Technology
Non-Destructive Testing Market in the Oil and Gas Sector is projected to grow by USD 1.57 Billion from 2024-2028, driven by AI in NDT solutions – Technavio
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5 hours agoon
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NEW YORK, Oct. 31, 2024 /PRNewswire/ — Report with market evolution powered by AI – The global non-destructive testing market in oil and gas industry size is estimated to grow by USD 1.57 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 7.3% during the forecast period. Increased demand for NDT in oil and gas transportation is driving market growth, with a trend towards integration of AI and ML in NDT devices. However, high initial cost of NDT poses a challenge.Key market players include Acuren Corp., Amerapex Corp., Applus Services Technologies SL, Ashtead technology, Baker Hughes Co., Bureau Veritas, Dakota Ultrasonics Corp., Dexon Technology PLC, Eddyfi Technologies, Evident Corp, FORCE Technology, Intertek Group Plc, Magnaflux, Mistras Group Inc., Phoenix Inspection Systems Ltd, SGS SA, Sonatest Ltd, Team Inc, TUV Rheinland AG, Vibrant NDT Services, Videray Technologies Inc., and Zetec Inc..
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Non-Destructive Testing Market In Oil And Gas Industry Scope
Report Coverage
Details
Base year
2023
Historic period
2018 – 2022
Forecast period
2024-2028
Growth momentum & CAGR
Accelerate at a CAGR of 7.3%
Market growth 2024-2028
USD 1565.6 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
6.8
Regional analysis
North America, Europe, APAC, Middle East and Africa, and South America
Performing market contribution
North America at 33%
Key countries
US, China, Saudi Arabia, India, Canada, UK, UAE, Germany, Russia, and Japan
Key companies profiled
Acuren Corp., Amerapex Corp., Applus Services Technologies SL, Ashtead technology, Baker Hughes Co., Bureau Veritas, Dakota Ultrasonics Corp., Dexon Technology PLC, Eddyfi Technologies, Evident Corp, FORCE Technology, Intertek Group Plc, Magnaflux, Mistras Group Inc., Phoenix Inspection Systems Ltd, SGS SA, Sonatest Ltd, Team Inc, TUV Rheinland AG, Vibrant NDT Services, Videray Technologies Inc., and Zetec Inc.
Market Driver
The integration of advanced technologies, including AI, ML, IoT, and AR, is revolutionizing Non-Destructive Testing (NDT) in the oil and gas industry. Automated NDT processes reduce human error and boost operational efficiency, enabling continuous monitoring and real-time data analysis. AI algorithms analyze vast amounts of data to identify patterns and predict potential failures, preventing costly downtimes and enhancing safety. IoT devices collect and transmit data from NDT processes, enabling remote monitoring and control, and providing real-time analysis for immediate decision-making. Augmented reality (AR) provides technicians with real-time information and guidance during inspections, enhancing accuracy and efficiency in complex environments. The adoption of these technologies is expected to set new standards for the industry, improving the accuracy, reliability, and cost-effectiveness of inspections, enabling predictive maintenance, and reducing operational risks. This trend is driving the growth of the Non-Destructive Testing market in the oil and gas sector during the forecast period.
Non-Destructive Testing (NDT) plays a crucial role in the Oil and Gas industry, ensuring the safety and reliability of fuel rods, infrastructure, and components. Trends in NDT include advanced products like Eddy current testing and industrial CT scanners, which offer improved flaw detection and inspection capabilities. Traditional testing services, such as ultrasonic testing and radiographic testing, remain essential for component testing in various sectors like Aerospace and Defense, Power and Energy, and Automotive and Transportation. Waste management and cost-effectiveness are key concerns. Software and instrumentation, including probes and advanced NDT processes, help optimize NDT operations. Robotics and automated crawlers streamline inspections, reducing labor costs. In industries like healthcare, NDT aids in detecting conditions like osteoarthritis and degenerative disc disease, contributing to medical tourism and healthcare expenses. NDT is vital for system failures prevention in industries like shale oil, where safety and efficiency are paramount. By staying updated on the latest NDT trends and technologies, businesses can enhance their operations and maintain a competitive edge.
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The oil and gas industry relies heavily on Non-Destructive Testing (NDT) to ensure the integrity and safety of their infrastructure. However, the high initial cost of NDT equipment poses a significant challenge. The expense for advanced NDT devices, such as ultrasonic flaw detectors, can be substantial, with a single stainless-steel ultrasonic testing unit costing approximately USD5,665. Concrete NDT testing equipment is more affordable but still represents a considerable investment, with a single unit costing around USD600. The cost of specialized ultrasonic testing equipment for corrosion, erosion, and plate thickness measurement can also add up, with a 25MM ultrasonic testing device costing around USD30. The high cost of NDT equipment necessitates careful budgeting by oil and gas companies. While the benefits of NDT in preventing failures and ensuring safety are clear, the financial burden of acquiring these technologies can be a significant hurdle. Companies must weigh the long-term advantages against the immediate financial outlay, balancing safety and operational efficiency with budgetary constraints. This challenge highlights the need for strategic investment and potential financial support mechanisms to facilitate the adoption of essential NDT technologies in the oil and gas industry. The high cost of NDT equipment will negatively impact the growth of the oil and gas NDT market during the forecast period.Non-destructive testing (NDT) plays a crucial role in ensuring material integrity in various industries, including oil and gas. Fault detection is essential for preventing costly downtime and maintaining safety. Ultrasonic testing using ultrasonic equipment is a popular NDT process, detecting internal defects. Advanced NDT methods like industrial CT scanners and robotics are used for complex component testing. Traditional NDT techniques like radiographic testing and magnetic particle inspection are also used. The aerospace and defense industries have led the way in NDT innovation, with remote inspection technologies and automated crawlers. NDT is also vital in power generation, especially for pipelines and pressure systems, detecting internal and external corrosion. NDT equipment includes portable devices and drones for volumetric inspection. Virtual training programs help ensure high-quality NDT inspections. The oil and gas industry, shale oil, and power industry all benefit from NDT, focusing on material integrity and inspection techniques. NDI, NDE, and NDE are interchangeable terms for NDT. NDT is used in construction, inspection of pressure systems, steam turbines, gas turbines, and nuclear power plants. Visual inspection, liquid penetrant inspection, and ultrasonic inspection are common NDT methods.
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Segment Overview
This non-destructive testing market in oil and gas industry report extensively covers market segmentation by
Method 1.1 Traditional methods1.2 Advanced methodsType 2.1 Services2.2 EquipmentGeography 3.1 North America3.2 Europe3.3 APAC3.4 Middle East and Africa3.5 South America
1.1 Traditional methods- The Non-Destructive Testing (NDT) market in the Oil and Gas industry is significant due to the sector’s reliance on equipment reliability and safety. NDT techniques like ultrasonic testing, radiography, and magnetic particle inspection help identify defects without damaging the equipment. These tests ensure the integrity of pipelines, tanks, and other structures, preventing potential leaks and ensuring operational efficiency. The NDT market continues to grow as the Oil and Gas industry focuses on maintaining safety standards and reducing downtime.
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Research Analysis
Non-destructive testing (NDT) is a critical process used in various industries, including oil and gas, to ensure material integrity and detect faults without damaging the tested components. Ultrasonic testing and radiographic testing are common NDT techniques, utilizing ultrasonic equipment and industrial CT scanners, respectively. Advanced NDT processes, such as robotics and automated crawlers, enhance efficiency and precision in fault detection. NDT is essential in sectors like aerospace and defense for detecting internal and surface defects in components. NDI, NDE, and NDE are interchangeable terms for this non-invasive inspection method. NDT is also crucial in power generation for detecting internal and external corrosion in pipelines and other critical infrastructure. Visual inspection and liquid penetrant inspection are additional techniques used in NDT. Training is vital for NDT professionals to maintain the highest standards and stay updated on the latest technologies and techniques.
Market Research Overview
Non-destructive testing (NDT) is a critical process used in various industries, including oil and gas, to ensure material integrity and detect faults without damaging the tested components or structures. NDT techniques, such as ultrasonic testing, radiographic testing, industrial CT scanners, and advanced NDT processes, are used to identify internal and surface defects in pipelines, pressure systems, steam and gas turbines, nuclear power plants, and other critical infrastructure. Ultrasonic equipment, robotics, automated crawlers, and remote inspection technologies enable efficient and accurate NDT. Traditional NDT methods like liquid penetrant inspection and magnetic particle inspection continue to be used alongside new technologies. NDT is essential in the aerospace sector and defense industry for component testing and inspection of complex structures. The power industry, including shale oil and gas, relies on NDT for internal and external corrosion detection, volumetric inspection, and inspection of instrumentation and probes. Training programs and virtual training are crucial for maintaining expertise in NDT techniques and technologies. Portable NDT devices, drone inspection, and software solutions further expand the capabilities of NDT in various industries.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
MethodTraditional MethodsAdvanced MethodsTypeServicesEquipmentGeographyNorth AmericaEuropeAPACMiddle East And AfricaSouth America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company 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
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Cogeco Communications Releases its Financial Results for the Fourth Quarter of Fiscal 2024
Published
1 hour agoon
October 31, 2024By
Strong progress on the strategic priorities announced last quarter centered on synergies, digitization, advanced analytics, network expansion and wireless.Successfully completed the combination of our Canadian and U.S. telecommunications teams.Signed strategic partnerships to enable an upcoming launch of wireless services in Canada, in a capital-efficient manner as an MVNO.Met or exceeded all financial guidelines set for fiscal 2024; issuing fiscal 2025 financial guidelines.Increasing quarterly eligible dividend by 8.0% to $0.922 per share.
MONTRÉAL, Oct. 31, 2024 /CNW/ – Today, Cogeco Communications Inc. (TSX: CCA) (“Cogeco Communications” or the “Corporation”) announced its financial results for the fourth quarter ended August 31, 2024 and is issuing its fiscal 2025 financial guidelines.
“Fiscal 2024 has been a year of tremendous progress for Cogeco,” said Frédéric Perron, President and CEO. “Over the last six months alone, we set clear priorities to achieve sustainable growth, launched wireless in the U.S., assembled the building blocks to launch wireless in Canada as an MVNO, successfully combined our Canadian and U.S. organizations and refreshed our executive team. The recently completed restructuring, which simplified our operating model, was the first phase of a structured three-year program. We are now in a position to accelerate our digital capabilities, drive bundling across wireline and wireless, and continue to optimize our operations for ongoing growth and value creation.
“Our Canadian telecommunications business continued to perform well in Q4, driven by growth of our Internet subscriber base through Cogeco Connexion, oxio, and our network expansion program. We’re particularly excited about our oxio brand’s performance as its digital model has not only become a growth engine for the organization, but has also become a model for key transformation initiatives within the Corporation more broadly.
“In the U.S., the launch of Breezeline Mobile provides customers even more compelling reasons to bundle their services with us. Our Internet-led strategy and focus on operational efficiency contributed to another quarter of strong margin growth.
“Over the past year, we have maintained our balanced approach to allocating capital to growth initiatives including network expansion, product improvements, and a capital-light approach to growing wireless services in both countries, as well as returning capital through an increased dividend and share buybacks, all while progressively reducing our leverage. We will continue with our balanced approach in fiscal 2025 and with that, we are delighted to announce an increase in our quarterly dividend per share to $0.922.”
Consolidated Financial Highlights
Three months ended August 31
2024
2023
(1)
Change
Change in
constant
currency
(2)
(In thousands of Canadian dollars, except % and per share data) (unaudited)
$
$
%
%
Revenue
747,751
743,397
0.6
(0.7)
Adjusted EBITDA (2)
370,418
351,300
5.4
4.2
Adjusted EBITDA margin (2)
49.5 %
47.3 %
Profit for the period
85,484
91,797
(6.9)
Profit for the period attributable to owners of the Corporation
81,958
86,499
(5.2)
Adjusted profit attributable to owners of the Corporation (2)(3)
99,054
97,175
1.9
Cash flows from operating activities
319,177
281,326
13.5
Free cash flow (1)(2)
148,189
88,953
66.6
66.1
Free cash flow, excluding network expansion projects (1)(2)
205,100
121,881
68.3
67.4
Acquisition of property, plant and equipment
154,260
205,570
(25.0)
Net capital expenditures (2)(4)
152,253
176,617
(13.8)
(15.1)
Net capital expenditures, excluding network expansion projects (2)
95,342
143,689
(33.6)
(34.8)
Capital intensity (2)
20.4 %
23.8 %
Capital intensity, excluding network expansion projects (2)
12.8 %
19.3 %
Diluted earnings per share
1.94
1.95
(0.5)
Adjusted diluted earnings per share (2)(3)
2.35
2.19
7.3
Operating results
For the fourth quarter of fiscal 2024 ended on August 31, 2024:
Revenue increased by 0.6% to $747.8 million. On a constant currency basis(2), revenue decreased by 0.7% due to a decline in revenue in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.Adjusted EBITDA increased by 5.4% to $370.4 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.Profit for the period amounted to $85.5 million, of which $82.0 million, or $1.94 per diluted share, was attributable to owners of the Corporation compared to $91.8 million, $86.5 million, and $1.95 per diluted share, respectively, in the comparable period of fiscal 2023. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense and non-cash pre-tax impairment charges of $14.9 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA, lower financial expense and lower acquisition, integration, restructuring and other costs.Adjusted profit attributable to owners of the Corporation(3) was $99.1 million, or $2.35 per diluted share(3), compared to $97.2 million, or $2.19 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.Net capital expenditures were $152.3 million, a decrease of 13.8% compared to $176.6 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $150.0 million, a decrease of 15.1% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.Excluding network expansion projects, net capital expenditures were $95.3 million, a decrease of 33.6% compared to $143.7 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $93.7 million, a decrease of 34.8% compared to last year.Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.Capital intensity was 20.4% compared to 23.8% last year. Excluding network expansion projects, capital intensity was 12.8% compared to 19.3% in the same period of the prior year.Acquisition of property, plant and equipment decreased by 25.0% to $154.3 million, mainly resulting from lower spending.Free cash flow(1) increased by 66.6%, or 66.1% in constant currency, and amounted to $148.2 million, or $147.7 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 68.3%, or 67.4% in constant currency, and amounted to $205.1 million, or $204.1 million in constant currency.Cash flows from operating activities increased by 13.5% to $319.2 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.At its October 31, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.
FISCAL 2025 FINANCIAL GUIDELINES
Cogeco Communications released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $650 and $725 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Capital intensity is expected to range between 22% and 24%, or 17% and 19% excluding network expansion projects. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.
October 31, 2024
Projections
(i)
Actual
Fiscal 2025
(constant currency)
(ii)
Fiscal 2024
(In millions of Canadian dollars, except percentages)
$
$
Financial guidelines
Revenue
Stable
2,977
Adjusted EBITDA
Stable
1,442
Net capital expenditures
$650 to $725
638
Net capital expenditures in connection with network expansion projects
$140 to $190
137
Capital intensity
22% to 24%
21.4 %
Capital intensity, excluding network expansion projects
17% to 19%
16.8 %
Free cash flow
Decrease of 0% to 10%
(iii)
476
Free cash flow, excluding network expansion projects
Decrease of 0% to 10%
(iii)
613
(i)
Percentage of changes compared to fiscal 2024.
(ii)
Fiscal 2025 financial guidelines are based on a USD/CDN constant exchange rate of 1.3606 USD/CDN.
(iii)
The assumed current income tax effective rate is approximately 14%.
These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the “Forward-looking statements” section of this press release.
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(2)
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(3)
Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest.
(4)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(5)
Organic growth calculated by excluding additions resulting from acquisitions.
Financial highlights
Change in
constant
currency
Change in
constant
currency
Three months and years ended August 31
2024
2023
(1)
Change
(2) (3)
2024
2023
(1)
Change
(2) (3)
(In thousands of Canadian dollars, except % and per share data)
$
$
%
%
$
$
%
%
Operations
Revenue
747,751
743,397
0.6
(0.7)
2,976,524
2,984,128
(0.3)
(0.8)
Adjusted EBITDA (3)
370,418
351,300
5.4
4.2
1,442,314
1,421,066
1.5
1.0
Adjusted EBITDA margin (3)
49.5 %
47.3 %
48.5 %
47.6 %
Acquisition, integration, restructuring and other costs (4)
10,561
15,228
(30.6)
59,731
36,225
64.9
Impairment of property, plant and equipment
14,862
—
—
14,862
—
—
Profit for the period
85,484
91,797
(6.9)
354,132
417,972
(15.3)
Profit for the period attributable to owners of the Corporation
81,958
86,499
(5.2)
335,534
392,273
(14.5)
Adjusted profit attributable to owners of the Corporation (3)(5)
99,054
97,175
1.9
400,431
417,960
(4.2)
Cash flow
Cash flows from operating activities
319,177
281,326
13.5
1,175,219
962,905
22.0
Free cash flow (1)(3)
148,189
88,953
66.6
66.1
476,021
418,056
13.9
13.6
Free cash flow, excluding network expansion projects (1)(3)
205,100
121,881
68.3
67.4
613,415
590,891
3.8
3.5
Acquisition of property, plant and equipment
154,260
205,570
(25.0)
659,090
802,830
(17.9)
Net capital expenditures (3)(6)
152,253
176,617
(13.8)
(15.1)
637,833
699,506
(8.8)
(9.3)
Net capital expenditures, excluding network expansion projects (3)
95,342
143,689
(33.6)
(34.8)
500,439
526,671
(5.0)
(5.5)
Capital intensity (3)
20.4 %
23.8 %
21.4 %
23.4 %
Capital intensity, excluding network expansion projects (3)
12.8 %
19.3 %
16.8 %
17.6 %
Per share data (7)
Earnings per share
Basic
1.95
1.95
—
7.87
8.78
(10.4)
Diluted
1.94
1.95
(0.5)
7.83
8.75
(10.5)
Adjusted diluted (3)(5)
2.35
2.19
7.3
9.35
9.32
0.3
Dividends per share
0.854
0.776
10.1
3.416
3.104
10.1
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Proceeds on disposals of property, plant and equipment amounted to $0.6 million and $3.4 million for the three-month period and year ended August 31, 2024, respectively ($1.0 million and $2.7 million, respectively, in fiscal 2023). Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(2)
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three-month period and year ended August 31, 2023, the average foreign exchange rates used for translation were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.
(3)
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release.
(4)
For the three-month period and year ended August 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the second half of the year, including costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives. For the three-month period and year ended August 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions, as well as acquisition and integration costs incurred in connection with the acquisition of oxio, completed on March 3, 2023, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2023 within the Canadian and the American telecommunications segments and from configuration and customization costs related to cloud computing arrangements. Furthermore, a retroactive adjustment of $8.4 million was recognized in fiscal 2023 following the Copyright Board preliminary conclusions on the redetermination of the 2014-2018 royalty rates, of which $4.2 million was reversed during the second quarter of fiscal 2024 following the Copyright Board decision issued in January 2024.
(5)
Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, all net of tax and non-controlling interest.
(6)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(7)
Per multiple and subordinate voting share.
As at
August 31, 2024
August 31, 2023
(In thousands of Canadian dollars, except %)
$
$
Financial condition
Cash and cash equivalents
76,335
362,921
Total assets
9,675,009
9,768,370
Long-term debt
Current
361,808
41,765
Non-current
4,448,261
4,979,241
Net indebtedness (1)
4,803,629
4,749,214
Equity attributable to owners of the Corporation
2,979,691
2,957,797
Return on equity (2)
11.3 %
13.7 %
(1)
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca.
(2)
Return on equity is a supplementary financial measure and is calculated as profit attributable to owners of the Corporation for the year divided by the average of the equity attributable to owners of the Corporation for the year.
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.’s (“Cogeco Communications” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”, “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications’ expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.
Non-IFRS Accounting Standards and other financial measures
This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications’ non-IFRS Accounting Standards ratios.
Specified non-IFRS Accounting Standards measures
Used in the component of the following non-IFRS Accounting Standards ratios
Adjusted profit attributable to owners of the Corporation
Adjusted diluted earnings per share
Constant currency basis
Change in constant currency
Net capital expenditures, excluding network expansion projects
Capital intensity, excluding network expansion projects
Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.
Constant currency basis and foreign exchange impact reconciliation
Consolidated
Three months ended August 31
2024
2023
(1)
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
747,751
(9,731)
738,020
743,397
0.6
(0.7)
Operating expenses
372,095
(5,234)
366,861
388,381
(4.2)
(5.5)
Management fees – Cogeco Inc.
5,238
—
5,238
3,716
41.0
41.0
Adjusted EBITDA
370,418
(4,497)
365,921
351,300
5.4
4.2
Free cash flow (1)
148,189
(462)
147,727
88,953
66.6
66.1
Net capital expenditures
152,253
(2,254)
149,999
176,617
(13.8)
(15.1)
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Years ended August 31
2024
2023
(1)
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign exchange impact
In
constant currency
Actual
Actual
In
constant currency
$
$
$
$
%
%
Revenue
2,976,524
(15,024)
2,961,500
2,984,128
(0.3)
(0.8)
Operating expenses
1,513,258
(8,121)
1,505,137
1,544,462
(2.0)
(2.5)
Management fees – Cogeco Inc.
20,952
—
20,952
18,600
12.6
12.6
Adjusted EBITDA
1,442,314
(6,903)
1,435,411
1,421,066
1.5
1.0
Free cash flow (1)
476,021
(932)
475,089
418,056
13.9
13.6
Net capital expenditures
637,833
(3,340)
634,493
699,506
(8.8)
(9.3)
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Canadian telecommunications segment
Three months ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
378,702
—
378,702
375,754
0.8
0.8
Operating expenses
175,688
(288)
175,400
180,183
(2.5)
(2.7)
Adjusted EBITDA
203,014
288
203,302
195,571
3.8
4.0
Net capital expenditures
71,000
(245)
70,755
73,348
(3.2)
(3.5)
Years ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
1,510,506
—
1,510,506
1,489,915
1.4
1.4
Operating expenses
710,706
(447)
710,259
701,717
1.3
1.2
Adjusted EBITDA
799,800
447
800,247
788,198
1.5
1.5
Net capital expenditures
356,274
(463)
355,811
354,384
0.5
0.4
American telecommunications segment
Three months ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
369,049
(9,731)
359,318
367,643
0.4
(2.3)
Operating expenses
185,588
(4,916)
180,672
193,172
(3.9)
(6.5)
Adjusted EBITDA
183,461
(4,815)
178,646
174,471
5.2
2.4
Net capital expenditures
76,238
(2,011)
74,227
100,488
(24.1)
(26.1)
Years ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
1,466,018
(15,024)
1,450,994
1,494,213
(1.9)
(2.9)
Operating expenses
759,658
(7,632)
752,026
800,409
(5.1)
(6.0)
Adjusted EBITDA
706,360
(7,392)
698,968
693,804
1.8
0.7
Net capital expenditures
267,728
(2,865)
264,863
336,910
(20.5)
(21.4)
Adjusted profit attributable to owners of the Corporation
Three months ended August 31
Years ended August 31
2024
2023
2024
2023
(In thousands of Canadian dollars)
$
$
$
$
Profit for the period attributable to owners of the Corporation
81,958
86,499
335,534
392,273
Impairment of property, plant and equipment
14,862
—
14,862
—
Acquisition, integration, restructuring and other costs
10,561
15,228
59,731
36,225
Loss on debt extinguishment (1)
—
—
16,880
—
Tax impact for the above items
(6,648)
(3,829)
(24,109)
(9,370)
Non-controlling interest impact for the above items
(1,679)
(723)
(2,467)
(1,168)
Adjusted profit attributable to owners of the Corporation
99,054
97,175
400,431
417,960
(1) Included within financial expense.
Free cash flow and free cash flow, excluding network expansion projects reconciliations
Three months ended August 31
Years ended August 31
2024
2023
(1)
2024
2023
(1)
(In thousands of Canadian dollars)
$
$
$
$
Cash flows from operating activities
319,177
281,326
1,175,219
962,905
Changes in other non-cash operating activities
(34,878)
(9,946)
(56,369)
97,851
Income taxes paid
6,526
2,025
5,719
91,673
Current income taxes
(553)
(5,708)
(20,147)
(32,067)
Interest paid
71,695
65,489
266,464
239,648
Financial expense
(61,925)
(70,222)
(277,690)
(251,642)
Loss on debt extinguishment (2)
—
—
16,880
—
Amortization of deferred transaction costs and discounts on long-term debt (2)
2,190
3,195
9,143
12,601
Net capital expenditures (3)
(152,253)
(176,617)
(637,833)
(699,506)
Proceeds on disposals of property, plant and equipment (1)
594
1,037
3,378
2,651
Repayment of lease liabilities
(2,384)
(1,626)
(8,743)
(6,058)
Free cash flow (1)
148,189
88,953
476,021
418,056
Net capital expenditures in connection with network expansion projects
56,911
32,928
137,394
172,835
Free cash flow, excluding network expansion projects (1)
205,100
121,881
613,415
590,891
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
(2)
Included within financial expense.
(3)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
Net capital expenditures reconciliation
Three months ended August 31
Years ended August 31
2024
2023
2024
2023
(In thousands of Canadian dollars)
$
$
$
$
Acquisition of property, plant and equipment
154,260
205,570
659,090
802,830
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period
(2,007)
(28,953)
(21,257)
(103,324)
Net capital expenditures
152,253
176,617
637,833
699,506
Adjusted EBITDA reconciliation
Three months ended August 31
Years ended August 31
2024
2023
2024
2023
(In thousands of Canadian dollars)
$
$
$
$
Profit for the period
85,484
91,797
354,132
417,972
Income taxes
15,225
18,119
62,342
94,761
Financial expense
61,925
70,222
277,690
251,642
Impairment of property, plant and equipment
14,862
—
14,862
—
Depreciation and amortization
182,361
155,934
673,557
620,466
Acquisition, integration, restructuring and other costs
10,561
15,228
59,731
36,225
Adjusted EBITDA
370,418
351,300
1,442,314
1,421,066
Net capital expenditures and free cash flow excluding network expansion projects reconciliations
Net capital expenditures
Three months ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign exchange impact
In
constant currency
Actual
Actual
In
constant currency
$
$
$
$
%
%
Net capital expenditures
152,253
(2,254)
149,999
176,617
(13.8)
(15.1)
Net capital expenditures in connection with network expansion projects
56,911
(576)
56,335
32,928
72.8
71.1
Net capital expenditures, excluding network expansion projects
95,342
(1,678)
93,664
143,689
(33.6)
(34.8)
Years ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign exchange impact
In
constant currency
Actual
Actual
In
constant currency
$
$
$
$
%
%
Net capital expenditures
637,833
(3,340)
634,493
699,506
(8.8)
(9.3)
Net capital expenditures in connection with network expansion projects
137,394
(780)
136,614
172,835
(20.5)
(21.0)
Net capital expenditures, excluding network expansion projects
500,439
(2,560)
497,879
526,671
(5.0)
(5.5)
Free cash flow
Three months ended August 31
2024
2023
(1)
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign exchange impact
In
constant currency
Actual
Actual
In
constant currency
$
$
$
$
%
%
Free cash flow (1)
148,189
(462)
147,727
88,953
66.6
66.1
Net capital expenditures in connection with network expansion projects
56,911
(576)
56,335
32,928
72.8
71.1
Free cash flow, excluding network expansion projects (1)
205,100
(1,038)
204,062
121,881
68.3
67.4
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Years ended August 31
2024
2023
(1)
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign exchange impact
In
constant currency
Actual
Actual
In
constant currency
$
$
$
$
%
%
Free cash flow (1)
476,021
(932)
475,089
418,056
13.9
13.6
Net capital expenditures in connection with network expansion projects
137,394
(780)
136,614
172,835
(20.5)
(21.0)
Free cash flow, excluding network expansion projects (1)
613,415
(1,712)
611,703
590,891
3.8
3.5
(1)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Additional information
Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.
About Cogeco Communications Inc.
Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Claudja Joseph
Director, Communications & DEI
Cogeco Communications Inc.
Tel.: 514 764-4600
claudja.joseph@cogeco.com
Conference Call:
Friday, November 1st, 2024 at 11:00 a.m. (Eastern Daylight Time)
A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco Communications’ website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications’ website for a three-month period.
Please use the following dial-in number to access the conference call 10 minutes before the start of the conference:
Local – Toronto: 1 289 514-5100
Toll Free – North America: 1 800 717-1738
To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.
SOURCE Cogeco Communications Inc.
Technology
Cogeco Releases its Financial Results for the Fourth Quarter of Fiscal 2024
Published
1 hour agoon
October 31, 2024By
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)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(7)
Per multiple and subordinate voting share.
As at
August 31, 2024
August 31, 2023
(In thousands of Canadian dollars, except %)
$
$
Financial condition
Cash and cash equivalents
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
In
constant
currency
Actual
Actual
In
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
In
constant
currency
Actual
Actual
In
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)
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Canadian telecommunications segment
Three months ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
378,702
—
378,702
375,754
0.8
0.8
Operating expenses
175,688
(288)
175,400
180,183
(2.5)
(2.7)
Adjusted EBITDA
203,014
288
203,302
195,571
3.8
4.0
Net capital expenditures
71,000
(245)
70,755
73,348
(3.2)
(3.5)
Years ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
1,510,506
—
1,510,506
1,489,915
1.4
1.4
Operating expenses
710,706
(447)
710,259
701,717
1.3
1.2
Adjusted EBITDA
799,800
447
800,247
788,198
1.5
1.5
Net capital expenditures
356,274
(463)
355,811
354,384
0.5
0.4
American telecommunications segment
Three months ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
369,049
(9,731)
359,318
367,643
0.4
(2.3)
Operating expenses
185,588
(4,916)
180,672
193,172
(3.9)
(6.5)
Adjusted EBITDA
183,461
(4,815)
178,646
174,471
5.2
2.4
Net capital expenditures
76,238
(2,011)
74,227
100,488
(24.1)
(26.1)
Years ended August 31
2024
2023
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Revenue
1,466,018
(15,024)
1,450,994
1,494,213
(1.9)
(2.9)
Operating expenses
759,658
(7,632)
752,026
800,409
(5.1)
(6.0)
Adjusted EBITDA
706,360
(7,392)
698,968
693,804
1.8
0.7
Net capital expenditures
267,728
(2,865)
264,863
336,910
(20.5)
(21.4)
Adjusted profit attributable to owners of the Corporation
Three months ended August 31
Years ended August 31
2024
2023
2024
2023
(In thousands of Canadian dollars)
$
$
$
$
Profit for the period attributable to owners of the Corporation
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)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
(2)
Included within financial expense.
(3)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
Net capital expenditures reconciliation
Three months ended August 31
Years ended August 31
2024
2023
2024
2023
(In thousands of Canadian dollars)
$
$
$
$
Acquisition of property, plant and equipment
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
In
constant
currency
Actual
Actual
In
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
In
constant
currency
Actual
Actual
In
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
In
constant
currency
Actual
Actual
In
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)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Years ended August 31
2024
2023
(1)
Change
(In thousands of Canadian dollars, except percentages)
Actual
Foreign
exchange
impact
In
constant
currency
Actual
Actual
In
constant
currency
$
$
$
$
%
%
Free cash flow (1)
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)
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation.
Additional information
Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.
About Cogeco 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.
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