MONTREAL — Cogeco Inc. says it will begin a three-year transformation program in its 2025 fiscal year to set the company on what it calls "a path to sustainable growth."
The company made the announcement Thursday evening as it released its fourth-quarter results, which saw profit totalling $81.4 million, down from $90.5 million in the same period last year.
Cogeco expects its revenues to remain stable in 2025, as growth in internet subscribers will offset a decline in video and landline phone subscriptions.
The company said its net capital expenditures are expected to be between $660 million and $735 million next year, including net investments of about $140-190 million for network expansion.
In the fourth quarter of 2024, which ended Aug. 31, Cogeco’s revenues were relatively flat year over year, rising to $768.7 million this year from $766.7 million last year.
U.S. telecommunications revenues declined 2.3 per cent on a constant currency basis, the company said, due to a decline in subscribers, particularly for entry-level services.
Cogeco also noted that more customers are subscribing only to internet services.
In Canada, telecommunications revenues increased 0.8 per cent, mainly due to the addition of high-speed internet subscribers.
Media revenues decreased 10.1 per cent, and chief executive Frédéric Perron noted in the press release that the "competitive dynamics of the radio advertising market remain challenging."
For the full 2024 fiscal year, Cogeco reported earnings of $349.4 million, compared to earnings of $350.2 million for the previous year.
After meeting or exceeding all the company's financial guidelines for the year, Cogeco increased its quarterly dividend to 92.2 cents per share, up from 85.4 cents last year.
This report by The Canadian Press was first published Nov. 1, 2024.
Companies in this story: (TSX: CGO)
The Canadian Press