In business for more than 60 years, we are a sound diversified communications and media company focusing on internal and external growth.
Our balance sheets are solid and healthy, due primarily to continued growth in revenue, adjusted operating income before depreciation and amortization (“Adjusted EBITDA”) and free cash flow. We maintain a prudent financial leverage (net Indebtedness/Adjusted EBITDA), which makes it possible to support our internal and external growth strategy. Our innovative management team takes a bold, disciplined approach to managing the business and seeking growth opportunities in order to create long-term value for our shareholders.
Through our subsidiary Cogeco Communications Inc., we continually improve our service offering in the cable/broadband services sector to maximize growth by investing in our networks and equipment as well as in new technology. Cogeco Communications’ three business segments lead to increased growth prospects and reduced concentration risk:
Cogeco Connexion's strong Canadian cable franchise provides stable growth and strong operating margin and leverages superior Internet speeds in most of our footprint.
Atlantic Broadband's successful U.S. cable expansion strategy has resulted in robust organic growth in our largely non-metropolitan markets with fragmented competition. New Internet and video product introductions in newly acquired MetroCast systems should contribute to higher service penetration rates. In addition, Atlantic Broadband’s contribution to consolidated Adjusted EBITDA will increase from 25%, prior to MetroCast’s acquisition in January 2018, to 35% on a pro forma basis with the acquisition.
Cogeco Peer 1 diversifies our presence in the business information and communications technology services segment. We are positioned to capitalize on recent investments. Unlevered free cash flow of $34.3 millions (excluding non-recurring gains) was generated in fiscal year 2017.
Through our subsidiary, Cogeco Media we own and operate 13 radio stations throughout the province of Québec.
Radio, with solid programming aligned with listener and advertiser tastes, aims at gaining market share, and maximizing profitability.
Our strong financial performance includes attractive margins, strong free cash flow, dividend growth and moderate dividend payout. We practice prudent financial management with a history of deleveraging following acquisitions.