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

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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.

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Technology

Global Times: Dam benefits communities in Xinjiang, paving way for a secure ecological future for region

Published

8 mins ago

on

November 1, 2024

By

BEIJING, Oct. 31, 2024 /PRNewswire/ — In the past, the Yarkand River in Xinjiang would flood annually during the rainy season, causing destruction to infrastructure, submerging farmland, and engulfing homes and villages. Bubishare, a Uygur resident who grew up in a village upstream of the river, still vividly recalls the cries of helplessness from those affected by the devastating floods before the construction of the Aratax water conservation project. Thanks to the project, these nightmares are now a thing of the past for local residents.

Located in the Karakorum Mountain Valley, the Aratax water conservation project, known as the “Xinjiang’s Three Gorges” project for its grandeur and construction challenges, was constructed to control the Yarkant River. The 1,289-km-long Yarkant River in the Tarim Basin is Xinjiang’s most flood-prone river, and the towering dam can withstand the turbulent floodwaters in a reservoir with a storage capacity of 2.2 billion cubic meters. 

Today, this dam is gushing with clean water sources, stable power, and also gushing with hope for the minority groups on the desert.

In August 2023, President Xi Jinping urged firmly grasping the strategic positioning of Xinjiang in the overall national situation and better building a beautiful Xinjiang in the process of pursuing Chinese modernization, the Xinhua News Agency reported. 

Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, demanded thorough, meticulous, concrete and sustained efforts to develop a beautiful Xinjiang that is united, harmonious, prosperous, and culturally advanced, with healthy ecosystems and people living and working in contentment, in the process of pursuing Chinese modernization.

The building of a beautiful Xinjiang extends from a dam to a relocated ethnic minority community. The relocation of villagers to new homes with improved living conditions, as a result of the dam project, has brought green energy, green fields, and a green dream of prosperity to the villagers.

Path to build new hope

After a challenging 6-hour journey along the rugged Tasha Ancient Road, the Global Times reporter finally laid eyes on the Aratax dam nestled in the mountainside deep within the Karakorum Mountain. Without firsthand experience of this journey, it is difficult to fathom the obstacles encountered during the entire process of researching, designing, and constructing the dam – no roads on the ground, barren mountains devoid of trees, transportation primarily by feet, and communication mainly through shouting. Accidents like overturning were frequent due to the rugged environment.

The Xinhua Hydropower Generation Co, Ltd, a subsidiary of the China National Nuclear Corporation, began construction on the water conservation project in 2011, with a total investment of 10.98 billion yuan ($1.5 billion). The Aratax project has played a crucial role in flood control, irrigation, and power generation. The river plain, with a population of 4 million and an irrigated area of over 6.5 million mu (433,333 hectares), is the largest irrigated area in Xinjiang and the fourth-largest in China, benefiting 2.4 million people in the region.

Zhang Yibo, a frontline employee at the developer, told the media, “Over a decade ago, this place was even more desolate and rarely visited, and our water conservancy experts achieved a remarkable feat here.” Confronted by the harsh natural surroundings, the builders traversed mountains, camped under the open sky, drank from rivers when thirsty, and rested in tents outdoor, with a firm passion for building a sustainable dam for locals.

From July 18 to August 17, 2021, the Aratax water conservancy project successfully connected four units to the grid in just one month, a rare accomplishment in the history of global hydropower development. This hydropower station significantly alleviated the power shortage in the four southern prefectures in Xinjiang. The project’s designed annual power generation is 21.86 billion kilowatt-hours, saving 883,100 tons of standard coal annually while reducing smoke and dust emissions by 175,300 tons, and enabling the residents of southern Xinjiang to access cleaner energy.

The dam’s incorporation of advanced technology, such as unmanned compaction technology using the Beidou satellite, improved digital visualization of the construction progress, and magnetic induction devices to assist in fish migration, have been notable features of its intelligent design. 

“Following the completion of this project, it has greatly supported our irrigation efforts. Economic crops like sea buckthorn and apples are now extensively cultivated in the desert, leading to significant improvements in both economic and ecological benefits,” Fan Kexing, Party secretary of Tong’an township, Kashi, Xinjiang, told the Global Times. “Previously, the area was plagued by strong winds and sandstorms, with sand and gravel striking house windows with a loud thud, but this phenomenon has now been alleviated,” Fan noted.

Path to enjoy better life

Over the last six years, the residents of the remote Karakorum Mountains in Xinjiang have experienced incredible changes. Having previously lived in the vast desert with only three mu of arable land per person a decade ago, they had to trek seven kilometers to the mountains for drinking water, which needed to be purified before consumption. Power outages lasting for days at a time were a common occurrence. However, these challenges are now a thing of the past. 

Today, the residents have an average annual income exceeding 10,000 yuan, live in beautifully decorated homes with their ethnicity characteristics, and enjoy access to closer schools, more job opportunities, and reliable water and electricity services. 

Thanks to the construction of the dam, in August 2018, 4,243 individuals from over 1,000 households in Kusilafu township, Aketao county were resettled in Tong’an township, over 100 kilometers away. This diverse community, made up of Uygurs, Kyrgyz, Tajiks, and other ethnic groups, have embraced their new beginning. 

Zhou Jingfang, an expert at the Xinhua Hydropower Generation Co who led the relocation work, still remembers the days of tirelessly conducting site surveys, clearing land, mobilizing villagers to relocate, planning and designing new sites, building resettlement houses, greening rural areas, reclaiming farmland, introducing livestock, and setting up factories, schools, clinics, and markets. 

He told the Global Times that the dedicated team members worked long hours in harsh conditions, and navigated countless checkpoints and roads in the vast desert and rugged mountains without complaint. Nowadays, the villagers are no longer facing the endless desert of despair as they did in the past.

When discussing stories of relocation, 25-year-old Bubishare said, “Our village now has schools, factories, and employment opportunities. The village has supported us to find more diverse ways to make a living.” 

“We have 20,000 acres of farmland, where we not only grow food but also operate cash crops cooperatives. This area is a seabuckthorn forest, and our village recently constructed a seabuckthorn fruit processing plant. Our seabuckthorn beer will soon hit the market. With ample water supply, we are confident in our farming endeavors.” Fan shared proudly while standing amid the seabuckthorn forest. 

In a local farmer’s backyard sheep pen, the Global Times reporter observed over 20 Dolan sheep, known as “living banks.” Zhou explained that by raising two Dolan sheep, a farmer can become prosperous within two years due to their high reproductive rate. In Tong’an, many villagers raise Dolan sheep in this manner and enjoy prosperity. 

Tong’an township has also collaborated with local businesses to establish factories, providing employment for local women to produce items made from Xinjiang cotton, such as down jackets and socks for overseas export, ensuring female workers earn at least 2,000-3,000 yuan per month. “The factory is conveniently located, allowing women to balance family responsibilities while earning an income,” Fan informed the Global Times. 

In one factory, a wall in the workshop reads, “Happiness is achieved through hard work.” These words have accurately described how local women in Xinjiang have embarked on the path to modernization through their own hands.

Along the Yarkand River, beyond the Karakorum Mountain, the villagers of Tong’an are employing their diligence and unwavering efforts to write their own happy stories in the desert. They have left behind isolation and poverty, embracing hope and prosperity within short years. In this vibrant land, a new life of perseverance and success is blossoming with vibrant hues.

https://www.globaltimes.cn/page/202408/1318454.shtml

View original content:https://www.prnewswire.com/news-releases/global-times-dam-benefits-communities-in-xinjiang-paving-way-for-a-secure-ecological-future-for-region-302293647.html

SOURCE Global Times

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Technology

Global Times: Species thriving thanks to policy, consensus in China

Published

1 hour ago

on

November 1, 2024

By

BEIJING, Oct. 31, 2024 /PRNewswire/ — Under the global framework for biodiversity, more wildlife species are increasing in number and enjoying a better space for living and breeding in China with the help of advanced technology and more popular caring, according to the Chinese delegation from diverse institutes and organizations at the 16th meeting of the Conference of the Parties (COP16) to the Convention on Biological Diversity that is being held in Cali, Colombia.

A prolonged whistle resonated through the sky, prompting visitors to lift their cameras in anticipation of capturing the migratory birds that were arriving. In recent years, tens of thousands of migratory birds such as cormorants fly each autumn to Shenzhen, a subtropical metropolis in South China, making the city one of the most important stops for these birds in the Eastern Hemisphere.

Their numbers are still increasing as the local environment improves. Environmental conservation organizations, including the Mangrove Conservation Foundation (MCF), see the growing population of migratory birds as a signal that urban biodiversity in China is heading in the right direction. 

Only around a few meters away from visitors, a black-faced spoonbill heads down in search of food over the wetlands at the Futian Mangrove National Nature Reserve alongside dozens of its brethren. Meanwhile, in the Futian Mangrove Ecological Park, an Eurasian otter, a species that disappeared from the Shenzhen Bay for nearly 20 years, has re-emerged.  

Chen Yudong, a staff member with the Mangrove Conservation Foundation who focuses on the protection and biodiversity of wetlands, told the Global Times that the Futian Mangrove Ecological Park is currently home to five species listed as National Key Protected Wildlife, including the Eastern imperial eagle, the black-faced spoonbill, and the small Indian civet. 

Additionally, the park has 39 nationally protected wildlife species at the second level (including birds, mammals, and reptiles). From 2015 to 2023, the number of insect species had risen from 109 to 1,224, while bird species had increased from 83 to 220.  

To maintain and improve biodiversity in metropolises like Shenzhen, Chinese environmentalists are exploring the effective application of emerging technologies and analytical methods in biodiversity monitoring, such as bioacoustics, weather radar data, and artificial intelligence, according to Insights for Cities on Biodiversity, an initiative focusing on how to sustain urban biodiversity, published in Shenzhen in September. 

For instance, during the migratory season, weather radar is being promoted to analyze and predict the flight paths of bird flocks, informing the implementation of lighting management strategies. This technology can help reduce accidents involving birds colliding with tall buildings or windows, particularly at night.

The delegation of the conservation foundation brought the initiative to COP16 and shared China’s experience with people who are concerned about how global biodiversity is being impacted by the continuously expanding urban areas around the world. 

Chen said that these projects and technologies are all aimed at speeding up achieving the global target set for 2030 and beyond to safeguard and sustainably use biodiversity, which was clarified in the framework, also known as the Kunming-Montreal Global Biodiversity Framework adopted at the COP15 during the Chinese presidency.

Shenzhen is not the only city that protects wetlands and preserves an international channel for migratory birds. Black-faced spoonbills have also been observed in the wetlands in East China’s Zhejiang and Fujian provinces and South China’s Guangxi.

Li Cheng, founder of the Xizijiang Ecological Conservation Center, has also been encouraged and guided by the biodiversity framework. 

“Since the COP15 was held in Kunming, I have felt the growing emphasis on ecological and biological protection from the public and authorities. More people are aware of the importance of sustaining the populations of each species on the Earth through public outreach programs,” Li told the Global Times, noting growing social consensus on biodiversity conservation seen in his daily work.

The infrared cameras set up by Li’s patrol team around the Wuqinzhang Mountain in Guangdong have recently captured additional pangolin movements, further bolstering Li’s confidence that the population of these endangered creatures is increasing.

Li still remembers the excitement he felt when one infrared camera first captured a pangolin at the end of 2018 and the night when he and colleagues repeatedly checked the pangolin’s photo multiple times. 

Chinese pangolins were assessed as “critically endangered” by the IUCN Red List of Endangered Species in 2019 and was even thought to be functionally extinct at the time of its assessment.

Now more and more people, including local villagers who have joined the patrol team, have begun to devote their lives to protecting pangolins. To improve the efficiency of their conservation efforts, Li noted that in addition to infrared cameras, a mobile application especially developed for patrol personnel has been put into use. The app is constantly updated with real-time information on the pangolins, thereby informing those on patrol of urgent situations.

“We have begun to shift our priorities and are more focused on restoring the pangolins’ habitat and making more creative use of conservation technologies,” Li noted.

View original content:https://www.prnewswire.com/news-releases/global-times-species-thriving-thanks-to-policy-consensus-in-china-302293621.html

SOURCE Global Times

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Technology

Shandong Jining: Achieve full coverage of green power and green certificate services

Published

1 hour ago

on

November 1, 2024

By

JINING, China, Nov. 1, 2024 /PRNewswire/ — State Grid Jining Power Supply Co. and Jining City Energy Bureau have recently established a green power green certificate service centre, with 14 county-level green power green certificate service stations already operational. This is the first instance in the province of a municipal power supply company achieving comprehensive green power green certificate service coverage.

State Grid Jining Power Supply Company attaches great importance to the green power ‘green certificate’ market-oriented trading services. By inviting experts from Shandong Power Trading Centre to give lectures and guidance, preparing green power green certificate publicity materials, news releases, short videos, business window publicity, customer visits and other channels, it promotes green power consumption by market players.

The establishment of the Jining Green Power Green Certificate Service Centre represents a significant step forward in the promotion of Green Power and the energy consumption revolution in Jining. The Jining Green Power Green Certificate Service Centre is dedicated to offering comprehensive green power green certificate services to a broad customer base. These include policy consultation, bill interpretation, transaction assistance and other services. The aim is to enhance understanding of green power green certificate policy among enterprises, facilitate active participation in green power green certificate transactions and drive the growth of green power consumption and the green certificate transaction market. This will inject new vitality into the local economy’s low-carbon transformation and green development.

The next step for State Grid Jining Power Supply Company is to leverage the establishment of the Green Power Green Certificate Service Centre to capitalise on its own strengths, facilitate collaboration with all relevant parties, and act as a conduit for communication between the government, enterprises, and power trading institutions. This will help to drive the development of a robust green power market system in Jining City.

View original content:https://www.prnewswire.com/apac/news-releases/shandong-jining-achieve-full-coverage-of-green-power-and-green-certificate-services-302293622.html

SOURCE State Grid Jining Power Supply Company

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