The following is a summary of the Cogeco Communications Inc. (CGEAF) Q4 2024 Earnings Call Transcript:

Financial Performance:

• Cogeco Communications reported slight revenue decline of 0.7% at a consolidated level, with Canadian segment growth offset by U.S. declines.

• Adjusted EBITDA increased by 4.2%, driven by margin expansion in both segments and a reduction in corporate expenses.

• Free cash flow saw a significant increase of 66% year-over-year due to lower CapEx, decreased adjusted EBITDA, and reduced corporate costs.

• Net debt-to-EBITDA ratio improved to 3.3 turns, reflecting stronger free cash flow aiding in debt reduction.

Business Progress:

• Successfully integrated U.S. and Canada operations under a unified model, enhancing cost savings and operational efficiency.

• Deployed AI-powered customer service chatbots in the U.S. and Canada, managing over 80,000 customer inquiries in a single month.

• Expanded Oxio Digital brand and integrated best practices across Cogeco Connexion and Breezeline brands.

• Completed rural network expansions in Quebec with sales exceeding expectations and ongoing initiatives in Ontario and the U.S.

Opportunities:

• The company's unified operating model and technology platform harmonization present opportunities for increased efficiency and growth.

• Expansion of AI platform and digital customer service solutions are poised to enhance customer experience and operational scalability.

Risks:

• The gradual customer base growth in newly launched U.S. wireless operations presents a delay in achieving expected scale and impacts.

• Ongoing competitive pressures in both U.S. and Canadian markets could affect pricing and subscriber growth rates.

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