MONTREAL – Cogeco Inc. last week announced its fourth quarter revenue increased by 1.1%, to reach $578.5 million, driven by growth of 1.4% in its Communications segment.
That was partly offset by a decrease in its media division and business sector.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) decreased by 2.7% at August 31, 2017, to reach $251.4 million compared to the same period of fiscal 2016. Profit for the period amounted to $71.1 million, compared to $80.7 million for the fourth quarter of fiscal 2016.
Free cash flow reached $51.8 million, a decrease of 41.1%, compared to the same quarter of the prior year “mainly due to higher acquisitions of property, plant and equipment, intangible and other assets in the Communications segment,” reads the release.
Cash flow from operating activities increased by 31.6%, to reach $356.8 million compared to fiscal 2016 fourth-quarte, mostly attributable to the increase in changes in non-cash operating activities primarily due to changes in working capital and a decrease in income taxes paid, partly offset by a decrease in adjusted EBITDA, reads the release.
For the fiscal year ended August 31, 2017, revenue increased by 1.7%, to reach $2.35 billion driven by growth of 2.3% in the Communications segment, partly offset by a decrease of 7.9% in the other segment attributable to the sale of Métromédia CMR Plus on January 5, 2016, says the release
EBITDA increased by 1.6%, to reach $1.04 billion compared to fiscal 2016 and profit for the year amounted to $313.4 million, which compared to a loss of $158.7 million in fiscal 2016. That was due to last year's non-cash pre-tax impairment of goodwill and intangible assets of $450 million and from the claims and litigations of $10.8 million which both occurred in the Communications segment.
"For the last quarter of fiscal 2017, our subsidiary Cogeco Communications Inc.'s performance was in line with expectations," said president and CEO Louis Audet. "Overall, in the Canadian broadband services subsidiary, Cogeco Connexion's results over the course of the fiscal year have been very positive, with increases in revenue, EBITDA and free cash flow.
"In our American broadband services subsidiary, Atlantic Broadband continues to generate strong growth," added Audet. "In addition to its continued expansion in Florida, a region with a strong potential for growth, Atlantic Broadband has seen significant expansion in both residential and business revenue in its Connecticut system, acquired in August 2015.
"In our Business ICT subsidiary, we continue to focus on improving Cogeco Peer 1 results in a highly competitive market where conditions are changing ever faster," he added in in the release. "Our focus remains on bringing more relevant solutions to the market and cross-selling our services, positioning ourselves as a trusted advisor offering the whole breadth of relevant enterprise services. In addition, we have generated meaningful free cash flow reflecting our focus on optimizing our asset base.
"Finally, when we look at our radio subsidiary Cogeco Media, the latest Numeris results confirm that we continue to maintain our leadership position in the Québec radio market, with very strong audience ratings.”
