COGECO COMMUNICATIONS INC. About Cogeco Communications
Rooted in the communities it serves, Cogeco Communications Inc. is a growing competitive force in the North American telecommunications sector, serving 1.6 million residential and business customers. Through its business units Cogeco Connexion and Breezeline, Cogeco Communications provides Internet, video and phone services in Canada as well as in thirteen states in the United States. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
Canadian Telecommunications Segment
- Superior locally based customer service
- Ambitious network expansion projects, including partnering with governments to expand network in underserved areas
- Strong adjusted EBITDA(1) and margin(1), with solid cash flow generation
- 1 Gbps Internet speeds offered in more than 80% of our footprint
- Added close to 119,000 homes passed since the beginning of fiscal 2022
(In millions of Canadian dollars) | |||
Revenue | Adjusted EBITDA⁽¹⁾ | ||
FY2022 | 1,440 | FY2022 | 775 |
FY2023 | 1,490 | FY2023 | 788 |
LTM* | 1,499 | LTM* | 787 |
American Telecommunications Segment
- Well positioned as a consolidator of regional broadband operators
- Opportunity to expand in adjacent footprint with attractive demographic and economic growth
- Strong adjusted EBITDA(1) and margin(1), with solid free cash flow(1) generation
- 1 Gbps Internet offered in close to 97% of our footprint
- Added 109,000 homes passed since the beginning of fiscal 2022
(In millions of Canadian dollars)
Revenue | Adjusted EBITDA⁽¹⁾ | ||
FY2022 | 1,460 | FY2022 | 677 |
FY2023 | 1,494 | FY2023 | 694 |
LTM* | 1,464 | LTM* | 690 |
*Last twelve months ended February 29, 2024 | *Last twelve months ended February 29, 2024 |
Share Facts (as of March 28, 2024)
Dividend per quarter or $3.42(7) for fiscal 2024
Dividend growth (compared to Q2 2023)
Market capitalization
Multiple and subordinate voting shares outstanding
$0.854
- 10.1 % $2,537M 42M
Corporate Objectives and Strategies
Our strategy focuses on five strategic growth vectors:
- Pursue network expansion to reduce the digital divide
- Evolve our wireline network to meet increasing demand using a flexible and balanced technological approach
- Make accretive & complementary acquisitions to expand our footprint and broaden our capabilities and service offerings
- Expand in new customer segments with a multi-brandapproach to serve new demographics and grow our operations
- Launch and grow mobile services through a capital efficient model to enhance our offering in line with evolving customer needs and increased interest in bundled services
Financial Guidelines | Primary Service Unit Statistics | |||||||
Projections* | (As of February 29, 2024) | |||||||
Fiscal 2024 | Canadian | American | ||||||
In millions of Canadian dollars, | Actuals | (constant | ||||||
(8) | Total | |||||||
except % | Fiscal 2023 | currency)(1)(4) | Telecommunications | Telecommunications | ||||
Revenue | 2,984 | Stable | Primary | |||||
service | ||||||||
(1) | 1,421 | Stable | ||||||
Adjusted EBITDA | units(5) | 1,870,524 | 1,066,847 | 2,937,371 | ||||
Net capital expenditures(1)(2) | 700 | $700 to $775 | ||||||
Net capital expenditures in | Internet | 874,401 | 660,227 | 1,534,628 | ||||
connection with network | ||||||||
expansion projects(2) | 173 | $140 to $190 | ||||||
Capital intensity(1) | 23.4 % | 24% to 26% | Video | 618,478 | 274,939 | 893,417 | ||
Capital intensity, excluding | (1) | 17.6 % | 18% to 20% | |||||
network expansion projects | Phone | 377,645 | 131,681 | 509,326 | ||||
Free cash flow(1)(3) | 415 | (5)% to (15)% | ||||||
Free cash flow, excluding | 588 | (5)% to (15)% | ||||||
network expansion projects(1)(3) |
*As issued on November 1, 2023
Consolidated Financial Highlights
In millions of Canadian dollars, | Q2 YTD | Q2 YTD | Change in | ||||
FY2023 | Q2 2024 | Q2 2023 | constant | ||||
except per share data and % | 2024 | 2023 | Change currency(1)(6) | ||||
$ | $ | $ | $ | $ | % | % | |
Revenue | 2,984 | 1,478 | 1,499 | 731 | 737 | (0.8) | (0.7) |
Adjusted EBITDA(1) | 1,421 | 706 | 718 | 347 | 351 | (1.2) | (1.0) |
Profit for the period | 418 | 192 | 225 | 97 | 104 | (7.4) | |
Earnings per share - diluted | 8.75 | 4.21 | 4.64 | 2.20 | 2.19 | 0.5 | |
Adjusted diluted earnings per share(1) | 9.32 | 4.55 | 4.79 | 2.21 | 2.31 | (4.3) | |
Acquisition of property, plant and equipment | 803 | 334 | 408 | 180 | 173 | 4.2 | |
Net capital expenditures(1)(2) | 700 | 317 | 353 | 171 | 156 | 9.4 | 9.8 |
Capital intensity(1) | 23.4 % | 21.5 % | 23.6 % | 23.4 % | 21.2 % | ||
Capital intensity, excluding network expansion projects(1) | 17.6 % | 17.7 % | 16.3 % | 20.0 % | 15.5 % | ||
Cash flows from operating activities | 963 | 522 | 397 | 285 | 203 | 40.6 | |
Free cash flow(1) | 415 | 238 | 223 | 100 | 118 | (15.1) | (15.4) |
Free cash flow, excluding network expansion projects(1) | 588 | 294 | 331 | 125 | 160 | (22.2) | (22.5) |
Operating Segments
Canadian Telecommunications | American Telecommunications | |||||||||
In millions of Canadian | Change in | Change in | ||||||||
Q2 2024 | Q2 2023 | Change | constant | Q2 2024 | Q2 2023 | Change | constant | |||
dollars, except % | currency(1)(6) | currency(1)(6) | ||||||||
$ | $ | % | % | $ | $ | % | % | |||
Revenue | 373 | 368 | 1.4 | 1.4 | 357 | 368 | (3.1) | (2.8) | ||
Adjusted EBITDA(1) | 199 | 198 | 0.4 | 0.3 | 166 | 166 | 0.2 | 0.5 |
Note: This Investor Fact Sheet, which includes non-IFRS and other financial measures, should be read in conjunction with the detailed disclosures contained in Cogeco Communications' fiscal 2024 second quarter MD&A and the 2023 annual report, available on SEDAR+ at www.sedarplus.ca.
- Capital intensity, excluding network expansion projects, free cash flow, free cash flow, excluding network expansion projects, adjusted diluted earnings per share, data presented on a constant currency basis and change in constant currency are non-IFRS financial measures or ratios. These indicated terms do not have standardized definitions prescribed by IFRS and, therefore, may not be comparable to similar measures presented by other companies. Adjusted EBITDA, adjusted EBITDA margin, net capital expenditures and capital intensity are other financial measures. Certain additional disclosures for these financial measures have been incorporated by reference and can be found in the "Non-IFRS and other financial measures" section of the Corporation's fiscal 2024 second quarter MD&A and the 2023 annual MD&A, available on SEDAR+ at www.sedarplus.ca.
- Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
- The assumed current income tax effective rate is approximately 7%.
- Fiscal 2024 financial guidelines are based on a fiscal 2023 average foreign exchange rate of 1.3467 USD/CDN.
- Primary service units include Internet, video and phone customers.
- Fiscal 2024 second-quarter in constant currency is translated at the average foreign exchange rate of the comparable period of fiscal 2023, which was 1.3488 USD/CDN.
- Based on an annualized quarterly dividend of $0.854 per share declared on November 1, 2023, January 10, 2024 and April 11, 2024. The dividend is subject to the Board of Directors' approval on a quarterly basis and there is no assurance that it will remain at the current level.
- Considering the detailed calculation of the primary service units acquired from the recent Niagara Regional Broadband Network acquisition is not yet finalized, the number of units presented does not include those acquired from it.
Caution about forward-looking statements
Certain statements in this Investor Fact Sheet, including, but not limited to, the statements appearing under the "Corporate Objectives and Strategies" and the "Fiscal 2024 Financial Guidelines" sections of the fiscal 2023 annual report and under the "Corporate Objectives and Strategies" section of the fiscal 2024 second quarter MD&A, may constitute forward-looking information within the meaning of securities laws. 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. While we consider these assumptions to be reasonable based on the information available to us as of April 11, 2024, they may prove to be incorrect. 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 forward-looking information at any particular time, whether as a result of new information, future events or otherwise, except as required by law. Forward-looking information is also subject to certain factors, including uncertainties and main risk factors, which are described in the 2023 annual report and the fiscal 2024 second quarter MD&A, that could cause actual results to differ materially from what we currently expect.
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Cogeco Communications Inc. published this content on 11 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 April 2024 00:46:02 UTC.
