Cogeco 2015 Annual Report Download - page 7

COGECO CABLE INC. 2015
Forscal 2016,ourfocuswill continue to be theimplementation
ofourCSRprograminourbusinessunits,aswellasequipment
energyconsumption(suchasset-topboxes)andconictminerals,
twoareasofenvironmentalconcernthatarecurrentlyreceiving
signicantattentioninthecommunicationsindustry.
Following the conclusion of the “Let’s Talk TV” broadcasting
policy proceeding earlier this year, the CRTC issued
Broadcasting Regulatory Policy CRTC 2015-96 and draft
amendments to the Broadcasting Distribution Regulations.
These oblige licensed terrestrial and satellite broadcasting
distribution undertakings to offer to all their customers a
smallbasic service for a monthlyretailprice of no morethan
$25, and all discretionary television services both individually
à-la-carteandaspartofsmallpackagesofupto10services.We
consider that these changes to the regulatory framework are
largelyinlinewiththesubmissionsmadebyCogecoCableas
part of the CRTC’s proceeding.
In scal 2015, the CRTC also initiated a telecommunications
policyproceedingtoconsideranewregulatoryframeworkfor
basic telecommunications service providers (“TSPs”). Among
other things, the proceeding will consider the inclusion of
broadband Internet access service as part of a basket of
telecommunications services made available to all customers,
and consider additional funding contributions from TSPs to
support the offering of this expanded service at affordable rates
throughout Canada. This proceeding is still pending and its
outcome cannot be assessed at this time.
In the Canadian and American cable services segments,
we expect revenue growth to stem primarily from targeted
marketing initiatives to improve penetration rates of our
Internet services in the residential and business sectors and
telephonyservicesinthebusinesssector.Weexpectcustomers’
ongoing interest in TiVo’s digital advanced video services to
positivelyimpactthepenetrationof digitalvideoandInternet
services. The Canadian and American cable services segments
shouldalsobenetfromtheimpactofrateincreasesformost
of their services in Canada and the United States and from
primary service unit (“PSU”)(1) growth in the United States. In
theEnterprisedataservices segment,revenuegrowthshould
stemprimarilyfromnetworkconnectivity,colocation,managed
hosting, cloud services and managed IT services due to the
increasing market demand. Furthermore, we believe the
operational, nancial and organizational restructuring of this
segment brings greater efciencies in our operational and
sales structures,and thedevelopment of a new, more focused
go-to-marketstrategytargetingourcustomers’needsandwill
favourablypositiontheEnterprisedataservicessegment.
For scal 2016, Cogeco Cable expects growth in revenue of
8% to 10%, adjusted EBITDA of 7% to 10%, free cash ow
of 8% to 19% and prot for the year of 7% to 16%. We will
continuetoseeknewgrowthopportunitiesinaprudentmanner.
WewishtothankthemembersofourBoardofDirectorsfortheir
counselandunwaveringsupport.Wealsowishtoacknowledge
the contribution of more than 4,000 employees who work
towardsCogecoCable’ssuccessonadailybasisbyupholding
our values of dedication to customers, teamwork, innovation,
respect and trust.

(1) Representsthesumofvideo,Internetandtelephonyservicescustomers.
ConCludinG remarKs
2016 outlooK
reGulatory matters
Jan Peeters
Chairman of the Board
Louis audet
PresidentandChiefExecutiveOfcer