Cogeco Communications Inc. reported earnings results for the first quarter ended November 30, 2017. For the quarter, the company reported revenue of $553.625 million against $549.090 million a year ago. Adjusted EBITDA was $247.482 million against $249.703 million a year ago. Cash flow from operating activities was $6.267 million against $123.461 million a year ago. Acquisitions of property, plant and equipment, intangible and other assets was $96.158 million against $96.494 million a year ago. Diluted earnings per share were $1.54 against $1.52 a year ago. Revenue increased by $4.5 million, or 0.8%, to reach $553.6 million mainly driven by the growth of 3.2% in the Canadian broadband services segment, partly offset by the decreases of 1.4% in the American broadband services segment and of 4.5% in the Business information and communications technology (Business ICT) services segment. Profit for the period remained essentially the same at $76.5 million or $1.55 per basic share compared to $75.0 million or $1.53 per basic share in the comparable period of fiscal 2017 mainly as a result of the decreases in depreciation and amortization and in financial expense, mostly offset by a lower adjusted EBITDA and an increase in income taxes. Cash flow from operating activities decreased by $117.2 million, or 94.9%, mainly due to the increases in income taxes paid of which $85.5 million was related to a deferral in income tax installments in the prior year and changes in non-cash operating activities primarily due to changes in working capital. Free cash flow remained essentially the same at $102.3 million compared to $101.4 million for the same period of the prior year as a result of the decrease in financial expense, mostly offset by the decrease in adjusted EBITDA. Acquisitions of property, plant and equipment, intangible and other assets amounted to $96.2 million compared to $96.5 million for the same period of fiscal 2017. The variation is mainly due to lower capital expenditures in the Canadian broadband services segment, offset by additional capital expenditures in the American broadband and Business ICT services segments.

The company revised on January 10, 2018 its fiscal 2018 financial guidelines to include MetroCast's financial projections for an eight- month period and present year-over-year comparisons on a constant currency basis. On a constant currency and consolidated basis, Cogeco Communications expects fiscal 2018 revenue to grow between 11% and 13% and adjusted EBITDA between 10% and 12% while free cash flow should decrease between 11% and 18% compared to fiscal 2017. The MetroCast acquisition, together with dark fibre asset purchases completed in December 2017, will add $65 to $70 million in capital expenditures, for total projected capital expenditures of $530 to $550 million.