Q3 2024 Cogeco Inc and Cogeco Communications Inc Earnings Call Transcript
Key Points
- Cogeco Communications Inc (CGEAF) reported a 2.9% year-on-year growth in EBITDA for its Canadian telecommunications business, driven by strong cost discipline and subscriber growth.
- The company successfully launched its first AI chatbot, Charlie, in the US, which has handled tens of thousands of customer interactions with high efficiency.
- Cogeco Communications Inc (CGEAF) expanded its fiber-to-the-home network, adding close to 12,000 new homes passed in the quarter, contributing to an 8% organic growth in its network since fiscal 2022.
- The company's US MVNO wireless service has launched in the majority of its US footprint, with plans for a commercial launch in Canada, aiming to bundle wireless services with wireline products for incremental sales and higher customer retention.
- Cogeco Media reported year-over-year growth in revenue, driven by a rebound in radio advertising sales and contributions from digital advertising solutions.
- Cogeco Communications Inc (CGEAF) experienced a decline in diluted earnings per share by 22.7% due to restructuring costs related to its new organizational structure.
- The discontinuation of the US Affordable Connectivity Program (ACP) led to a loss of 3,300 Internet subscribers in the quarter, impacting the company's subscriber figures.
- The company reported a 16.3% decline in free cash flow in constant currency, largely due to restructuring costs recorded in the quarter.
- Cogeco Communications Inc (CGEAF) faced challenges in its Ohio market, with continued Internet subscriber losses, although there was some improvement excluding ACP impacts.
- The company's capital intensity was 22.4%, slightly lower than the previous year, but still indicating significant investment requirements, particularly for network expansion projects.
Good day, and welcome to Cogeco Inc and Cogeco Communications Inc Q3 2024 earnings conference call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrice Ouimet, Senior Vice President and Chief Financial Officer. Please go ahead, Mr. Ouimet.
Thank you. So good morning, everyone, and welcome to our third quarter conference call as usual. Before we begin the call, I'd like to remind listeners that today's discussion will include estimates and forward-looking information, and we ask that you review the cautionary language in the press releases issued yesterday and in our 2023 annual reports regarding our various risks, assumptions and uncertainties that could cause our actual results to differ.
With that, I'll now pass the line to our CEO for the next panel for opening remarks.
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