The following is a summary of the Cogeco Inc. (CGECF) Q2 2024 Earnings Call Transcript:
Financial Performance:
Cogeco Inc.'s Q2 2024 revenue decreased by 0.6% with a drop in EBITDA by 1% influenced by the performance of Cogeco Communications.
Cogeco Connexion, the Canadian business, had a slight increase in revenue by 1.4% mostly from increased internet service customer base and the oxio acquisition.
The American business, Breezeline faced a drop in revenue by 2.8% mainly due to lower video subscriptions and a reduced customer base. However, its EBITDA increased by 0.5% due to a higher gross margin.
Business Progress:
Continued robust internet subscriber additions under the oxio brand at Cogeco Connexion.
Breezeline Mobile plans to launch this spring, which is expected to enhance the product mix and customer retention.
Approximately 19,000 new homes added to the network in Q2, representing an 8% increase in organic network growth since beginning fiscal '22.
Cogeco Media made progress with new digital solutions and multiplatform audio content opening new revenue possibilities.
Efforts are ongoing to optimize CapEx, with spending expected to be seasonal.
Negotiations are in progress for MVNO access in Canada to offer customers wireless options.
Operational improvements have been made in strengthening operations, network capacity, IPTV solutions deployment, and sales and marketing efforts in Ohio.
The company acquired Niagara Regional Broadband Network, expected to increase CCX's revenue by 1%.
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