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36 COGECO CABLE INC. 2014 MD&A
Adjusted EBITDA and operating margin
As a result of revenue growth exceeding operating expenses, fiscal 2014 fourth-quarter adjusted EBITDA amounted to $165.2 million, or 3.8%
higher than in the same period of the prior year. Operating margin increased to 52.4% from 51.5% compared to fiscal 2013 fourth quarter.
AMERICAN CABLE SERVICES
CUSTOMER STATISTICS
Quarters ended August 31,
Net additions (losses)
August 31,
2014 2014 2013
PSU 496,162 488 (1,339)
Television service customers 225,929 (1,231)(1,760)
HSI service customers 189,869 1,074 938
Telephony service customers 80,364 645 (517)
Fiscal 2014 fourth-quarter PSU net additions amounted to 488 compared to net losses of 1,339 for the comparable period of prior year. Net
customer losses for the Television service stood at 1,231 compared to 1,760 for the comparable period of last year as a result of the deployment
of TiVo's digital advanced television services, partly offset by seasonal variations resulting from the end of the school year for college and university
students and the winter season residents returning home from late spring through the Fall in the Miami region. HSI net customers additions
amounted to 1,074 compared to 938 for the same period of prior year mainly due to the launch of TiVo's services, additional marketing initiatives
which focused on bundle package offerings, thus increasing overall demand for the HSI residential services and commercial HSI customers. The
net customer additions for Telephony services stood at 645 compared to net losses of 517 in 2013.
OPERATING RESULTS
Quarters ended August 31, 2014 2013 Change
(in thousands of dollars, except percentages) $$ %
Revenue 99,638 91,411 9.0
Operating expenses 56,177 51,629 8.8
Adjusted EBITDA 43,461 39,782 9.2
Operating margin 43.6% 43.5%
Revenue
Fiscal 2014 fourth-quarter revenue increased by $8.2 million, or 9.0%, to reach $99.6 million compared to $91.4 million for the same period last
year, primarily due to PSU growth, rate increases implemented in fiscal 2014 as well as favorable foreign exchange rates compared to the same
period last year.
Fiscal 2014, fourth-quarter revenue in local currency amounted to US$92.0 million compared to US$88.1 million for the same period of 2013.