Cogeco Communications Inc.(CGEAF) 首席执行官 Philippe Jette 在 2019年 第三季度业绩 - 收益电话会议记录
Cogeco Communications Inc. (OTCPK:CGEAF) Q3 2019 Earnings Conference Call July 11, 2019 11:00 AM ET
Cogeco Communications Inc.（[OTCPK：CGEAF]）2019年第3季度收益电话会议2019年7月11日美国东部时间上午11:00
Patrice Ouimet - Senior Vice President & Chief Financial Officer
Philippe Jette - President & Chief Executive Officer
- Patrice Ouimet - 高级副总裁兼首席财务官
- Philippe Jette - 总裁兼首席执行官
Vince Valentini - TD Securities
Drew McReynolds - RBC
Jeff Fan - Scotiabank
Matthew Griffiths - Bank of America Merrill Lynch
Maher Yaghi - Desjardins
- Vince Valentini - 道明证券
- Drew McReynolds - RBC
- 杰夫范 - 丰业银行
- Matthew Griffiths - 美国银行美林证券
- Maher Yaghi - Desjardins
Good day, and welcome to the Cogeco Inc. and Cogeco Communications Inc. Third Quarter 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Mr. Patrice Ouimet, Senior Vice President and Chief Financial Officer of Cogeco Inc. and Cogeco Communications Inc. Please go ahead Mr. Ouimet.
美好的一天，欢迎来到Cogeco Inc.和Cogeco Communications Inc.的2019年第三季度收益电话会议。 今天的会议正在录制中。 在这个时候，我想把会议转交给Cogeco Inc.和Cogeco Communications Inc.的高级副总裁兼首席财务官Patrice Ouimet先生。请继续告诉Ouimet先生。
Good morning, everybody and welcome to our third quarter conference call. So joining me today are Philippe Jette, Marie-Helene Labrie, Andree Pinard, Pierre Maheux and Philippe Bonin. So as usual, before we begin this call, I would like to remind listeners that the call is subject to forward-looking statements, which can be found in our press releases issued yesterday.
And I'll turn the call over to Philippe Jette.
大家早上好，欢迎参加第三季度电话会议。 今天加入我的是Philippe Jette，Marie-Helene Labrie，Andree Pinard，Pierre Maheux和Philippe Bonin。 像往常一样，在我们开始这个电话之前，我想提醒听众，这个电话会有前瞻性的陈述，可以在我们昨天发布的新闻稿中找到。
Good morning, ladies and gentlemen and shareholders of Cogeco Communications Inc. and Cogeco Inc. and thank you for joining us to discuss the results of our third quarter ending May 31, 2019. Let us begin with Cogeco Communications. Our previously announced sale of Cogeco Peer 1 has closed on April 30, for a net cash received of $720 million, resulting in a net gain on disposal of $82.4 million.
This transaction now allows Cogeco Communications to focus exclusively on the growth of our North American broadband business, with greater flexibility to pursue organic investments and acquisition opportunities as our net leverage has declined from 3.3 times at the end of the second fiscal quarter to 2.8 times as of May 31, when excluding the results of Cogeco Peer 1. This transaction has also allowed the launch of the Normal-Course Issuer Bid where Cogeco Communications could repurchase up to 1.8 million shares or 10% of its public float over a one-year period.
Between our share buyback program and our dividend, we could return up to 60% of our expected fiscal year 2020 free cash flow to shareholders. That is dividend and NCIB, if fully exercised. The management team is focused on delivering shareholder value, by creating exceptional customer experience, augmenting our geographic reaches in the U.S. and Canada, mobilizing highly engaged teams and, in time, expanding into new telecommunication market segment such as wireless.
The implementation of a new customer management system, the rollout of many digital initiatives, as well as 1-gigabit Internet speeds and the upcoming launch of an IPTV platform in Canada, demonstrate our commitment to offer enhanced services in a cost-effective way. Cogeco Connexion's recognition in 2019 as one of the top employers in the greater Montreal area by the editors of Canada's Top 100 Employers is a testament to our engaged workforce.
On the wireless side in Canada, we were very pleased to see the recent actions by innovations, science and economic development, as well as the CRTC, to explore regulatory changes that would allow capable regional entrants into the wireless market.
In our submission to the CRTC, we proposed a hybrid MVNO model, in which companies with significant network access infrastructure would have regulated wholesale access to spectrum in regions where they operate. This approach balance the objectives to sustain Canadian investment and implement pro-consumer measures.
We remain committed to exploring opportunities to enter the wireless space in a disciplined fashion. And given the consultation time frame and the various discussion in this process will result in, it is still too early to provide further comments on the specifics of the wireless rollout.
Let's now move to an overview of our consolidated financial results. Note that results from continuing operations exclude Cogeco Peer 1's results. So for the quarter, revenue is up 1.7% and EBITDA up 4.3% in constant currency, when compared to the same period last year. Reported revenue has reached $587.3 million and EBITDA has reached $283.9 million, generating a margin of 48.3%.
早上好，女士们，先生们和Cogeco通信公司和Cogeco公司的股东，感谢您加入我们，讨论截至2019年5月31日的第三季度业绩。让我们从Cogeco Communications开始。我们此前宣布的Cogeco Peer 1的销售已于4月30日结束，收到的净现金为7.2亿美元，处置净收益为8,240万美元。
此次交易现在允许Cogeco Communications专注于我们北美宽带业务的增长，因为我们的净杠杆率从第二财季末的3.3倍下降到2.8倍，因此可以更灵活地进行有机投资和收购机会。 5月31日，当不包括Cogeco Peer 1的结果时。该交易还允许推出正常课程发行人投标，Cogeco Communications可在一年内回购高达180万股或10％的公众持股量。 。
新的客户管理系统的实施，许多数字计划的推出，以及1千兆的互联网速度以及即将在加拿大推出的IPTV平台，都表明我们致力于以经济高效的方式提供增强型服务。 Cogeco Connexion于2019年被加拿大百强雇主编辑评为蒙特利尔大区最佳雇主之一，这证明了我们敬业的员工队伍。
现在让我们概述一下我们的综合财务业绩。请注意，持续操作的结果不包括Cogeco Peer 1的结果。因此，与去年同期相比，本季度收入增长1.7％，EBITDA按固定汇率计算增长4.3％。报告收入达到5.873亿美元，EBITDA达到2.839亿美元，利润率为48.3％。
Cogeco Connexion achieved an EBITDA growth of 3.6%, which is close to last quarter's strong performance and customer trends have improved compared to last year. Atlantic Broadband's 4.4% EBITDA growth was in line with expectations, reflecting higher marketing expenses at now -- at a now normalized level, with Q3 also capturing the full impact of the annual January 1 programming rate increases.
The increased marketing spending, the Florida expansion plan and a greater focus on reconnecting seasonal customers in New Hampshire and Maine have paid off, as primary service units net adds of 15,800 have more than doubled in the quarter compared to last year. The quarterly dividend was reconfirmed at $0.525 per share, a 10.5% increase over last year.
Let us now look at the individual components. At Cogeco Connexion, our PSU trends in the quarter are slightly ahead of the comparable quarter last year, now reflecting normalized trends as our CMS migration issues have been fixed and we have ramped up our sales and marketing efforts since last November. The new CMS is the foundation piece of Cogeco Connexion's evolution to digitize customer experience, enabling quicker response time and better digital interaction to enhance and personalize their customer experience.
Cogeco Connexion's revenue has declined by 1% in the quarter, which is the trailing impact of the clients in residential video and telephony customers in Q4, 2018 and Q1 2019, as a result of the transition experienced last year with the new CMS.
Commercial services revenue growth was strong at 6% and now represents over 10% of Cogeco Connexion's revenue. As customer trends have stabilized, we expect overall low single-digit revenue growth at Cogeco Connexion in Q4 and in fiscal 2020.
Cogeco Connexion's EBITDA has grown by 3.6% in constant currency, mainly as a result of lower workforce expenses, resulting from an operational optimization program in the first half of fiscal 2019 and lower programming costs as a result of lower PSUs.
1 Gigabit Internet speed is now available to about 55% of our footprint and we are on track to achieve our 60% goal by the end of August. Cogeco is pleased to see the continued momentum at the federal and provincial government levels to support private investment in high-speed Internet connectivity in regional areas.
In addition to the budget announcement made in Ottawa, Quebec and Toronto last March and April, which included the combined 4 billion in government funding over a decade, the federal government recently unveiled Canada's connectivity strategy called High-Speed Access For All.
The strategy confirms the critical importance of connectivity for economic development and the strong commitment of the federal government to work with provinces and the private sector to achieve its ultimate goal of connecting 100% of Canadians by 2030.
Cogeco is very well positioned to support the respective governments in achieving their goals. The new programs will be a great opportunity for Cogeco to grow and extend our regional high-speed Internet coverages across Ontario and Quebec as well as further bolster our leadership position in our target markets.
Cogeco Connexion实现了3.6％的EBITDA增长，接近上一季度的强劲表现，客户趋势与去年相比有所改善。大西洋宽带4.4％的EBITDA增长符合预期，反映了目前营销费用的增加 - 目前正常化水平，第三季度也捕捉了1月1日编程费率增长的全部影响。
现在让我们看看各个组件。在Cogeco Connexion，本季度我们的PSU趋势略高于去年的可比季度，现在反映了正常趋势，因为我们的CMS迁移问题得到了修复，并且自去年11月以来我们加大了销售和营销力度。新的CMS是Cogeco Connexion向客户体验数字化发展的基础，使更快的响应时间和更好的数字交互能够增强和个性化他们的客户体验。
商业服务收入增长强劲，达到6％，现在占Cogeco Connexion收入的10％以上。随着客户趋势的稳定，我们预计第四季度和2020财年Cogeco Connexion的单位数收入将保持低位。
Atlantic Broadband's revenue and EBITDA have increased by 5.4% and 4.4% respectively in constant currency, mostly due to organic growth. The organic growth is mainly related to three factors. The continued growth and upsizing in residential Internet and commercial services, rate increases implemented in August in former ABB systems and in October in the MetroCast systems and the ramp-up of the Florida expansion plan, which is now positively contributing to EBITDA.
The PSU trends in Q3 were very strong as explained earlier, especially for Internet, which is our higher-margin service. We are pleased to note that the Internet penetration over the last year has increased by about 1%. Atlantic Broadband currently offer the 1 Gigabit Internet service in over 75% of its footprint and is well aligned to reach its 90% target by the end of August.
Let us now take a look at Cogeco Inc. Consolidated revenue has increased 1.3% and EBITDA 2.9% in constant currency. As you know, we operate 23 radio stations, which for the most part occupy leading position in their respective markets. Our team strives every day to provide relevant and unique content to 5.4 million listener per week who tunes to our stations. That being said the advertising markets in the traditional radio business continue to be challenging and competition has increased relative to last year.
As a result, we are managing our costs tightly in order to ensure that we continue generating attractive free cash flows from the business. The quarterly dividend has been reconfirmed at $0.43 per share, a 10.3% increase over last year.
For fiscal 2019, our April 9th guidance was -- which was revised to exclude Cogeco Peer 1 remains unchanged. We are now introducing our preliminary guidance for fiscal 2020, which on a constant currency basis relative to fiscal year 2019, calls for revenue growth in the 2% to 4% range and EBITDA growth in the 2.5% to 4.5% range.
The expected low single-digit growth at Cogeco Connexion will stem largely from Internet customer additions and growth in the business sector. The expected mid single-digit growth at Atlantic Broadband will result from both the residential and business sectors and continued Florida expansion.
In fiscal 2020, the capital intensity ratio is expected to be below 20% as a result of revenue growth. The expected slight increase in capital expenditures should be mainly related to the U.S. operations as we continue to expand our network into Florida.
Our CapEx budget includes investments to further expand our 1 Gigabit Internet speed footprint in both countries, the rollout of our IPTV platform in Canada, continued digital transformation initiatives and further expanding our footprint in Canada, where we can secure government funding for high-speed Internet.
We are currently testing our IPTV platform and we are very enthusiastic about the enhanced features we will provide to our customers. We are expecting the launch to our entire Canadian footprint by the end of the current calendar year. Free cash flow on a constant basis should grow by 5% to 11%, mainly as a result of increasing EBITDA, modest CapEx growth and declining financial expenses due to the $720 million received from the sale of Cogeco Peer 1.
对于2019财年，我们的4月9日指引是 - 经过修订以排除Cogeco Peer 1保持不变。我们现在正在介绍我们对2020财年的初步指导，该指数以2019财年的固定货币为基础，要求收入增长2％至4％，EBITDA增长2.5％至4.5％。
我们目前正在测试我们的IPTV平台，我们非常热衷于我们将为客户提供的增强功能。我们期待在当前日历年年底之前推出我们的整个加拿大足迹。自由现金流量将持续增长5％至11％，这主要是由于EBITDA增加，资本支出适度增长以及由于出售Cogeco Peer 1而获得的7.2亿美元导致的财务费用下降。
As you can see fiscal year 2020 looks very promising, as we continue to pursue profitable organic growth through providing enhanced services to our customers, growing our Internet and commercial services market shares, and expanding in select areas such as Florida.
Profitable growth will also be accomplished through continued investments and employee engagement, astute marketing, digital transformation initiatives, and consistent investment in infrastructure upgrades to provide service enhancements to our customers. We continue to look for attractive acquisition opportunities and are proactively engaged in the Canadian wireless consultations.
And now, we will be happy to answer your questions.
Thank you. [Operator Instructions] Your first question comes from the line of Vince Valentini from TD Securities. Please go ahead.
谢谢。 [运营商说明]您的第一个问题来自道明证券的Vince Valentini。 请继续。
Thanks so much. A couple of questions first on the Internet subscriber adds in Canada. So, if the IT issues are behind you, I'm just trying to struggle with how the Internet sub add number is basically the same in Q3 this year as it was in Q3 last year and obviously it was a slight negative. Is that some sort of timing or seasonal issue? Do you expect a strong recovery in Q4 on that front?
非常感谢。 互联网用户首先提出的几个问题在加拿大增加。 因此，如果IT问题落后于你，我只是在努力解决今年第三季度互联网子增加数量与去年第三季度基本相同的情况，显然这是一个轻微的负面因素。 这是某种时间或季节性问题吗？ 您是否预计第四季度会出现强劲复苏？
Yeah. So – hi, Vince. So we had a quarter that was generally in line with what we were looking for but a little softer. But when you compare it to last year, I would say the main difference will be when you get to Q4 and Q1 of next year that's where we have the bulk of the impacts on the PSUs when we've made the change in the system. The Q3 of last year, we were already one month into it, but it was just the beginning of the implementation. So you should not normally see a big difference year-over-year in the third quarter, which obviously will change in Q4 and Q1. And for the future, so this quarter was a little softer in Canada and stronger in U.S. in terms of PSUs. We would expect in Canada to improve going forward.
是啊。 所以 - 嗨，文斯。 因此，我们有一个季度与我们正在寻找的一致，但有点软。 但是当你把它与去年进行比较时，我会说主要区别在于你到了明年的第四季度和第一季度，当我们在系统中做出改变时，我们对PSU产生了大部分影响。 去年的第三季度，我们已经进入了一个月，但这只是实施的开始。 所以你通常不会在第三季度看到与去年同期相比的巨大差异，这显然会在第四季度和第一季度发生变化。 对于未来，所以本季度加拿大的情况略微疲软，而美国的PSU则更强劲。 我们希望加拿大能够在未来取得进展。
Keep in mind Vince as well that Q3 is typically a slowest quarter in terms of Internet net adds as it's – yeah, there is a lot of summer returning home for the summer.
请记住Vince，以及互联网增加的Q3通常是最慢的季度 - 是的，夏天有很多夏天回家。
Okay. If you may just expand on that, if you don't mind just to make sure we're not on a different page here. If I look back two years ago the third quarter of 2017 was there something unusual then that I may have forgotten about, because you added over 5,000 Internet subs in that quarter?
好的。 如果你可以扩展它，如果你不介意只是为了确保我们不在这里的另一页。 如果我回顾两年前2017年的第三季度有一些不寻常的事情，那么我可能已经忘记了，因为你在那个季度增加了超过5,000个互联网潜水员？
If you look at the – actually, it does vary from one quarter to another, that quarter was a little stronger, but if you look at the total PSU picture for Q3 of 2017 we were at minus 7.6 – 7,600 PSUs, and this quarter is a bit softer at minus 12. So that's why I said, if you look in the past basically we would expect to go back to normal. There's no particular relationship with the system change. That's behind us. It's just that some quarters are a bit softer. The video was a little bit softer, the phone was stronger than usual in this quarter and the Internet again 2017 was a little stronger than usual in Q3.
如果你看一下 - 实际上，它确实从一个季度变化到另一个季度，那个季度有点强，但是如果你看一下2017年第三季度的总PSU图片，那么我们的负值为7.6-7,600 PSU，本季度是 在负12点有点软。所以这就是为什么我说，如果你看过去基本上我们会期望恢复正常。 与系统变化没有特别的关系。 那是在我们身后。 只是有些季度有点软。 这个视频有点软了，这个季度的手机比往常更强，而2017年的互联网再次强于平时的第三季度。
Okay. No, that's all right. Thank you. The last question, I have – just a bit more structural one CGO versus CCA. I'd looked back over the last two and three quarter years, so the last 11 quarters in every single period the free cash flow per share at CGO is higher than the free cash flow per share at CCA. And that's when I back out the economic interest in CCA that CGO doesn't own. So just take proportionate free cash flow from CCA and then a slight extra amount that CGO generates from radio and the management fees. So, it's consistently doing more free cash flow, but yet your dividend is $1.72 at CGO and its $2.10 at CCA. There is a 22% gap. I also did the math with just say, how much dividend does CGO get from CCA every year and then add back the amount of extra free cash flow CGO generates from its other businesses. There's also a pretty huge gap there. Is there some structural reason why you think a lower dividend at CGO makes sense than at CCA?
好的。 不，那没关系。 谢谢。 最后一个问题，我有一点 - 结构一CGO与CCA。 我回顾过去的两个和三个季度，所以在每个时期的最后11个季度，CGO的每股自由现金流高于CCA的每股自由现金流。 而当我退出CGO不拥有的CCA的经济利益时。 因此，只需从CCA获得相称的自由现金流，然后从CGO通过无线电和管理费产生的额外金额。 因此，它一直在做更多的自由现金流，但你的股息在CGO为1.72美元，在CCA为2.10美元。 差距为22％。 我还算了一下，CGO每年从CCA获得多少股息，然后再加上CGO从其他业务中产生的额外自由现金流量。 那里还有一个相当大的差距。 您认为CGO的股息比CCA更有意义吗？
The – there is a historical reason's why we have a difference today and have to do with the bank facility we had which have been changed in the past few years. So there's not structural reason today. So that's why also we started doing the buyback program. Now we have it in both companies, but we started a lot earlier at CGO, because we have additional cash flow.
So in terms of returns of capital we – if you take the total of buybacks and dividends, we have addressed it this way. You have a good question though. Going forward is this something that will change? We typically make the decision on dividends in the fourth quarter, but it's really due to historical reasons. The other thing, I could add is that, we've been increasing the dividend at CGO in a percentage basis high – at a higher rate than CCA for the past few years to close that gap. So it's just a question of the judgments on how quick or not we want to do it.
- 有一个历史原因，这就是为什么我们今天有所不同，并且与我们过去几年已经改变的银行设施有关。 所以今天没有结构性原因。 所以这也是我们开始做回购计划的原因。 现在我们在两家公司都有，但我们早在CGO开始，因为我们有额外的现金流。
因此，就资本回报而言 - 如果您采用回购和股息的总和，我们就这样解决了问题。 你有一个很好的问题。 前进是否会改变？ 我们通常在第四季度做出股息决定，但这确实是由于历史原因。 另一件事，我可以补充的是，我们一直在以高于百分比的比例增加CGO的股息 - 在过去几年中以高于CCA的比率来弥补这一差距。 所以这只是关于我们想要多快或多快做出判断的问题。
Your next question comes from the line of Drew McReynolds from RBC. Please go ahead.
你的下一个问题来自RBC的Drew McReynolds。 请继续。
Yeah. Thanks very much. A couple from my end, first on the Canadian side of the business, clearly getting some very good margin expansion. Wondering I guess Patrice the extent to which the current expansion that we're seeing in the first quarter you expect to continue and how ultimately IPTV could impact that as we look into fiscal 2020?
是啊。 非常感谢。 一对夫妇从我的最终开始，首先是加拿大方面，显然有一些非常好的利润扩张。 想知道我猜Patrice我们在第一季度看到的当前扩张的程度，以及在我们调查2020财年时IPTV最终会如何影响这一扩展的程度？
Sure. So, indeed buy the margin is very strong in the quarter. They vary a little bit from one quarter to another depending on many elements that happen during the quarter. So, if you think forward we are thinking in the upcoming year to see an increase in margin in 2020 versus 2019 so in -- but not to the extent we had in the third quarter. So, a range of -- a little higher 53%, 54% would probably be a good proxy for the coming year.
In terms of IPTV, the major impact will be on the CapEx side once we start the program. So, that will be at the end of the calendar year. There is improvement that we're expecting eventually also in OpEx as there's more self-installs.
And as we get closer to the time to launch or when we launch then we'll be able to provide more clarity on this. We just want to make sure that we launch first before addressing this. But more CapEx impact than OpEx with IPTV.
当然。 所以，确实买入季度的保证金非常强劲。 根据本季度发生的许多因素，它们在不同季度之间略有不同。 因此，如果你认为我们正在考虑在未来一年中看到2020年的利润率与2019年相比有所增加 - 但不是我们在第三季度的程度。 因此，一个范围 - 略高53％，54％可能是来年的良好代理。
就IPTV而言，一旦我们启动该计划，主要影响将在资本支持方面。 那么，那将是在日历年结束时。 我们最终也期待OpEx的改进，因为有更多的自我安装。
随着我们接近发布时间或推出时间，我们将能够提供更清晰的信息。 我们只想确保在解决此问题之前先启动。 但是，与IPTV的OpEx相比，CapEx的影响更大。
Okay. And sorry just on the CapEx impact you're saying ultimately positive but near term negative? Or did I read you incorrectly?
好的。 对于CapEx的影响，我很抱歉，你说最终是积极的但是近期的负面影响？ 或者我读错了你？
No, not negative near-term. It's just that when we launched IPTV we should be able to benefit from a decrease in CapEx on the CPEs. That's just one portion of the CapEx obviously but on that piece there's going to be an impact.
不，近期不是负面的。 只是当我们推出IPTV时，我们应该能够从CPE上的资本支出减少中受益。 这只是资本支出的一部分，但在这一部分上会产生影响。
Okay, understood. And in terms of the TV picture, can you comment on what you're seeing in terms of cord-cutting perhaps Ontario versus Quebec if there's a difference but also how Canada would compare to the footprint your U.S. footprint. Are you seeing any acceleration? Is it relatively stable? Any commentary there would be helpful.
好的，明白了。 就电视画面而言，如果存在差异，你可以评论一下你所看到的线路切割方式，也许安大略省与魁北克省之间的差异，以及加拿大与美国足迹的比较。 你看到加速了吗？ 它相对稳定吗？ 任何评论都会有所帮助。
Sure. No, nothing new really. So, historically, what we've seen is the cord-cutting has been a bit slower in Canada than what you've seen in the U.S. And in the U.S. I would not call it dramatic either but it's a little faster than what we see in Canada.
So, nothing really new there. I know the PSUs were -- or the video PSUs in Canada were softer this quarter, had more to do with just the timing of marketing promotions and competitive situation than pure cord-cutting.
And between Ontario and Quebec it's I would say generally the what's available from streaming services is more catered towards the anglophone market so -- and our market in Canada is a bit more francophones so less impact on Quebec perhaps than with you'd see in Ontario.
当然。 不，真的没什么新鲜的。 因此，从历史上看，我们所看到的是，加拿大的绳索比你在美国看到的要慢一些。在美国，我也不会把它称为戏剧性，但它比我们看到的要快一点 在加拿大。
所以，没有什么新东西。 我知道PSU是 - 或者加拿大的视频PSU本季度更加疲软，更多的是与营销促销的时机和竞争形势有关，而不是纯粹的剪线。
在安大略省和魁北克省之间我会说一般来说，流媒体服务提供的服务更能满足英语国家市场的需求 - 我们加拿大市场的法语更多，所以对魁北克的影响可能比你在安大略省看到的要少一些。
Okay. No, that's great. On the American broadband side, I think last quarter you did talk about an uptick in Internet net additions I believe in Q4 as some of the MDU business and the larger contracts come on board. Did we see any of that in Q3? Or was Q3 just more of an organic kind of uptick from reconnects and more marketing dollars put to work?
好的。 不，那很好。 在美国宽带方面，我认为上个季度你确实谈到了互联网增加的增长，我相信在第四季度，一些MDU业务和更大的合同都出现了。 我们在第三季度看到了这些吗？ 或者Q3更多的是从重新连接和更多营销资金投入工作的有机增长？
Yes. So, the one we were referring to that will come online in Q4 because it's a bigger one is still planned for Q4 right now. It did not happen in Q3. And obviously we have a lot of a lot of customers in Florida so obviously we typically comment only if it's bigger. So, in Q3, we did see a nice uptick year-over-year.
I would say it's really two reasons. So, we're investing in Florida and selling as well. So, there's an uptick there. That's a portion of the reason and it will be a bit spotty body from quarter to quarter.
And the other reason is the reconnects and we've been successful at capturing our fair share of the reconnects. So, actually the -- it was a stronger this year than what we had achieved last year which was the first time we were running this new operation that MetroCast has.
是。 因此，我们所指的那个将在第四季度上线，因为它现在仍然计划在第四季度更大。 它没有发生在第三季度。 显然我们在佛罗里达州有很多客户，所以显然我们通常只会评论它是否更大。 因此，在第三季度，我们确实看到了同比增长的好转。
我会说这有两个原因。 所以，我们在佛罗里达州投资并进行销售。 那么，那里有一个上升。 这是原因的一部分，从季度到季度它将是一个有点不稳定的身体。
另一个原因是重新连接，我们已经成功地获得了重新连接的公平份额。 所以，实际上 - 今年比去年实现的更强劲，这是我们第一次运行MetroCast的新业务。
Okay, that's great. The last one from me a little bit more modeling in terms of a blended cash tax rate for fiscal 2020. If you have that handy that'd be great. And if you can give us any context for depreciation and amortization again just strictly for modeling.
好的，那很好。 对我来说，最后一个就2020财年的混合现金税率进行了更多的建模。如果你有这么好的话就会很棒。 如果您可以再次为我们提供任何折旧和摊销的背景信息，只需严格用于建模。
Sure. So, the cash tax percentage is 12%. And we typically put it also in the MD&A just so people can work the math and that just came out yesterday. And in terms of the depreciation, so I'm looking at Andree here maybe we can take it offline. But I would not necessarily expect a high level significant change from what you're seeing in current quarters because the continuing operations are out -- sorry the discontinued operations of CP1 are out of the numbers so you should not necessarily see a major difference.
当然。 因此，现金税率为12％。 我们通常也把它放在MD＆A中，这样人们就可以进行数学运算并且昨天就出来了。 就折旧而言，我在这里看Andree，也许我们可以让它脱机。 但是，由于持续的操作已经结束，我不一定会期望与您在当前季度看到的情况发生重大变化 - 抱歉，CP1的已停止运营超出了数量，因此您不一定会看到重大差异。
Okay. Thank you very much.
Your next question comes from the line of Jeff Fan from Scotiabank. Please go ahead.
你的下一个问题来自丰业银行的Jeff Fan。 请继续。
Thanks. Good morning and thanks for taking the questions. First just on your guidance for F 2020 I'm assuming the growth rate that you've given are based on the midpoint of your F 2019 guidance, is that correct?
谢谢。 早上好，感谢您提出问题。 首先，根据你对F 2020的指导我假设你给出的增长率是基于你的2019年指导的中点，这是正确的吗？
So, it's a good question because we're in a period where we have two guidance out, so 2019 and 2020. Typically what we do is we try to -- we do look at where we think we'll end up and we do have ranges that can absorb differences with the mean. So, we don't necessarily use the mean per se but we -- our goal is not to have to change the guidance when we get to the end of Q4 for the actual numbers for the year of 2019. And so that's our goal. It doesn't mean it would work every year, but normally what you have would be the guidance we would normally keep for next quarter for 2020.
所以，这是一个很好的问题，因为我们正处于一个时期，我们有两个指导，所以2019年和2020年。通常我们做的是我们尝试 - 我们看看我们认为我们最终会在哪里结束 具有可以吸收与平均值的差异的范围。 因此，我们不一定使用平均值，但我们 - 我们的目标是在我们到达Q4结束时不必改变指导2019年的实际数字。这就是我们的目标。 这并不意味着它每年都能运作，但通常你所拥有的将是我们通常会在2020年下一季度保留的指导。
I see. Okay. So, just so I understand that you -- what you're saying is you'd like to maintain the growth rate that you've given up. And that will be based on -- once estimating is done it will be based on actual F 2019 and that your growth rates shouldn't expect to change.
我知道了。 好的。 所以，我才明白你 - 你所说的是你想保持你放弃的增长率。 这将基于 - 一旦估算完成，它将基于实际的F 2019，并且您的增长率不应该预期会发生变化。
That's right. That's our plan right now. Obviously, as we say kind as the business evolves we relook at it every quarter, but that's the current thinking.
那就对了。 那是我们现在的计划。 显然，正如我们所说的那样，随着业务的发展，我们每个季度都会重新审视，但这是当前的想法。
Okay. Great. Just on Canadian cable, two questions earlier, I think about the system migration how that impacted last year. One of the things I do recall was that do you have issued some bill credits because of some of the issues that you faced. Can you just remind us when kind of impact of those bill credits happened and if there was any way to kind of remind us how much the impact was?
好的。 大。 仅仅依靠加拿大有线电视，早前有两个问题，我想一想去年影响系统迁移的方式。 我记得的一件事是，由于您遇到的一些问题，您是否已经签发了一些账单。 您是否可以提醒我们这些账单信用的影响何时发生？如果有任何方式可以提醒我们这些影响有多大？
Yes. So the credits were primarily given in Q4 of 2018 and Q1 of 2019 and it correspond also when we saw a larger decrease in PSUs. And we need to go back to what we actually said publicly, it's been a while, but they were a few million dollars in each quarter from my recollection.
是。 因此，学分主要在2018年第四季度和2019年第一季度给出，当我们看到PSU下降幅度较大时也相应。 我们需要回到我们实际公开谈论的内容，已经有一段时间了，但是从我的记忆中，每个季度它们都是几百万美元。
Okay. And just my final question is on the share buyback, and I guess, related to that leverage. It's nice to see that you guys are buying back shares with the Peer 1 proceeds. It looks like you bought back roughly one-twelve of your NCIB in one month. So I guess the read-through there is that you are on pace to buy -- to execute the full buyback. And it sounds like from the earlier comments that you're going to be allocating 60% of your cash flow towards dividend and buybacks that you would execute a full buyback. Am I interpreting that correctly?
好的。 我的最后一个问题是关于股票回购，我猜，与此杠杆相关。 很高兴看到你们用Peer 1收益回购股票。 看起来你在一个月内回购了大约十二分之一的NCIB。 因此，我认为通读是您正在加速购买 - 执行完全回购。 而且从早先的评论中可以看出，您将把60％的现金流分配给股息和回购，以便执行完全回购。 我正确地解释了吗？
Yes. So -- I'm sorry; did you want to take it? Okay. So the -- we did actually do about one-twelve in May. We actually did not buy back during the blackout period in June. And we have an ability to do so or not and depending on the choices we make at that point we can be in the market or out, because we have the regulation basically. And the way we operate have to -- those instructions have to be given before.
So we haven't done it in June, and we're planning to restart in July. So that's a call we make every time. In terms of total amount for the year, we're planning to do a very large portion of the buyback and that's still the plan. And -- but again, June was not there so you might end up a little lower.
是。 所以我很抱歉; 你想要吗？ 好的。 所以 - 我们实际上在五月做了大约十二点。 我们实际上并没有在六月的停电期间回购。 我们有能力这样做或根据我们在那时做出的选择，我们可以在市场上或外出，因为我们基本上有规定。 我们的运作方式必须 - 以前必须提供这些指示。
所以我们还没有在6月完成，我们计划在7月重新开始。 所以这是我们每次打电话。 就全年的总金额而言，我们计划进行大部分回购，而这仍然是计划。 并且 - 但同样，六月不存在，所以你可能会低一点。
Okay. Understood. And lastly actually just on leverage. Can you just remind us what you're targeting to settle with respect to your leverage ratio?
好的。了解。 最后实际上只是杠杆作用。 您能否只是提醒我们您的目标是在杠杆率方面达成和解？
At the -- I'm sorry at the end of Q4, is that your question?
在 - 我很抱歉在第四季度结束时，那是你的问题吗？
No, it’s like what your target leverage ratio is?
It's still about three times. We're below that now following the sale of CP1. But obviously, as we've done many times in the past, the leverage goes down, and then when there's an acquisition it goes up. So we're still targeting at a high level of three times.
它仍然是大约三次。 出售CP1后，我们现在低于此水平。 但显然，正如我们过去多次做过的那样，杠杆率下降，然后当收购时，杠杆率上升。 所以我们仍然瞄准三次高水平。
Okay. Great. Thanks guys.
好的。 大。 多谢你们。
Your next question comes from the line of Matthew Griffiths from Bank of America Merrill Lynch. Please go ahead.
你的下一个问题来自美国银行美林银行的Matthew Griffiths。 请继续。
Hi. Thanks for taking the question. I just wanted to ask on the Canadian segment. For the past three quarters, you've called out resellers and the -- having an impact on the Internet. I was just wondering if this is kind of a growing kind of competitive threat that you're seeing and maybe how large it's become in that segment.
And then also in Canada, just curious if you could give some comment on whether Bell has kind of made some more inroads in link fiber across your footprint, and kind of how effectively you feel that you're kind of retaining those customers as they push further in? Thanks.
你好。 谢谢你提出这个问题。 我只想问加拿大部分。 在过去的三个季度中，您已经召集了经销商，并对互联网产生了影响。 我只是想知道这是否是一种你正在看到的越来越多的竞争威胁，也许它在这一领域有多大。
然后在加拿大，只是好奇你是否可以就贝尔是否在你的足迹中对链接光纤进行更多的攻击做出一些评论，以及你是否有效地认为你有点保留这些客户 进一步？ 谢谢。
Thanks for your question. So on the reseller side on the Internet services, they're very niche and they're very localized. If my memory serves me well the CRTC numbers indicate about 10% to 15%. So they are developing very niche solution and they are gaining some shares, but in some very specific areas in some cities so not a major concern there.
Now on the Bell side we are not seeing major changes in the market there. And we feel very well equipped with our Internet being deployed at 120 everywhere. And as you heard me say, we are rolling out 1 gigabit Internet speed where demand is as well as the competition is also using some fixed wireless solutions that are maxed out at 50 megabit. So our platform is far superior than the wireless offers. So all-in-all, we feel good. We have good products. And although, we embrace competition, we're not doing too bad.
谢谢你的提问。 因此，在互联网服务的经销商方面，他们非常利基，而且他们非常本地化。 如果我的记忆很好，那么CRTC的数字大约是10％到15％。 因此，他们正在开发非常小众的解决方案，他们正在获得一些份额，但在一些城市的一些非常具体的领域，所以不是那里的主要问题。
现在在贝尔方面，我们没有看到那里的市场发生重大变化。 我们感觉非常好，我们的互联网部署在120处。 正如您所听到的那样，我们正在推出1千兆位的互联网速度，而竞争对手也在使用一些固定无线解决方案，这些解决方案的最大容量为50兆位。 所以我们的平台远远优于无线产品。 总而言之，我们感觉很好。 我们有好产品。 虽然我们拥抱竞争，但我们并没有做得太糟糕。
Do you feel you have the ability to kind of maybe anticipate where the demand is likely to be, and therefore where Bell is likely to have perhaps lay fiber and to preemptively move in? Or is it -- are they just -- is it just too hard to kind of see what competitors are doing and you're just sometimes adding to them and sometimes responding?
你是否觉得自己有能力预测需求可能出现在哪里，因此Bell可能会在哪些地方留下光纤并抢占先机？ 或者它 - 它们只是 - 它是否太难以看出竞争对手正在做什么，而你有时只是添加它们并且有时会做出响应？
Well as for Bell -- I will redirect you to them to find out about their plans. But we continue to improve our services, stay ahead of the demand curve, be very, very close to -- our customers are understanding our markets and keep delivering on a better customer service. So we will remain focus on providing our markets a better service and I think we'll be fine with that.
就贝尔而言 - 我会将你重定向到他们，以了解他们的计划。 但我们将继续改善我们的服务，领先于需求曲线，非常非常接近 - 我们的客户了解我们的市场并不断提供更好的客户服务。 因此，我们将继续专注于为我们的市场提供更好的服务，我认为我们会很好。
[Operator Instructions] Your next question comes from the line of Maher Yaghi from Desjardins. Please go ahead.
[操作员说明]您的下一个问题来自Desjardins的Maher Yaghi。 请继续。
Thanks for taking my question. I wanted to ask you on the -- your customer base in Canada and the U.S. and when I look at the U.S. customer base, you indicate that 48% of your customers have one service with you and 32% have two services with you. In Canada the numbers are 31% with one service and 32% with two services.
I was wondering what your views are on -- are Canada's customer base likely to reflect what we're seeing in the U.S. in a couple of years because both countries are showing trends towards reducing the number of services in one bill?
So the question is will the Canadian customer base look like the U.S. customer base in a few years? Or there's differences that you think will limit the amount of services that they'll let go as time goes by?
谢谢你提出我的问题。 我想问你 - 您在加拿大和美国的客户群，当我查看美国客户群时，您表明48％的客户有一项服务，32％有两项服务。 在加拿大，一项服务的数字为31％，两项服务的数字为32％。
我想知道你的看法是什么 - 加拿大的客户群是否可能反映出我们几年后在美国所看到的情况，因为这两个国家都在显示减少一项法案中服务数量的趋势？
Sure. So the answer is probably in the middle. Basically what happens is in the U.S. we have the Florida market where we have some bulk units where we're going to provide UHS-I. So there's some of that.
There's also the fact that when we bought MetroCast, MetroCast had a higher concentration of single products. And our approach is to push more bundles so two and three the products in the U.S. So you should normally end up -- we'll that's our plan to be able to have more double and triple plays in the U.S. than currently.
And in Canada we do the same obviously, but as you pointed out there is some cord-cutting. So the single HSI especially, single play typically increases a little bit. So the answer is probably a middle ground over time.
当然。 所以答案可能在中间。 基本上发生的事情是在美国我们有佛罗里达市场我们有一些批量单位我们将提供UHS-I。 所以有一些。
还有一个事实是，当我们购买MetroCast时，MetroCast的单一产品集中度更高。 我们的方法是推动更多的捆绑产品，以便在美国推出两到三个产品。所以你通常应该最终结束 - 我们计划能够在美国拥有比目前更多的双重和三重游戏。
在加拿大，我们显然也这样做，但正如你所指出的那样，有一些剪切。 因此单个HSI尤其是单一游戏通常会增加一点点。 所以答案可能是一个中间地带。
So Patrice on -- I look at these numbers in Canada you're -- are you looking maybe like -- what's your long-term distribution that you expect things to settle at? Is it 40% maybe for with one service? Is that what is likely to happen?
帕特里斯 - 我在加拿大你看看这些数字 - 你看起来像是 - 你希望事情能解决的长期分布是什么？ 一次服务可能是40％吗？ 这有可能发生吗？
Well, this number change all the time given market dynamics as our competitors also have plans. The demand is changing over time as content is moving from certain distribution media to others.
So there's not really a plan other than to quickly adapt to the marketplace and deliver what customer -- stay ahead of the demand curve and deliver what customer wants. So if they want more of a product we will adjust our bundles accordingly.
因此，除了快速适应市场并提供客户 - 保持领先于需求曲线并提供客户需求之外，还没有其他计划。 因此，如果他们想要更多产品，我们将相应调整我们的产品包。
Okay. And my second question is on the price increases and elasticity to those price increases in Canada specifically. Can you talk a little bit about your views on what could be remaining as potential headroom in terms of price increases going forward? Are you seeing a pushback more than you've had in the past? Or the price increases are passing normally as you -- as they have done in the past?
好的。 我的第二个问题是加拿大的价格上涨和弹性，特别是加拿大的价格上涨。 您能否谈一谈您对未来价格上涨潜在空间的看法？ 您是否比过去更多地看到了回击？ 或者价格上涨正如你一样正常传递 - 就像过去一样？
Yes. I would say there's not really a change with the past. We're -- typically what we do in both countries we try to -- while we have video cost increases that we need to pass through and we do provide better value every year and various speeds on the Internet.
So where -- I think customers see the value we're bringing as well. And we're trying to be reasonable obviously with what we do in terms of price increasing overall. And for a portion of the customers that decide to for example cut the cord -- and again it's a small portion.
But as we were talking this before, there's more dollars available there to increase speed on the Internet, so that money can be used in different products basically. So we see capacity for price increases in the future again being reasonable and making sure that our customers see the value we're bringing to the table.
是。 我想说过去并没有真正改变。 我们 - 通常是我们在两个国家/地区所做的事情 - 虽然我们需要通过视频成本增加，但我们每年都会提供更好的价值和互联网上的各种速度。
那么 - 我认为客户也会看到我们带来的价值。 我们在整体价格上涨方面做得很明显。 并且对于决定例如切断电线的一部分客户而言，这又是一小部分。
Okay. And on the restructuring you did in Canada, how much of that restructuring is fully reflected your cost basis now?
It's fully there. So the restructuring we did about two quarters ago, we were expecting to get $14 million per year. And this third quarter is -- reflects basically 25% of that approximately.
它完全在那里。 因此，我们大约两个季度前进行的重组，我们预计每年将获得1400万美元。 而第三季度 - 基本上反映了约25％。
Okay. Is there an opportunity to do something similar in the U.S.? Or more -- in the U.S. you see it more as an investment cycle right now? You're ramping up your base, so that you can service more customers in the future?
好的。 是否有机会在美国做类似的事情？ 或者更多 - 在美国，您现在更多地将其视为投资周期？ 您是否正在增加基础，以便将来可以为更多客户提供服务？
So in the U.S., we operate right now with a very efficient team. There are no reduction. We are in high growth. There's a lot of work to continue the Florida expansion, but also in the northern and in the central areas of our networks. We operate in 11 states. It's a very, very wide coverage. I feel that we have the adequate resources to provide that customer experience that we want above the competition. So that's how we will continue going forward.
所以在美国，我们现在运营的是一支非常高效的团队。 没有减少。 我们处于高速增长期。 继续佛罗里达州的扩张还有很多工作要做，但也在我们网络的北部和中部地区。 我们在11个州开展业务。 这是一个非常非常广泛的报道。 我觉得我们有足够的资源来提供我们想要的竞争对手的客户体验。 这就是我们将如何继续前进的方式。
Perfect. And my last question on your constant currency growth rate in the U.S. What would it be without the acquisitions?
Well this quarter, you mean for first quarter?
For the third quarter.
Yes it's -- there's a little bit of an acquisition we did in the FiberLight in the U.S. But it's a very small amount, so we did not quantify it. But it's less than 1%.
是的 - 我们在美国的FiberLight进行了一些收购，但这只是一个非常小的数量，所以我们没有量化它。 但它不到1％。
Your growth is 3.6% as you state 1.7% in constant currency. What would it be if I exclude FiberLight?
You're talking the combined number the consolidated?
Or the U.S., yes sure.
But that -- so we -- what I was explaining is, we did not quantify the FiberLight impact because it's really small. So, it would have a very minor impact on the 1.7% revenue growth year-over-year.
但是 - 我们 - 我解释的是，我们没有量化FiberLight的影响，因为它非常小。 因此，它将对1.7％的收入同比增长产生非常小的影响。
Okay. So it's more like a decimal point on the 1.7%.
Yes it's really small.
Okay. Thank you.
Your next question comes from the line of Jeff Fan from Scotiabank. Please go ahead.
你的下一个问题来自丰业银行的Jeff Fan。 请继续。
Thank you. This is actually just a follow-up more of an industry view. We've seen unlimited pricing on mobile being introduced in Canada. And in the last few years, you've seen unlimited mobile in the U.S. I'm curious in the U.S. experience, have you seen any of that impact your cable broadband internet service? Not necessarily cord-cutting, but any impact on your growth in usage where customers are using more of their unlimited mobile plans as opposed to their tethering to the WiFi or the home broadband? That's kind of the U.S. question. And then the second part is really in Canada, with the introduction of unlimited, how do you position your broadband business to ensure that if there is any kind of substitution that doesn't occur in your core base?
谢谢。 这实际上只是一个行业观点的后续行动。 我们已经看到加拿大推出了无限制移动定价。 在过去的几年里，你在美国看到了无限的手机我对美国的经历感到好奇，你看到有线宽带互联网服务有什么影响吗？ 不一定是剪彩，但是对客户使用更多无限移动计划的使用增长有何影响，而不是他们拴在WiFi或家庭宽带上？ 那是美国的问题。 然后第二部分真的在加拿大，随着无限的引入，你如何定位你的宽带业务，以确保如果你的核心基地没有任何类型的替代？
Thanks. I'll first answer by reminding ourselves that wireline to wireless, it's not only just the speed, but it's a volume answer as well. So, an average home consumes north of 160 gigabit in Canada and a little bit more in the U.S. where wireless plans usually provide two gig, three gig, four gigs of usage a month. So there's a huge, huge difference in using a wired network versus a wireless network. And homes are largely consuming from their wired connection or broadband connection and this is here to stay.
With DOCSIS 3.1, we can offer one gig as you know. And technology is evolving fast. CableLabs has already a 10-gigabit product waiting to be released. So, the significant gap between the two will always call for complementary use of technology. Wireline and wireless will continue to be used together. And wireless is more of nomadic thing.
Now, as it relates to caps and throttling, which I believe was the early part of your question, well, we have a wireless code in Canada. And as you know right now, these plans are challenging, the wireless code that the CRTC has put in place. So we'll see what happens with them.
有了DOCSIS 3.1，我们可以提供一个你知道的演出。技术发展迅速。 CableLabs已经有一个10千兆位的产品等待发布。因此，两者之间的巨大差距将始终要求技术的互补使用。有线和无线将继续一起使用。无线更像是游牧的东西。
Great. Thank you.
And there are no further questions at this time. I'll turn the call back over to management for closing remarks.
Okay. Well, thanks everyone for participating. We're going to be back with our fourth quarter in October. So in the meantime, feel free to call us. Thank you.
好的。 好的，谢谢大家的参与。 我们将在十月份的第四季度回归。 所以在此期间，请随时给我们打电话。 谢谢。
Thank you. This concludes today's conference call. You may now disconnect.
谢谢。 今天的电话会议结束了。 您现在可以断开连接。
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