Cogeco Inc. Declares Quarterly Dividend, Payable on February 7, 2018; Reports Unaudited Consolidated Earnings Results for the First Quarter Ended November 30, 2017; Provides Earnings Guidance for the Year 2018
January 10, 2018
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At its January 10, 2018 meeting, the Board of Directors of Cogeco Inc. declared a quarterly eligible dividend of CAD 0.39 per share for multiple and subordinate voting shares, payable on February 7, 2018 to shareholders of record on January 24, 2018.
The company reported unaudited consolidated earnings results for the first quarter ended November 30, 2017. For the quarter, the company reported revenue of CAD 586.072 million against CAD 583.088 million a year ago. Profit for the period attributable to owners of the company was CAD 29.525 million or CAD 1.78 per diluted share against CAD 30.765 million or CAD 1.83 per diluted share a year ago. Cash flow from operating activities was CAD 2.329 million against CAD 122.875 million a year ago. Acquisitions of property, plant and equipment, intangible and other assets was CAD 96.309 million against CAD 97.344 million a year ago. Revenue increased by CAD 3.0 million, or 0.5%, to reach CAD 586.1 million driven by growth of 0.8% in the Communications segment, partly offset by a decrease of 4.6% in the Other segment resulting mainly from market pressure in the media activities. Adjusted EBITDA decreased by CAD 4.9 million, or 1.9%, to reach CAD 256.4 million compared to the same period of fiscal 2017 due to the decreases in the Communications and the Other segments primarily as a result of foreign exchange variations, non-recurring operating expenses and from market pressure in the media activities. Profit for the period remained essentially the same at CAD 81.8 million of which CAD 29.5 million, or CAD 1.80 per share, was attributable to owners of the Corporation compared to CAD 82.0 million for the first quarter of fiscal 2017 of which CAD 30.8 million, or CAD 1.84 per share, was attributable to the owners of the Corporation. The variation resulted mainly from the decreases in depreciation and amortization and in financial expense, partly offset by a lower adjusted EBITDA.
The company revised on January 10, 2018 its fiscal 2018 financial guidelines to include the MetroCast acquisition in the Communications segment and present year-over-year comparisons on a constant currency basis. On a constant currency and consolidated basis, Cogeco expects fiscal 2018 revenue to grow between 10% and 12% and adjusted EBITDA between 9% and 11% while free cash flow should decrease between 10% and 17% compared to fiscal 2017. Acquisitions of property, plant and equipment, intangible and other assets to be CAD 535 million to CAD 555 million.
Cogeco Inc. is a diversified holding corporation which operates in the telecommunications and media sectors. The Companyâs subsidiary Cogeco Communications Inc. (Cogeco Communications) subsidiary is a telecommunications corporation operating through its business units Cogeco Connexion and Breezeline. Cogeco Communications provides Internet, video, and phone services in the provinces of Quebec and Ontario as well as in thirteen states in the United States. Through Cogeco Media, it owns and operates 21 radio stations primarily in the province of Quebec as well as a news agency. It operates through two segments: Canadian telecommunications and American telecommunications. The Canadian telecommunications activities are carried out by Cogeco Connexion in the provinces of Quebec and Ontario and the American telecommunications activities are carried out by Breezeline. It offers a range of services, such as business services, phone services, video services, and Internet services.
Cogeco Inc. Declares Quarterly Dividend, Payable on February 7, 2018; Reports Unaudited Consolidated Earnings Results for the First Quarter Ended November 30, 2017; Provides Earnings Guidance for the Year 2018