The following is a summary of the Cogeco Communications Inc. (CGEAF) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Cogeco Communications reported a 1.4% increase in revenue in Canada due to the Oxio acquisition and a higher Internet service customer base.

• In the US, Breezeline's revenue fell by 2.8% primarily due to reduced video subscriptions.

• Consolidated EBITDA dropped by 1% due to heightened corporate costs, however, adjusted EBITDA increased slightly for both businesses.

• The company predicts consolidated revenue to go up in the low single-digit range in Q3, with adjusted EBITDA similar to prior year's outcomes.

• The quarter saw a capital intensity of 23.4% and a net debt to EBITDA ratio of 3.5. A dividend of $0.854 per share was announced for the quarter.

Business Progress:

• Cogeco announced the acquisition of the Niagara Regional Broadband Network in Q2, thereby expanding its B2B presence.

• Approximately 19,000 homes were added in Q2, indicating growth.

• Breezeline Mobile is set to launch in the US in spring, offering customers mobile data packages.

• Negotiations for MVNO access continue in Canada, aimed at providing wireless options for customers.

• Digital solutions and multi-platform audio content have facilitated growth in advertising sales.

• Expansion of the Canadian Internet customer base by 8,900 and continuation of the US fiber network expansion progam are indicative of steady growth.

• The company has an optimized capital expenditure plan, expecting to land at the lower end of the projected range of $700 million to $775 million.

• Brand growth initiative includes occasional mass media advertisements, with no significant alterations intended for out-of-footprint product offerings.

• MVNO offering negotiations continue in Canada, with more progress anticipated in the coming periods.

More details: COGECO COMMUNICATIONS INC IR

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