Cogeco 2014 Annual Report Download - page 36

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MD&A COGECO CABLE INC. 2014 35
CANADIAN CABLE SERVICES
CUSTOMER STATISTICS
Quarters ended August 31,
Net additions (losses)
August 31,
2014 2014 2013
PSU 1,946,022 (10,422) (12,021)
Television service customers 797,165 (10,666) (10,573)
HSI service customers 679,584 2,782 159
Telephony service customers 469,273 (2,538)(1,607)
Fiscal 2014 fourth-quarter PSU net losses amounted to 10,422 compared to 12,021 for the comparable period of the prior year, mainly as a result
of service category maturity and competitive offers in the industry. Net customer losses for the Television service stood at 10,666 compared to
10,573 for the same period of last year. Television service customer net losses are mainly due to the promotional offers of competitors for the
video services, service category maturity and the IPTV footprint growth from competitors. Fiscal 2014 fourth-quarter HSI service customers grew
by 2,782 compared to 159 in the fourth quarter of the prior year. HSI net additions continue to stem from the enhancement of the product offering,
the impact of the bundled offer of Television, HSI and Telephony services and promotional activities. Telephony service customers net losses
stood at 2,538 customers compared to 1,607 customers for the same period of the prior year.
OPERATING RESULTS
Quarters ended August 31, 2014 2013 (1) Change
(in thousands of dollars, except percentages) $$ %
Revenue 315,404 308,886 2.1
Operating expenses 150,234 149,739 0.3
Adjusted EBITDA 165,170 159,147 3.8
Operating margin 52.4% 51.5%
(1) Comparative figures have been adjusted to comply with the adoption of IAS 19 Employee Benefits. For further details, please refer to Note 3 of the consolidated
financial statements.
Revenue
Fiscal 2014 fourth-quarter revenue increased by $6.5 million, or 2.1%, to reach $315.4 million compared to $308.9 million for the same period
last year, primarily due to rate increases implemented in June 2013 and April 2014 in Québec and Ontario, partly offset by PSU losses.
Operating expenses
For the period ended August 31, 2014, operating expenses increased by $0.5 million, or 0.3%, to $150.2 million compared to $149.7 million for
the same period last year. Operating expenses increased during the fourth quarter as a result of additional programming cost increases, partly
offset by cost reduction initiatives and the restructuring activities which occurred in the fourth quarter of fiscal 2013 as well as in fiscal 2014.