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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