US Economy Adds Only 12,000 Jobs In October, Sharply Misses Estimates As Hurricanes, Strikes Pummel Hiring
The U.S. economy experienced almost no job growth in October as the pace of employment creation slowed to its lowest level since December 2020, according to the official jobs report released Friday.
This downturn likely reflects the impact of hurricane disruptions, strikes in manufacturing and election-related uncertainties, all of which affected hiring nationwide.
Total nonfarm payrolls grew by only 12,000 last month, a sharp decline from the average monthly gain of 194,000 over the previous year.
Despite the hiring freeze, the unemployment rate held steady at 4.1%, suggesting that businesses are retaining their existing workforce even as new job creation stalls.
October Employment Situation: Key Highlights
- Nonfarm payrolls rose by 12,000, sharply decelerating from the previous downwardly revised 223,000 and well below the expected 113,000 as per TradingEconomics estimates.
- “Employment continued to trend up in health care and government. Temporary help services lost jobs. Employment declined in manufacturing due to strike activity,” the Bureau of Labor Statistics wrote in the report.
- Private payrolls contracted by 28,000, weighed down by 46,000 layoffs in manufacturing.
- Government sector employment rose by 40,000 in October, close to the monthly average gain of 43,000 over the past year.
- Total nonfarm payroll employment was revised down by 81,000 for August, from an initial estimate of 159,000, and by 31,000 for September, from 254,000, totaling 112,000 fewer jobs than previously reported.
- The unemployment rate stood at 4.1%, as expected.
- Average hourly earnings advanced at a 0.4% monthly pace, accelerating from September’s downwardly revised 0.3% increase and surpassing expectations of 0.3%.
- On an annual basis, wages rose 4%, as predicted, up from September’s 3.9% rate.
Stocks Rally As Fed Rate-Cut Expectations Soar
Following the release of the October jobs report, futures on major U.S. equity indices rallied, driven by increased expectations of Federal Reserve rate cuts.
Contracts on the S&P 500 and Nasdaq 100 both rose by 0.5%, while Russell 2000 futures surged 0.8%. This rebound comes after the SPDR S&P 500 ETF Trust SPY closed 1.9% lower on Thursday, marking its steepest one-day decline since early September and ending a five-month winning streak.
The disappointing jobs data led markets to fully price in a 25-basis-point rate cut at the Fed’s upcoming meeting on November 7, according to the CME FedWatch Tool. Additionally, the probability of another quarter-point cut in December increased to 86%, up from 75% previously.
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Photo: National Oceanic and Atmospheric Adminstration (NOAA).
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Stocks Rebound After Selloff As October Hiring Slump Fuels Interest Rate Cut Bets: 10 ETFs To Watch Friday
A hiring freeze in October lifted market expectations for a Federal Reserve interest rate cuts, providing relief to U.S. stocks after Thursday’s decline.
The U.S. economy added only 12,000 jobs in October, 211,000 fewer than in September. This marked the lowest monthly pace since December 2020 and sharply missed estimates of 113,000.
Market pricing now reflects a full probability of a 25-basis-point rate cut at next week’s Federal Reserve meeting, with the likelihood of another cut in December surging to 85%, according to the CME FedWatch tool.
Hurricanes, Strikes Knock October Employment Down
Beyond the dismal October employment figures, which suggest a recession-like scenario, factors such as hurricanes and strikes have significantly disrupted hiring across the nation.
Hurricane Helene hit Florida’s Gulf Coast on Sept. 26, followed by Hurricane Milton on Oct. 9, prompting widespread evacuations and disrupting multiple economic sectors.
“It is likely that payroll employment estimates in some industries were affected by the hurricanes; however, it is not possible to quantify the net effect on the over-the-month change in national employment, hours, or earnings estimates,” the Bureau of Labor Statistics (BLS) stated in its report.
Additionally, layoffs surged in manufacturing, rising to 46,000 — the highest since 2009, excluding the pandemic months of March and April 2020. “Manufacturing employment decreased by 46,000 in October, reflecting a decline of 44,000 in transportation equipment manufacturing largely due to strike activity,” the BLS added.
Despite stagnant job growth in October, the unemployment rate held steady at 4.1%, indicating that businesses remain committed to retaining their workforce.
Equity ETFs Rise On Rising Rate-Cut Bets
- The SPDR S&P 500 ETF Trust SPY, tracking the S&P 500 index, rebounded 0.7% after Thursday’s 1.9% slump.
- The tech-heavy Invesco QQQ Trust QQQ, replicating the Nasdaq 100, was 0.6% higher.
- Small caps outperformed, with the iShares Russell 2000 ETF IWM soaring 1.2%.
- The Roundhill Magnificent Seven ETF MAGS rose 1.4%. On Thursday, it tumbled 3.9%, marking the sharpest 1-day drop since late July.
- Sector-wise, the Consumer Discretionary Select Sector SPDR Fund XLY led gains, up over 2%, fueled by a 6% post-earnings rally from Amazon.com Inc. AMZN.
- The Direxion Daily AMZN Bull 2X Shares AMZU skyrocketed by 13%.
- Rising expectations for Fed rate cuts fueled gains in real estate industries, with the iShares U.S. Home Construction ETF ITB rising 1.8%.
- Semiconductors rebounded after tumbling by 3.9% on Thursday. The iShares Semiconductor ETF SOXX rose 1.6%. Intel Corp. INTC was among the best performers following better-than-expected results.
- The SPDR Gold Trust GLD – the biggest physically-backed gold ETF – also rose 0.5%, rebounding after Thursday’s 1.6% decline.
- The United States Oil Fund USO, which tracks West Texas Intermediate (WTI) crude performance, gained 1% amid rising geopolitical tensions in the Middle East following Iran’s retaliatory attack on Israel.
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CPABC: Greater Victoria's workforce posts healthy growth in 2024
VICTORIA, British Columbia, Nov. 01, 2024 (GLOBE NEWSWIRE) — According to BC Check-Up: Work, an annual report by the Chartered Professional Accountants of British Columbia (CPABC) on labour market trends across the province, there were 243,200 Greater Victoria residents working in September 2024, up 6.2 per cent from one year earlier.
“We saw some of the strongest employment growth in the province over the past year,” said Simon Philp, FCPA, FCMA, Market Vice President at CIBC. “It’s good to see that resilience at the local level, especially when the B.C. labour market as a whole has shown some weakness.”
Greater Victoria’s unemployment rate fell slightly to 3.9 per cent in September 2024 and was the third lowest among all census metropolitan areas in Canada. The labour force participation rate—the proportion of the working-age population who were either working or looking for work—was 67.2 per cent, up 4.3 percentage points in the two years since September 2022.
“Unemployment and labour force participation have been trending in the right direction for two years now,” noted Philp. “It’s been challenging given the higher interest rate environment, but we are starting to get some relief on that front.”
Employment in the goods sector increased by 6,200 workers (+23.1 per cent) between September 2023 and September 2024. Meanwhile, the services sector also added workers during the year, led by the information, culture, and recreation industry, where employment increased by 6,100 workers (+79.2 per cent).
“This year’s growth was driven by industries not usually seen as major employers in Greater Victoria,” noted Philp. “It’s a great reminder of the diverse opportunities available, which contributes to economic stability in the area.”
To learn more, see www.bccheckup.com.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for over 40,000 CPA members and 6,000 CPA candidates and students. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy.
CPABC Media Contact: Jack Blackwell, Economist 604.259.1143 news@bccpa.ca
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Shock October Jobs Report Leaves Fed In 'Tight Spot': Experts Say Interest Rate Cuts Ahead
The October employment report released Friday morning showed the U.S. economy added only 12,000 jobs in October, well-below estimates of 113,000 and the lowest monthly pace since December 2020. Economists are weighing in on the impact of the hurricanes on the report and the potential for future interest rate cuts.
Experts Weigh In: Jeffrey Roach, chief economist for LPL Financial, indicated that hurricanes across the Southeast likely affected the establishment survey. He also noted response rates for the household survey were within normal ranges.
He said investors should focus on the household survey data which showed long-term unemployment rose to 22% of total unemployed persons and the number of permanent job losers edged up to 1.8 million in October versus 1.2 million in February 2020. Roach sees the Fed cutting rates at its next two meetings as economic conditions weakened.
“Given the storm-related distortion, the Fed is in a tight spot as they adhere to data-dependency,” Roach stated.
Quincy Krosby, chief global strategist for LPL Financial, said the Federal Reserve will have to “do the math” on the weaker-than-expected employment report to determine if it reflects only the effects of the hurricanes and the Boeing workers’ strike or if it shows a broader deterioration in the labor market.
Bill Adams, chief economist for Comerica Bank, highlighted the impact of the hurricanes on the jobs report and expects employment to rebound quickly as recovery efforts are underway. However, Adam noted the downward revisions to August and September data reveal the job market was cooler than previously thought. He anticipates the Fed will cut interest rates by a quarter percent at next week’s post-election decision.
Joseph Brusuelas, chief economist for RSM, sees hiring as slowing from its “turbocharged” pace following the pandemic and returning to a more sustainable pace for an economy at full-employment.
Brusuelas said that after removing “the noise” resulting from hurricanes and the strike, RSM sees hiring slowed to near a 120,000 pace per month. He expects the Fed to “ignore the noisy topline” and cut its federal funds policy rate by twenty-five basis points at next week’s meeting.
The Takeaway: Overall, economists seem to agree that the hurricanes and Boeing strike had a major impact on the October jobs report and noted the unemployment rate remained steady at 4.1%. Most expect the Federal Reserve to look past the distorted October hiring number and cut rates by 0.25% at its next meeting.
Markets are reacting to the cooler-than-anticipated jobs report by moving higher Friday on rate cut expectations. The SPDR S&P 500 ETF Trust SPY is up 1.14% at the time of publication, rebounding from a 1.9% decline on Thursday.
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Seanergy Maritime Releases its 2023 Environmental, Social and Governance Report
GLYFADA, Greece, Nov. 01, 2024 (GLOBE NEWSWIRE) — Seanergy Maritime Holdings Corp. (the “Company” or “Seanergy”) SHIP announced today the release of its Environmental, Social and Governance Report (the “ESG Report”), for the year ended December 31, 2023.
The ESG Report outlines Seanergy’s strategy and commitments related to the ESG pillars and reflects on the Company’s performance through sustainability-related Key Performance Indicators. The ESG Report is aligned with the Global Reporting Initiative (GRI 2021) Standards and follows the Sustainability Accounting Standards Board (SASB) for Marine Transportation. Specific GRI disclosures and SASB indicators have received limited level of assurance from CSE North America.
The ESG Report is available on Seanergy’s website at https://www.seanergymaritime.com/en/sustainability.
About Seanergy Maritime Holdings Corp.
Seanergy Maritime Holdings Corp. is a prominent pure-play Capesize shipping company publicly listed in the U.S. Seanergy provides marine dry bulk transportation services through a modern fleet of Capesize vessels. The Company’s operating fleet consists of 19 vessels (1 Newcastlemax and 18 Capesize) with an average age of approximately 13.5 years and an aggregate cargo carrying capacity of approximately 3,417,608 dwt.
The Company is incorporated in the Republic of the Marshall Islands and has executive offices in Glyfada, Greece. The Company’s common shares trade on the Nasdaq Capital Market under the symbol “SHIP”.
Please visit our Company website at: www.seanergymaritime.com.
Forward-Looking Statements
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including with respect to upcoming annual meeting, the declaration of dividends, market trends and shareholder returns. Words such as “may”, “should”, “expects”, “intends”, “plans”, “believes”, “anticipates”, “hopes”, “estimates” and variations of such words and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks and are based upon a number of assumptions and estimates, which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the Company’s operating or financial results; the Company’s liquidity, including its ability to service its indebtedness; competitive factors in the market in which the Company operates; shipping industry trends, including charter rates, vessel values and factors affecting vessel supply and demand; future, pending or recent acquisitions and dispositions, business strategy, impacts of litigation, areas of possible expansion or contraction, and expected capital spending or operating expenses; risks associated with operations outside the United States; broader market impacts arising from trade disputes or war (or threatened war) or international hostilities, such as between Israel and Hamas or Iran and between Russia and Ukraine; risks associated with the length and severity of pandemics (including COVID-19), including their effects on demand for dry bulk products and the transportation thereof; and other factors listed from time to time in the Company’s filings with the SEC, including its most recent annual report on Form 20-F. The Company’s filings can be obtained free of charge on the SEC’s website at www.sec.gov. Except to the extent required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For further information please contact:
Seanergy Investor Relations
Tel: +30 213 0181 522
E-mail: ir@seanergy.gr
Capital Link, Inc.
Paul Lampoutis
230 Park Avenue Suite 1536
New York, NY 10169
Tel: (212) 661-7566
Email: seanergy@capitallink.com
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VEON Files its Dutch Annual Report with Audited Financial Statements for Year Ended 31 December 2023
Amsterdam and Dubai, 1 November 2024 – VEON Ltd. VEONVEON), a global digital operator, (“VEON” or the “Company” or together with its subsidiaries, the “Group”), announces that today it has filed its 2023 Dutch Annual Report, including audited consolidated financial statements for the year ended 31 December 2023 prepared in accordance with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code (the “Statutory Financial Statements”), with the Dutch Authority for the Financial Markets (“AFM”). A copy of the Company’s 2023 Dutch Annual Report can be found on the Financial Results section of VEON website at https://www.veon.com/investors/#tab-item-104.
About VEON
VEON is a global digital operator provides converged connectivity and digital services to nearly 160 million customers. Operating across six countries that are home to more than 7% of the world’s population, VEON is transforming lives through technology-driven services that empower individuals and drive economic growth. VEON is listed on Nasdaq and Euronext. For more information visit: https://www.veon.com.
Contact information
VEON
Group Director of Investor Relations
Faisal Ghori
ir@veon.com
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Rise48 Equity Expands Services with Launch of Rise48 Residential, Taking Over Management of Four Dallas-Fort Worth Properties
PHOENIX, Nov. 1, 2024 /PRNewswire/ — Rise48 Equity, a multifamily investment group headquartered in Phoenix, Arizona, has announced the launch of its new third-party fee management company, Rise48 Residential. This expansion marks a significant step in the company’s growth, as Rise48 Residential has already taken on the management of four properties in Dallas and Fort Worth, TX, with plans to expand further in Q4.
After establishing a presence in the Dallas market in 2022 and expanding to North Carolina earlier this year, Rise48 Equity continues to strengthen its footprint by diversifying into property management. Rise48 Residential is a full-suite professional property management company, equipped with a full-time, experienced team specializing in operations, financial reporting, and marketing. The company focuses on assets built from the 1960s to the early 2000s, delivering tailored management solutions to optimize property performance.
Zach Haptonstall, CEO & Co-Founder of Rise48 Equity said, “We’ve recently had numerous lenders reach out to us saying they’re very happy with how we manage and operate the assets we currently own as a borrower, and these same lenders have asked us to help take over third-party fee management for other assets that they have foreclosed on from other borrowers. We saw an opportunity to expand on what we do best, which is manage and execute value-add business plans on existing multifamily properties.
The launch of Rise48 Residential allows us to share and expand our proprietary methods to third parties for marketing, recruiting staff, hiring, training, controlling supply chain, and executing on business plans. In Q4 we are taking over third-party management for other property owners in Arizona and have more assets in the pipeline from lenders coming in Texas. We will serve property owners and lenders in the Southwest, Southeast, and Texas markets for third-party fee management.
Our goal is to manage 50,000 units nationwide in the next 5 years for third parties. We will continue to grow our investment platform Rise48 Equity where we acquire and manage assets that we own.
Launching Rise48 Residential allows us to extend our high standard of property management to more communities, ensuring we can drive value not only for investors and lenders, but most importantly for residents,” said Zach Haptonstall, CEO & Co-Founder of Rise48 Equity. “We’re excited to bring this level of expertise to Dallas and are committed to continued growth in this market and beyond.”
Rise48 Residential provides a comprehensive range of services, including operations, financial planning & analysis, human resources, advanced data analytics, and marketing, designed to streamline operations and enhance asset value.
The company aims to bring its unique blend of operational expertise and strategic focus to each property it manages, ensuring maximum returns for investors and a high-quality living experience for residents.
About Rise48 Equity:
Rise48 Equity has completed over $2.3 Billion+ in total transactions and purchased 54 assets, 10,000+ units since 2019. They currently have $1.8 Billion+ of Assets Under Management in Phoenix, AZ and Dallas, TX. They have completed 11 Full-Cycle Dispositions and returned capital to investors. The company has 240+ full-time W2 employees on full healthcare benefits.
Rise48 Equity provides multifamily investment opportunities for accredited investors to protect and grow their wealth and achieve passive cash-flow. The team brings expertise to acquire, reposition and return capital to investors upon reaching the business plan.
Rise48 Communities is the vertically integrated property management company that manages all assets owned by Rise48 Equity. The company does all of the construction management, property management, and asset management in-house.
For more information about Rise48 Equity, visit their website: rise48equity.com
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SOURCE Rise48 Equity
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Michael Saylor The 'Egg Man'? Peter Schiff Points Out A Potential Pitfall Of MicroStategy's $42B Debt-Funded Bitcoin Bet
On Thursday, influential economist Peter Schiff took a swipe at MicroStrategy Inc.MSTR CEO Michael Saylor’s $42 billion Bitcoin BTC/USD investment strategy, likening it to a market trap.
What Happened: Schiff took to X, formerly Twitter, and compared Saylor to “the Egg Man” in a metaphorical critique of his Bitcoin investment plans.
Schiff used an egg futures analogy to express his concerns about Saylor’s strategy. He suggested that MicroStrategy could end up holding a large amount of Bitcoin with no potential buyers, should the market turn.
“Sell to whom, you’re the egg man!” Schiff concluded, implying that Saylor’s aggressive Bitcoin buying could potentially trap the company in a volatile market.
See Also: If You Invested $1,000 In Dogecoin On Jan. 1, 2021, Here’s How Much You’d Have Today
Why It Matters: Saylor’s Bitcoin strategy has been a hot topic in the financial world. Last month, he announced that MicroStrategy plans to invest an additional $42 billion in Bitcoin over the next three years, funded by issuing $21 billion in debt and $21 billion in equity.
Other companies like Coinbase Global Inc. COIN have also shown interest in expanding their cryptocurrency investment portfolios.
Coinbase CFO Alesia Haas on Thursday said that the company holds a cryptocurrency investment portfolio on its balance sheet, valued at approximately $1.3 billion at the close of the third quarter.
This portfolio represented close to 25% of Coinbase’s total cash reserves.
Meanwhile, Bitcoin ETFs are edging closer to becoming the largest collective holder of Bitcoin, potentially surpassing Satoshi Nakamoto’s legendary holdings.
Price Action: On Thursday, MicroStrategy shares ended the day 1.1% lower at $244.50 and gained 0.7% in the after-hours trading. Bitcoin was seen trading 4.1% lower at $69,321.65, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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Century Complete Unveils New Model Home in Bullhead City, AZ
Exceptional lineup of ranch-style floor plans now selling from the $240s at Rancho Colorado
BULLHEAD CITY, Ariz., Oct. 31, 2024 /PRNewswire/ — Century Communities, Inc. CCS—a top national homebuilder, industry leader in online home sales, and featured on America’s Most Trustworthy Companies and World’s Most Trustworthy Companies by Newsweek—is excited to invite homebuyers and real estate agents to tour the newest model home from its Century Complete brand at Rancho Colorado in Bullhead City, Arizona.
Offering a walkthrough of the community’s ranch-style Verbena plan, the new model showcases a versatile open-concept layout with features like granite countertops, Kohler® water fixtures, stainless-steel appliances, luxury vinyl plank flooring, and a covered patio—included features with every home at Rancho Colorado.
“We’re thrilled to open our new model home for tours, giving buyers a firsthand look at the craftsmanship and lifestyle available at Rancho Colorado,” said Dave Hodgman, Executive Vice President of Field Operations. “With affordable and quality homes available for quick move-in at this scenic location, it’s the perfect time for buyers to come find their dream home.”
Learn more and explore available homes at www.CenturyCommunities.com/RanchoColorado.
More Century Complete communities now selling in the Mohave Valley area:
- Chaparral Terrace in Bullhead City (final opportunity)
- Twin Palm Estates in Fort Mohave (USDA eligible, zero down payment)
- Desert Lakes in Fort Mohave (golf course community)
MORE ABOUT RANCHO COLORADO | BULLHEAD CITY, AZ
Now selling from the $240s
- 150+ single-family homesites
- Ranch floor plans
- Up to 4 bedrooms, 2 bathrooms, 1,155 to 1,815 square feet
- 1- and 2-bay garages
- Granite countertops, luxury vinyl plank flooring, Kohler® fixtures, stainless-steel appliances, walk-in closets, white shaker cabinets, covered patios and more included
- Less than a mile from the Colorado River, with fast access to Laughlin
Location:
2419 Vista Del Oro
Bullhead City, AZ 86442
520.213.8607
THE FREEDOM OF ONLINE HOMEBUYING
Century Complete is proud to feature its industry-first online homebuying experience on all available homes in Arizona, allowing homebuyers to easily find their best fit and purchase when they’re ready—all while continuing to work with their local real estate agent of choice. Homebuyers can further streamline the homebuying process by financing online with Century Complete’s affiliate lender, Inspire Home Loans®.
How it works:
- Shop homes at CenturyCommunities.com
- Click “Buy Now” on any available home
- Fill out a quick Buy Online form
- Electronically submit an initial earnest money deposit
- Electronically sign a purchase contract via DocuSign®
Learn more about the Buy Online experience at www.CenturyCommunities.com/online-homebuying.
About Century Communities
Century Communities, Inc. CCS is one of the nation’s largest homebuilders, an industry leader in online home sales, and the highest-ranked homebuilder on Newsweek’s list of America’s Most Trustworthy Companies 2024—consecutively awarded for a second year—and Newsweek’s list of the World’s Most Trustworthy Companies 2024. Through its Century Communities and Century Complete brands, Century’s mission is to build attractive, high-quality homes at affordable prices to provide its valued customers with A HOME FOR EVERY DREAM®. Century is engaged in all aspects of homebuilding — including the acquisition, entitlement and development of land, along with the construction, innovative marketing and sale of quality homes designed to appeal to a wide range of homebuyers. The Company operates in 18 states and over 45 markets across the U.S., and also offers title, insurance and lending services in select markets through its Parkway Title, IHL Home Insurance Agency, and Inspire Home Loans subsidiaries. To learn more about Century Communities, please visit www.centurycommunities.com.
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Cogeco Communications Releases its Financial Results for the Fourth Quarter of Fiscal 2024
- Strong progress on the strategic priorities announced last quarter centered on synergies, digitization, advanced analytics, network expansion and wireless.
- Successfully completed the combination of our Canadian and U.S. telecommunications teams.
- Signed strategic partnerships to enable an upcoming launch of wireless services in Canada, in a capital-efficient manner as an MVNO.
- Met or exceeded all financial guidelines set for fiscal 2024; issuing fiscal 2025 financial guidelines.
- Increasing quarterly eligible dividend by 8.0% to $0.922 per share.
MONTRÉAL, Oct. 31, 2024 /CNW/ – Today, Cogeco Communications Inc. CCA (“Cogeco Communications” or the “Corporation”) announced its financial results for the fourth quarter ended August 31, 2024 and is issuing its fiscal 2025 financial guidelines.
“Fiscal 2024 has been a year of tremendous progress for Cogeco,” said Frédéric Perron, President and CEO. “Over the last six months alone, we set clear priorities to achieve sustainable growth, launched wireless in the U.S., assembled the building blocks to launch wireless in Canada as an MVNO, successfully combined our Canadian and U.S. organizations and refreshed our executive team. The recently completed restructuring, which simplified our operating model, was the first phase of a structured three-year program. We are now in a position to accelerate our digital capabilities, drive bundling across wireline and wireless, and continue to optimize our operations for ongoing growth and value creation.
“Our Canadian telecommunications business continued to perform well in Q4, driven by growth of our Internet subscriber base through Cogeco Connexion, oxio, and our network expansion program. We’re particularly excited about our oxio brand’s performance as its digital model has not only become a growth engine for the organization, but has also become a model for key transformation initiatives within the Corporation more broadly.
“In the U.S., the launch of Breezeline Mobile provides customers even more compelling reasons to bundle their services with us. Our Internet-led strategy and focus on operational efficiency contributed to another quarter of strong margin growth.
“Over the past year, we have maintained our balanced approach to allocating capital to growth initiatives including network expansion, product improvements, and a capital-light approach to growing wireless services in both countries, as well as returning capital through an increased dividend and share buybacks, all while progressively reducing our leverage. We will continue with our balanced approach in fiscal 2025 and with that, we are delighted to announce an increase in our quarterly dividend per share to $0.922.”
Consolidated Financial Highlights
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
Change in constant |
(2) |
|
|
(In thousands of Canadian dollars, except % and per share data) (unaudited) |
$ |
$ |
% |
% |
|||
|
Revenue |
747,751 |
743,397 |
0.6 |
(0.7) |
|||
|
Adjusted EBITDA (2) |
370,418 |
351,300 |
5.4 |
4.2 |
|||
|
Adjusted EBITDA margin (2) |
49.5 % |
47.3 % |
|||||
|
Profit for the period |
85,484 |
91,797 |
(6.9) |
||||
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
(5.2) |
||||
|
Adjusted profit attributable to owners of the Corporation (2)(3) |
99,054 |
97,175 |
1.9 |
||||
|
Cash flows from operating activities |
319,177 |
281,326 |
13.5 |
||||
|
Free cash flow (1)(2) |
148,189 |
88,953 |
66.6 |
66.1 |
|||
|
Free cash flow, excluding network expansion projects (1)(2) |
205,100 |
121,881 |
68.3 |
67.4 |
|||
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
(25.0) |
||||
|
Net capital expenditures (2)(4) |
152,253 |
176,617 |
(13.8) |
(15.1) |
|||
|
Net capital expenditures, excluding network expansion projects (2) |
95,342 |
143,689 |
(33.6) |
(34.8) |
|||
|
Capital intensity (2) |
20.4 % |
23.8 % |
|||||
|
Capital intensity, excluding network expansion projects (2) |
12.8 % |
19.3 % |
|||||
|
Diluted earnings per share |
1.94 |
1.95 |
(0.5) |
||||
|
Adjusted diluted earnings per share (2)(3) |
2.35 |
2.19 |
7.3 |
||||
Operating results
For the fourth quarter of fiscal 2024 ended on August 31, 2024:
- Revenue increased by 0.6% to $747.8 million. On a constant currency basis(2), revenue decreased by 0.7% due to a decline in revenue in the American telecommunications segment, offset in part by revenue growth in the Canadian telecommunications segment, as explained below.
- American telecommunications’ revenue decreased by 2.3% in constant currency (remained stable as reported), mainly due to a decline in its subscriber base, especially for entry-level services, and a higher proportion of customers subscribing to Internet-only services. The decline was offset in part by higher revenue per subscriber and a better product mix resulting from improving subscriber metrics.
- Canadian telecommunications’ revenue increased by 0.8%, mostly driven by the cumulative effect of high-speed Internet service additions over the past year, including from network expansion projects, as well as the Niagara Regional Broadband Network acquisition completed on February 5, 2024.
- Adjusted EBITDA increased by 5.4% to $370.4 million. On a constant currency basis, adjusted EBITDA increased by 4.2%, mainly due to higher adjusted EBITDA in both the Canadian and American telecommunications segments, driven by cost reduction initiatives and operating efficiencies across the Corporation as a result of our ongoing transformation program, in addition to revenue growth in the Canadian telecommunications segment.
- Canadian telecommunications adjusted EBITDA increased by 3.8%, or 4.0% in constant currency.
- American telecommunications adjusted EBITDA increased by 5.2%, or 2.4% in constant currency.
- Profit for the period amounted to $85.5 million, of which $82.0 million, or $1.94 per diluted share, was attributable to owners of the Corporation compared to $91.8 million, $86.5 million, and $1.95 per diluted share, respectively, in the comparable period of fiscal 2023. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from higher depreciation and amortization expense and non-cash pre-tax impairment charges of $14.9 million recognized during the quarter mostly in relation to strategic partnerships to facilitate the development of wireless services in Canada under a capital-light operating model, partly offset by higher adjusted EBITDA, lower financial expense and lower acquisition, integration, restructuring and other costs.
- Adjusted profit attributable to owners of the Corporation(3) was $99.1 million, or $2.35 per diluted share(3), compared to $97.2 million, or $2.19 per diluted share, last year. The increase of adjusted diluted earnings per share over last year reflects the benefit of the Corporation’s share buybacks.
- Net capital expenditures were $152.3 million, a decrease of 13.8% compared to $176.6 million in the same period of the prior year. In constant currency, net capital expenditures(2) were $150.0 million, a decrease of 15.1% compared to last year, mainly resulting from lower spending due to the timing of network expansion projects in both the American and Canadian telecommunications segments, in addition to drawdowns of previously accumulated customer premise equipment inventory in the American telecommunications segment.
- Excluding network expansion projects, net capital expenditures were $95.3 million, a decrease of 33.6% compared to $143.7 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(2) were $93.7 million, a decrease of 34.8% compared to last year.
- Fibre-to-the-home network expansion projects continued in both Canada and the United States by adding close to 58,000(5) homes passed during fiscal 2024, of which close to 14,000(5) were in the fourth quarter.
- Capital intensity was 20.4% compared to 23.8% last year. Excluding network expansion projects, capital intensity was 12.8% compared to 19.3% in the same period of the prior year.
- Acquisition of property, plant and equipment decreased by 25.0% to $154.3 million, mainly resulting from lower spending.
- Free cash flow(1) increased by 66.6%, or 66.1% in constant currency, and amounted to $148.2 million, or $147.7 million in constant currency, mainly due to lower net capital expenditures, higher adjusted EBITDA and lower financial expense. Free cash flow, excluding network expansion projects(1) increased by 68.3%, or 67.4% in constant currency, and amounted to $205.1 million, or $204.1 million in constant currency.
- Cash flows from operating activities increased by 13.5% to $319.2 million, mainly from the timing of payments of trade and other payables and higher adjusted EBITDA.
- At its October 31, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.922 per share, an increase of 8.0% compared to $0.854 per share last year.
FISCAL 2025 FINANCIAL GUIDELINES
Cogeco Communications released its fiscal 2025 financial guidelines. Fiscal 2025 will be the first year of a three-year transformation program, where investments are made in order to set the Corporation on a path to sustainable growth. On a constant currency basis, the Corporation expects fiscal 2025 revenue to remain stable resulting from a combination of Internet subscriber growth and a decline in video and wireline phone subscriptions. On a constant currency basis, fiscal 2025 adjusted EBITDA is anticipated to remain stable, mainly due to stable revenue as well as stable operating expenses, which are anticipated to benefit from the recent corporate reorganization and other operational improvements, offset by investments into new capabilities as part of a three-year transformation program. Net capital expenditures are anticipated to be between $650 and $725 million, including net investments of approximately $140 to $190 million in growth-oriented network expansions, which will increase the Corporation’s footprint in Canada and the United States. Capital intensity is expected to range between 22% and 24%, or 17% and 19% excluding network expansion projects. Free cash flow and free cash flow, excluding network expansion projects, are expected to decrease between 0% and 10% due to stronger than anticipated free cash flow in fiscal 2024, continued growth-oriented investments, and higher financial expense and current income tax.
|
October 31, 2024 |
|||
|
Projections |
(i) |
Actual |
|
|
Fiscal 2025 (constant currency) |
(ii) |
Fiscal 2024 |
|
|
(In millions of Canadian dollars, except percentages) |
$ |
$ |
|
|
Financial guidelines |
|||
|
Revenue |
Stable |
2,977 |
|
|
Adjusted EBITDA |
Stable |
1,442 |
|
|
Net capital expenditures |
$650 to $725 |
638 |
|
|
Net capital expenditures in connection with network expansion projects |
$140 to $190 |
137 |
|
|
Capital intensity |
22% to 24% |
21.4 % |
|
|
Capital intensity, excluding network expansion projects |
17% to 19% |
16.8 % |
|
|
Free cash flow |
Decrease of 0% to 10% |
(iii) |
476 |
|
Free cash flow, excluding network expansion projects |
Decrease of 0% to 10% |
(iii) |
613 |
|
(i) |
Percentage of changes compared to fiscal 2024. |
|
(ii) |
Fiscal 2025 financial guidelines are based on a USD/CDN constant exchange rate of 1.3606 USD/CDN. |
|
(iii) |
The assumed current income tax effective rate is approximately 14%. |
These financial guidelines, including the various assumptions underlying them, contain forward-looking statements concerning the business outlook for Cogeco Communications, and should be read in conjunction with the “Forward-looking statements” section of this press release.
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(3) |
Excludes the impact of non-cash impairment charges, and acquisition, integration, restructuring and other costs, net of tax and non-controlling interest. |
|
(4) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(5) |
Organic growth calculated by excluding additions resulting from acquisitions. |
Financial highlights
|
Change in constant |
Change in constant |
|||||||||||
|
Three months and years ended August 31 |
2024 |
2023 |
(1) |
Change |
(2) (3) |
2024 |
2023 |
(1) |
Change |
(2) (3) |
||
|
(In thousands of Canadian dollars, except % and per share data) |
$ |
$ |
% |
% |
$ |
$ |
% |
% |
||||
|
Operations |
||||||||||||
|
Revenue |
747,751 |
743,397 |
0.6 |
(0.7) |
2,976,524 |
2,984,128 |
(0.3) |
(0.8) |
||||
|
Adjusted EBITDA (3) |
370,418 |
351,300 |
5.4 |
4.2 |
1,442,314 |
1,421,066 |
1.5 |
1.0 |
||||
|
Adjusted EBITDA margin (3) |
49.5 % |
47.3 % |
48.5 % |
47.6 % |
||||||||
|
Acquisition, integration, restructuring and other costs (4) |
10,561 |
15,228 |
(30.6) |
59,731 |
36,225 |
64.9 |
||||||
|
Impairment of property, plant and equipment |
14,862 |
— |
— |
14,862 |
— |
— |
||||||
|
Profit for the period |
85,484 |
91,797 |
(6.9) |
354,132 |
417,972 |
(15.3) |
||||||
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
(5.2) |
335,534 |
392,273 |
(14.5) |
||||||
|
Adjusted profit attributable to owners of the Corporation (3)(5) |
99,054 |
97,175 |
1.9 |
400,431 |
417,960 |
(4.2) |
||||||
|
Cash flow |
||||||||||||
|
Cash flows from operating activities |
319,177 |
281,326 |
13.5 |
1,175,219 |
962,905 |
22.0 |
||||||
|
Free cash flow (1)(3) |
148,189 |
88,953 |
66.6 |
66.1 |
476,021 |
418,056 |
13.9 |
13.6 |
||||
|
Free cash flow, excluding network expansion projects (1)(3) |
205,100 |
121,881 |
68.3 |
67.4 |
613,415 |
590,891 |
3.8 |
3.5 |
||||
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
(25.0) |
659,090 |
802,830 |
(17.9) |
||||||
|
Net capital expenditures (3)(6) |
152,253 |
176,617 |
(13.8) |
(15.1) |
637,833 |
699,506 |
(8.8) |
(9.3) |
||||
|
Net capital expenditures, excluding network expansion projects (3) |
95,342 |
143,689 |
(33.6) |
(34.8) |
500,439 |
526,671 |
(5.0) |
(5.5) |
||||
|
Capital intensity (3) |
20.4 % |
23.8 % |
21.4 % |
23.4 % |
||||||||
|
Capital intensity, excluding network expansion projects (3) |
12.8 % |
19.3 % |
16.8 % |
17.6 % |
||||||||
|
Per share data (7) |
||||||||||||
|
Earnings per share |
||||||||||||
|
Basic |
1.95 |
1.95 |
— |
7.87 |
8.78 |
(10.4) |
||||||
|
Diluted |
1.94 |
1.95 |
(0.5) |
7.83 |
8.75 |
(10.5) |
||||||
|
Adjusted diluted (3)(5) |
2.35 |
2.19 |
7.3 |
9.35 |
9.32 |
0.3 |
||||||
|
Dividends per share |
0.854 |
0.776 |
10.1 |
3.416 |
3.104 |
10.1 |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Proceeds on disposals of property, plant and equipment amounted to $0.6 million and $3.4 million for the three-month period and year ended August 31, 2024, respectively ($1.0 million and $2.7 million, respectively, in fiscal 2023). Comparative figures were restated to conform to the current presentation. For further details, please refer to the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(2) |
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current periods denominated in US dollars at the foreign exchange rate of the comparable periods of the prior year. For the three-month period and year ended August 31, 2023, the average foreign exchange rates used for translation were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively. |
|
(3) |
Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the “Non-IFRS Accounting Standards and other financial measures” section of this press release. |
|
(4) |
For the three-month period and year ended August 31, 2024, acquisition, integration, restructuring and other costs were mostly related to restructuring costs recognized during the second half of the year, including costs related to the new organizational structure announced in May 2024 and other cost optimization initiatives. For the three-month period and year ended August 31, 2023, acquisition, integration, restructuring and other costs resulted mostly from costs related to the integration of past acquisitions, as well as acquisition and integration costs incurred in connection with the acquisition of oxio, completed on March 3, 2023, from restructuring costs associated with organizational changes during the fourth quarter of fiscal 2023 within the Canadian and the American telecommunications segments and from configuration and customization costs related to cloud computing arrangements. Furthermore, a retroactive adjustment of $8.4 million was recognized in fiscal 2023 following the Copyright Board preliminary conclusions on the redetermination of the 2014-2018 royalty rates, of which $4.2 million was reversed during the second quarter of fiscal 2024 following the Copyright Board decision issued in January 2024. |
|
(5) |
Excludes the impact of non-cash impairment charges, acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, all net of tax and non-controlling interest. |
|
(6) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
|
(7) |
Per multiple and subordinate voting share. |
|
As at |
August 31, 2024 |
August 31, 2023 |
|
(In thousands of Canadian dollars, except %) |
$ |
$ |
|
Financial condition |
||
|
Cash and cash equivalents |
76,335 |
362,921 |
|
Total assets |
9,675,009 |
9,768,370 |
|
Long-term debt |
||
|
Current |
361,808 |
41,765 |
|
Non-current |
4,448,261 |
4,979,241 |
|
Net indebtedness (1) |
4,803,629 |
4,749,214 |
|
Equity attributable to owners of the Corporation |
2,979,691 |
2,957,797 |
|
Return on equity (2) |
11.3 % |
13.7 % |
|
(1) |
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. |
|
(2) |
Return on equity is a supplementary financial measure and is calculated as profit attributable to owners of the Corporation for the year divided by the average of the equity attributable to owners of the Corporation for the year. |
Forward-looking statements
Certain statements contained in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.’s (“Cogeco Communications” or the “Corporation”) future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as “may”; “will”; “should”; “expect”; “plan”; “anticipate”; “believe”; “intend”; “estimate”; “predict”; “potential”; “continue”; “foresee”, “ensure” or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation’s financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the “Corporate objectives and strategy” and “Fiscal 2025 financial guidelines” sections of the Corporation’s Fiscal 2024 annual Management’s Discussion and Analysis (“MD&A”) for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks, tax risks, technology risks (including cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation’s network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation’s control. For more exhaustive information on these risks and uncertainties, the reader should refer to the “Uncertainties and main risk factors” section of the Corporation’s Fiscal 2024 annual MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications’ expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.
All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the MD&A included in the Corporation’s Fiscal 2024 Annual Report, the Corporation’s consolidated financial statements and the notes thereto prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”) for the year ended August 31, 2024.
Non-IFRS Accounting Standards and other financial measures
This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.
Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the “Non-IFRS Accounting Standards and other financial measures” section of the Corporation’s MD&A for the year ended August 31, 2024, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications’ non-IFRS Accounting Standards ratios.
|
Specified non-IFRS Accounting Standards measures |
Used in the component of the following non-IFRS Accounting Standards ratios |
|
Adjusted profit attributable to owners of the Corporation |
Adjusted diluted earnings per share |
|
Constant currency basis |
Change in constant currency |
|
Net capital expenditures, excluding network expansion projects |
Capital intensity, excluding network expansion projects |
Financial measures presented on a constant currency basis for the three-month period and year ended August 31, 2024 are translated at the average foreign exchange rate of the comparable periods of the prior year, which were 1.3329 USD/CDN and 1.3467 USD/CDN, respectively.
Constant currency basis and foreign exchange impact reconciliation
Consolidated
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
747,751 |
(9,731) |
738,020 |
743,397 |
0.6 |
(0.7) |
||||||
|
Operating expenses |
372,095 |
(5,234) |
366,861 |
388,381 |
(4.2) |
(5.5) |
||||||
|
Management fees – Cogeco Inc. |
5,238 |
— |
5,238 |
3,716 |
41.0 |
41.0 |
||||||
|
Adjusted EBITDA |
370,418 |
(4,497) |
365,921 |
351,300 |
5.4 |
4.2 |
||||||
|
Free cash flow (1) |
148,189 |
(462) |
147,727 |
88,953 |
66.6 |
66.1 |
||||||
|
Net capital expenditures |
152,253 |
(2,254) |
149,999 |
176,617 |
(13.8) |
(15.1) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
2,976,524 |
(15,024) |
2,961,500 |
2,984,128 |
(0.3) |
(0.8) |
||||||
|
Operating expenses |
1,513,258 |
(8,121) |
1,505,137 |
1,544,462 |
(2.0) |
(2.5) |
||||||
|
Management fees – Cogeco Inc. |
20,952 |
— |
20,952 |
18,600 |
12.6 |
12.6 |
||||||
|
Adjusted EBITDA |
1,442,314 |
(6,903) |
1,435,411 |
1,421,066 |
1.5 |
1.0 |
||||||
|
Free cash flow (1) |
476,021 |
(932) |
475,089 |
418,056 |
13.9 |
13.6 |
||||||
|
Net capital expenditures |
637,833 |
(3,340) |
634,493 |
699,506 |
(8.8) |
(9.3) |
||||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its free cash flow calculation to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Canadian telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
378,702 |
— |
378,702 |
375,754 |
0.8 |
0.8 |
||||||
|
Operating expenses |
175,688 |
(288) |
175,400 |
180,183 |
(2.5) |
(2.7) |
||||||
|
Adjusted EBITDA |
203,014 |
288 |
203,302 |
195,571 |
3.8 |
4.0 |
||||||
|
Net capital expenditures |
71,000 |
(245) |
70,755 |
73,348 |
(3.2) |
(3.5) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,510,506 |
— |
1,510,506 |
1,489,915 |
1.4 |
1.4 |
||||||
|
Operating expenses |
710,706 |
(447) |
710,259 |
701,717 |
1.3 |
1.2 |
||||||
|
Adjusted EBITDA |
799,800 |
447 |
800,247 |
788,198 |
1.5 |
1.5 |
||||||
|
Net capital expenditures |
356,274 |
(463) |
355,811 |
354,384 |
0.5 |
0.4 |
||||||
American telecommunications segment
|
Three months ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
369,049 |
(9,731) |
359,318 |
367,643 |
0.4 |
(2.3) |
||||||
|
Operating expenses |
185,588 |
(4,916) |
180,672 |
193,172 |
(3.9) |
(6.5) |
||||||
|
Adjusted EBITDA |
183,461 |
(4,815) |
178,646 |
174,471 |
5.2 |
2.4 |
||||||
|
Net capital expenditures |
76,238 |
(2,011) |
74,227 |
100,488 |
(24.1) |
(26.1) |
||||||
|
Years ended August 31 |
2024 |
2023 |
Change |
|||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign |
In constant |
Actual |
Actual |
In constant |
||||||
|
$ |
$ |
$ |
$ |
% |
% |
|||||||
|
Revenue |
1,466,018 |
(15,024) |
1,450,994 |
1,494,213 |
(1.9) |
(2.9) |
||||||
|
Operating expenses |
759,658 |
(7,632) |
752,026 |
800,409 |
(5.1) |
(6.0) |
||||||
|
Adjusted EBITDA |
706,360 |
(7,392) |
698,968 |
693,804 |
1.8 |
0.7 |
||||||
|
Net capital expenditures |
267,728 |
(2,865) |
264,863 |
336,910 |
(20.5) |
(21.4) |
||||||
Adjusted profit attributable to owners of the Corporation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period attributable to owners of the Corporation |
81,958 |
86,499 |
335,534 |
392,273 |
|
Impairment of property, plant and equipment |
14,862 |
— |
14,862 |
— |
|
Acquisition, integration, restructuring and other costs |
10,561 |
15,228 |
59,731 |
36,225 |
|
Loss on debt extinguishment (1) |
— |
— |
16,880 |
— |
|
Tax impact for the above items |
(6,648) |
(3,829) |
(24,109) |
(9,370) |
|
Non-controlling interest impact for the above items |
(1,679) |
(723) |
(2,467) |
(1,168) |
|
Adjusted profit attributable to owners of the Corporation |
99,054 |
97,175 |
400,431 |
417,960 |
|
(1) Included within financial expense. |
Free cash flow and free cash flow, excluding network expansion projects reconciliations
|
Three months ended August 31 |
Years ended August 31 |
|||||
|
2024 |
2023 |
(1) |
2024 |
2023 |
(1) |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
||
|
Cash flows from operating activities |
319,177 |
281,326 |
1,175,219 |
962,905 |
||
|
Changes in other non-cash operating activities |
(34,878) |
(9,946) |
(56,369) |
97,851 |
||
|
Income taxes paid |
6,526 |
2,025 |
5,719 |
91,673 |
||
|
Current income taxes |
(553) |
(5,708) |
(20,147) |
(32,067) |
||
|
Interest paid |
71,695 |
65,489 |
266,464 |
239,648 |
||
|
Financial expense |
(61,925) |
(70,222) |
(277,690) |
(251,642) |
||
|
Loss on debt extinguishment (2) |
— |
— |
16,880 |
— |
||
|
Amortization of deferred transaction costs and discounts on long-term debt (2) |
2,190 |
3,195 |
9,143 |
12,601 |
||
|
Net capital expenditures (3) |
(152,253) |
(176,617) |
(637,833) |
(699,506) |
||
|
Proceeds on disposals of property, plant and equipment (1) |
594 |
1,037 |
3,378 |
2,651 |
||
|
Repayment of lease liabilities |
(2,384) |
(1,626) |
(8,743) |
(6,058) |
||
|
Free cash flow (1) |
148,189 |
88,953 |
476,021 |
418,056 |
||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
32,928 |
137,394 |
172,835 |
||
|
Free cash flow, excluding network expansion projects (1) |
205,100 |
121,881 |
613,415 |
590,891 |
||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
(2) |
Included within financial expense. |
|
(3) |
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance. |
Net capital expenditures reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Acquisition of property, plant and equipment |
154,260 |
205,570 |
659,090 |
802,830 |
|
Subsidies received in advance recognized as a reduction of the cost of property, plant and equipment during the period |
(2,007) |
(28,953) |
(21,257) |
(103,324) |
|
Net capital expenditures |
152,253 |
176,617 |
637,833 |
699,506 |
Adjusted EBITDA reconciliation
|
Three months ended August 31 |
Years ended August 31 |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
(In thousands of Canadian dollars) |
$ |
$ |
$ |
$ |
|
Profit for the period |
85,484 |
91,797 |
354,132 |
417,972 |
|
Income taxes |
15,225 |
18,119 |
62,342 |
94,761 |
|
Financial expense |
61,925 |
70,222 |
277,690 |
251,642 |
|
Impairment of property, plant and equipment |
14,862 |
— |
14,862 |
— |
|
Depreciation and amortization |
182,361 |
155,934 |
673,557 |
620,466 |
|
Acquisition, integration, restructuring and other costs |
10,561 |
15,228 |
59,731 |
36,225 |
|
Adjusted EBITDA |
370,418 |
351,300 |
1,442,314 |
1,421,066 |
Net capital expenditures and free cash flow excluding network expansion projects reconciliations
Net capital expenditures
|
Three months ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
152,253 |
(2,254) |
149,999 |
176,617 |
(13.8) |
(15.1) |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Net capital expenditures, excluding network expansion projects |
95,342 |
(1,678) |
93,664 |
143,689 |
(33.6) |
(34.8) |
|||||
|
Years ended August 31 |
2024 |
2023 |
Change |
||||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Net capital expenditures |
637,833 |
(3,340) |
634,493 |
699,506 |
(8.8) |
(9.3) |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Net capital expenditures, excluding network expansion projects |
500,439 |
(2,560) |
497,879 |
526,671 |
(5.0) |
(5.5) |
|||||
Free cash flow
|
Three months ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
148,189 |
(462) |
147,727 |
88,953 |
66.6 |
66.1 |
|||||
|
Net capital expenditures in connection with network expansion projects |
56,911 |
(576) |
56,335 |
32,928 |
72.8 |
71.1 |
|||||
|
Free cash flow, excluding network expansion projects (1) |
205,100 |
(1,038) |
204,062 |
121,881 |
68.3 |
67.4 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
|
Years ended August 31 |
2024 |
2023 |
(1) |
Change |
|||||||
|
(In thousands of Canadian dollars, except percentages) |
Actual |
Foreign exchange impact |
In constant currency |
Actual |
Actual |
In constant currency |
|||||
|
$ |
$ |
$ |
$ |
% |
% |
||||||
|
Free cash flow (1) |
476,021 |
(932) |
475,089 |
418,056 |
13.9 |
13.6 |
|||||
|
Net capital expenditures in connection with network expansion projects |
137,394 |
(780) |
136,614 |
172,835 |
(20.5) |
(21.0) |
|||||
|
Free cash flow, excluding network expansion projects (1) |
613,415 |
(1,712) |
611,703 |
590,891 |
3.8 |
3.5 |
|||||
|
(1) |
During the fourth quarter of fiscal 2024, the Corporation updated its calculation of free cash flow and free cash flow, excluding network expansion projects, to include proceeds on disposals of property, plant and equipment. Comparative figures were restated to conform to the current presentation. |
Additional information
Additional information relating to the Corporation, including its Annual Information Form, is available on SEDAR+ at www.sedarplus.ca and on the Corporation’s website at corpo.cogeco.com.
About Cogeco Communications Inc.
Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. We also offer wireless services in most of our U.S. operating territory. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.’s subordinate voting shares are listed on the Toronto Stock Exchange CCA.
For information:
Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
troy.crandall@cogeco.com
Media
Claudja Joseph
Director, Communications & DEI
Cogeco Communications Inc.
Tel.: 514 764-4600
claudja.joseph@cogeco.com
|
Conference Call: |
Friday, November 1st, 2024 at 11:00 a.m. (Eastern Daylight Time) |
|
A live audio of the analyst conference call will be available on both the Investor Relations and the Events and Presentations pages on Cogeco Communications’ website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications’ website for a three-month period. |
|
|
Please use the following dial-in number to access the conference call 10 minutes before the start of the conference: |
|
|
Local – Toronto: 1 289 514-5100 |
|
|
Toll Free – North America: 1 800 717-1738 |
|
|
To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc. |
SOURCE Cogeco Communications Inc.
View original content: http://www.newswire.ca/en/releases/archive/October2024/31/c6932.html
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