Quadruple Level Cell), and PLC (Penta Level Cell) depending on how much information is stored in one cell. As the amount of information stored increases, more data can be stored in the same area.

3Low Power Compression Attached Memory Module 2 (LPCAMM2): LPDDR5X-based module solution that provides power efficiency and high performance as well as space savings. It has the performance effect of replacing two existing DDR5 SODIMMs with one LPCAMM2.

4Zoned Universal Flash Storage (ZUFS): A NAND Flash product that improves efficiency of data management. The product optimizes data transfer between an operating system and storage devices by storing data with similar characteristics in the same zone of the UFS, a flash memory product for various electronic devices such as digital camera and mobile phone.

5Accelerator-in-Memory based Accelerator (AiMX): SK hynix’s accelerator card product that specializes in large language models using GDDR6-AiM chips

In particular, CMM-Ax is an groundbreaking product that adds computational functionality to CXL’s advantage of expanding high-capacity memory, contributing to improving performance and energy efficiency of the next-generation server platforms6.

6Platform: Refers to a computing system that integrates both hardware and software technologies. It includes all key components necessary for computing, such as the CPU and memory.

“The changes in the world triggered by AI are expected to accelerate further this year, and SK hynix will produce 6th generation HBM (HBM4) in the second half of this year to lead the customized HBM market to meet the diverse needs of customers,” said Kwak Noh-Jung, CEO at SK hynix. “We will continue to do our best to present new possibilities in the AI era through technological innovation and provide irreplaceable value to our customers.”

About SK hynix Inc.

SK hynix Inc., headquartered in Korea, is the world’s top-tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”), and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.

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SOURCE SK hynix Inc.

Technology

Secondary Tickets Market, 28% of Growth to Originate from North America, Technavio

Published

1 hour ago

January 2, 2025

NEW YORK, Jan. 2, 2025 /PRNewswire/ — The global secondary tickets market size is estimated to grow by USD 9.05 billion from 2025 to 2029, according to Technavio. The market is estimated to grow at a CAGR of 8.4% during the forecast period.

For comprehensive forecast and historic data on regions,market segments, customer landscape, and companies- Click for the snapshot of this report

Report Attribute

Details

Base Year

2024

Forecast period

2025-2029

Historic Data for

2019 – 2023

Segments Covered

Type (Sports events, Concerts, Performing arts, and Movies), Mode Of Booking (Online and Offline), and Geography (North America, Europe, APAC, South America, and Middle East and Africa)

Key Companies Covered

Ace Ticket LLC, Anschutz Entertainment Group Inc., Citizen Ticket Ltd., Coast To Coast Tickets LLC, CTS Eventim AG and Co. KGaA, eBay Inc., Eventbee Inc., Eventbrite Inc., Face-value Alliance Ticketing Ltd., Ideabud LLC, Live Nation Entertainment Inc., PrimeSport LLC, SeatGeek Inc., Ticket City Inc., TicketNetwork Inc., TickPick LLC, TiqIQ LLC, Twickets Ltd., Viagogo Entertainment Inc., and Vivid Seats Inc.

Regions Covered

North America, Europe, APAC, South America, and Middle East and Africa

Region Outlook

North AmericaEuropeAsiaRest of World

1. North America – North America is estimated to contribute 28%. To the growth of the global market. The Secondary Tickets Market report forecasts market growth by revenue at global, regional & country levels from 2017 to 2027. In the geographic landscape of the secondary tickets market, fraudulent activities such as ticket scalping and the resale of tickets continue to pose moral concerns for sincere fans. Exorbitant costs, driven by dishonest persons using bots and automated software, create risks for consumers seeking acceptable prices. The global market for tickets, including concerts, sports events, theater performances, and special events, has become a commanding presence in the entertainment industry. Urbanization and digital platforms have expanded the market, making trips and experiences more accessible but also increasing the prevalence of deceptive advertising on third-party platforms. Technological changes, such as sophisticated bots and algorithms, have complicated security measures for individual sellers and professional resellers/brokers. Blockchain technology offers potential solutions through ticket ownership and authenticity, but consumer complaints persist due to inflated prices and the risks associated with automated scalping. Equitable ticket allocation and a user-friendly ecosystem remain elusive goals in this complex market.

The secondary tickets market refers to the sale of tickets for events that have already been purchased by individuals but are now being resold. This market provides an opportunity for fans to purchase tickets to sold-out events. It operates through various platforms, including online marketplaces and brokers. The demand for secondary tickets is driven by the desire to attend popular events that may have limited ticket availability. The market functions based on supply and demand principles, with prices fluctuating according to the availability and desirability of the tickets. It’s essential to note that the purchase of secondary tickets may come with additional fees and potential risks, such as the possibility of counterfeit tickets.

For more insights on North America’s significant contribution along with the market share of rest of the regions and countries – Download a FREE Sample

Segmentation Overview

Type1.1 Sports events1.2 Concerts1.3 Performing arts1.4 MoviesMode Of Booking2.1 Online2.2 OfflineGeography3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa

Get a glance at the market contribution of rest of the segments – Download a FREE Sample Report in minutes!

1.1 Fastest growing segment:

Research Analysis

The secondary tickets marketplace experiences significant demand during sold-out concerts, big athletic events, and blockbuster theatrical plays. This demand often leads to a spike in prices, making tickets unaffordable for sincere fans. The resale of tickets through unofficial channels and third-party platforms poses moral concerns and risks, including fraudulent activities, unfair competition, and deceptive advertising. Dishonest persons use automated software and bots to buy tickets in restricted quantities, leading to inflated prices and exorbitant costs. Ethical considerations and customer trust are crucial in this market, as fans seek convenience without falling victim to fraudulent scalpers.

Market Overview

The Secondary Tickets Market refers to the sale and purchase of tickets for events that have already been issued. This market operates independently of the primary market, which sells tickets directly from the event organizers or venues. The demand for secondary tickets arises due to various reasons such as unavailability of tickets in the primary market, high demand for popular events, or the convenience of purchasing tickets closer to the event date. The market for secondary tickets is regulated by various laws and regulations to prevent fraudulent activities and ensure fair pricing. The use of technology, such as mobile applications and websites, has significantly increased the accessibility and convenience of buying and selling secondary tickets. The market for secondary tickets is a dynamic one, with prices fluctuating based on various factors such as demand, supply, and the proximity of the event date.

Start exploring market insights by Download a FREE Sample Report in minutes!

Key Topics Covered:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio