Link/Page Citation
The Hollywood Reporter - Bell Media Opens Door to Working With Streaming Giants to Co-Produce TV Shows - 27/3/2024
Bell Media CEO Sean Cohan, the veteran American TV exec newly-hired to lead Canada's top-rated broadcaster and local streamer Crave, says he's open to working with American streaming giants to produce TV shows.
For the complete story see:
https://www.hollywoodreporter.com/business/business-news/canadian-u-s-streamers-produce-series-1235861141/
Media In Canada - Teads and ZoomerMedia renew their exclusive partnership - 25/3/2024
The new deal expands beyond the blogTO website to give Teads exclusivity on outstream ads across the ZDN digital platforms.
For the complete story see:
https://mediaincanada.com/2024/03/25/teads-and-zoomermedia-renew-their-exclusive-partnership/
Media In Canada - Vistar Media updates its platform to simplify OOH campaign planning - 22/3/2024
Brands will be able to use a new panel, which provides a full breakdown of targeted venues and projected costs.
For the complete story see:
https://mediaincanada.com/2024/03/22/vistar-media-updates-its-platform-to-simplify-ooh-campaign-planning/
Other Stories
Adweek - PMC Will Sell Vox Media Ad Inventory in Canada - 19/3/2024
Publishing Perspectives - Scholastic's Acquisition of Canada's 9 Story Media Group - 18/3/2024
Global News - Saltwire Network faces insolvency in tough Canadian media industry - 13/3/2024
Media In Canada - Meta introduces new AI-powered ad tools - 12/3/2024
CBC - SaltWire's money woes a sign of bigger problems in the newspaper business: experts - 12/3/2024
Media Releases
Thomson Reuters - Thomson Reuters First-Quarter 2024 Earnings Announcement and Webcast Scheduled for May 2, 2024 - 27/3/2024
Latest Research
Adaptive Capability, Social Media Agility, Ambidextrous Marketing Capability, and Business Survival: A Mediation Analysis - By Onamusi, Abiodun Babatunde
Industry Overview
The Media Industry
Canada Media Producers Association
Overviews of Leading Companies
BCE Inc. (TSX: BCE, NYSE: BCE)
Canadian Broadcasting Corporation
Cogeco Communications Inc. (TSX: CCA)
Cogeco Inc. (TSX: CGO)
Corus Entertainment Inc. (TSX: CJR.B)
Postmedia Network Canada Corporation (TSX: PNC.A)
Quebecor Group (TSX: QBR.A)
Rogers Communications Inc. (TSX: RCI.A, NYSE: RCI)
Shaw Group (TSX: SJR, NYSE: SJR)
Thomson Reuters Corporation (TSX: TRI, NYSE: TRI)
Torstar Corporation (TSX: TS.B)
Transcontinental Inc. (TSX: TCL.A)
Vividata
Associate: Mohammad Azhar Bin Mazlan
News and Commentary
The Hollywood Reporter - Bell Media Opens Door to Working With Streaming Giants to Co-Produce TV Shows - 27/3/2024
Bell Media CEO Sean Cohan, the veteran American TV exec newly-hired to lead Canada's top-rated broadcaster and local streamer Crave, says he's open to working with American streaming giants to produce TV shows.
For the complete story see:
https://www.hollywoodreporter.com/business/business-news/canadian-u-s-streamers-produce-series-1235861141/
Media In Canada - Teads and ZoomerMedia renew their exclusive partnership - 25/3/2024
The new deal expands beyond the blogTO website to give Teads exclusivity on outstream ads across the ZDN digital platforms.
For the complete story see:
https://mediaincanada.com/2024/03/25/teads-and-zoomermedia-renew-their-exclusive-partnership/
Media In Canada - Vistar Media updates its platform to simplify OOH campaign planning - 22/3/2024
Brands will be able to use a new panel, which provides a full breakdown of targeted venues and projected costs.
For the complete story see:
https://mediaincanada.com/2024/03/22/vistar-media-updates-its-platform-to-simplify-ooh-campaign-planning/
Adweek - PMC Will Sell Vox Media Ad Inventory in Canada - 19/3/2024
Penske Media Corp., which owns a portfolio of entertainment titles including Variety and The Hollywood Reporter, is exclusively selling Vox Media's advertising inventory in Canada.
For the complete story see:
https://www.adweek.com/media/pmc-vox-media-ad-inventory-canada/
Publishing Perspectives - Scholastic's Acquisition of Canada's 9 Story Media Group - 18/3/2024
Scholastic CEO Peter Warwick says the acquisition of 9 Story Media Group will bring 'the pages of our books to life on screens and through merchandising.'
For the complete story see:
https://publishingperspectives.com/2024/03/scholastic-is-acquiring-canadas-9-story-media-group/
Global News - Saltwire Network faces insolvency in tough Canadian media industry - 13/3/2024
Saltwire Network, Atlantic Canada's largest media group, is filing for creditor protection and is tens of millions of dollars in debt.
For the complete story see:
https://globalnews.ca/video/10358323/saltwire-network-faces-insolvency-in-tough-canadian-media-industry
Media In Canada - Meta introduces new AI-powered ad tools - 12/3/2024
Advertisers on Meta have more ways to reach customers with new video options, AI-powered tools and improved ad formats.
For the complete story see:
https://mediaincanada.com/2024/03/12/meta-introduces-new-ai-powered-ad-tools/
CBC - SaltWire's money woes a sign of bigger problems in the newspaper business: experts - 12/3/2024
The recent decision by SaltWire Network Inc. to seek protection from its creditors is another sign of the decline of the business and the growing threat to local journalism.
For the complete story see:
https://www.cbc.ca/news/canada/nova-scotia/saltwire-money-woes-newspaper-business-experts-1.7142027
Media Releases
Thomson Reuters - Thomson Reuters First-Quarter 2024 Earnings Announcement and Webcast Scheduled for May 2, 2024 - 27/3/2024
Conference call and webcast scheduled for 9:00 a.m. EDT
TORONTO, March 27, 2024 - Thomson Reuters (TSX/NYSE: TRI) announced today its first-quarter 2024 earnings will be issued via news release on Thursday, May 2, 2024.
Steve Hasker, president and chief executive officer, and Mike Eastwood, chief financial officer, will host a conference call and simultaneous webcast that morning at 9:00 a.m. EDT. Discussions may include forward-looking information.
You can access the webcast by visiting the "Investor Relations" section of the Thomson Reuters website. Registration for the webcast is now open. Additionally, an archive of the webcast will be available following the presentation.
https://www.thomsonreuters.com/en/press-releases/2024/march/thomson-reuters-first-quarter-2024-earnings-announcement-and-webcast-scheduled-for-may-2-2024.html
Latest Research
Adaptive Capability, Social Media Agility, Ambidextrous Marketing Capability, and Business Survival: A Mediation Analysis
Onamusi, Abiodun Babatunde
Abstract
This study assessed the effect of adaptive capability and social media agility on survival firms in multiple industries in five countries. Furthermore, it established the mediating effect of ambidextrous marketing capability on the interaction between adaptive capability, social media agility, and firm survival, and examined the interaction between social media agility and adaptive capability. The study adopted a survey design and a sample of 416 firms in Nigeria, Canada, the United States, Australia, and the United Kingdom, and conducted the regression analysis to test the hypotheses formulated therein. The results showed that adaptive capability and social media agility had a positive and significant effect on business survival. Further analysis showed that when ambidextrous marketing capability was incorporated into the two models respectively and forming multiple regression analysis, the coefficient of ambidextrous marketing capability had a significant effect on business survival; however, the coefficient of adaptive capability and social media agility became insignificant suggesting that a full mediation effect was established. Lastly, social media agility had a positive and significant effect on the firm's adaptive capability. The findings suggest that adaptive capability and social media agility enhance firm survival through the mechanism of ambidextrous marketing capability. The study recommends that firms strengthen their adaptive capability infrastructure; develop a robust, agile social media interface, and commit resources to enhance connectivity with the market, supplier, and customers (outside-in). Likewise, enhance internal organizational knowledge, skill, and ability (inside-out) to offer incremental and radical products to address changing market demand.
https://www.proquest.com/docview/2566023956?pq-origsite=gscholar&fromopenview=true
The Industry
Vividata's SCC | Study of the Canadian Consumer Fall 2023 Unveils Insights on Connected TVs, Streaming Behaviour, Newcomers and More
Toronto, ON, Thursday, September 28th, 2023 - Vividata, Canada's leading media and consumer research firm, today released their latest study results. In field July 2022 - June 2023, Vividata's SCC | Study of the Canadian Consumer | Fall 2023 is the most comprehensive cross-media, product, attitudinal and brand research study in Canada.
The Fall 2023 Study provides coverage on new consumer trends, such as: newcomers to Canada, connected TVs and streaming versus linear viewing behaviour, price consciousness among consumers, finance and banking, and much more.
A sample of highlights from Vividata's SCC | Study of the Canadian Consumer | Fall 2023 include:
CONNECTED TVS, AND LINEAR VS. STREAMING BEHAVIOUR
Connected TVs Continue to gain traction in Canadian Households
Adoption of connected TVs continues its upward trajectory, with an estimated 71% of Canadian adults now enjoying the benefits of at least one such television in their household. This marks substantial growth from 56% in 2021.
At 28%, Samsung claims the top spot as the most owned connected TV brand, followed by LG at 16%. Among those that don't currently own one, Samsung maintains their top position as the connected TV brand to bring home.
With an increase in connected TV adoption, linear versus streaming viewing behaviour continues to shift. Compared to 23% in 2021, 36% of adults say streaming is the sole way the watch TV, while 28% of adults still only watch linear TV and the remainder do both.
92% of Netflix viewers watch content on a large screen like a connected TV.
Reaching 16.3 million adults, Netflix is the most used streaming service, and 43% of its audience only watch the platform's content on the large screen (CTV, game console, or set-top box), while 8% only watch on smaller screens (computer/laptop, smartphone or tablet). Amazon Prime secures the second largest streaming audience at 13.4 million, followed by YouTube at 10.9 million. In contrast to paid streaming services like Netflix, Amazon Prime and others, 33% of YouTube viewers are only on small screens, and 11% only on a large screen.
Source: VIvidata
https://vividata.ca/press_release/vividatas-scc-study-of-the-canadian-consumer-fall-2023-unveils-insights-on-newcomers-connected-tvs-streaming-behaviour-and-more/
CMPA's Profile 2022 reports on health of Canada's film and TV production sector
OTTAWA, MAY 3, 2023 - A new report, released today by the Canadian Media Producers Association (CMPA), provides a detailed look at the state of film and television production in Canada between April 1, 2021, and March 31, 2022.
Topline numbers from Profile 2022: Economic Report on the Screen-based Media Production Industry show that almost every segment of the media production industry contributed to the sector's growth. Between April 2021 and March 2022, media production in Canada generated $11.69 billion in production volume and $13.73 billion in GDP, with 240,760 jobs across Canada.
In addition to a post-COVID-19 rebound in activity, Profile 2022 indicates that a number of factors contributed to the significant year-over-year increase in production volume. In the case of domestic production, volume was boosted by pandemic-related government initiatives, along with a larger number of productions being commissioned, as Canadian broadcasters caught up on Canadian programming expenditures (CPE) underspent during the pandemic. The increased production activity indicated in the report will be tested by ongoing inflationary pressures and the prospect of economic headwinds.
"These results are a reflection of the economic potential of Canada's film and television production sector, and once again show the resilience of Canada's independent producers," said CMPA President and CEO Reynolds Mastin.
While Profile 2022 indicates that Canadian television production increased by 38.9%, the first year-over-year increase for the domestic industry since the 2018/19 period, the pandemic's early days caused significant disruption to Canada's production sector, stalling two years of steady growth and further widening the gap between foreign location and service (FLS) production and domestic production volumes.
"The ongoing impressive growth of Canada's production industry is a testament to the extraordinary collaboration of Canadian independent producers, distributors, broadcasters, creators, funders and foreign streaming services, as well as to strong partnerships with every level of government across the country. At the same time, the gap between domestic and service production continues to widen. We look forward to working with all stakeholders to ensure a healthy and balanced production ecosystem for decades to come," added Mastin.
Profile 2022 can be downloaded here. This latest edition of CMPA's annual economic report is compiled by Nordicity, and developed in collaboration with the Association québécoise de la production médiatique (AQPM), and with the support of the Department of Canadian Heritage and Telefilm Canada.
Source: The Canadian Media Producers Association (CMPA)
https://cmpa.ca/pressreleases/cmpas-profile-2022-reports-on-health-of-canadas-film-and-tv-production-sector/
Canada Media Producers Association
The Canadian Media Producers Association is Canada's trade association for independent producers. We represent hundreds of companies engaged in the development, production and distribution of English-language content for TV, feature film and digital media channels.
The CMPA's diverse membership produces an incredible variety of projects, from acclaimed indie films to animated kids' shows-and everything in between. Have a favorite Canadian TV show? Chances are one of our members produced it. Those Canadian films getting all the hype on the festival circuit? Again, it's more than likely you're hearing about our members' work.
We work behalf of our members to ensure a bright future for domestic media production and Canadian content. Here's how:
We promote the outstanding content that our members produce
, building awareness of the cultural and economic value of our industry.
We advocate on behalf of our members before federal and provincial governments
on policy that affects our industry (such as broadcasting, copyright, taxation and trade).
We negotiate labour agreements
with key unions and guilds, and we support our members when dealing with these agreements.
We run mentorship programs
to foster the careers of Canada's next generation of producers.
We put on Canada's leading industry conference, Prime Time in Ottawa
, which connects participants working in every area of the industry.
We produce a number of publications, including the annual economic report
Profile
and the twice-a-year magazine
Indiescreen
.
The CMPA has offices in Ottawa, Toronto and Vancouver, and is governed by a board of directors composed of CMPA members. To ensure broad member representation, the directors are independent producers from small, medium and large companies from every region in Canada. They work in television production, theatrical feature film, digital media and production service.
CMPA organizations
The CMPA has established three not-for-profit organizations to simplify rights management for producers.
Keeping track of copyright uses and managing royalties can be an enormous task for a single company. To allow producers to focus on creating their next great piece of content, the CMPA has founded two not-for-profit copyright collectives:
Canadian Retransmission Collective (CRC)
The CRC collects and distributes Canadian-territory retransmission royalties on behalf of over 8,000 rightsholders worldwide. These royalties are collected from retransmitters (such as cable and satellite companies) who profit from providing broadcast signals to their customers. The CRC researches well over 1.7 million hours of programming annually, and has distributed more than $300 million to rightsholders to date.
crc-scrc.ca
Producers Audiovisual Collective of Canada (PACC)
PACC collects secondary-use royalties for Canadian producers in all countries outside of Canada whose laws allow rightsholders to collect these royalties. (Secondary uses for audiovisual works include rental and lending of video recordings, exhibition or public performance, educational copying and performance in the classroom.) PACC collects these royalties from Australia, Germany, Latin America, the United Kingdom and many more.
pacc.ca
The CMPA has also established ISAN Canada, which allows producers to easily register their works using the ISAN global numbering system:
ISAN Canada
ISAN is a global numbering system for audiovisual works-a simple, permanent identifier that can be read by anyone and processed by any system around the world. ISAN Canada issues ISAN numbers to Canadian audiovisual works and registers them in the central database, which is tremendously beneficial for rights administration, permissions and payments. ISAN Canada has over 1,600 registered users.
isan.ca
Source: The Canadian Media Producers Association (CMPA)
https://cmpa.ca/about-the-cmpa/
Leading Companies
BCE Inc. (TSX: BCE, NYSE: BCE)
Canada's largest communications company
Leading the way in broadband and media innovation
BCE delivers a wide range of innovative products and services to consumers, businesses and government customers across Canada by leveraging the power of our world-class wireless and fibre networks. These include mobile data and voice plans for our 4G LTE, 5G and 5G+ wireless networks, Fibe Internet and TV, Wireless Home Internet, residential and business voice services, cloud-based services, mobile edge computing, Internet of Things (IoT) and other business solutions. Bell Media operates media brands, such as CTV, RDS, Crave and iHeartRadio. Additionally, Bell Media is a leading investor in Canadian content creation, including local television and radio news, sports and entertainment programming, and other original TV and film productions. Bell Media partners with advertisers to help connect brands to consumers through video, audio, out-of-home and digital platforms, as well as through our advanced advertising technology products.
BCE is also one of Canada's major retailers, with more than 8,000 retail points of distribution across Canada, including over 1,000 Bell, Virgin Plus, Lucky Mobile and The Source locations, as well as Glentel-operated locations.
https://www.bce.ca/about-bce/bce-overview
BCE reports 2023 Q4 and full-year results, announces 2024 financial targets and 3.1% annual dividend increase to $3.99 per share
All 2023 financial guidance targets achieved
5.3% consolidated adjusted EBITDA 1 growth in Q4 yielded 1.9 percentage-point increase in adjusted EBITDA margin 2 to 39.7% - best quarterly result since Q1 2022
Q4 net earnings of $435 million, down 23.3%, with net earnings attributable to common shareholders of $382 million, down 27.7% or $0.42 per common share; 5.7% increase in adjusted net earnings 1 of $691 million delivered adjusted EPS 1 of $0.76, up 7.0%
Cash flows from operating activities up 15.4% in Q4 to $2,373 million; free cash flow 1 increased $913 million in Q4 to $1,289 million on lower capital expenditures, timing of cash tax instalments and higher working capital
170,831 total mobile phone and connected device net subscriber activations 3 in Q4 drove 3.9% wireless service revenue growth and 0.4% higher blended ARPU 4
55,591 retail Internet net subscriber activations 3 in Q4 - second best Q4 result in nearly two decades - contributed to 5.4% residential Internet revenue growth
Bell Media adjusted EBITDA up 14.7% in Q4 on lower operating costs including restructuring initiatives as total revenue declined 7.5% due to challenging advertising market conditions; digital revenue 5 up 27% as digital platforms and advertising technology drove strong growth
Planned minimum $500 million reduction in capital expenditures in 2024 and rollback of fibre network expansion reflect unsupportive federal government policies and CRTC decisions that discourage investment
Undertaking largest workforce restructuring initiative in nearly 30 years, reducing approximately 4,800 positions, or 9% of all BCE employees in 2024, and driving in-year cost savings of $150 million to $200 million; 250 million annualized
MONTRÉAL, Feb. 8, 2024 /CNW/ - BCE Inc. (TSX: BCE) (NYSE: BCE) today reported results for the fourth quarter (Q4) and full-year 2023, provided financial guidance for 2024, including a 3.1%, or $0.12 per share, increase in the BCE annual common share dividend to $3.99, and announced a workforce restructuring initiative, our largest in nearly 30 years, reducing approximately 4,800 positions, including 750 contractors, or 9% of all BCE employees.
1 Adjusted EBITDA is a total of segments measure, adjusted net earnings and free cash flow are non-GAAP financial measures and adjusted EPS is a non-GAAP ratio. Refer to the Non-GAAP and Other Financial Measures section in this news release for more information on these measures.
2 Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on adjusted EBITDA margin.
3 Refer to the Key Performance Indicators (KPIs) section in this news release for more information on subscriber (or customer) units.
4 Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues), divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month. Refer to the Key Performance Indicators (KPIs) section in this news release for more information on blended ARPU.
5 Digital revenues are comprised of advertising revenue from digital platforms including web sites, mobile apps, connected TV apps and out-of-home (OOH) digital assets/platforms, as well as advertising procured through Bell digital buying platforms and subscription revenue from direct-to-consumer services and video-on-demand services.
"The Bell team has demonstrated strong executional discipline and cost containment this quarter, enabling Bell to deliver solid results in Q4 and throughout 2023," said Mirko Bibic, President and CEO of BCE and Bell Canada.
We continue to see a preference by customers for fibre, contributing to continued strong fibre Internet net subscriber activations and 7.1% residential Internet revenue growth in 2023. Bell's mobile phone customer base at the end of 2023 was up 3.4% over 2022. And I'm very pleased that we've reduced our share of industry complaints for an eighth consecutive year in the Commission for Complaints for Telecom-television Services (CCTS) 2022-2023 annual report.
As we close out 2023, our results demonstrate the critical importance of balancing near term and long term priorities to deliver for our customers and our shareholders. We took necessary action earlier this year to drive costs out of the business and to align costs to the revenue potential of each business segment. At the same time, we started putting the building blocks in place for our transformation from a traditional telco to a tech services and digital media leader, making some key investments to accelerate this transformation.
While it's clear that we are continuing to execute with discipline in a competitive marketplace, we need to take additional measures in response to increasingly unsupportive federal government and regulatory decisions, legacy business declines and a macroeconomic environment with higher interest rates and continued inflation. As our business is hampered by regulatory decisions that discourage investment, we are slowing the pace of our network expansion and capping fibre speeds. We intend to reduce capital expenditures by over $1 billion over the next two years, including a minimum $500 million year-over-year decrease in 2024 alone. In addition, we are undertaking a significant workforce restructuring initiative - our largest in nearly 30 years - reducing approximately 4,800 positions, or 9% of all BCE employees. I recognize that this decision is difficult for the team members impacted, and I thank each of them for their contributions.
Today's changes are difficult, but necessary to respond to evolving external drivers, accelerate our transformation and ensure Bell's future health and longevity so that we can continue to advance our purpose to advance how Canadians connect with each other and the world."
KEY BUSINESS DEVELOPMENTS
Workforce restructuring
To position Bell for future success,
Bell is taking action (opens in new window)
to lower its cost structure and align costs to the revenue potential of each business segment. This includes
Bell's largest workforce restructuring initiative (opens in new window)
in nearly 30 years, reducing approximately 4,800 positions, or 9% of all BCE employees in 2024, and driving in-year cost savings of $150 million to $200 million; $250 million annualized.
Reducing capital expenditures and fibre expansion
Bell announced its intention to
reduce capital expenditures (opens in new window)
by over $1 billion in 2024-25, including a minimum of $500 million in 2024, and roll back fibre network expansion as a result of federal government policies and the CRTC's wholesale access rate decision that discourages network investment. Bell will also cap fibre speeds at three-gigabits per second. In Q4 2023, Bell reduced its capital investment by $105 million more than originally planned as a direct result of this decision.
Channel transformation
Bell announced a partnership with Best Buy Canada to operate 165 The Source consumer electronics stores, re-branded
Best Buy Express (opens in new window)
. Bell will be the exclusive telecommunications provider, selling wireless and wireline (in footprint) services from its Bell, Virgin Plus and Lucky Mobile brands, as well as remain responsible for store operations and labour. Best Buy will assume responsibility for the consumer electronics assortment and procurement, as well as branding, marketing and e-commerce. With the strengths of Best Buy's buying power and supply chain, Bell will wind down The Source head office and back office operations, as well as close 107 The Source stores.
Innovative partnerships to deliver for our customers
Bell announced a partnership with global endpoint security leader
SentinelOne (opens in new window)
to provide extensive data protection services for Bell's enterprise customers, SentinelOne's first partnership with a major telecommunications company in Canada. Bell also entered into a collaboration with
ServiceNow (opens in new window)
, a digital workflow company, to launch Service Bridge capabilities on the ServiceNow platform, leveraging FX Innovation's deep industry expertise to elevate the end-to-end experience for Bell customers with customized solutions and automation capabilities. In collaboration with Microsoft, Bell expanded its
hybrid work solutions for Canadian enterprises (opens in new window)
with the launch of Bell Operator Connect, pairing Bell's high-quality voice network and Microsoft Teams. Bell is also rolling out Microsoft 365 within its own enterprise IT environment. Bell announced a collaboration with
Mila institute (opens in new window)
in Montréal to study and apply deep learning and AI capabilities on Bell systems to improve business performance, customer experience and accelerate AI innovations with cloud computing.
Champion customer experience
Bell continued to lead national telecom service providers in reducing its share of consumer complaints, according to the
2022-2023 Annual Report (opens in new window)
from the Commission for Complaints for Telecom-television Services (CCTS) 6 . Bell reduced its share of total industry complaints for an eighth consecutive year 7 , decreasing its share of complaints by 6% over the previous year.
Bell Fibe TV (opens in new window)
customers in the Atlantic can now enjoy next generation capabilities and features including access to the Google Play app catalogue, Cloud PVR, and unlimited simultaneous streams with the Fibe TV app. Bell reached one million digital repair sessions on its self-serve
Virtual Repair tool (opens in new window)
, and enhanced the tool with new features such as Wi-Fi check-up to help customers simplify the repair process.
5G leadership and the fastest Internet speeds
Bell secured the most
5G+ spectrum (opens in new window)
nationwide in the federal government's 3500 and 3800 MHz spectrum auctions, recently securing the acquisition of 939 licenses for 3800 MHz spectrum to enhance customers' digital experience nationwide. Bell 5G wireless was ranked Canada's
fastest and best 5G network (opens in new window)
by Global Wireless Solutions for the third consecutive year 8 . GWS also confirmed that Bell 5G+ wireless on 3500 MHz spectrum is the fastest and best in the country 8 . Additionally, Bell pure fibre was ranked
Canada's fastest Internet (opens in new window)
and Wi-Fi for a second time in a row by Ookla in its Q3-Q4 2023 Speedtest Awards 9 , and remains Canada's most awarded Internet service provider 10 .
Delivering the most compelling content
Bell Media announced its intent to divest
45 of its 103 radio stations (opens in new window)
to seven buyers, subject to CRTC review and other closing conditions. Once these transactions close, it's our intention that the divested stations will remain part of iHeartRadio Canada, helping to transform Bell Media's radio operation to an innovative audio business. To reach more audiences, Crave will soon be available on
Amazon Prime Video channels (opens in new window)
in Canada. 2023 was the most watched year in Crave's streaming history; streams on Crave in Q4 2023 were up 8% year-over-year, and in Québec up 18% year-over-year. Bell Media's share of Canadian English entertainment specialty channels among A25-54 was its highest on record, increasing 7% over 2022. CTV Comedy Channel is the number one Canadian English entertainment specialty channel with A25-54. The
110 th Grey Cup (opens in new window)
was one of the year's biggest television events in Canada for TSN and RDS, attracting an average audience of 3.7 million viewers. TSN and RDS also announced broadcast and media rights agreements for the
Professional Women's Hockey League (opens in new window)
's inaugural season as well as
CONMEBOL Copa America 2024 (opens in new window)
. Bell Media launched its newest campaign,
Streets-to-Screens (opens in new window)
, a multiplatform program that leverages Bell Media's exclusive ad-synching
Radio-to-Road (opens in new window)
program where select roadside digital boards synchronize with advertisem*nts on specific radio stations using Bell First Party Data.
Bell Let's Talk Day
Bell Let's Talk launched its
"Let's create real change" campaign (opens in new window)
, inviting Canadians to take meaningful action in mental health on Bell Let's Talk Day and throughout the year, while spotlighting mental health organizations across the country that provide supports and services for Canadians experiencing mental health issues.
As part of its ongoing commitment to improve access to mental health supports and services in communities across Canada, Bell Let's Talk announced 10 recipients of the
Bell Let's Talk Diversity Fund (opens in new window)
. The
Bell Let's Talk Post-Secondary Fund (opens in new window)
awarded $1 million in grants to 11 Canadian colleges, universities and CEGEPs to support mental health initiatives, and the 2024 Bell Let's Talk Community Fund is now open for applications.
Bell for Better
Bell and the Toronto Raptors teamed up to support newcomers to Canada, through
Bell Inbound Assist (opens in new window)
, a new program that recognizes and supports community organizations that welcome newcomers to Canada through basketball programming. Three organizations will be selected to receive grants of up to $100,000 in partnership with MLSE Foundation. BCE was ranked the most sustainable communications company in the world in
Corporate Knights' Global 100 (opens in new window)
most sustainable corporations for 2024 11 . Bell Technical Solutions was honoured with an Outstanding Commitment to Employment Equity award in the
2023 Employment Equity Achievement Awards (opens in new window)
by Employment and Social Development Canada, a department of the Government of Canada 12 .
Financial Highlights
($ millions except per share amounts) (unaudited)
Q4 2023
Q4 2022
% change
2023
2022
% change
BCE
Operating revenues
6,473
6,439
0.5 %
24,673
24,174
2.1 %
Net earnings
435
567
(23.3 %)
2,327
2,926
(20.5 %)
Net earnings attributable to common shareholders
382
528
(27.7 %)
2,076
2,716
(23.6 %)
Adjusted net earnings
691
654
5.7 %
2,926
3,057
(4.3 %)
Adjusted EBITDA
2,567
2,437
5.3 %
10,417
10,199
2.1 %
Net earnings per common share (EPS)
0.42
0.58
(27.6 %)
2.28
2.98
(23.5 %)
Adjusted EPS
0.76
0.71
7.0 %
3.21
3.35
(4.2 %)
Cash flows from operating activities
2,373
2,056
15.4 %
7,946
8,365
(5.0 %)
Capital expenditures
(1,029)
(1,638)
37.2 %
(4,581)
(5,133)
10.8 %
Free cash flow
1,289
376
242.8 %
3,144
3,067
2.5 %
"We had a solid quarter to cap 2023 with 5.3% higher adjusted EBITDA that drove a 1.9-point increase in margin to 39.7%. Residential Internet revenue was up 5.4%, total consumer wireless revenue up 5.5%, and digital media revenues up 27% over last year, reflecting continued focused execution on our key priorities and cost discipline on the part of the Bell team," said Curtis Millen, Chief Financial Officer of BCE and Bell Canada.
"BCE is in a good position, having achieved our financial targets for 2023 while having weathered increasing macroeconomic headwinds and an unsupportive public policy environment this past year. Looking ahead, we are increasing BCE's common share dividend by 3.1% for 2024. This will be a transformational year for Bell as we balance growth with financial performance, continue to adapt in the face of external pressures, and focus on revenue-generation on our transformation journey to a tech services and digital media leader."
BCE operating revenue in Q4 increased 0.5% over Q4 2022 to $6,473 million, due to 3.6% higher product revenue of $1,125 million, driven by a greater sales mix of higher-value mobile phones and lower year-over-year device discounting during the Black Friday and December holiday sales periods. Service revenue was down 0.1% to $5,348 million, as a year-over-year decline at Bell Media was mostly offset by growth at Bell Communication and Technology Services (Bell CTS). For full-year 2023, BCE operating revenue grew 2.1% to $24,673 million with year-over-year increases of 0.9% in service revenue and 9.4% in product revenue.
Net earnings in Q4 decreased 23.3% to $435 million and net earnings attributable to common shareholders totalled $382 million, or $0.42 per share, down 27.7% and 27.6% respectively. The year-over-year declines were due to higher other expense, which included a $204 million non-cash loss on BCE's share of an obligation to repurchase at fair value the minority interest in one of its joint venture equity investments, higher interest expense, increased depreciation and amortization expense, and higher severance, acquisition and other costs. These factors were partly offset by higher adjusted EBITDA, lower asset impairment charges mainly related to Bell Media's French-language TV properties and broadcast licenses, a higher net return on post-employment benefit plans and lower income taxes. For full-year 2023, net earnings decreased 20.5% to $2,327 million and net earnings attributable to common shareholders were $2,076 million, or $2.28 per share, down 23.6% and 23.5% respectively.
Adjusted net earnings were up 5.7% in Q4 to $691 million, delivering a 7.0% increase in adjusted EPS to $0.76. For full-year 2023, adjusted net earnings were down 4.3% to $2,926 million, resulting in a 4.2% decrease in adjusted EPS to $3.21.
Adjusted EBITDA was up 5.3% in Q4 to $2,567 million, reflecting increases of 4.8% at Bell CTS and 14.7% at Bell Media. Due to better promotional offer discipline and the flow-through of high-margin service revenue at Bell CTS and a 2.4% year-over-year improvement in operating costs, driven mainly by lower programming costs at Bell Media, lower storm recovery costs as well as the favourable impact of various cost reduction initiatives and other operating efficiencies across the organization, BCE's consolidated adjusted EBITDA margin increased 1.9 percentage points to 39.7% from 37.8% in Q4 2022. For full-year 2023, adjusted EBITDA grew 2.1% to $10,417 million, while BCE's adjusted EBITDA margin remained stable at 42.2% despite 2.0% higher operating costs.
BCE capital expenditures in Q4 were $1,029 million, down 37.2% from $1,638 million in Q4 last year, corresponding to a capital intensity 13 of 15.9%, compared to 25.4% in Q4 2022. This brought total 2023 capital expenditures to $4,581 million, down from $5,133 million the year before, for a capital intensity of 18.6% compared to 21.2% in 2022. The year-over-year decrease was due to an unplanned additional $105 million decrease in Q4 as a direct result of the CRTC's decision in November 2023 to mandate wholesale access to Bell's all fibre network, in addition to a planned reduction in capital spending on our wireless 5G and pure fibre networks consistent with our more modest buildout targets for 2023 compared to 2022.
BCE cash flows from operating activities in Q4 were $2,373 million, up 15.4% from Q4 2022, reflecting lower cash taxes, due mainly to the timing of tax instalment payments, increased cash from working capital and higher adjusted EBITDA, partly offset by higher interest paid and higher severance, acquisition and other costs paid. For full-year 2023, despite higher adjusted EBITDA, BCE cash flows from operating activities totalled $7,946 million, down 5.0% from 2022, due mainly to higher interest paid and lower cash from working capital.
Free cash flow increased $913 million, or 242.8%, in Q4 to $1,289 million from $376 million in Q4 2022, driven by lower capital expenditures and higher cash flows from operating activities excluding acquisition and other costs paid. For full-year 2023, BCE free cash flow grew 2.5% to $3,144 million, up from $3,067 million in 2022.
OPERATING RESULTS BY SEGMENT
Bell Communication and Technology Services (Bell CTS)
Total Bell CTS operating revenue increased 1.7% in Q4 to $5,744 million, and by 2.9% to $21,926 million for 2023, driven by both higher service and product revenue.
Service revenue grew 1.2% in Q4 to $4,619 million, driven mainly by ongoing expansion of our mobile phone, mobile connected device and retail Internet subscribers, higher mobile phone blended ARPU, increased sales of business service solutions to large enterprise customers, as well as the financial contribution from acquisitions made over the past year including Distributel and FX Innovation. This was partly offset by ongoing declines in legacy voice, data and satellite TV services as well as greater acquisition, retention and bundle discounts on residential home services compared to Q4 2022. For full-year 2023, service revenue increased 1.8% to $18,407 million.
Product revenue was up 3.6% in Q4 to $1,125 million, driven by a greater sales mix of higher-value mobile phones and lower year-over-year device discounting during the Black Friday and December holiday periods. For full-year 2023, product revenue increased 9.4% to $3,519 million, driven by a greater sales mix of higher-value mobile phones and higher telecom data equipment sales to large enterprise customers reflecting improved availability compared to more significant global supply chain disruptions experienced in 2022.
Bell CTS adjusted EBITDA grew 4.8% in Q4 to $2,419 million, yielding a 1.2 percentage-point margin increase to 42.1% from 40.9% in Q4 2022. This was driven by better promotional offer discipline particularly compared to the Black Friday sales period in 2022, the flow-through of higher year-over-year service revenue and a 0.5% reduction in operating costs reflecting lower storm recovery costs and the favourable impact of various cost reduction initiatives and other operating efficiencies. For full-year 2023, Bell CTS adjusted EBITDA was up 2.8% to $9,720 million while margin was essentially unchanged at 44.3% compared to 44.4% in 2022.
Postpaid mobile phone net subscriber 14 activations totaled 128,715 in Q4, down 16.8% from 154,617 in Q4 2022. The decrease was due to higher mobile phone postpaid customer churn 14 , which increased to 1.63% from 1.22% in Q4 2022, reflecting greater overall competitive market activity and promotional offer intensity compared to last year as well as increased business customer deactivations attributable to cost rationalization initiatives. This was partly offset by 20.9% higher gross subscriber activations, driven by immigration growth, continued 5G and multi-product bundling momentum, effective promotions and stronger Virgin Plus performance. For full-year 2023, postpaid mobile phone net activations were 426,172, down 3.1%, reflecting higher mobile phone postpaid customer churn of 1.15% compared to 0.92% in 2022, as gross subscriber activations increased 18.6%.
Bell's prepaid mobile phone customer base declined by 36,630 net subscribers 14 in Q4, compared to a net loss of 31,996 in Q4 2022. Despite a 7.1% increase in gross activations, the year-over-year decrease was the result of greater customer migrations to postpaid service and higher customer churn, which increased to 6.15% from 5.74% last year, reflecting more customer deactivations due to attractive promotional offers and availability of mobile 5G service on postpaid discount brands. For full-year 2023, we posted a net loss of 14,983 prepaid mobile phone customers, compared to a net gain of 50,059 in 2022, reflecting an increased churn rate of 5.31%, partly offset by 3.0% higher gross activations.
Bell's mobile phone customer base totalled 10,287,046 at the end of 2023, a 3.4% increase over 2022, comprised of 9,422,830 postpaid subscribers, up 3.9%, and 864,216 prepaid customers, down 1.7%.
Mobile phone blended ARPU 15 was up 0.4% to $58.71 in Q4, reflecting higher outbound roaming revenue and our ongoing focus on premium subscriber acquisition. This was moderated by lower overage revenue from customers subscribing to unlimited and larger capacity data rate plans and competitive pressures on base rate plan pricing. For full-year 2023, mobile phone blended ARPU increased 0.3%.
Mobile connected device net activations were down 24.6% in Q4 to 78,746, despite fewer data device deactivations, due mainly to lower business IoT activations driven by one customer. For full-year 2023, mobile connected device net activations increased 45.2% to 293,307, driven by strong customer demand for Bell IoT services, including business solutions and connected car subscriptions, and fewer data device deactivations. At the end of 2023, mobile connected device subscribers 14 totalled 2,732,548, an increase of 11.4% over 2022.
Bell added 55,591 net new retail Internet subscribers 14 in Q4, representing our second-best Q4 result in nearly two decades. This was down 12.4% from 63,466 in Q4 2022, reflecting higher customer deactivations, particularly in our copper service areas, attributable to aggressive promotional offers by competitors offering cable, fixed wireless and satellite Internet services. This was partly offset by higher customer gross activations driven by the superiority of Bell's fibre services, increased customer penetration of tenured fibre footprint, and a focus on bundled offerings with mobile service. For full-year 2023, total retail Internet net activations were 187,126, compared to 201,762 in 2022. Retail Internet subscribers totalled 4,473,429 at the end of 2023, a 5.0% increase from 2022.
Bell TV added 23,537 net new retail IPTV subscribers 14 in Q4, down from 40,209 in Q4 2022. Despite higher gross activations, the year-over-year decrease was due mainly to higher customer deactivations, primarily on our app streaming service, attributable to more customers with expired promotional offers. For full-year 2023, retail IPTV net activations totalled 81,918, down from 94,400 in 2022. At the end of 2023, Bell served 2,070,342 retail IPTV subscribers, a 4.1% increase over 2022.
Retail satellite TV net subscriber 14 losses were 25,855 in Q4, compared to 26,026 in Q4 2022. For full-year 2023, retail satellite TV net losses were 108,367, up from 89,252 in 2022, due to fewer gross activations and higher customer churn driven by increased competitor promotional offer intensity. Bell's retail satellite TV customer base totalled 654,950 at the end of 2023, down 14.2% from 2022.
Retail residential NAS 14 net losses were 38,347 in Q4, compared to 37,878 in Q4 2022. For full-year 2023, retail residential NAS losses were 176,612, compared to 175,788 in 2022. Bell's retail residential NAS customer base totalled 2,021,617 at the end of 2023, representing a 7.7% decline compared to 2022.
Bell Media
Media operating revenue decreased 7.5% in Q4 to $822 million, and 4.2% in 2023 to $3,117 million, as a result of lower year-over-year advertising revenue, partly offset by higher subscriber revenue.
Advertising revenue was down 13.7% in Q4, as advertiser demand and spending, particularly for TV, continued to be impacted by ongoing unfavourable economic conditions as well as the Hollywood actors' and writers' strikes. Additionally, advertising revenue generated in Q4 2022 from the FIFA World Cup Qatar 2022 did not recur this year. This was moderated by growth in digital advertising as we combine our content and digital platforms with targeted advertising capabilities and technology to grow digital market share. For full-year 2023, advertising revenue decreased 8.6%.
Total digital revenues grew 27% in Q4 and 19% in 2023, the result of ongoing Crave direct-to-consumer streaming growth and increased advertising bookings from Bell Media's strategic audience management (SAM) TV media sales tool. Digital revenues represented 35% of total Bell Media revenue in 2023, up from 29% in 2022. Crave subscriptions totalled approximately 3.1 million customers at the end of 2023, including direct-to-consumer streaming subscribers which grew 14% over last year.
Subscriber revenue increased 1.0% in Q4, due to a one-time retroactive adjustment related to a contract with a Canadian TV distributor and continued Crave direct-to-consumer streaming growth. For full-year 2023, subscriber revenue increased 0.7%.
Notwithstanding lower year-over-year revenue, adjusted EBITDA in Q4 was up 14.7% to $148 million, delivering a 3.5 percentage-point increase in margin to 18.0%. This was driven by a 11.3% decrease in operating costs reflecting lower TV programming costs, despite contractual increases for premium content, due to the Hollywood strikes and FIFA World Cup Qatar 2022 last year, restructuring initiatives undertaken in Q2 2023 as a result of the unfavourable economic and broadcasting regulatory environments, and the cessation of CRTC Part II fees in April 2023. For full-year 2023, Bell Media adjusted EBITDA was down 6.4% to $697 million, yielding a margin of 22.4% compared to 22.9% in 2022.
TSN remained Canada's number one sports network and was the top specialty channel overall in Q4; RDS was the top-ranked French-language non-news specialty channel overall.
For Q4 2023, Bell Media was ranked number one in full-day viewership in the French-language entertainment and pay specialty market.
COMMON SHARE DIVIDEND
BCE's Board of Directors has declared a quarterly dividend of $0.9975 per common share, payable on April 15, 2024 to shareholders of record at the close of business on March 15, 2024.
OUTLOOK FOR 2024
The table below provides our 2024 financial guidance targets that reflect potential recessionary and competitive pricing pressures as well as the financial impact of our strategic distribution partnership with Best Buy Canada. Directly as a result of federal government policies, we plan a significant reduction in 2024 capital expenditures that will lead to a slowdown in our pure fibre build and lower spending in highly-regulated businesses. We expect increased interest expense, higher depreciation and amortization expense, and lower gains on sale of real estate to drive lower adjusted EPS in 2024. For 2024, also we expect higher severance payments related to workforce restructuring initiatives, higher interest paid and lower cash from working capital to drive lower free cash flow.
2023 Results
2024 Guidance
Revenue growth
2.1 %
0% to 4%
Adjusted EBITDA growth
2.1 %
1.5% to 4.5%
Capital intensity
18.6 %
Below 16.5%
Adjusted EPS growth
(4.2 %)
(7%) to (2%)
Free cash flow growth
2.5 %
(11%) to (3%)
Annualized common dividend per share
$3.87
$3.99
Please see the section entitled "Caution Regarding Forward-Looking Statements" later in this news release for a description of the principal assumptions on which BCE's 2024 financial guidance targets are based, as well as the principal related risk factors.
https://www.bce.ca/news-and-media/releases/show/BCE-reports-2023-Q4-and-full-year-results-announces-2024-financial-targets-and-3-1-annual-dividend-increase-to-3-99-per-share?page=1&month=&year=&perpage=25
Canadian Broadcasting Corporation
CBC/Radio-Canada is Canada's national public broadcaster. Through our mandate to inform, enlighten and entertain, we play a central role in strengthening Canadian culture. As Canada's trusted news source, we offer a uniquely Canadian perspective on news, current affairs and world affairs. Our distinctively homegrown entertainment programming draws audiences from across the country. Deeply rooted in communities, CBC/Radio-Canada offers diverse content in English, French and eight Indigenous languages. We also deliver content in Spanish, Arabic, Chinese, Punjabi and Tagalog, as well as both official languages, through Radio Canada International (RCI). We are leading the transformation to meet the needs of Canadians in a digital world.
https://www.cbc.ca/mediacentre/press-release/cbc-opens-permanent-bureau-in-lethbridge
https://cbc.radio-canada.ca/en
CBC/Radio-Canada's third 2023-2024 quarterly report now available online
Feb 29, 2024
Q3 Financial Highlights
Our revenue remained stable this quarter. While our TV advertising revenue and subscriber fees continued to be adversely impacted by market and industry trends, these decreases were offset by growth in digital advertising and higher other income.
Government funding increased by 1.7%. This increase was consistent with our expected needs for operating funding in the quarter.
Our expenses decreased by 0.8% due to reduced programming costs and a lower pension expense. These decreases were partly offset by higher operating costs to cover a heavy news quarter.
Third quarter ended December 31
Year-to-date ended December 31
2023
2022
% change
2023
2022
% change
Revenue
141,855
141,989
(0.1)
367,214
385,634
(4.8)
Government funding
325,894
320,316
1.7
938,449
916,086
2.4
Expenses
(493,057)
(496,873)
(0.8)
(1,314,907)
(1,345,069)
(2.2)
Results before other gains and losses and income taxes
(25,308)
(34,568)
(26.8)
(9,244)
(43,349)
(78.7)
Other gains and losses
333
(1,011)
N/M
83
(1,130)
N/M
Results before income taxes
(24,975)
(35,579)
(29.8)
(9,161)
(44,479)
(79.4)
Income taxes recovery
-
2,412
(100.0)
-
2,412
(100.0)
Net results under IFRS for the period
(24,975)
(33,167)
(24.7)
(9,161)
(42,067)
(78.2)
N/M = not meaningful"This quarter, we continued to face challenges on our TV advertising revenue driven by market and industry trends, alongside increased expenses from a news-heavy quarter. These pressures were offset by lower programming costs and higher digital advertising revenue and other income. We are carefully monitoring our financial situation as we move to the next fiscal year."
- Carol Najm, Vice-President and Chief Financial Officer, CBC/Radio-Canada
Q3 Business Highlights
This quarter, CBC/Radio-Canada engaged the public on the issue of trust in journalism. On October 19, the "Trust Talk" event was organized in partnership with the Canadian Association of Journalists, Massey College, the Toronto Star and Victoria University. The panel discussion, moderated by
CBC Ideas
host Nahlah Ayed, was later broadcast on the same show (
Trust Talks: The Future of Journalism in a Digital World
).
The 2023 Annual Public Meeting, on the theme
Behind the Headlines
, also explained the public broadcaster's approach to trustworthy news and our commitment to deliver responsible and credible news content to Canadians.
We also continued to strengthen our partnerships around the world. We announced our
new partnership agreement
with the public broadcaster Radio New Zealand and the renewal of our
partnership agreement
with Germany's national public television broadcaster, ZDF (Zweites Deutsches Fernsehen). At the end of the year, CBC/Radio-Canada became the official broadcaster of
the Professional Women's Hockey League
to further raise the profile of women's sport in Canada.
Finally, in December, in order to address anticipated budget pressures in fiscal year 2024-25 1 ,
we announced potential job and programming cuts
. We understand how concerning this is to the people affected and to the Canadians who depend on our programs and services. We are doing everything we can to minimize the impact of cost-reduction measures, and we will adjust in the coming months should our financial situation improve.
"Despite a difficult financial context, the national public broadcaster continued to serve Canadians across the country throughout the quarter. In the last months of 2023, we launched new initiatives to strengthen public trust in our journalism, and to bring our culture and our talent to the world. In an increasingly polarized world, the public broadcaster continues to play a critical role in building connections and fostering civil debate."
- Catherine Tait, President and CEO, CBC/Radio-Canada
https://cbc.radio-canada.ca/en/media-centre/Q3-2023-2024
Cogeco Communications Inc. (TSX: CCA)
Cogeco Communications Inc. (TSX: CCA) is part of the Cogeco Group, the parent of which is the Canadian company, Cogeco Inc. (TSX: CGO).
See further at Cogeco Group, below.
Rooted in the communities it serves, Cogeco Communications Inc. is a growing competitive force in the North American telecommunications sector with a legacy of 65 years. Through its business units Cogeco Connexion and Breezeline (formerly Atlantic Broadband), Cogeco Communications provides Internet, video and phone services to 1.6 million residential and business customers in Québec and Ontario in Canada as well as in thirteen states in the United States. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
https://corpo.cogeco.com/cgo/en/company-overview/cogeco-communications-inc/
http://corpo.cogeco.com/cca/en
Cogeco Communications Releases its Financial Results for the First Quarter of Fiscal 2024
Cogeco Communications repurchased $116.5 million worth of its shares following CDPQ's acquisition of the entirety of Rogers' holdings in both Cogeco and Cogeco Communications. As a result of this transaction, CDPQ has become an anchor investor in Cogeco Communications;
Cogeco Communications further advanced its wireless ambitions by securing spectrum licences in Québec and Ontario in the 3800 MHz spectrum auction, for a total purchase price of $190.3 million. With this acquisition, Cogeco Communications has spectrum covering 100% of its Canadian broadband network footprint as well as valuable spectrum in the greater Toronto, Montréal, Québec City and Ottawa regions;
Cogeco Connexion reported another quarter of strong Internet subscriber performance, with 10,765 net customer additions, driven by a mix of new customers added under our digital oxio brand, in fibre-to-the-home network expansions and in other operating areas;
Revenue declined by 1.9% compared to the same period last year to $747.7 million, as revenue growth at Cogeco Connexion was offset by lower revenue at Breezeline;
Adjusted EBITDA (1) of $359.0 million decreased by 2.3% over last year, in line with our expectations;
Profit for the period amounted to $95.8 million, a decrease of 20.5%, mainly due to higher financial expenses including a pre-tax $16.9 million non-cash loss on debt extinguishment following a US$1.6 billion refinancing;
Free cash flow (1) amounted to $137.6 million, an increase of 30.9%, due to lower net capital expenditures, while cash flows from operating activities increased by 22.1% to $237.0 million. Free cash flow, excluding network expansion projects (1) was $169.3 million, stable compared to last year;
Cogeco Communications maintains its fiscal 2024 financial guidelines as issued on November 1, 2023; and
A quarterly dividend of $0.854 per share was declared, representing a 10.1% increase over the prior year.
MONTRÉAL, Jan. 10, 2024 /CNW/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the first quarter ended November 30, 2023.
"The first months of fiscal 2024 were transformational and historic moments for our company. We recently announced that Cogeco Communications bought back 2.3 million of its shares at a discounted market price per share, providing free cash flow per share accretion. In conjunction with this transaction, the public float of Cogeco Communications was increased therefore enhancing trading liquidity. This opportunity represented a unique and attractive use of our capital to build value for our shareholders, while strengthening our existing partnership with CDPQ as an anchor investor in Cogeco Communications. Another important milestone for us was when we secured wireless spectrum critical for the 5G technology and now have spectrum coverage for 100% of our wireline footprint. This spectrum was secured at a significantly lower cost compared to past spectrum auctions," said Philippe Jetté, President and Chief Executive Officer of Cogeco Communications Inc.
"Our Canadian telecommunications business chalked up another quarter of strong Internet subscriber performance, thanks to gains across each of our oxio, expansion and legacy footprints," continued Mr. Jetté. "We continue to be impressed by the oxio brand's growing adoption by consumers."
"In the U.S., our network expansion program along with demand from existing customers for our higher speed tiers helped offset customer losses at lower price points which were more directly impacted by competition and challenging market conditions. Consistent with our Internet led strategy to improve customer lifetime value, our attractive product mix and focus on cost efficiencies helped deliver another quarter of higher adjusted EBITDA margin," continued Mr. Jetté.
"At Cogeco Communications, we strive on a daily basis to deliver the best products and service to our clients, engage with the communities we serve, prioritize digital inclusion and climate action, and finally, execute a sustainable business model through responsible and ethical management to generate value for all of our stakeholders," concluded Mr. Jetté.
Consolidated Financial Highlights
Three months ended November 30
2023
2022
Change
Change in
constant currency
(1)
(In thousands of Canadian dollars, except % and per share data) (unaudited)
$
$
%
%
Revenue
747,689
762,300
(1.9)
(2.5)
Adjusted EBITDA (1)
358,960
367,223
(2.3)
(2.8)
Adjusted EBITDA margin (1)
48.0 %
48.2 %
Profit for the period
95,752
120,375
(20.5)
Profit for the period attributable to owners of the Corporation
89,493
111,504
(19.7)
Adjusted profit attributable to owners of the Corporation (1) (3)
103,726
113,471
(8.6)
Cash flows from operating activities
236,982
194,159
22.1
Free cash flow (1)
137,593
105,128
30.9
30.7
Free cash flow, excluding network expansion projects (1)
169,253
170,962
(1.0)
(1.2)
Acquisition of property, plant and equipment
153,549
234,637
(34.6)
Net capital expenditures (1) (2)
146,427
196,971
(25.7)
(26.2)
Net capital expenditures, excluding network expansion projects (1)
114,767
131,137
(12.5)
(13.2)
Capital intensity (1)
19.6 %
25.8 %
Capital intensity, excluding network expansion projects (1)
15.3 %
17.2 %
Diluted earnings per share
2.01
2.44
(17.6)
Adjusted diluted earnings per share (1) (3)
2.33
2.48
(6.0)
Operating results
For the first quarter of fiscal 2024 ended on November 30, 2023:
Revenue decreased by 1.9% to $747.7 million. On a constant currency basis (1) , revenue decreased by 2.5%, driven by a lower customer base in the American telecommunications segment, which offset revenue growth in the Canadian telecommunications segment, as explained below.
Canadian telecommunications' revenue increased by 1.2%, mainly driven by the oxio acquisition completed on March 3, 2023 as well as the cumulative effect of high-speed Internet service additions over the past year.
American telecommunications' revenue decreased by 4.9%, or 6.0% in constant currency, mainly due to a lower customer base over the past year with an increasing proportion of customers only subscribing to Internet services, as well as the timing of price increases introduced in the fiscal 2023 first-quarter which gave rise to a difficult comparison between both periods. The revenue decrease was offset in part by a higher revenue per customer and a better product mix resulting from customers subscribing to increasingly fast Internet speeds.
Adjusted EBITDA decreased by 2.3% to $359.0 million. On a constant currency basis, adjusted EBITDA decreased by 2.8%, due to a decline in both the American telecommunications and Canadian telecommunications segments, as further explained below, in addition to higher corporate costs, primarily due to the timing of certain operating expenses including in relation to its plan to offer mobile services in Canada.
American telecommunications adjusted EBITDA decreased by 2.4%, or 3.6% in constant currency, mainly due to lower revenue, partly offset by a better product mix and cost reduction initiatives.
Canadian telecommunications adjusted EBITDA decreased by 1.1%, mainly due to revenue growth being offset by higher operating expenses.
Profit for the period amounted to $95.8 million, of which $89.5 million, or $2.01 per diluted share, was attributable to owners of the Corporation compared to $120.4 million, $111.5 million, and $2.44 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 financial expense, mostly due to a pre-tax $16.9 million non-cash loss on debt extinguishment recognized following a US$1.6 billion refinancing in September 2023, lower adjusted EBITDA and higher depreciation and amortization expense, partly offset by lower income tax expense.
Adjusted profit attributable to owners of the Corporation (3) was $103.7 million, or $2.33 per diluted share (3) , compared to $113.5 million, or $2.48 per diluted share, last year.
Net capital expenditures were $146.4 million, a decrease of 25.7% compared to $197.0 million in the same period of the prior year. In constant currency, net capital expenditures (1) were $145.4 million, a decrease of 26.2% compared to last year, mostly due to lower spending in both the Canadian and American telecommunications segments following the completion, or near completion, as well as the timing of several fibre-to-the-home network expansion projects.
Excluding network expansion projects, net capital expenditures were $114.8 million, a decrease of 12.5% compared to $131.1 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects (1) were $113.9 million, a decrease of 13.2% compared to last year.
Fibre-to-the-home network expansion projects continued in both Canada and the United States, with homes passed additions of more than 13,000 during the first quarter of fiscal 2024.
Capital intensity was 19.6% compared to 25.8% last year. Excluding network expansion projects, capital intensity was 15.3% compared to 17.2% in the same period of the prior year.
Acquisition of property, plant and equipment decreased by 34.6% to $153.5 million, due to reduced capital spending in both countries.
Free cash flow increased by 30.9%, or 30.7% in constant currency, and amounted to $137.6 million, or $137.4 million in constant currency, mainly due to lower net capital expenditures. Free cash flow, excluding network expansion projects amounted to $169.3 million, or $168.9 million in constant currency, and remained stable compared to the same period of the prior year.
Cash flows from operating activities increased by 22.1% to $237.0 million, resulting mostly from lower income taxes paid, and to a lesser extent, the timing of trade accounts receivable, offset in part by lower adjusted EBITDA and higher interest paid.
On November 30, 2023, Cogeco Communications, through its wholly-owned subsidiary Elite General Partnership, secured 99 spectrum licences in urban and rural markets, including the greater Toronto, Montréal, Québec City and Ottawa areas, for a total purchase price of $190.3 million.
On December 13, 2023, Cogeco Communications completed the repurchase, for cancellation, of the 2,266,537 shares sold by Cogeco, for an amount of $116.5 million, following the purchase by CDPQ of the entirety of Rogers' holdings in both Cogeco and Cogeco Communications.
Cogeco Communications maintains its fiscal 2024 financial guidelines as issued on November 1, 2023.
At its January 10, 2024 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.854 per share, an increase of 10.1% compared to $0.776 per share in the comparable quarter of fiscal 2023.
__________
(1)
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 financial measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by International Financial Reporting Standards ("IFRS") 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 and other financial measures" section of this press release.
(2)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(3)
Excludes the impact of acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, net of tax and non-controlling interest.
Financial highlights
Three months ended November 30
2023
2022
Change
Change in
constant currency
(1) (2)
(In thousands of Canadian dollars, except % and per share data)
$
$
%
%
Operations
Revenue
747,689
762,300
(1.9)
(2.5)
Adjusted EBITDA (2)
358,960
367,223
(2.3)
(2.8)
Adjusted EBITDA margin (2)
48.0 %
48.2 %
Acquisition, integration, restructuring and other costs (3)
2,616
2,677
(2.3)
Profit for the period
95,752
120,375
(20.5)
Profit for the period attributable to owners of the Corporation
89,493
111,504
(19.7)
Adjusted profit attributable to owners of the Corporation (2)(4)
103,726
113,471
(8.6)
Cash flow
Cash flows from operating activities
236,982
194,159
22.1
Free cash flow (2)
137,593
105,128
30.9
30.7
Free cash flow, excluding network expansion projects (2)
169,253
170,962
(1.0)
(1.2)
Acquisition of property, plant and equipment
153,549
234,637
(34.6)
Net capital expenditures (2)(5)
146,427
196,971
(25.7)
(26.2)
Net capital expenditures, excluding network expansion projects (2)
114,767
131,137
(12.5)
(13.2)
Capital intensity (2)
19.6 %
25.8 %
Capital intensity, excluding network expansion projects (2)
15.3 %
17.2 %
Per share data (6)
Earnings per share
Basic
2.02
2.45
(17.6)
Diluted
2.01
2.44
(17.6)
Adjusted diluted (2)(4)
2.33
2.48
(6.0)
Dividends per share
0.854
0.776
10.1
(1)
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current period denominated in US dollars at the foreign exchange rate of the comparable period of the prior year. For the three-month period ended November 30, 2022, the average foreign exchange rate used for translation was 1.3489 USD/CDN.
(2)
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 financial measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by IFRS 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 and other financial measures" section of this press release.
(3)
For the three-month periods ended November 30, 2023 and 2022, acquisition, integration, restructuring and other costs mostly related to costs associated with the configuration and customization related to cloud computing and other arrangements.
(4)
Excludes the impact of acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, net of tax and non-controlling interest.
(5)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(6)
Per multiple and subordinate voting share.
https://corpo.cogeco.com/cca/en/press-room/press-releases/cogeco-communications-releases-its-financial-results-first-quarter-fiscal-2024/
Cogeco Inc. (TSX: CGO)
Rooted in the communities it serves, Cogeco Inc. is a growing competitive force in the North American telecommunications sector, serving 1.6 million residential and business customers. Its Cogeco Communications Inc. subsidiary provides Internet, video and phone services in the provinces of Québec and Ontario as well as in thirteen states in the United States through its business units Cogeco Connexion and Breezeline. Through Cogeco Media, it owns and operates 21 radio stations primarily in the province of Québec as well as a news agency. Cogeco's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CGO). The subordinate voting shares of Cogeco Communications Inc. are also listed on the Toronto Stock Exchange (TSX: CCA).
https://corpo.cogeco.com/cgo/en/press-room/press-releases/cogeco-releases-its-financial-results-third-quarter-fiscal-2023/
Cogeco Media
Cogeco Media, one of Québec's largest radio broadcasters, operates 20 radio stations across Québec and one in Ontario.
RADIO
Cogeco Media, a subsidiary of Cogeco, owns and operates 21 radio stations including talk network stations: 98.5 in Montréal, 106.9 in Mauricie, 107.7 in Estrie, 104.7 in Outaouais, FM93 in Québec City and KYK 95.7 in Saguenay; the Rythme network stations: 105.7 in Montréal, 102.9 in Québec City, 100.1 in Mauricie, 98.3 in Saguenay and 93.7 in Estrie; as well as the stations CIME 103.9 in Laurentides, 96.9 CKOI, The Beat 92.5, the four Planète stations in Lac-St-Jean and Radio Circulation in Montréal. Cogeco Media's stations are leaders in their respective markets, reaching nearly 5 million listeners each week by providing to a wide audience a varied and relevant programming. Cogeco Media also owns Cogeco Nouvelles, the largest private news radio agency in Québec.
Cogeco Force Radio Inc.
Cogeco Force Radio (CFR), owned by Cogeco Media, provides access to a powerful network comprising some of Québec's top-performing, most complementary and most diverse radio stations. They include the stations owned by Cogeco Media, those belonging to Leclerc Communication and Attraction Média and RNC MEDIA. CFR also offers access to a network of websites linked to the radio stations it represents, and offers clients integrated sales service, with access to a full multidisciplinary team that provides ad consulting, research and media creativity resources.
Cogeco Nouvelles
The Cogeco news agency, Cogeco Nouvelles, is the information provider for all of the stations operated by Cogeco Media and has also established strategic relationships to provide many other radio stations with national and international news. Cogeco Nouvelles is heard throughout most of Québec.
https://corpo.cogeco.com/cgo/en/company-overview/cogeco-media/
Cogeco Releases its Financial Results for the First Quarter of Fiscal 2024
Cogeco repurchased $280.0 million worth of its shares following CDPQ's acquisition of the entirety of Rogers' holdings in both Cogeco and Cogeco Communications;
Cogeco further advanced its wireless ambitions by securing spectrum licences in Québec and Ontario in the 3800 MHz spectrum auction, for a total purchase price of $190.3 million. With this acquisition, Cogeco has spectrum covering 100% of its Canadian broadband network footprint as well as valuable spectrum in the greater Toronto, Montréal, Québec City and Ottawa regions;
Cogeco Connexion reported another strong quarter of Internet subscriber performance, with 10,765 net customer additions, driven by a mix of new customers added under our digital oxio brand, in fibre-to-the-home network expansions and in other operating areas;
Revenue declined by 1.7% compared to the same period last year to $776.2 million, as revenue growth at Cogeco Connexion was offset by lower revenue at Breezeline;
Adjusted EBITDA (1) of $366.0 million decreased by 2.1% over last year, in line with our expectations;
Profit for the period amounted to $98.7 million, a decrease of 20.3%, mainly due to higher financial expenses including a pre-tax $16.9 million non-cash loss on debt extinguishment following a US$1.6 billion refinancing;
Free cash flow (1) amounted to $141.8 million, an increase of 29.5%, due to lower net capital expenditures, while cash flows from operating activities increased by 22.2% to $236.9 million. Free cash flow, excluding network expansion projects (1) was $173.5 million, stable compared to last year;
Cogeco maintains its fiscal 2024 financial guidelines as issued on November 1, 2023; and
A quarterly dividend of $0.854 per share was declared, representing a 16.8% increase over the prior year.
MONTRÉAL, Jan. 10, 2024 /CNW/ - Today, Cogeco Inc. (TSX: CGO) ("Cogeco" or the "Corporation") announced its financial results for the first quarter ended November 30, 2023.
"The first months of fiscal 2024 were transformational and historic moments for our company. We recently announced that Cogeco bought back 6.0 million of its shares and Cogeco Communications bought back 2.3 million of its shares, both at discounted market prices per share, providing free cash flow per share accretion and increasing the net asset value of Cogeco. In conjunction with these transactions, the public float of Cogeco Communications was increased therefore enhancing trading liquidity. This opportunity represented a unique and attractive use of our capital to build value for our shareholders, while strengthening our existing partnership with CDPQ as an anchor investor in Cogeco Communications. Another important milestone for us was when we secured wireless spectrum critical for the 5G technology and now have spectrum coverage for 100% of our wireline footprint. This spectrum was secured at a significantly lower cost compared to past spectrum auctions," said Philippe Jetté, President and Chief Executive Officer of Cogeco.
"Our Canadian telecommunications business chalked up another quarter of strong Internet subscriber performance, thanks to gains across each of our oxio, expansion and legacy footprints," continued Mr. Jetté. "We continue to be impressed by the oxio brand's growing adoption by consumers."
"In the U.S., our network expansion program along with demand from existing customers for our higher speed tiers helped offset customer losses at lower price points which were more directly impacted by competition and challenging market conditions. Consistent with our Internet led strategy to improve customer lifetime value, our attractive product mix and focus on cost efficiencies helped deliver another quarter of higher adjusted EBITDA margin."
"At Cogeco Media, our ongoing efforts to develop innovative digital solutions and adapt to a multi-platform audio content model are beginning to bear fruit. These, along with strong listener engagement across many of our stations, have resulted in solid year-over-year revenue growth during the quarter," continued Mr. Jetté.
"At Cogeco, we strive on a daily basis to deliver the best products and service to our clients, engage with the communities we serve, prioritize digital inclusion and climate action, and finally, execute a sustainable business model through responsible and ethical management to generate value for all of our stakeholders," concluded Mr. Jetté.
Consolidated Financial Highlights
Three months ended November 30
2023
2022
Change
Change in
constant currency
(1)
(In thousands of Canadian dollars, except % and per share data) (unaudited)
$
$
%
%
Revenue
776,172
789,690
(1.7)
(2.3)
Adjusted EBITDA (1)
366,033
373,882
(2.1)
(2.6)
Profit for the period
98,729
123,808
(20.3)
Profit for the period attributable to owners of the Corporation
34,541
42,081
(17.9)
Adjusted profit attributable to owners of the Corporation (1) (3)
40,038
42,762
(6.4)
Cash flows from operating activities
236,919
193,821
22.2
Free cash flow (1)
141,823
109,483
29.5
29.4
Free cash flow, excluding network expansion projects (1)
173,483
175,317
(1.0)
(1.2)
Acquisition of property, plant and equipment
153,789
235,008
(34.6)
Net capital expenditures (1) (2)
146,667
197,342
(25.7)
(26.2)
Net capital expenditures, excluding network expansion projects (1)
115,007
131,508
(12.5)
(13.2)
Diluted earnings per share
2.21
2.67
(17.2)
Adjusted diluted earnings per share (1) (3)
2.57
2.71
(5.2)
Operating results
For the first quarter of fiscal 2024 ended on November 30, 2023:
Revenue decreased by 1.7% to $776.2 million. On a constant currency basis (1) , revenue decreased by 2.3%, driven by a lower customer base in the American telecommunications segment, which offset revenue growth in the Canadian telecommunications segment, as explained below.
Canadian telecommunications' revenue increased by 1.2%, mainly driven by the oxio acquisition completed on March 3, 2023 as well as the cumulative effect of high-speed Internet service additions over the past year.
American telecommunications' revenue decreased by 4.9%, or 6.0% in constant currency, mainly due to a lower customer base over the past year with an increasing proportion of customers only subscribing to Internet services, as well as the timing of price increases introduced in the fiscal 2023 first-quarter which gave rise to a difficult comparison between both periods. The revenue decrease was offset in part by a higher revenue per customer and a better product mix resulting from customers subscribing to increasingly fast Internet speeds.
Revenue in the media activities increased by 4.0%.
Adjusted EBITDA decreased by 2.1% to $366.0 million. On a constant currency basis, adjusted EBITDA decreased by 2.6%, due to a decline in both the American telecommunications and Canadian telecommunications segments, as further explained below, in addition to higher corporate costs, primarily due to the timing of certain operating expenses including in relation to its plan to offer mobile services in Canada.
American telecommunications adjusted EBITDA decreased by 2.4%, or 3.6% in constant currency, mainly due to lower revenue, partly offset by a better product mix and cost reduction initiatives.
Canadian telecommunications adjusted EBITDA decreased by 1.1%, mainly due to revenue growth being offset by higher operating expenses.
Profit for the period amounted to $98.7 million, of which $34.5 million, or $2.21 per diluted share, was attributable to owners of the Corporation compared to $123.8 million, $42.1 million, and $2.67 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 financial expense, mostly due to a pre-tax $16.9 million non-cash loss on debt extinguishment recognized following a US$1.6 billion refinancing in September 2023, lower adjusted EBITDA and higher depreciation and amortization expense, partly offset by lower income tax expense.
Adjusted profit attributable to owners of the Corporation (3) was $40.0 million, or $2.57 per diluted share (3) , compared to $42.8 million, or $2.71 per diluted share, last year.
Net capital expenditures were $146.7 million, a decrease of 25.7% compared to $197.3 million in the same period of the prior year. In constant currency, net capital expenditures (1) were $145.6 million, a decrease of 26.2% compared to last year, mostly due to lower spending in both the Canadian and American telecommunications segments following the completion, or near completion, as well as the timing of several fibre-to-the-home network expansion projects.
Excluding network expansion projects, net capital expenditures were $115.0 million, a decrease of 12.5% compared to $131.5 million in the same period of the prior year. In constant currency, net capital expenditures excluding network expansion projects (1) were $114.1 million, a decrease of 13.2% compared to last year.
Fibre-to-the-home network expansion projects continued in both Canada and the United States, with homes passed additions of more than 13,000 during the first quarter of fiscal 2024.
Acquisition of property, plant and equipment decreased by 34.6% to $153.8 million, due to reduced capital spending in both countries.
Free cash flow increased by 29.5%, or 29.4% in constant currency, and amounted to $141.8 million, or $141.6 million in constant currency, mainly due to lower net capital expenditures. Free cash flow, excluding network expansion projects amounted to $173.5 million, or $173.1 million in constant currency, and remained stable compared to the same period of the prior year.
Cash flows from operating activities increased by 22.2% to $236.9 million, resulting mostly from lower income taxes paid, and to a lesser extent, the timing of trade accounts receivable, offset in part by lower adjusted EBITDA and higher interest paid.
On November 30, 2023, Cogeco Communications, through its wholly-owned subsidiary Elite General Partnership, secured 99 spectrum licences in urban and rural markets, including the greater Toronto, Montréal, Québec City and Ottawa areas, for a total purchase price of $190.3 million.
On December 13, 2023, Cogeco completed the repurchase, for cancellation, of the 5,969,390 shares sold by CDPQ, for an amount of $280.0 million, following the purchase by CDPQ of the entirety of Rogers' holdings in both Cogeco and Cogeco Communications.
Cogeco maintains its fiscal 2024 financial guidelines as issued on November 1, 2023.
At its January 10, 2024 meeting, the Board of Directors of Cogeco declared a quarterly eligible dividend of $0.854 per share, an increase of 16.8% compared to $0.731 per share in the comparable quarter of fiscal 2023.
___________
(1)
Adjusted EBITDA and net capital expenditures are total of segments 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 financial measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by International Financial Reporting Standards ("IFRS") 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 and other financial measures" section of this press release.
(2)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(3)
Excludes the impact of acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, net of tax and non-controlling interest.
Financial highlights
Three months ended November 30
2023
2022
Change
Change in
constant currency
(1)
(2)
(In thousands of Canadian dollars, except % and per share data)
$
$
%
%
Operations
Revenue
776,172
789,690
(1.7)
(2.3)
Adjusted EBITDA (2)
366,033
373,882
(2.1)
(2.6)
Acquisition, integration, restructuring and other costs (3)
3,265
2,677
22.0
Profit for the period
98,729
123,808
(20.3)
Profit for the period attributable to owners of the Corporation
34,541
42,081
(17.9)
Adjusted profit attributable to owners of the Corporation (2)(4)
40,038
42,762
(6.4)
Cash flow
Cash flows from operating activities
236,919
193,821
22.2
Free cash flow (2)
141,823
109,483
29.5
29.4
Free cash flow, excluding network expansion projects (2)
173,483
175,317
(1.0)
(1.2)
Acquisition of property, plant and equipment
153,789
235,008
(34.6)
Net capital expenditures (2)(5)
146,667
197,342
(25.7)
(26.2)
Net capital expenditures, excluding network expansion projects (2)
115,007
131,508
(12.5)
(13.2)
Per share data (6)
Earnings per share
Basic
2.23
2.68
(16.8)
Diluted
2.21
2.67
(17.2)
Adjusted diluted (2)(4)
2.57
2.71
(5.2)
Dividends per share
0.854
0.731
16.8
(1)
Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current period denominated in US dollars at the foreign exchange rate of the comparable period of the prior year. For the three-month period ended November 30, 2022, the average foreign exchange rate used for translation was 1.3489 USD/CDN.
(2)
Adjusted EBITDA and net capital expenditures are total of segments 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 financial measures. Change in constant currency and adjusted diluted earnings per share are non-IFRS ratios. These indicated terms do not have standardized definitions prescribed by IFRS 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 and other financial measures" section of this press release.
(3)
For the three-month periods ended November 30, 2023 and 2022, acquisition, integration, restructuring and other costs mostly related to costs associated with the configuration and customization related to cloud computing and other arrangements.
(4)
Excludes the impact of acquisition, integration, restructuring and other costs, and gains/losses on debt modification and/or extinguishment, net of tax and non-controlling interest.
(5)
Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.
(6)
Per multiple and subordinate voting share.
As at
November 30, 2023
August 31, 2023
(In thousands of Canadian dollars)
$
$
Financial condition
Cash and cash equivalents
86,921
363,854
Total assets
9,607,256
9,869,778
Long-term debt
Current
67,540
43,325
Non-current
4,741,681
5,045,672
Net indebtedness (1)
4,815,873
4,817,113
Equity attributable to owners of the Corporation
943,601
925,863
(1)
Net indebtedness is a capital management measure. For more information on this financial measure, please consult the "Non-IFRS and other financial measures" section of the Corporation's MD&A for the three-month period ended November 30, 2023, available on SEDAR+ at
www.sedarplus.ca
.
https://corpo.cogeco.com/cgo/en/press-room/press-releases/cogeco-releases-its-financial-results-first-quarter-fiscal-2024/
Corus Entertainment Inc. (TSX: CJR.B)
Corus Entertainment Inc. (TSX: CJR.B) is a leading media and content company that develops and delivers high quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the Company's portfolio of multimedia offerings encompass 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services. Corus is an internationally-renowned content creator and distributor through Nelvana, a world class animation studio expert in all formats and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The Company also owns innovative full-service social digital agency so.da, lifestyle entertainment company Kin Canada, leading 2D animation software supplier Toon Boom and children's book publishing house, Kids Can Press. Corus' roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, Magnolia Network Canada, The HISTORY® Channel, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Globalnews.ca, Q107, Country 105, and CFOX, along with broadly distributed Canadian streaming platforms STACKTV, TELETOON+, the Global TV App and Curiouscast. For more information visit
www.corusent.com
.
Television
Corus' brands deliver compelling, engaging, interactive and informative content to millions of people every day. The company's portfolio of television services encompasses 33 specialty television channels and 15 conventional television stations.
Radio
Corus owns 39 radio stations that represent the most-listened to stations in Canada, located in 8 out of the 10 top markets. The company's portfolio includes a network of leading news-talk radio stations, as well as classic rock, country, new rock and contemporary music formats.
Content
Corus creates world-class content that is sold in more than 160 countries across the world. Corus' powerful combination of entertainment assets make us an industry leader in Canada and a significant player in the international marketplace.
https://www.corusent.com/about-corus/overview/
Corus Entertainment Announces Fiscal 2024 First Quarter Results
Consolidated revenue was down 14% for the quarter
Consolidated segment profit (1) decreased 8% for the quarter
Consolidated segment profit margin (1) of 33% for the quarter
Net income attributable to shareholders of $32.7 million ($0.16 per share basic) for the quarter
Proforma net debt to segment profit (1) of 3.67 times at November 30, 2023, which excludes contributions to segment profit from a prior year business divestiture, up from proforma net debt to segment profit of 3.62 times at August 31, 2023
Free cash flow (1) of $23.7 million for the quarter
TORONTO, January 12, 2024 - Corus Entertainment Inc. (TSX: CJR.B) announced its first quarter financial results today.
"Our television advertising revenue results were in-line with our first quarter outlook. The impacts of industry-wide advertising market weakness have been partially offset by reductions in programming and operating costs," said Doug Murphy, President and Chief Executive Officer. "While visibility as to the timing of the advertising recovery remains limited, our supply of premium scripted content will return to normal in the back half of this fiscal year. A standout schedule of premium scripted content will begin to roll out on Global in February. The long awaited normalization of our programming supply is foundational to our Video First strategy that aggregates premium video on multiple digital streaming platforms. Our disciplined focus on reducing expenses across the business is evident in the first quarter results, delivering a lower cost base and improving operational efficiencies as our focus on debt repayment remains a priority."
Financial Highlights
Three months ended
November 30, %
(in thousands of Canadian dollars except per share amounts)
2023
2022
Change
Revenue
Television
342,433
401,529
(15%)
Radio
27,471
29,662
(7%)
369,904
431,191
(14%)
Segment profit (loss) (1)
Television
121,758
131,759
(8%)
Radio
4,545
6,022
(25%)
Corporate
(5,454)
(6,089)
10%
120,849
131,692
(8%)
Segment profit margin (1)
Television
36%
33%
Radio
17%
20%
Consolidated
33%
31%
Net income attributable to shareholders
32,711
31,387
4%
Adjusted net income attributable to shareholders (1)
41,247
33,466
23%
Basic earnings per share
$0.16
$0.16
Adjusted basic earnings per share (1)
$0.20
$0.17
Diluted earnings per share
$0.16
$0.16
Free cash flow (1)
23,708
20,810
14%
Segment Revenue
Three months ended
November 30, %
(in thousands of Canadian dollars)
2023
2022
Change
Revenue
342,433
Television
401,529
(15%)
Advertising
209,296
252,513
(17%)
Subscriber
118,250
127,515
(7%)
Distribution, production and other
14,887
21,501
(31%)
Radio
27,471
29,662
(7%)
Total Revenue
369,904
431,191
(14%)
New platform revenue percentage (1)
12%
10%
(4%)
(1) New platform revenue does not have a standardized meaning prescribed by IFRS. For definition and explanation, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the First Quarter 2024 Report to Shareholders.
Operational Highlights
Corus advanced its strategic priorities on multiple fronts. The Company announced its Winter/Spring 2024 schedule for Global TV on traditional and streaming platforms, expanded the availability of STACKTV to the Bell Fibe TV App, continued to implement cost savings initiatives and made bank debt repayments. The Company continues to navigate an uncertain macroeconomic environment while preparing for normalization of its programming supply in February/March 2024 following the resolution of the Hollywood strikes.
Global announces its Winter/Spring 2024 Programming Premieres. Global announced its robust slate of Winter/Spring 2024 premieres, featuring returning blockbuster franchises NCIS and FBI , hit dramas CSI: Vegas and 9-1-1 , acclaimed comedies Abbott Elementary and Ghosts , Fall's #1 conventional program Survivor (1) , fan favourite Big Brother Canada and the introduction of new drama Elsbeth .
STACKTV is now available on Bell Fibe TV. Corus' premium multi-platform streaming service STACKTV announced another expansion of its distribution footprint. Bell Fibe TV subscribers can now enjoy STACKTV bundled with any existing Fibe TV app subscription. STACKTV is also available to Amazon Prime Video subscribers, Rogers Ignite TV, Ignite SmartStream, FuboTV and RiverTV customers.
(1) Source: Numeris PPM Data, Total Canada, FL'23 (Sep 18 - Dec 24/23) confirmed data, 3+ airings, A25-54, AMA (000), CDN CONV COM ENG National Networks; CTV Com, all other networks based on 'Total'
Financial Highlights
Free cash flow (1) of $23.7 million in Q1 2024 compared to $20.8 million in the prior year's quarter. The increase in free cash flow (1) for the first quarter is mainly attributable to lower cash used in investing activities of $3.4 million, partially offset by lower cash provided by operating activities. (1)
Net debt to segment profit (1) was 3.55 times at November 30, 2023. Proforma net debt to segment profit (2) was 3.67 times at November 30, 2023, up from 3.62 times at August 31, 2023. This ratio increased as a result of the decline in segment profit (1) for the most recent four quarters exceeding the effect of the reduced net debt.
As of November 30, 2023, the Company had $59.3 million of cash and cash equivalents and $250.2 million available to be drawn under its $300.0 million Revolving Facility.
(1) Free cash flow, segment profit, net debt to segment profit and proforma net debt to segment profit do not have standardized meanings prescribed by IFRS. The Company reports on these because they are key measures used to evaluate performance. For definitions and explanations, see the discussion under the Key Performance Indicators and Non-GAAP Financial Measures section of the First Quarter 2024 Report to Shareholders and/or Management's Discussion and Analysis in the Company's Annual Report for the year ended August 31, 2023 ("2023 MD&A").
(2) Proforma net debt to segment profit ratio excludes contributions to segment profit from Toon Boom Animation Inc., which was sold in August 2023, for the most recent four quarters.
Corus Entertainment Inc. reports its financial results in Canadian dollars.
The unaudited interim condensed consolidated financial statements and accompanying notes for the three months ended November 30, 2023 and Management's Discussion and Analysis are available on the Company's website at
www.corusent.com
in the Investor Relations section and under the Company's SEDAR+ profile at
www.sedarplus.ca
.
A conference call with Corus senior management is scheduled for January 12, 2024 at 8:00 a.m. ET. While this call is directed at analysts and investors, members of the media are welcome to listen in. To instantly join the conference call by phone, please use the following URL to easily register and be connected to the conference call automatically: https://emportal.ink/3uRIHJP . You can also dial direct to be entered into the call by an Operator. The dial-in number for the conference call for local and international callers is 1.416.764.8650 and for North America is 1.888.664.6383. This call will be archived and available for replay in the Investor Relations section of the Corus website beginning January 12, 2024, at 11 a.m.ET or accessible by telephone until January 19, 2024, at 1.888.390.0541 (toll-free North America) or 416.764.8677 (local or international), using replay code 079495#. More information can be found on the Corus Entertainment website at
www.corusent.com
in the Investor Relations section.
https://assets.corusent.com/wp-content/uploads/2024/01/Corus-Entertainment-Q1-F2024-Earnings-Release-vf.docx.pdf
Postmedia Network Canada Corporation (TSX: PNC.A)
Postmedia Network Canada Corp. (TSX:PNC.A, PNC.B) is the holding company that owns Postmedia Network Inc. With Postmedia's network of 120+
brands
, credentials of journalistic excellence and outstanding digital capabilities, Postmedia's exceptional content, reach and scope offers advertisers and marketers
compelling solutions
to effectively reach target audiences. In a world where it's hard to keep up, Postmedia is your source for being in the know.
https://www.postmedia.com/investors-governance/
https://www.postmedia.com/
https://www.postmedia.com/brands/
Postmedia Reports First Quarter Results
January 10, 2024 (TORONTO) - Postmedia Network Canada Corp. ("Postmedia" or the "Company") today released financial information for the three months ended November 30, 2023.
Management's Discussion and Analysis
Consolidated Financial Statements
"Q1 marked an important milestone in our transformation with the repayment of our first lien notes totaling $200M over the last seven years. Repayment and the subsequent refinancing of our debt and recently announced new credit ABL facility will provide needed flexibility to accelerate our transformation," said Andrew MacLeod, Postmedia President and Chief Executive Officer.
"On an operating basis we were pleased with the growth in our parcel distribution business and the ongoing impact from the restructuring implemented in F23," said Mr. MacLeod. "Additionally, we welcome and thank the Canadian government for its revisions to the Journalism Tax Credit and positive settlement with Google on the Online News Act. Both represent material stabilizers to Canada's domestic media industry. We look forward to working with Federal and Provincial levels of government to implement structural reform in the Canadian media sector so the domestic industry, critical to Canadians, can regain its footing and secure our digital futures."
First Quarter Operating Results
Revenue for the quarter was $104.6 million as compared to $124.2 million in the same period in the prior year, representing a decrease of $19.6 million (15.8%). The revenue decrease was primarily due to decreases in advertising revenue of $14.4 million (22.1%) and circulation revenue of $7.1 million (17.8%), partially offset by increases in parcel revenue of $3.6 million (39.1%).
Total operating expenses excluding depreciation, amortization and restructuring decreased $20.6 million, or 17.3%, for the quarter ended November 30, 2023, relative to the same period in the prior year. Decreases were experienced across all expense categories.
Operating income before depreciation, amortization, impairment and restructuring in the quarter was $5.9 million, an increase of $1.0 million relative to the same period in the prior year. The increase in operating income before depreciation, amortization and restructuring is due to the decrease in operating expenses, partially offset by the decrease in total revenue.
Net loss in the quarter ended November 30, 2023 was $10.6 million, as compared to a net loss of $15.9 million in the same period in the prior year. The decrease in net loss was primarily the result of a decrease in foreign exchange losses in the three months ended August 31, 2023 and the increase in operating income before depreciation, amortization and restructuring, partially offset by a decrease in gain on disposal of assets held-for-sale and other assets, loss on debt refinancing and a increases in depreciation and interest expenses.
https://www.postmedia.com/2024/01/10/postmedia-reports-first-quarter-results-9/
Quebecor Group (TSX: QBR.A)
The parent company of the Quebecor Group is the Canadian company, Quebecor Inc. (TSX: QBR.A). The principal subsidiary is Quebecor Media Inc. Subsidiaries include Videotron Ltd. and TVA Group Inc.
https://www.quebecor.com/en/our-activities
Quebecor, a Canadian leader in telecommunications, entertainment, news media and culture, is one of the best-performing integrated communications companies in the industry. Driven by their determination to deliver the best possible customer experience, all of Quebecor's subsidiaries and brands are differentiated by their high-quality, multiplatform, convergent products and services.
Quebecor (TSX: QBR.A, QBR.B) is headquartered in Québec and employs nearly 10,000 people in Canada.
A family business founded in 1950, Quebecor is strongly committed to the community. Every year, it actively supports more than 400 organizations in the vital fields of culture, health, education, the environment, and entrepreneurship.
https://www.quebecor.com/en/the-corporation
Telecom
Canadian telecommunications and entertainment leader Videotron and its subsidiaries are dedicated to providing the best possible customer experience.
Media
Quebecor sets the standard for entertainment, news and culture in Québec. This multiplatform business segment includes the operations of TVA Group (television channels, magazines, film and television production services) and is also a leader in news media, book publishing, music recording, distribution of cultural products and advertising sales. Together, its media platforms reach 99% of Quebecers every week.
Sports and Entertainment
As experts in the production, dissemination and promotion of cultural and sporting events, Quebecor Sports and Entertainment brings Québec and international talent to mass audiences in its markets.
https://www.quebecor.com/en/our-activities
Quebecor inc. reports consolidated results for fourth quarter and full year 2023
22 February 2024
Montréal, Québec - Quebecor Inc. ("Quebecor" or the "Corporation") today reported its consolidated financial results for the fourth quarter and full year of 2023. Quebecor consolidates the financial results of its wholly owned Quebecor Media Inc. ("Quebecor Media") subsidiary.
Highlights
2023 financial year and recent developments
In 2023, Quebecor recorded revenues of $5.43 billion, up $902.4 million (19.9%), adjusted EBITDA of $2.24 billion, up $303.3 million (15.7%), and adjusted cash flows from operations of $1.68 billion, up $239.8 million (16.7%) compared with 2022.
The Telecommunications segment increased its revenues by $935.8 million (25.2%), its adjusted EBITDA by $317.4 million (16.6%), and its adjusted cash flows from operations by $237.8 million (16.3%) in 2023, reflecting, among other things, the contribution of the Freedom Mobile ("Freedom") acquisition.
The Telecommunications segment increased its revenues from mobile services and equipment by $931.7 million (84.5%) due to the impact of the Freedom acquisition and growth at Videotron Ltd. ("Videotron"), and its revenues from Internet access services increased by $45.7 million (3.7%).
The acquisition of Freedom was significantly accretive to the Telecommunications segment's revenue generating units (RGUs), immediately adding 1,824,400 subscriber connections to the mobile telephony service and 20,000 subscriptions to the Internet access service. Organic growth added 138,000 RGUs (2.5%) in 2023, including 230,100 subscriber connections (13.5%) in mobile telephony and 24,900 Internet access subscriptions (1.5%).
TVA Group Inc. ("TVA Group") reported declines of $49.2 million (-8.3%) in revenues and $24.8 million (-128.5%) in adjusted EBITDA in 2023 compared with 2022.
The Sports and Entertainment segment grew its revenues by $22.8 million (12.0%) and its adjusted EBITDA by $3.6 million (18.6%) in 2023.
Quebecor's consolidated net income attributable to shareholders was up $50.8 million ($0.27 per basic share) or 8.5% to $650.5 million ($2.82 per basic share).
Adjusted income from operating activities was $688.1 million ($2.98 per basic share), up $63.3 million ($0.32 per basic share) or 10.1%.
The quarterly dividend on the Corporation's Class A Multiple Voting Shares ("Class A Shares") and Class B Subordinate Voting Shares ("Class B Shares") was increased from $0.30 to $0.325.
On April 3, 2023, Videotron acquired Freedom from Shaw Communications Inc. ("Shaw"). Videotron paid $2.07 billion in cash and assumed certain liabilities, mainly lease obligations. The acquisition includes Freedom brand's entire wireless and Internet customer base, as well as its owned infrastructure, spectrum and retail outlets. It also includes a long-term undertaking by Shaw and Rogers Communications Inc. ("Rogers") to provide Videotron with transport services (including backhaul and backbone), roaming services and wholesale Internet services.
On April 3, 2023, Videotron entered into a new $2.10 billion secured term credit facility with a syndicate of financial institutions to finance the acquisition of Freedom. The term credit facility consists of three tranches of equal size maturing in October 2024, April 2026 and April 2027, bearing interest at floating rates. On April 10, 2023, Videotron entered into a floating-to-fixed interest rate swap agreement in connection with the $700.0 million tranche maturing in April 2027.
On November 30, 2023, Quebecor announced an investment of $298.9 million in the acquisition by Videotron of 305 blocks of spectrum in the 3800 MHz band across Canada. Approximately 61% of these 305 blocks of spectrum are located outside Québec, mainly in southern Ontario, Alberta and British Columbia.
On October 12, 2023, Quebecor announced the launch of its Mobile Virtual Network Operator ("MVNO") service and the expansion of the service territory of its Videotron, Fizz and Freedom brands.
On January 25, 2024, Videotron and its Fizz brand hit a double when Léger released its 2024 WOW Index. According to the study, Videotron was the telecommunications provider with the best in-store experience in Québec, while Fizz ranked first in Canada for online experience for the fifth year in a row.
In a survey conducted by Léger between August 1 and 7, 2023, Videotron was picked as the telecommunications company with the best customer service in Québec by more than twice as many respondents as its nearest rival. Léger's 2023 Reputation survey, released on April 5, 2023, also ranked Videotron as the most respected telecommunications company in Québec for the 17th time since 2006.
On January 17, 2023, Quebecor Media redeemed at maturity its Senior Notes in aggregate principal amount of US$850.0 million, bearing interest at 5.75%, and unwound the related hedging contracts for a total cash consideration of $830.9 million.
On November 2, 2023, following the announcement of major changes to its organizational structure against the backdrop of a global crisis in media industries, TVA Group launched a reorganization plan that will refocus its mission on broadcasting, restructure its news division and optimize its real estate assets. The plan to reduce operating costs will result in a workforce reduction of 547 employees.
Fourth quarter 2023
In the fourth quarter of 2023, Quebecor recorded revenues of $1.50 billion, up $319.8 million (27.0%), adjusted EBITDA of $565.4 million, up $82.4 million (17.1%), and adjusted cash flows from operations of $395.7 million, up $36.3 million (10.1%) compared with the same period in 2022.
The Telecommunications segment increased its revenues by $337.7 million (35.2%), its adjusted EBITDA by $83.1 million (17.5%), and its adjusted cash flows from operations by $38.4 million (10.7%), reflecting, among other things, the contribution of the Freedom acquisition.
The Telecommunications segment increased its revenues from mobile services and equipment (by $343.4 million or more than 100%) due to the impact of the Freedom acquisition and growth at Videotron, as well as increased revenues from Internet access ($4.4 million or 1.4%).
There was a net increase of 48,300 RGUs (0.6%) in the fourth quarter of 2023, including 66,100 connections (1.8%) to the mobile telephony service and 6,300 subscriptions (0.4%) to Internet access services.
Quebecor's consolidated net income attributable to shareholders was up $3.7 million ($0.01 per basic share) to $146.2 million ($0.63 per basic share).
Adjusted income from operating activities: $167.5 million ($0.73 per basic share), an increase of $8.1 million ($0.04 per basic share) or 5.1%.
Comments by Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor
2023 was a watershed year for Quebecor with the acquisition of Freedom in April 2023, which made the Corporation Canada's fourth largest national wireless carrier. We are proud to have rapidly implemented competitive and innovative strategies to deliver on our promise to lower telecommunications prices across the country and honour our commitments to Canadians and to Innovation, Science and Economic Development Canada ("ISED Canada").
Pierre Karl Péladeau, President and Chief Executive Officer of Quebecor
Our Telecommunications segment significantly increased its market share in Canada with the acquisition of Freedom, and we didn't stop there. We heightened competition across Canada and significantly increased customer growth with 230,100 (13.5%) new mobile lines in 2023, more than double the growth of 2022, leveraging our brand portfolio now composed of Videotron, Freedom and Fizz. In the fourth quarter of 2023, we added 66,100 lines, five times more than in the same quarter of 2022. We also continued investing in Freedom's wireless network to make it one of the most reliable and powerful in the country. And we continue to innovate, as demonstrated by the recent launch of Freedom's Roam Beyond and Videotron's Canada-International mobile plans, which offer mobile coverage across Canada and in dozens of destinations around the world, allowing our customers to travel without roaming charges.
The number of Canadians reached by our mobile networks increased in 2023 from 7.5 million (or 20% of Canada's population) to more than 26 million (or 70% of Canada's population), thereby significantly increasing our addressable market. Entering new markets as an MVNO will enable us to further expand our reach. We are now in a position to gradually roll out our attractive, advantageously priced plans to millions of additional consumers across Canada. We've recently enhanced our offering with the launch of Fizz outside Québec. It will gradually be rolled out across the country in 2024.
To strengthen our nationwide footprint and support the roll-out of our 5G network, we announced in November 2023 the acquisition of 305 blocks of spectrum in the 3800 MHz band for $298.9 million. More than 60% of these blocks are outside Québec. This strategic addition to our wireless spectrum portfolio brings Quebecor's total investment in the 3500 MHz and 3800 MHz bands to over $1.1 billion.
Quebecor posted an excellent financial performance in 2023, growing its revenues by 19.9%, its adjusted EBITDA by 15.7% and its adjusted cash flows from operations by 16.7%. The Telecommunications segment increased its revenues by 25.2%, its adjusted EBITDA by 16.6%, and its adjusted cash flows from operations by 16.3% in 2023 as a result of the Freedom acquisition and organic growth. As we continue to successfully integrate Freedom, the 10.1% increase in Quebecor's adjusted income from operating activities in 2023 demonstrates the considerable leverage created by this acquisition as well as our disciplined management of operating costs, as evidenced by our profit margin, still one of the highest in the telecoms industry. Quebecor also had an outstanding fourth quarter, with increases of 27.0% in revenues, 17.1% in adjusted EBITDA and 10.1% in adjusted cash flows from operations.
Since acquiring Freedom in April 2023, we have successfully repaid more than $400 million in net debt. We have reduced our consolidated net debt leverage ratio from 3.6x on the date of the Freedom acquisition to 3.4x at December 31, 2023, one of the lowest in Canada's telecom services industry. This sets the stage for us to achieve our objective of sustaining a leverage ratio in the low 3x area. With net available liquidity of $1.91 billion at December 31, 2023, we have a solid financial position that enables us to remain focused on our strategic priorities, while managing our capital investments in a disciplined manner.
As excellent customer experience is at the heart of our business model, we were proud to receive a string of distinctions in 2023 that confirmed our status as the leader in customer service, including telecom with the best in-store experience in Québec according to Léger's WOW index, best online experience in Canada for Fizz, telecom with the best customer service in Québec, and most respected telecom in Québec for the 17th time since 2006.
TVA Group posted negative adjusted EBITDA of $5.4 million in 2023, an unfavourable variance of $24.8 million compared with the previous year, as revenues and adjusted EBITDA declined significantly in all its lines of business. The Broadcasting segment saw another large drop in advertising revenues. This business continues to be hard-hit by the proliferation of online video streaming platforms, competition from the web giants and unfair competition from Radio-Canada, which receives massive government subsidies. The weak results were also due to the activities of the Film Production & Audiovisual Services segment, which were strongly affected by the shutdown of foreign productions because of the screenwriters' and actors' strikes in the U.S. during the year.
Faced with an unprecedented global crisis in the media industry, TVA Group was forced to launch a reorganization plan to address its unsustainable money-losing situation. The measures announced on November 2, 2023 included the difficult but necessary decision to eliminate 547 positions in order to restore TVA Group's financial situation and ensure its survival. Implementation of this plan will enable TVA Group to pursue its mission by broadcasting the best original homegrown content produced in Québec, providing reliable, high-quality news coverage throughout Québec and carrying major sporting events live.
To protect its market share, TVA Group continued to invest in content for the TVA Network and its specialty channels. The family show Chanteurs masqués, which drew an average audience of over 1.8 million viewers, the shows La Voix, Sortez-moi d'ici! and the daily program Indéfendable, with more than 1.5 million viewers each, and TVA Nouvelles, which drew 4.3 million viewers per week and was the most-watched newscast in every time slot (noon, 6 p.m. and 10 p.m.), all contributed strongly to the TVA Network's high ratings. TVA Group increased its market share to 41.0% as of December 31, 2023, 0.2 percentage points higher than in 2022. TVA Group's audience statistics speak for themselves: it has more than twice the market share of its competitors.
Guided by its determination to pursue its Canadian expansion by offering the best products, the best service and the best prices, Quebecor continues to execute rigorously on its strategies while maintaining tight financial discipline. Clearly, our successes of the past year were attributable to our people, who demonstrated agility, outside-the-box thinking and teamwork on a daily basis while providing our customers with outstanding service. Building on our successes and on the solid foundations for long-term growth we laid in 2023, we look to the future with confidence, fully committed to creating sustainable value for all our stakeholders.
https://www.quebecor.com/en/-/qu-c3-a9becor-inc.-annonce-ses-r-c3-a9sultats-consolid-c3-a9s-pour-le-quatri-c3-a8me-trimestre-2023
Rogers Communications Inc. (TSX: RCI.A, NYSE: RCI)
Rogers is a proud Canadian company dedicated to making more possible for Canadians each and every day. Our founder, Ted Rogers, purchased his first radio station, CHFI, in 1960. We have grown to become a leading technology and media company that strives to provide the very best in wireless, residential, and media to Canadians and Canadian businesses. Our shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI).
Almost all of our operations and sales are in Canada. We have a highly skilled and diversified workforce of approximately 25,300 employees. Our head office is in Toronto, Ontario and we have numerous offices across Canada.
https://investors.rogers.com/company-information/company-overview/
https://about.rogers.com/
Rogers Communications Reports Third Quarter 2023 Results
Rogers delivers strong results across the board as Canadians continue to choose Rogers more than any other carrier in Canada with record wireless net loading
Mobile phone and Internet net adds of 279,000, up 52,000 from Q3 last year
Q3 total mobile phone net adds of 261,000, up 40,000 from last year - best quarterly result ever
Q3 postpaid mobile phone net adds of 225,000 - strongest loading on record
Year to date postpaid mobile phone net adds of 490,000, up 39% year over year
Q3 Internet net loading of 18,000, up 12,000 year over year with growth ramping in both East and West
Shaw integration and synergy targets ahead of plan driven by continued strong execution
Industry-leading Cable margins of 54.2% up 650 basis points from last year
Systems, networks, Rogers branding, and overall operations continuing to be integrated and progressing ahead of plan
Market share gains accelerating in the West supported by largest and best 5G network and only coast-to-coast Internet network
Synergies realized year to date now at $188 million; Company anticipates $600 million run-rate by year-end - six months ahead of plan
Strong and industry-leading financials delivered across all parts of operations supported by strong execution
Total service revenue up 40%; adjusted EBITDA up 52%
Wireless service revenue up 15%; adjusted EBITDA up 18%; Wireless blended ARPU up 4%
Cable service revenue up 105%; adjusted EBITDA up 132%
Media revenue up 11%; adjusted EBITDA up 41%
Company achieves debt leverage ratio of 4.9x ahead of schedule; now targeting 4.8x by year-end Company reaffirms industry-leading 2023 financial guidance across all metrics
Reaffirming 2023 outlook for total service revenue growth of 26% to 30%, adjusted EBITDA growth of 33% to 36%, free cash flow expected to be at upper end of $2.2 billion to $2.5 billion, and capital expenditures target of $3.7 billion to $3.9 billion
TORONTO (November 9, 2023) - Rogers Communications Inc. today announced its unaudited financial and operating results for the third quarter ended September 30, 2023.
"We continued to deliver industry-leading results in the third quarter, reflecting seven straight quarters of growth and momentum," said Tony Staffieri, President and CEO. "Six months into our Shaw integration, we're tracking ahead of our synergy targets and deleveraging plans. At the same time, we continue to introduce new technology, new innovations, and new value propositions to Canadians. The team is firing on all cylinders and executing with discipline, I am very pleased with our progress."
Consolidated Financial Highlights
(In millions of Canadian dollars, except per share amounts, unaudited)
Three months ended September 30
Nine months ended September 30
2023
2022%
Chg
2023
2022%
Chg
Total revenue
5,092
3,743
36
13,973
11,230
24
Total service revenue
4,527
3,230
40
12,375
9,869
25
Adjusted EBITDA 1
2,411
1,583
52
6,252
4,714
33
Net (loss) income
(99)
371
n/m
521
1,172
(56)
Adjusted net income 1
679
436
56
1,776
1,361
30
Diluted (loss) earnings per share
($0.20)
$0.71
n/m
$0.97
$2.28
(57)
Adjusted diluted earnings per share 1
$1.27
$0.84
51
$3.37
$2.66
27
Cash provided by operating activities
1,754
1,216
44
3,842
3,348
15
Free cash flow 1
745
279
167
1,591
1,138
40
Strategic Highlights
Our five objectives guide our work and decision-making as we further improve our operational execution and make well-timed investments to grow our core businesses and deliver increased shareholder value. Below are some highlights for the quarter.
Build the biggest and best networks in the country
Launched 5G service for all transit riders in the busiest sections of the Toronto Transit Commission (TTC) subway system.
Recognized as the best and most reliable wireless network in Canada for the fifth straight year by umlaut in July 2023.
Invested over $1 billion in capital expenditures, mostly invested in our wireless and wireline network infrastructure.
Invested in wildfire detection and prevention technology to help combat climate change-related events.
Deliver easy to use, reliable products and services
Introduced the red Rogers MasterCard with 48-month device equal payment plan with 0% interest and up to 2.6% cashback for customers.
Introduced Rogers Internet and TV services to customers in former Shaw territory.
Introduced Ignite Self Protect for customers to self-monitor their homes with connected devices.
Be the first choice for Canadians
Attracted 225,000 net postpaid mobile phone subscribers, our best ever quarterly result.
Achieved combined mobile phone and retail Internet net additions of 279,000, up 52,000 year over year.
Secured number-one spots for flagship radio brands 98.1 CHFI , CityNews 680 , and KiSS 92.5 for the Summer 2023 ratings period.
Be a strong national company investing in Canada
Introduced Connected for Success , our high-speed, low-cost Internet program, to eligible residents in Western Canada.
Sponsored the Shaw Charity Classic presented by Rogers, the largest charitable contributor on the PGA TOUR Champions.
Recognized as the 2023 Right to Play Corporate Hero for work with Indigenous youth.
Be the growth leader in our industry
Total service revenue up 40%; adjusted EBITDA up 52%.
Generated free cash flow of $745 million and generated cash provided by operating activities of $1,754 million.
Achieved strong Cable adjusted EBITDA margin expansion of 650 basis points; Shaw integration tracking ahead of plan.
Quarterly Financial Highlights
Revenue
Total revenue and total service revenue increased by 36% and 40%, respectively, this quarter, driven substantially by revenue growth in our Cable and Wireless businesses, including the July 2022 network outage-related credits of
$150 million issued to customers last year.
Wireless service revenue increased by 15% this quarter, primarily as a result of the cumulative impact of growth in our mobile phone subscriber base, revenue from Shaw Mobile subscribers acquired through the Shaw Transaction, and the impact of the July 2022 network outage-related credits. Wireless equipment revenue increased by 10%, primarily as a result of an increase in new subscribers purchasing devices and a continued shift in the product mix towards higher-value devices.
Cable service revenue increased by 105% this quarter primarily as a result of our acquisition of Shaw as well as the impact of the July 2022 network outage-related credits.
Media revenue increased by 11% this quarter primarily as a result of higher sports-related revenue, including at the
Toronto Blue Jays .
Adjusted EBITDA and margins
Consolidated adjusted EBITDA increased 52% this quarter, and our adjusted EBITDA margin increased by 500 basis points, as a result of improving synergies and efficiencies, and the network outage-related credits issued to customers last year.
Wireless adjusted EBITDA increased by 18%, primarily due to the flow-through impact of higher revenue as discussed above. This gave rise to an adjusted EBITDA margin of 63.9%.
Cable adjusted EBITDA increased by 132% due to the flow-through impact of higher revenue as discussed above and the achievement of cost synergies associated with integration activities. This gave rise to an adjusted EBITDA margin of 54.2%.
Media adjusted EBITDA increased by $31 million this quarter primarily due to higher revenue as discussed above, partially offset by higher Toronto Blue Jays payroll costs.
Net loss and adjusted net income
We recognized a net loss this quarter as a result of:
higher depreciation and amortization, higher finance costs, and higher restructuring, acquisition and other costs, primarily associated with Shaw acquisition- and integration-related activities; and
a $422 million loss on an obligation to purchase at fair value the non-controlling interest in one of our joint ventures' investments; partially offset by
higher adjusted EBITDA.
Adjusted net income increased by 56% this quarter, primarily as a result of higher adjusted EBITDA.
Cash flow and available liquidity
This quarter, we generated cash provided by operating activities of $1,754 million (2022 - $1,216 million); the increase is primarily a result of higher adjusted EBITDA. We also generated free cash flow of $745 million (2022 -
$279 million), up 167% as a result of higher adjusted EBITDA, partially offset by higher capital expenditures and higher interest on long-term debt.
As at September 30, 2023, we had $7.3 billion of available liquidity 2 (December 31, 2022 - $4.9 billion), including
$2.5 billion in cash and cash equivalents and $4.8 billion available under our bank credit and other facilities.
As a result of the Shaw Transaction, our debt leverage ratio increased to 4.9 2 as at September 30, 2023. This has been calculated on an adjusted basis to include trailing 12-month adjusted EBITDA of a combined Rogers and Shaw as if the Shaw Transaction had closed at the beginning of the trailing 12-month period. If calculated on an as reported basis without the foregoing adjustment, our debt leverage ratio 2 as at September 30, 2023 was 5.5 (December 31, 2022 - 3.3).
We also returned $264 million in dividends to shareholders this quarter and we declared a $0.50 per share dividend on November 8, 2023.
Shaw Transaction
On April 3, 2023, after receiving all required regulatory approvals and after the Freedom Transaction (as defined below) closed, we acquired all the issued and outstanding Class A Participating Shares and Class B Non-Voting Participating Shares (collectively, Shaw Shares) of Shaw Communications Inc. (Shaw) (Shaw Transaction) for total consideration of $20.5 billion. We also assumed approximately $2.9 billion of debt, net of cash and consideration received from the Freedom Transaction, on April 3.
Also on April 3, 2023, the outstanding shares of Freedom Mobile Inc. (Freedom), a subsidiary of Shaw, were sold to Videotron Ltd. (Videotron), a subsidiary of Quebecor Inc. (Quebecor) (Freedom Transaction). The Freedom Transaction provided for the sale of all Freedom-branded wireless and Internet customers and all of Freedom's infrastructure, spectrum licences, and retail locations. The Freedom Transaction did not include the sale of Shaw Mobile-branded wireless subscribers; accordingly, these wireless subscribers remained with the Shaw business acquired by Rogers.
The acquired Shaw business
The Shaw business we acquired provides cable telecommunications, satellite video services, and data networking to residential customers, businesses, and public-sector entities in British Columbia, Alberta, Saskatchewan, and Manitoba (Western Canada). Shaw's primary products include Internet (through Fibre+), Video (through Total TV and Shaw Direct satellite), home phone services, and Wireless services (through Shaw Mobile to consumers in British Columbia and Alberta). Subsequent to closing, we stopped selling services under the Shaw Mobile brand to new customers. These services continue to be offered by Rogers to existing Shaw Mobile customers.
The combined Rogers and Shaw has the scale, assets, and capabilities delivering unprecedented wireline and wireless broadband and network investments, innovation, and growth in new telecommunications services, and greater choice for Canadian consumers and businesses. The combination is accelerating the delivery of critical 5G service across Western Canada, from rural areas to dense cities, more quickly than either company could achieve on its own, by bringing together the expertise and assets of both companies.
The results from the acquired Shaw wireline operations are included in our Cable segment and the results of the acquired Shaw Mobile operations are included in our Wireless segment, from the date of acquisition, consistent with our reportable segment definitions.
The Shaw Transaction has resulted in a material increase to our depreciation and amortization expense that will continue on an ongoing basis and a material increase in finance costs in relation to the financing incurred to fund the acquisition and acquiring Shaw's long-term debt. In addition, targeted cost synergies, together with organic service revenue and earnings growth, are anticipated to result in an offsetting and material increase to our adjusted EBITDA and net income on an ongoing basis.
Summary of Consolidated Financial Results
(In millions of dollars, except margins and
per share amounts)
Three months ended September 30
Nine months ended September 30
2023
2022
% Chg
2023
2022
% Chg
Revenue
Wireless
2,584
2,267
14
7,354
6,619
11
Cable
1,993
975
104
5,023
3,052
65
Media
586
530
11
1,777
1,671
6
Corporate items and intercompany eliminations
(71)
(29)
145
(181)
(112)
62
Revenue
5,092
3,743
36
13,973
11,230
24
Total service revenue 1
4,527
3,230
40
12,375
9,869
25
Adjusted EBITDA
Wireless
1,294
1,093
18
3,695
3,296
12
Cable
1,080
465
132
2,663
1,536
73
Media
107
76
41
73
12
n/m
Corporate items and intercompany eliminations
(70)
(51)
37
(179)
(130)
38
Adjusted EBITDA
2,411
1,583
52
6,252
4,714
33
Adjusted EBITDA margin 2
47.3 %
42.3 %
5.0 pts
44.7 %
42.0 %
2.7 pts
Net (loss) income
(99)
371
n/m
521
1,172
(56)
Basic (loss) earnings per share
($0.19)
$0.73
n/m
$1.00
$2.32
(57)
Diluted (loss) earnings per share
($0.20)
$0.71
n/m
$0.97
$2.28
(57)
Adjusted net income 2
679
436
56
1,776
1,361
30
Adjusted basic earnings per share 2
$1.28
$0.86
49
$3.41
$2.70
26
Adjusted diluted earnings per share
$1.27
$0.84
51
$3.37
$2.66
27
Capital expenditures
1,017
872
17
2,988
2,299
30
Cash provided by operating activities
1,754
1,216
44
3,842
3,348
15
Free cash flow
745
279
167
1,591
1,138
40
https://about.rogers.com/wp-content/uploads/Rogers-Q3-2023-Press-Release.pdf
Shaw Group (TSX: SJR.B, NYSE: SJR)
The parent company of the Shaw Group is the Canadian company, Shaw Communications Inc. (TSX: SJR.B, NYSE: SJR).
https://www.shaw.ca/corporate/about-shaw/shaw-companies/
Shaw is a leading Canadian connectivity company. The Wireline division consists of Consumer and Business services. Consumer serves residential customers with broadband Internet, Shaw Go WiFi, video and digital phone. Business provides business customers with Internet, data, WiFi, digital phone, and video services. The Wireless division provides wireless voice and LTE data services.
Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index (Symbol: TSX - SJR.B, NYSE - SJR, and TSXV - SJR.A). For more information, please visit
www.shaw.ca
https://newsroom.shaw.ca/corporate/newsroom/article/materialDetail.aspx?MaterialID=6442452609
https://www.shaw.ca/Corporate/About-Shaw/Shaw-Companies/
Other Shaw Companies
Shaw Broadcast Services
Shaw Broadcast Services provides satellite-based services to broadcast-distribution undertakings. It manages one of North America's largest full-service commercial signal-distribution networks, delivering more TV and radio signals to North American broadcast redistributors than any other single-source satellite supplier.
Shaw Business
Shaw Business owns and operates a national fibre-optic backbone network, providing data networking, video, voice and Internet services to companies of all sizes.
Shaw Direct
Shaw Direct is a leading provider of digital direct-to-home satellite TV in Canada. Shaw Direct provides 100 per cent digital picture and Dolby surround sound audio to more than 900,000 customers across the country.
Freedom
Freedom Mobile is dedicated to bringing affordable wireless service to Canadians by offering value, fairness and transparency.
https://www.shaw.ca/Corporate/About-Shaw/Shaw-Companies/
Shaw Announces Fourth Quarter and Full Year Fiscal 2022 Results
Calgary, Alberta (November 29, 2022) - Shaw Communications Inc. ("Shaw" or the "Company") announces consolidated financial and operating results for the quarter ended August 31, 2022.
Selected Financial Highlights
Fourth quarter consolidated revenue decreased 1.5% year-over-year to $1.36 billion, adjusted EBITDA increased 1.6% year-over-year to $624 million, funds flow from operations decreased 5.3% to $487 million, and net income decreased 32.9% to $169 million.
Fiscal 2022 consolidated revenue decreased 1.1% year-over-year to $5.45 billion and adjusted EBITDA increased 1.4% year-over-year to $2.53 billion. Fiscal 2022 results include year-over-year growth in Consumer Internet, Wireless service and Business revenue, offset by declines in Wireless equipment and Wireline Video, Satellite and Phone revenue. The prior year results included Consumer revenue of approximately $20 million related to the release of a provision following the Canadian Radio-television and Telecommunications Commission (CRTC) decision on final aggregated Third Party Internet Access (TPIA) rates and higher equity-based compensation costs of approximately $29 million due to the significant increase in Shaw's share price following the Rogers-Shaw Transaction (as defined below) announcement on March 15, 2021. Throughout the year, management continued to invest in its networks, focus on profitable subscriber growth and support the Proposed Transaction (as defined below).
"As Canadians put the COVID-19 pandemic behind them, the need to connect, and stay connected, has remained strong. The Canadian and global communications sectors - both wireline and wireless - face important and rapidly escalating investment demands where ongoing investments today determine our competitiveness tomorrow. That is true for our networks, and also for our country. All Canadians depend on our industry to make the necessary investments so that they can benefit from technology advances and all the opportunities afforded by our digital economy," said Brad Shaw, Executive Chair & Chief Executive Officer.
Mr. Shaw continued, "That is why it is so important to move forward with the transactions that Shaw, Quebecor and Rogers have agreed to in direct response to concerns raised by the Competition Bureau and ISED. Our proposed series of transactions creates an unprecedented opportunity to enable a strong, fourth wireless carrier that can compete at scale against the Big 3 and with 5G. The proposal also ensures that Shaw's wireline business can make the significant investments it needs to remain competitive over the long term. In short, we are proposing a bright future for sustainable competition in Canadian telecommunications. Instead of moving ahead with the investments and long-term planning that will drive more competition, we are unfortunately delayed by litigation with the Competition Bureau. Despite this, we remain optimistic that we will ultimately be able to complete our proposed transactions, and we are unwavering in our conviction that they represent a victory for all stakeholders, especially Canadian consumers. We maintain our strong commitment to the ongoing process, and to ensuring that Canada continues to have a vibrant and competitive industry with world leading infrastructure."
Proposed Transaction
On March 15, 2021, Shaw announced that it entered into an arrangement agreement (the "Arrangement Agreement") with Rogers Communications Inc. ("Rogers"), under which Rogers will acquire all of Shaw's issued and outstanding Class A Participating Shares ("Class A Shares") and Class B Non-Voting Participating Shares ("Class B Shares") in a transaction valued at approximately $26 billion, inclusive of approximately $6 billion of Shaw debt (the "Rogers-Shaw Transaction").
Holders of Class A Shares and Class B Shares (other than the Shaw Family Living Trust, the controlling shareholder of Shaw, and related persons (collectively, the "Shaw Family Shareholders")) will receive $40.50 per share in cash. The Shaw Family Shareholders will receive 60% of the consideration for their shares in the form of Class B Non-Voting Shares of Rogers (the "Rogers Shares") on the basis of the volume-weighted average trading price for the Rogers Shares for the 10 trading days ending March 12, 2021, and the balance in cash. As at March 13, 2021, when the Arrangement Agreement was signed, the value of the consideration attributable to the Class A Shares and Class B Shares held by the Shaw Family Shareholders (calculated using the volume-weighted average trading price for the Rogers Shares for the 10 trading days ending March 12, 2021) was equivalent to $40.50 per share.
The Rogers-Shaw Transaction is being implemented by way of a court-approved plan of arrangement under the Business Corporations Act (Alberta). At the special meeting of Shaw shareholders held on May 20, 2021, the Company obtained approval of the plan of arrangement by the holders of Shaw's Class A Shares and Class B Shares in the manner required by the interim order granted by the Court of King's Bench of Alberta on April 19, 2021. On May 25, 2021, the Court of King's Bench of Alberta issued a final order approving the plan of arrangement.
Agreement to Sell Freedom Mobile to Quebecor
On June 17, 2022, Rogers, Shaw and Quebecor Inc. ("Quebecor") announced their agreement for the sale of Freedom Mobile Inc. ("Freedom") to Quebecor for a purchase price of $2.85 billion. On August 12, 2022, Rogers, Shaw and Quebecor entered into a definitive agreement (the "Share Purchase Agreement") for the sale of Freedom to Videotron Ltd. ("Videotron"), a subsidiary of Quebecor, substantially consistent with the terms announced on June 17, 2022 (the "Freedom Transaction"). The Freedom Transaction is subject to regulatory approvals from the Commissioner of Competition (the "Commissioner") and Innovation, Science and Economic Development Canada (ISED), and is conditional on the completion of the Rogers-Shaw Transaction. Subject to satisfaction of all conditions, closing of the Freedom Transaction will take place immediately before the closing of the Rogers-Shaw Transaction. Collectively, the Rogers-Shaw Transaction, the Freedom Transaction and all transactions provided thereunder are referred to as the "Proposed Transaction."
The Share Purchase Agreement provides that Videotron, a subsidiary of Quebecor, will acquire all of the issued and outstanding shares of Freedom. Accordingly, Videotron will acquire the entire Freedom business, including all Freedom-branded wireless and Internet customers, as well as all of Freedom's infrastructure, spectrum and retail locations, and all of Freedom's existing backhaul and backbone arrangements. The Freedom Transaction also includes long-term agreements pursuant to which Rogers will provide Quebecor with transport services (including backhaul and backbone) and roaming services. Rogers and Quebecor will provide each other with customary transition services as are necessary to operate Freedom's business for a reasonable period of time post-closing and to facilitate the separation of Freedom's business from the other businesses and operations of Shaw and its affiliates. Pursuant to the Share Purchase Agreement, the Shaw Mobile-branded wireless subscribers will not be transferred to Videotron and will remain with Shaw.
Status of the Proposed Transaction Regulatory Approvals and Related Proceedings
For the Rogers-Shaw Transaction, consistent with the terms of the Arrangement Agreement, the parties made filings with each of the Canadian Radiotelevision and Telecommunications Commission (CRTC), the Commissioner and ISED in April 2021. For the Freedom Transaction, consistent with the terms of the Share Purchase Agreement, the parties made filings with the Commissioner and ISED in June 2022.
On March 24, 2022, the CRTC completed its comprehensive review and approved the transfer of Shaw's licenced broadcasting undertakings to Rogers, marking an important milestone towards closing of the Rogers-Shaw Transaction.
On May 9, 2022, the Commissioner filed applications to the Competition Tribunal (the "Tribunal") seeking an order to prevent the Rogers-Shaw Transaction from proceeding and an interim injunction to prevent closing until the Commissioner's case can be heard by the Tribunal. On May 30, 2022, the Commissioner's interim injunction application was resolved on the basis that Rogers and Shaw agreed to not proceed with closing the Rogers-Shaw Transaction until either a negotiated settlement is agreed with the Commissioner or the Tribunal has ruled on the matter. As announced by the Company on July 6, 2022 and October 27, 2022, the respective mediation sessions between Rogers, Shaw, Quebecor and the Commissioner in July, 2022 and October, 2022, did not result in a resolution of the Commissioner's objections to the proposed merger. As a result, the Tribunal hearing began on November 7, 2022.
On October 25, 2022, the Minister of Innovation, Science, and Industry (the "Minister") officially denied the application for the wholesale transfer of Freedom's spectrum licences to Rogers, which is no longer being proposed. In connection with his ongoing review of the pending application to transfer Freedom's spectrum licences to Videotron, the Minister gave notice that any spectrum licences acquired by Videotron must remain in Videotron's possession for at least ten years and the Minister conveyed his expectation that prices for wireless services in Ontario and Western Canada would be comparable to what Videotron is currently offering in Quebec. Videotron subsequently announced that it is willing to accept these conditions.
The parties to the Proposed Transaction strongly believe that it is in the best interests of Canadian consumers, businesses and the Canadian economy. Above all, the Proposed Transaction will strengthen competition in Canadian wireless and wireline telecommunications and enhance sustainable competition over the long term. It will also enable network expansion, bridging the digital divide, and the next-generation wireless and wireline networks that will drive innovation and economic growth.
As previously disclosed, in order to permit continued engagement with the pending regulatory approval processes and related hearings, Rogers, Shaw and the Shaw Family Living Trust have agreed to extend the outside date for closing the Rogers-Shaw Transaction from July 31, 2022 to December 31, 2022 which outside date may be further extended to January 31, 2023 at the option of Rogers or Shaw, demonstrating their commitment to completing this transformative combination. The outside date in the Share Purchase Agreement also tracks the outside date in the Arrangement Agreement but can be extended beyond January 31, 2023 only with the consent of Videotron. Nonetheless, the time required to complete the Tribunal hearing, as well as receive ISED approval, including any appeals of the outcomes of any required regulatory process, is uncertain and could result in further delays in or prevent the closing of the Rogers-Shaw Transaction and the Freedom Transaction.
Further information regarding the Rogers-Shaw Transaction is contained in the management information circular filed April 23, 2021 on Shaw's SEDAR profile at www.sedar.com and EDGAR profile at www.sec.gov.
Fourth Quarter Fiscal 2022
In the fourth quarter, the Company added approximately 52,900 new Wireless customers. Postpaid net additions of approximately 25,600 in the quarter were down compared to the prior year due to wireless competition and moderating demand for Shaw Mobile, partially offset by increasing retail traffic for Freedom Mobile, although not yet to pre-pandemic levels. Wireless service revenue growth of 7.3% is due to continued subscriber growth, partially offset by lower ARPU1. Fourth quarter Wireless ARPU decreased 0.9% from the prior year period to $37.08. Wireless postpaid churn2 of 1.39% improved approximately 10-basis points from the fourth quarter of fiscal 2021.
Consumer Wireline RGU3 losses in the fourth quarter of approximately 42,500 improved over the prior year period, led by Internet RGU additions of approximately 4,700, combined with fewer Video and Phone losses, primarily due to improved retention tactics. Fourth quarter Wireline revenue decreased 2.4% over the prior year to $1.03 billion and Wireline adjusted EBITDA decreased 1.4% to $501 million.
Fourth quarter Wireless revenue increased 1.2% to $325 million and adjusted EBITDA of $123 million increased 16.0% year-over-year. For the twelve-month period, Wireless revenue grew 1.5% to $1.29 billion and adjusted EBITDA of $485 million improved 23.4%. Wireless service revenue for the three and twelve-month periods increased 7.3% and 9.1% respectively, to $250 million and $972 million, over the comparable periods in fiscal 2021 due to an increased subscriber base, partially offset by lower ARPU. Wireless equipment revenue for the three and twelve-month periods decreased 14.8% and 16.3% respectively, to $75 million and $319 million over the comparable periods in fiscal 2021. Fourth quarter ARPU decreased 0.9% to $37.08 reflecting Shaw Mobile customer additions offset by lower device subsidy allocations. For the full year, ARPU of $36.83 decreased 1.4% over the prior year. In fiscal 2022, the Company added approximately 160,000 Wireless customers bringing its total customer base to approximately 2.28 million.
Wireline RGUs declined by approximately 40,400 in the quarter compared to a loss of approximately 45,400 in the fourth quarter of fiscal 2021. The current quarter included a gain in Consumer Internet RGUs of approximately 4,700 offset with declines in Video, Satellite and Phone resulting in Consumer RGUs declining by 42,500 in the aggregate. Business RGUs increased by approximately 2,100.
Fourth quarter Wireline revenue of $1.03 billion and adjusted EBITDA of $501 million decreased 2.4% and 1.4% respectively. Consumer revenue of $879 million decreased 3.4% compared to the prior year as Internet revenue growth was offset by declines in Video, Satellite and Phone subscribers and revenue. Business revenue of $155 million increased 4.0% year-over-year with Internet revenue growth and continued demand for the Smart suite of products.The decrease in revenue was partially offset by lower employee related costs in the fourth quarter of fiscal 2022 compared to fiscal 2021 of approximately $11 million due to the impact of share price movements on stock-based compensation as well as favourable adjustments to employee benefit provisions based on experience.
For the twelve-month period, Consumer revenue decreased 3.2% to $3.55 billion and Business revenue increased 6.7% to $623 million resulting in Wireline revenue of $4.17 billion, or 1.9% lower than the prior year. Wireline adjusted EBITDA for the same period of $2.05 billion decreased 2.8% due primarily to lower Consumer revenue.
Capital expenditures in the fourth quarter of $340 million compared to $292 million in the prior year. Wireline capital spending increased by approximately $85 million primarily due to higher investments in network upgrades, enhancements and success-based categories as well as an increase in new housing development. Wireless spending of $34 million decreased by approximately $37 million year-over-year primarily due to lower planned investment in the quarter. In fiscal 2022, consolidated capital expenditures of approximately $1.1 billion increased approximately 7.7% from the prior year.
Free cash flow4 for the quarter of $70 million compared to $227 million in the prior year. The decrease was largely due to higher capital expenditures and higher income taxes paid, partially offset by an increase in adjusted EBITDA. Free cash flow for fiscal 2022 of $819 million was $154 million, or 15.8%, lower than the prior year due to an increase in capital expenditures and higher income taxes paid partially offset by growth in adjusted EBITDA.
Funds flow from operations for the quarter of $487 million decreased 5.3% from $514 million in the fourth quarter of fiscal 2021 primarily due to the decrease in net income and partially offset by a decrease in non-cash future income tax recovery. Funds flow from operations for fiscal 2022 of $2.0 billion was $257 million, or 11.4%, lower than the prior year primarily due to a higher current income tax and interest expense, partially offset by an increase in EBITDA all in the current year.
Net income for the fourth quarter of fiscal 2022 of $169 million decreased 32.9% from $252 million in the fourth quarter of fiscal 2021 due to an $83 million increase in income taxes in the quarter, primarily due to the recognition of previously unrecognized tax losses in the fourth quarter of fiscal 2021. Net income for fiscal 2022 of $764 million was $222 million lower than the prior year primarily due to a $29 million increase in interest expense related to a $35 million reduction of tax related interest expense in the prior year and a $211 million increase in income taxes in fiscal 2022 compared to fiscal 2021, partially offset by the $34 million increase in consolidated adjusted EBITDA. Tax expense increased in fiscal 2022 mainly due to a $125 million revision to liabilities for uncertain tax positions that became statute barred in 2021 as well as the recognition of a $78 million tax benefit associated with previously unrecognized tax losses in the fourth quarter of 2021 driven by management's expectations that sufficient future taxable profit will be available to fully utilize such losses, partially offset by the effect of higher pre-tax income.
As at the end of fiscal 2022, the net debt leverage ratio was 2.2x5.
Shaw files Year-End Disclosure Documents
Shaw announced today the filing with Canadian securities regulators of its 2022 audited annual consolidated financial statements, related management's discussion and analysis and 2022 annual information form and the filing with the U.S. Securities and Exchange Commission of its 2022 annual report on Form 40-F which includes the Canadian filings.
These documents are available on Shaw's profile on the Canadian Securities Administrators' website (www.sedar.com). The Form 40-F is available on the U.S. Securities and Exchange Commission's website (www.sec.gov). All of these documents are also available on Shaw's website at www.shaw.ca/corporate/investor-relations/financial-reports. Any shareholder wishing to receive a printed copy of the 2022 annual report containing the audited annual consolidated financial statements and related management's discussion and analysis may request one at no charge by e-mail to [emailprotected].
2023 Annual General Meeting of Shareholders (2023 AGM)
The Company received an extension from the Toronto Stock Exchange to hold its 2023 AGM as late as April 11, 2023. Provided that the Rogers-Shaw Transaction has not closed, the Company expects to hold its 2023 AGM in April 2023 and will provide notice of meeting and record date in accordance with the securities law requirements.
1 ARPU is a supplementary financial measure which may not be comparable to similar measures presented by other issuers. Additional information about this supplementary financial measure is included in "Key Performance Drivers" in this press release.
2 Wireless postpaid churn is a metric used to measure the Company's success in retaining Wireless subscribers. Additional information about this metric is included in "Key Performance Drivers" in this press release.
3 RGUs is a metric used to measure the count of subscribers in the Company's Wireline and Wireless segments. Additional information about this metric is included in "Key Performance Drivers" in this press release.
4 The Company has revised its method of calculating free cash flow to better reflect management's view of the Company's free cash flow generation, and to ensure compliance with the requirements under applicable securities law relating to the disclosure and reconciliation of nonGAAP financial measures that became effective August 31, 2022 for the Company. The free cash flow numbers disclosed in this report for prior periods have been restated to conform with the presentation of Fiscal 2022 amounts. See "Non-GAAP and Additional Financial Measures" for more information about this Non-GAAP financial measure.
5 Net debt leverage ratio is a non-GAAP ratio and net debt, which is a component of net debt leverage ratio, is a non-GAAP financial measure. Net debt leverage ratio and net debt are not standardized measures under IFRS and may not be a reliable way to compare us to other companies. See "Non-GAAP and additional financial measures" for more information about this measure and ratio.
https://newsroom.shaw.ca/corporate/newsroom/article/materialDetail.aspx?MaterialID=6442452646
Thomson Reuters Corporation (TSX: TRI, NYSE: TRI)
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Thomson Reuters Reports Fourth-Quarter and Full-Year 2023 Results
TORONTO, February 8, 2024 - Thomson Reuters (TSX/NYSE: TRI) today reported results for the fourth quarter and full year ended December 31, 2023:
Good revenue momentum continued in the fourth quarter and full year
Full-year total company revenue up 3% / organic revenue up 6%
Fourth-quarter total company revenue up 3% / organic revenue up 7%
Organic revenue up 8% for the "Big 3" segments (Legal Professionals, Corporates and Tax & Accounting Professionals)
Met or exceeded full-year 2023 outlook for organic revenue, adjusted EBITDA margin and free cash flow
Full-year 2024 outlook anticipates organic revenue growth of approximately 6% and an adjusted EBITDA margin of approximately 38%
Financial framework for 2025-2026 anticipates 6.5%-8% organic revenue growth and rising adjusted EBITDA margins
Increased annualized dividend per share by 10% (31 st consecutive annual increase)
Anticipate current $1 billion share buyback program to conclude by end of the second quarter
Acquired a majority ownership stake in e-invoicing leader Pagero in January 2024
"Last year was one of innovation and accomplishment across our business," said Steve Hasker, President and CEO of Thomson Reuters. "We made significant progress delivering Generative AI-powered solutions, including the launch of AI-Assisted Research on Westlaw Precision, as well as expanded features and design enhancements across our product portfolio. We plan to maintain this momentum in 2024 through a robust product roadmap positioning us to meet our customers' evolving needs at pace."
Mr. Hasker added, "We remain focused on allocating capital to drive long-term shareholder value creation. In 2023, we returned significant capital to shareholders and executed a number of strategic acquisitions, resulting in a stronger and more strategically aligned portfolio with improved growth prospects."
Consolidated Financial Highlights - Three Months Ended December 31
Three Months Ended December 31, (Millions of U.S. dollars, except for adjusted EBITDA margin and EPS) (unaudited)
Three Months Ended December 31, (Millions of U.S. dollars, except for adjusted EBITDA margin and EPS) (unaudited)
IFRS Financial Measures (1)
2023
2022
Change
Change at Constant Currency
Revenues
$1,815
$1,765
3%
Operating profit
$558
$631
-11%
Diluted earnings per share (EPS)
$1.49
$0.45
231%
Net cash provided by operating activities
$705
$676
4%
Non-IFRS Financial Measures (1)
Revenues
$1,815
$1,765
3%
3%
Adjusted EBITDA
$707
$633
12%
9%
Adjusted EBITDA margin
38.9%
35.9%
300bp
210bp
Adjusted EPS
$0.98
$0.75 (2)
31%
28%
Free cash flow
$613
$526
16%
(1) In addition to results reported in accordance with International Financial Reporting Standards (IFRS), the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and reconciled to the most directly comparable IFRS measures.
(2) As of September 2023, we amended our definition of adjusted earnings to exclude amortization from acquired computer software. The comparative 2022 period has been revised to reflect the current period presentation. For additional information, see the "Non-IFRS Financial Measures" section of this news release.
Revenues increased 3%, driven by growth in recurring and transactions revenues. Net divestitures had a 4% negative impact on revenues and foreign currency had no impact.
Organic revenues increased 7%, driven by 7% growth in recurring revenues (82% of total revenues) as well as 16% growth in transactions revenues. Global Print revenues decreased 4% organically.
The company's "Big 3" segments reported organic revenue growth of 8% and collectively comprised 80% of total revenues.
Operating profit decreased 11% because the prior-year period included gains on the sale of several non-core businesses.
Adjusted EBITDA, which excludes gains on sales of businesses as well as other adjustments, increased 12% due to higher revenues and lower costs. The related margin increased to 38.9% from 35.9% in the prior-year period. Lower costs reflected Change Program investments made in the prior-year period, which benefited the year-over-year change in adjusted EBITDA margin by 340bp. Foreign currency contributed 90bp to the increase in adjusted EBITDA margin.
Diluted EPS was $1.49 compared to $0.45 in the prior-year period primarily due to an increase in value of the company's investment in London Stock Exchange Group (LSEG), net of changes in the value of related foreign exchange contracts, and lower income tax expense, which included a non-cash tax benefit. Diluted EPS also benefited from a reduction in weighted-average common shares outstanding due to share repurchases and the company's June 2023 return of capital transaction.
Adjusted EPS, which excludes the changes in value of the company's LSEG investment and the related foreign exchange contracts, the non-cash tax benefit as well as other adjustments, increased to $0.98 per share from $0.75 per share in the prior-year period, primarily due to higher adjusted EBITDA. Adjusted EPS also benefited from a reduction in weighted-average common shares.
Net cash provided by operating activities increased $29 million as the cash benefits from higher revenues and lower costs more than offset higher tax payments.
Free cash flow increased $87 million due to higher net cash provided by operating activities and other investing activities, which included proceeds from the sale of real estate. The prior-year period also included investments in the Change Program.
Highlights by Customer Segment - Three Months Ended December 31
(Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited)
(Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited)
Three Months Ended December 31,
Change
2023
2022
Total
Constant Currency (1)
Organic (1)(2)
Revenues
Legal Professionals
$700
$704
-1%
-1%
7%
Corporates
402
379
6%
5%
7%
Tax & Accounting Professionals
344
326
6%
9%
10%
"Big 3" Segments Combined (1)
1,446
1,409
3%
3%
8%
Reuters News
220
198
11%
10%
9%
Global Print
154
162
-6%
-5%
-4%
Eliminations/Rounding
(5)
(4)
Revenues
$1,815
$1,765
3%
3%
7%
Adjusted EBITDA (1)
Legal Professionals
$298
$294
1%
-2%
Corporates
138
135
3%
1%
Tax & Accounting Professionals
188
189
-1%
1%
"Big 3" Segments Combined (1)
624
618
1%
0%
Reuters News
61
40
56%
52%
Global Print
55
59
-5%
-8%
Corporate costs
(33)
(84)
n/a
n/a
Adjusted EBITDA
$707
$633
12%
9%
Adjusted EBITDA Margin (1)
Legal Professionals
42.5%
41.7%
80bp
-50bp
Corporates
34.5%
35.7%
-120bp
-140bp
Tax & Accounting Professionals
54.6%
58.1%
-350bp
-430bp
"Big 3" Segments Combined (1)
43.1%
43.9%
-80bp
-150bp
Reuters News
27.9%
19.8%
810bp
720bp
Global Print
36.4%
36.1%
30bp
-100bp
Adjusted EBITDA margin
38.9%
35.9%
300bp
210bp
(1) See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenues.
(2) Computed for revenue growth only.
n/a: not applicable
Unless otherwise noted, all revenue growth comparisons by customer segment in this news release are at constant currency (or exclude the impact of foreign currency) as Thomson Reuters believes this provides the best basis to measure their performance.
Legal Professionals
Revenues decreased 1% to $700 million due to the negative impact from net divestitures. Organic revenues increased 7%.
Recurring revenues increased 2% (96% of total, 7% organic). Organic growth was primarily driven by Westlaw, Practical Law, Casetext and the segment's international businesses.
Transactions revenues decreased 39% (4% of total, increased 2% organic).
Adjusted EBITDA increased 1% to $298 million.
The margin increased to 42.5% from 41.7% reflecting a 130 basis point benefit from foreign exchange.
Corporates
Revenues increased 5% to $402 million, including a negative impact from net divestitures. Organic revenues increased 7%.
Recurring revenues increased 6% (89% of total, 7% organic) primarily driven by strong growth in Practical Law, Indirect Tax and our Latin America business.
Transactions revenues increased 4% (11% of total, 7% organic), primarily driven by our Trust offering and Confirmation.
Adjusted EBITDA increased 3% to $138 million.
The margin decreased to 34.5% from 35.7%, primarily driven by higher expenses.
Tax & Accounting Professionals
Revenues increased 9% to $344 million, including a negative impact from net divestitures. Organic revenues increased 10%.
Recurring revenues increased 8% (89% of total, 10% organic). Organic growth was driven by Ultratax and the segment's Latin America business.
Transactions revenues increased 22% (11% of total, 14% organic) primarily due to Confirmation and SurePrep.
Adjusted EBITDA decreased 1% to $188 million.
The margin decreased to 54.6% from 58.1%, as higher revenues were more than offset by higher expenses, driven largely by SurePrep seasonality and integration costs.
The Tax & Accounting Professionals segment is the company's most seasonal business with approximately 60% of full-year revenues typically generated in the first and fourth quarters. As a result, the margin performance of this segment has been generally higher in the first and fourth quarters as costs are typically incurred in a more linear fashion throughout the year.
Reuters News
Revenues of $220 million increased 10% (9% organic) driven primarily by Generative AI related content licensing revenue that was largely transactional in nature.
Adjusted EBITDA increased 56% to $61 million primarily due to higher revenues.
Global Print
Revenues decreased 5% (decreased 4% organic) to $154 million, in line with our expectations.
Adjusted EBITDA decreased 5% to $55 million.
The margin increased to 36.4% from 36.1%, reflecting a 130 basis point benefit from foreign exchange.
Corporate Costs
Corporate costs at the adjusted EBITDA level were $33 million. Corporate costs were $84 million in the prior-year period and included $60 million of Change Program costs.
Consolidated Financial Highlights - Year Ended December 31
Year Ended December 31, (Millions of U.S. dollars, except for adjusted EBITDA margin and EPS) (unaudited)
Year Ended December 31, (Millions of U.S. dollars, except for adjusted EBITDA margin and EPS) (unaudited)
IFRS Financial Measures (1)
2023
2022
Change
Change at Constant Currency
Revenues
$6,794
$6,627
3%
Operating profit
$2,332
$1,834
27%
Diluted EPS
$5.80
$2.75
111%
Net cash provided by operating activities
$2,341
$1,915
22%
Non-IFRS Financial Measures (1)
Revenues
$6,794
$6,627
3%
3%
Adjusted EBITDA
$2,678
$2,329
15%
14%
Adjusted EBITDA margin
39.3%
35.1%
420bp
380bp
Adjusted EPS
$3.51
$2.62 (2)
34%
32%
Free cash flow
$1,871
$1,340
40%
(1) In addition to results reported in accordance with IFRS, the company uses certain non-IFRS financial measures as supplemental indicators of its operating performance and financial position. See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures, including how they are defined and reconciled to the most directly comparable IFRS measures. (2) As of September 2023, we amended our definition of adjusted earnings to exclude amortization from acquired computer software. The comparative 2022 period has been revised to reflect the current period presentation. For additional information, see the "Non-IFRS Financial Measures" section of this news release.
Revenues increased 3%, driven by recurring and transactions revenues. Net divestitures had a 3% negative impact on revenues and foreign currency had no impact.
Organic revenues increased 6%, driven by 6% growth in recurring revenues (80% of total revenues) as well as 10% growth in transactions revenues. Global Print revenues decreased 3% organically.
The company's "Big 3" segments reported organic revenue growth of 7% and collectively comprised 81% of total revenues.
Operating profit increased 27% due to higher revenues and lower costs, as well as higher gains from the sale of non-core businesses, including the sale of a majority stake in the company's Elite business.
Adjusted EBITDA, which excludes the gains on sale of Elite and other businesses, as well as other adjustments, increased 15% due to higher revenues and lower costs. The related margin increased to 39.3% from 35.1% in the prior year. Lower costs reflected Change Program investments made in the prior year, which benefited the year-over-year change in adjusted EBITDA margin by 260bp. Foreign currency contributed 40bp to the change in margin.
Diluted EPS was $5.80 per share compared to $2.75 per share in the prior year, primarily due to higher operating profit and an increase in the value of the company's investment in LSEG, net of changes in the value of related foreign exchange contracts. Diluted EPS also benefited from a reduction in weighted-average common shares outstanding due to share repurchases and the company's June 2023 return of capital transaction.
Adjusted EPS, which excludes the gains on sale of Elite and other businesses, changes in value of the company's LSEG investment, as well as other adjustments, increased to $3.51 per share from $2.62 per share in the prior year, primarily due to higher adjusted EBITDA. Adjusted EPS also benefited from a reduction in weighted-average common shares.
Net cash provided by operating activities increased $426 million due to cash benefits from higher revenues and lower costs as well as favorable movements in working capital.
Free cash flow increased $531 million primarily due to higher cash flows from operating activities. Free cash flow also benefited from lower capital expenditures and higher other investing activities, which included proceeds from the sale of real estate. The prior year included investments in the Change Program.
Highlights by Customer Segment - Year Ended December 31
(Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited)
(Millions of U.S. dollars, except for adjusted EBITDA margins) (unaudited)
Year Ended
December 31,
Change
2023
2022
Total
Constant Currency (1)
Organic (1)(2)
Revenues
Legal Professionals
$2,807
$2,803
0%
0%
6%
Corporates
1,620
1,536
5%
5%
7%
Tax & Accounting Professionals
1,058
986
7%
9%
10%
"Big 3" Segments Combined (1)
5,485
5,325
3%
4%
7%
Reuters News
769
733
5%
5%
4%
Global Print
562
592
-5%
-4%
-3%
Eliminations/Rounding
(22)
(23)
Revenues
$6,794
$6,627
3%
3%
6%
Adjusted EBITDA (1)
Legal Professionals
$1,299
$1,227
6%
5%
Corporates
619
578
7%
7%
Tax & Accounting Professionals
490
451
8%
10%
"Big 3" Segments Combined (1)
2,408
2,256
7%
6%
Reuters News
172
154
12%
5%
Global Print
213
212
1%
0%
Corporate costs
(115)
(293)
n/a
n/a
Adjusted EBITDA
$2,678
$2,329
15%
14%
Adjusted EBITDA Margin (1)
Legal Professionals
46.2%
43.8%
240bp
190bp
Corporates
38.1%
37.6%
50bp
50bp
Tax & Accounting Professionals
45.8%
45.8%
0bp
-30bp
"Big 3" Segments Combined (1)
43.8%
42.4%
140bp
110bp
Reuters News
22.4%
21.0%
140bp
0bp
Global Print
38.0%
35.7%
230bp
170bp
Adjusted EBITDA margin
39.3%
35.1%
420bp
380bp
(1) See the "Non-IFRS Financial Measures" section and the tables appended to this news release for additional information on these and other non-IFRS financial measures. To compute segment and consolidated adjusted EBITDA margin, the company excludes fair value adjustments related to acquired deferred revenues.
(2) Computed for revenue growth only.
n/a: not applicable
2024 Outlook
The company's outlook for 2024 in the table below assumes constant currency rates and incorporates the recent Pagero and World Business Media acquisitions but excludes the impact of any future acquisitions or dispositions that may occur during the remainder of the year. Thomson Reuters believes that this type of guidance provides useful insight into the anticipated performance of its businesses.
The company expects its first-quarter 2024 organic revenue growth to be approximately 8%, boosted by the expectation for additional AI licensing revenue at Reuters. The company also anticipates an adjusted EBITDA margin of approximately 40%, benefiting from normal seasonal strength and the Reuters licensing revenue, partially offset by M&A dilution and select growth investments.
The company continues to operate in an uncertain macroeconomic environment, reflecting ongoing geopolitical risk, uneven economic growth and an evolving interest rate and inflationary backdrop. Any worsening of the global economic or business environment could impact the company's ability to achieve its outlook.
Reported Full-Year 2023 Results and Full-Year 2024 Outlook
Total Thomson Reuters
FY 2023 Reported
FY 2024 Outlook
Total Revenue Growth
3%
~ 6.5%
Organic Revenue Growth (1)
6%
~ 6%
Adjusted EBITDA Margin (1)
39.3%
~ 38%
Corporate Costs
$115 million
$120 - $130 million
Free Cash Flow (1)
$1.9 billion
~ $1.8 billion
Accrued Capex as % of Revenue (1)
7.8%
~ 8.5%
Depreciation & Amortization of Computer Software
Depreciation & Amortization of Internally Developed Software Amortization of Acquired Software
$628 million
$556 million $72 million
$730 - $750 million
$595 - $615 million ~ $135 million
Interest Expense (P&L)
$164 million (2)
$150 - $170 million
Effective Tax Rate on Adjusted Earnings (1)
16.5%
~ 18%
"Big 3" Segments (1)
FY 2023 Reported
FY 2024 Outlook
Total Revenue Growth
3%
~ 8%
Organic Revenue Growth
7%
~ 7.5%
Adjusted EBITDA Margin
43.8%
~ 43%
(1) Non-IFRS financial measures. See the "Non-IFRS Financial Measures" section below as well as the tables and footnotes appended to this news release for more information.
(2) Full-year 2023 interest expense excludes a $12 million benefit from the release of a tax reserve that is removed from adjusted earnings.
2025-2026 Financial Framework
For the 2025-2026 period, the company targets an organic revenue growth range of 6.5%-8%, driven by 8%-9% for the "Big 3" segments. The company targets adjusted EBITDA margin expansion of approximately 75 basis points in 2025, followed by at least 50 basis points in 2026. It anticipates accrued capital expenditures as a percentage of revenues to be approximately 8%, and 2026 free cash flow to range from $2.0-$2.1 billion.
This financial framework assumes constant currency rates and incorporates the recent Pagero and World Business Media acquisitions but excludes the impact of any future acquisitions or dispositions that may occur during this time horizon.
Recent Acquisitions
In January 2024, the company announced a recommended public tender offer to acquire 100 per cent of the shares of Pagero Group AB (Pagero) and subsequently acquired a majority interest in Pagero. As of February 2, 2024, the company's ownership of Pagero was approximately 84.53%. Pagero is a global leader in e-invoicing and indirect tax solutions, which it delivers through its Smart Business Network. The Company links customers, suppliers, and institutions, allowing for the automated, compliant, and secure exchange of digital orders, invoices, and other business documents. Thomson Reuters' majority ownership of Pagero will enhance the strategic partnership announced in February 2023, accelerating the companies' joint vision for a connected suite of global indirect tax, reporting and e-invoicing capabilities.
In January 2024, the company also acquired World Business Media Limited, a cross-platform, subscription-based provider of editorial coverage for the global P&C and specialty (re)insurance industry. This acquisition is in line with Reuters strategic priority to provide must-have news and insight for new customer markets and professional verticals.
Dividends
The company announced today that its Board of Directors approved a 10% or $0.20 per share annualized increase in the dividend to $2.16 per common share, representing the 31 st consecutive year of dividend increases. A quarterly dividend of $0.54 per share is payable on March 8, 2024 to common shareholders of record as of February 21, 2024.
Share Repurchases - Update on $1.0 Billion Buyback Program
In November 2023, Thomson Reuters announced its plans to repurchase up to $1.0 billion of its common shares.
From November 2023 through January 31, 2024, the company repurchased approximately 3.3 million of its common shares under this buyback program, for a total spend of $457 million. As of January 31, 2024, Thomson Reuters had approximately 452.4 million common shares outstanding.
Subject to market conditions, the company anticipates completing the $1.0 billion program by the end of the second quarter of 2024.
LSEG Ownership Interest
Thomson Reuters indirectly owns LSEG shares through an entity that it jointly owns with Blackstone's consortium and a group of current LSEG and former Refinitiv senior management. During 2023, the company sold 56.0 million shares that it indirectly owned and received nearly $5.5 billion of gross proceeds.
As of January 31, 2024, Thomson Reuters indirectly owned approximately 15.2 million LSEG shares, which had a market value of approximately $1.7 billion based on LSEG's closing share price on that day.
Thomson Reuters
Thomson Reuters (NYSE / TSX: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit
tr.com
.
https://www.thomsonreuters.com/en/press-releases/2024/february/thomson-reuters-reports-fourth-quarter-and-full-year-2023-results.html
Torstar Corporation (TSX: TS.B)
Torstar is a holding company with investments, primarily in news and media. Businesses in the group include the Toronto Star and numerous other city and community news organizations. Other investments include VerticalScope, Canadian Press, Blue Ant Media, Sing Tao, LeaseBusters and Metroland Parcel Delivery services.
Until August 1, 2014, Torstar also owned Harlequin, a leading global publisher of books for women sold in more than 110 international markets and in over 30 languages.
2014 Torstar sells Harlequin to a division of HarperCollins Publishers, a News Corp subsidiary.
2015 Torstar acquires 56% interest in VerticalScope, a leading North American vertically focused digital media company.
2017 Torstar completed a transaction with Postmedia Network Inc in which Torstar purchased and sold a number of daily and community newspapers. Torstar continues to operate the St. Catharines Standard, Niagara Falls Review, Welland Tribune and Peterborough Examiner acquired from Postmedia.
2020 Torstar acquired by NordStar Capital, an entity owned by Toronto businessmen Jordan Bitove and Paul Rivett.
https://www.torstar.com/company/overview
Torstar Corporation Reports First Quarter Results
TORONTO, ONTARIO - (CNW - May 6, 2020) - Torstar Corporation (TSX:TS.B) today reported financial results for the first quarter ended March 31, 2020.
Highlights for the first quarter:
The emergence of the COVID-19 pandemic and the resulting government measures for social distancing and the closure of non-essential businesses began to have a significant impact on advertising revenues late in the quarter. These trends have continued into April and have created significant pressure on advertising and flyer distribution revenues. In response to the continued impact of the COVID-19 pandemic on advertising revenues, we have undertaken a number of cost reduction initiatives which are further discussed in our MD&A for the three months ended March 31, 2020.
We continued to make progress on the transformation of our business including digital subscription offerings, ending the first quarter with almost 90,000 subscribers with digital access including over 32,000 digital-only subscribers to our Daily Brands news sites, up from almost 80,000 subscribers and almost 28,000 digital-only subscribers at December 31, 2019. In addition, at the end of the first quarter we had over 7,700 subscribers to the e-editions of our Daily Brands newspapers.
We now have over 370,000 registered users in the Community news sites, up from over 280,000 at December 31, 2019. During the quarter we announced an exclusive agreement with Innocode and launched a scalable digital platform in our first test market, North Bay, Ontario, as part of an innovative new project aimed at revitalizing local media in communities across Canada.
Subsequent to the end of the first quarter, we expanded our suite of digital marketing products and services, through an exclusive agreement with Madwire, LLC in Canada. We now offer approximately ten additional digital advertising and marketing services to small and medium sized businesses in Canada, including to our roster of approximately 30,000 small and medium sized clients.
During the first quarter of 2020, we sold the Hamilton property and received net cash proceeds of $24.7 million.
We ended the first quarter of 2020 with $69.5 million of cash and cash equivalents and $9.1 million of restricted cash; Torstar has no bank indebtedness.
Our operating revenue was $92.5 million in the first quarter of 2020, down $23.5 million or 20% relative to the first quarter of 2019. Excluding the impact of the closure of StarMetro print editions in late December 2019, first quarter operating revenues were down 17%. Our first quarter advertising revenues were impacted by the social distancing measures and the closure of non-essential businesses introduced in mid-March as a result of the COVID-19 pandemic.
Our net loss attributable to equity shareholders was $23.5 million ($0.29 per share) in the first quarter of 2020. This compares to a net loss of $7.4 million ($0.09 per share) in the first quarter of 2019.
Adjusted loss per share (see "non-IFRS measures") was $0.13 in the first quarter of 2020. This compares to an adjusted loss per share of $0.06 in the first quarter of 2019.
Adjusted EBITDA (see "non-IFRS measures") was $2.6 million in the first quarter of 2020, down from $7.1 million in the first quarter of 2019 and included the benefit of $11.9 million of tax credits ($18.0 million in the first quarter of 2019). Excluding the tax credits, Adjusted EBITDA loss improved by $1.7 million, with the Daily Brands up $3.8 million, the Community Brands down $2.4 million and Corporate and Other up $0.3 million.
https://www.torstar.com/component/content/article/9-latest-news/218-torstar-corporation-reports-first-quarter-results?Itemid=101
Transcontinental Inc. (TSX: TCL.A)
TC Transcontinental is a leader in flexible packaging in the United States, Canada and Latin America. It is also Canada's largest printer.
For over 45 years, TC Transcontinental's story has been one of innovation and transformation to meet our customers' evolving needs. Our strong family values, entrepreneurial spirit and long-term vision have always been at the heart of our success.
Our mission is simple: create products and services that allow businesses to attract, reach and retain their target customers. In this pursuit, we are firmly guided by our vision to become a market leader in flexible packaging in North America while maintaining our position as Canada's largest printer.
The quest for long-term value creation and profitable growth is part of our DNA, as a controlled company and good corporate citizen. This is and will continue to be our commitment to our customers, employees, shareholders and the communities in which we operate.
Transcontinental Inc. is a publicly traded company (TSX: TCL.A TCL.B) with close to 8,000 employees, the majority of which are based in the United States, Canada and Latin America.
https://tctranscontinental.com/en-ca/about-us
Transcontinental Inc. Announces Results For The First Quarter Of Fiscal 2024
12 March 2024
Highlights
Growth in adjusted operating earnings before depreciation and amortization (1) of 14.3% for the quarter, including an increase of 29.6% in the Packaging Sector.
Revenues of $680.4 million for the quarter ended January 28, 2024; operating earnings of $27.8 million; and net earnings attributable to shareholders of the Corporation of $13.9 million ($0.16 per share).
Adjusted operating earnings before depreciation and amortization (1) of $96.1 million for the quarter ended January 28, 2024; adjusted operating earnings (1) of $59.0 million; and adjusted net earnings attributable to shareholders of the Corporation (1) of $37.4 million ($0.43 per share).
Announced, on February 1, 2024, the closure of the Saint-Hyacinthe plant in April 2024 and the transfer of its operations to the other plants in the network.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
Montréal, March 12, 2024 - Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal 2024, which ended January 28, 2024.
"We had a solid first quarter despite persistently challenging market conditions," said Thomas Morin, President and Chief Executive Officer of TC Transcontinental. "This performance is largely attributable to cost reductions in line with our priorities and the profitability and financial position improvement program announced in December.
"The Packaging Sector had an excellent start with a 29.6% growth in adjusted operating earnings before depreciation and amortization for the quarter compared to last year, as the initiatives implemented to reduce our costs and a more favourable product mix more than offset the softer demand across the market. While there are still uncertainties surrounding short-term demand, we are satisfied with the progress made with the deployment of new equipment related to our strategic investments and the market interest in that respect.
"In our Printing Sector, our cost reduction initiatives allowed us to mitigate the persistent challenges facing our book printing activities. We are encouraged by the opportunities in our retail related services, in particular the continued roll-out of raddar [TM] as well as our in-store marketing activities.
"I'm pleased that our two-year program aimed at improving our earnings per share and our financial position has already started to show results. By the end of the second quarter, we will have reduced our overall workforce by 6%. We also achieved significant cost of goods sold savings, and our solid earnings and free cash flows enabled us to reduce our indebtedness ratio to 2.00x at the end of the first quarter."
"Our financial position is solid, and we expect to generate significant cash flows by the end of fiscal 2024 that will enable us to pursue our debt reduction objective," concluded Donald LeCavalier, Executive Vice President and Chief Financial Officer of TC Transcontinental.
Financial Highlights
Results of the First Quarter of Fiscal 2024
Revenues decreased by $26.6 million, or 3.8%, from $707.0 million in the first quarter of 2023 to $680.4 million in the corresponding period of 2024. This decrease is mainly due to lower volume in the Printing Sector and, to a lesser extent, in the Packaging Sector.
Operating earnings before depreciation and amortization increased by $6.8 million, or 9.0%, from $75.9 million in the first quarter of 2023 to $82.7 million in the first quarter of 2024. Adjusted operating earnings before depreciation and amortization increased by $12.0 million, or 14.3%, from $84.1 million in the first quarter of 2023 to $96.1 million in the first quarter of 2024. These increases are mainly attributable to our cost reduction initiatives, partially offset by lower volume. In addition, the increase in restructuring and other costs and, to a lesser extent, asset impairment charges had an adverse impact on operating earnings before depreciation and amortization.
Net earnings attributable to shareholders of the Corporation increased by $12.9 million, from $1.0 million in the first quarter of 2023 to $13.9 million in the first quarter of 2024. This increase is mainly attributable to the previously explained increase in operating earnings before depreciation and amortization and the decrease in depreciation and amortization and financial expenses, partially offset by higher income taxes. On a per share basis, net earnings attributable to shareholders of the Corporation went from $0.01 to $0.16, respectively.
Adjusted net earnings attributable to shareholders of the Corporation increased by $16.3 million, or 77.3%, from $21.1 million in the first quarter of 2023 to $37.4 million in the first quarter of 2024. This increase is mainly attributable to the previously explained increase in adjusted operating earnings before depreciation and amortization and the decrease in depreciation and amortization and financial expenses, partially offset by higher income taxes. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation went from $0.24 to $0.43, respectively.
For more detailed financial information, please see the Management's Discussion and Analysis for the first quarter ended January 28, 2024, as well as the financial statements in the "Investors" section of our website at
www.tc.tc
.
Outlook
In the Packaging Sector, our investments in sustainable packaging solutions position us well for the future and should be a key driver of our long-term growth. The economic environment should however continue to affect short-term demand. In terms of profitability, despite the pressure on volume, we expect an increase in adjusted operating earnings before depreciation and amortization for fiscal 2024 compared to fiscal 2023.
In the Printing Sector, we expect lower volume in our traditional activities. This anticipated volume reduction should result in lower adjusted operating earnings before depreciation and amortization for fiscal 2024 compared to fiscal 2023. We expect this decrease to be mostly offset by cost reduction initiatives and the continued roll-out of raddar [TM].
Finally, given the economic environment and the early impact of our profitability and financial position improvement program, we expect consolidated adjusted operating earnings before depreciation and amortization to remain at the very least stable for fiscal 2024 compared to fiscal 2023. In addition, we expect to continue generating significant cash flows from operating activities, which will enable us to reduce our net indebtedness while continuing our strategic investments.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Accounting Standards ("IFRS") and the term "dollar", as well as the symbol "$" designate Canadian dollars.
In addition, in this press release, we also use certain non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the section entitled "Reconciliation of Non-IFRS Financial Measures" and in Note 3, "Segmented Information", to the condensed interim consolidated financial statements for the first quarter ended January 28, 2024.
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings, adjusted income taxes, adjusted net earnings attributable to shareholders of the Corporation, adjusted net earnings attributable to shareholders of the Corporation per share, net indebtedness and net indebtedness ratio, for which a reconciliation is presented in the following table, do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many of our readers analyze the financial performance of the Corporation's activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
Dividend
The Corporation's Board of Directors declared a quarterly dividend of $0.225 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on April 22, 2024, to shareholders of record at the close of business on April 3, 2024.
https://tctranscontinental.com/en-us/company-overview/news-room/press-releases/transcontinental-inc-announces-results-for-the-first-1
Vividata
Vividata is the leader in Canada's Leader In Canadian Cross-Media And Consumer Research
Offering the largest syndicated study in Canada, Vividata's
SCC | Study of the Canadian Consumer
is the go-to source for demographics, psychographics, lifestyle, life events, media, purchasing and brand preferences. As the currency provider of print and digital audience data for publishers, Vividata offers trusted, world class audience metrics.
Vividata is a not-for-profit, tripartite industry organization with research roots dating back over 40 years. Governed by a Board of Directors made up of key leaders in Canadian media and consumer goods and services, and a Research Committee consisting of insights specialists from across industries, Vividata provides unparalleled research that meets the needs of marketers and researchers. Specialized committees also drive new initiatives and provide valuable direction that ensure our studies are current and anticipate the needs of our clients.
In 2019 Vividata launched
Metrica
, Vividata's passive digital measurement panel. Through device metering technology embedded into the devices of opted-in participants and intelligent data science, Metrica transforms the digital activities of Canadians into new behavioural insights through the
SCC/Digital
consumer database.
https://vividata.ca/about-us/about-vividata/
ACQ_REF: IS/42663/20240328/CAN/14/21
ACQ_AUTHOR: Associate/Mohammad Azhar Bin Mazlan
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