Cogeco Inc. (CGO) Earnings Call Transcript & Summary

Hello. I'm Marie. I'm VP, Communications at Cogeco, Communication. Welcome to this annual meeting of shareholders this year. Because of the pandemic, of COVID-19 and the importance to protect and ensure the security of everyone, we are using a web format with the practices of issuers to see what was in front. We think we found an interesting formula that will allow you to follow on your computer or other device screen what is happening around the table and the presentation, you ask your questions and to vote during the meeting. We would like you to follow the presentation in full-screen mode to get all the details. We're going to start with Cogeco Communication Inc. and then Cogeco, Inc. In order to be able to vote, you need to enter the PIN number that appears on the form that you got. If you haven't done this and want to vote or ask questions during the meeting, we would invite you to reconnect to the platform in order to be able to do so. If you're a shareholder of Cogeco and Cogeco Communication, this number is valid for the votes for both companies, so you don't have the reconnect again when the Cogeco Inc. meeting starts. The shareholders that have already voted and want to intervene and all of the people interested in participating in the present meeting can do so by accessing the platform as a guest. We're using the Lumi platform, which is recognized for virtual shareholder meetings by web streaming. Now there is a normal latency delay, as technicians call it. That is a delay between the source and the recipient. For this reason, don't be surprised if we -- that if there's a certain delay each time we ask if there are questions. This is done in order to enable you to ask the question properly. In accordance with the general regulation of this company, Louis Audet will be presiding. And Mr. Christian Jolivet, first senior VP, who will be working as a Secretary to the meeting. Both will be accompanied by the President and CEO, who will be making a presentation on the perspective and activities of our entities once we've cleared all the rest. Mr. James Cherry, the main administrator, Main Director is also here with us, and I'll let the other members of the Board and upper management. The scrutineers will be Claire Gerard and -- Steve and Gerard from Computershare, which assures us that all the documents have been sent to the shareholder and that we have a quorum for both meetings. The auditors, Deloitte, are also represented by Mr. [ Mark Perol ] and Christian Jacques. The meetings will be mainly held in French, but simultaneous interpretation in English is available, as you saw when you connected yourself to the platform. We will start, as we usually do, with the more formal part of the meeting, and then we'll be voting on the points described in the agenda. Once all these points have been covered, Mr. Audet and Jetté will be speaking one after the other to talk about the business of our companies. In order to carry out this meeting in an orderly manner, we have come up with some rules. And now Mr. Jolivet.

We will be following the procedure that you find on the website of the company and on the [indiscernible]. Just like an in-person meeting, you will be able, as a shareholder or proxy holder, ask your questions or voice your opinion on any time of the agenda. To do so, you will have to connect yourself in a manner that was described by Mrs. Labrie prior. The proxy holders will be able to mention their comments on the text messaging application that is included. We would like you to transmit your questions in advance in order for us to establish the best way -- in the best way possible how to raise them in terms of the process of the meeting as Mrs. Labrie outlined previously. Your questions will be dealt with during the question period after the expose of President and CEO of Cogeco and Cogeco Communication Inc. However, you will also be able to intervene directly on its -- raised in the agenda. Mrs. Labrie, our moderator, will receive your questions and comments. And we'll read them out loud, identifying the person who sent that question or comment. And afterwards, the President of the meeting, Mr. Audet, will ask the appropriate person to answer that question in person. We've implemented the necessary technical arrangement so that the MÉDAC, whose shareholder proposition are included in the Cogeco Inc. meeting to present those in -- via the Internet. We will ask the shareholders to support the propositions that were put forward in due course. So a few words on voting. The large majority -- a large majority of shareholders have already voted with their proxy votes. For those who haven't had that opportunity, you will be able to do so electronically. You will see an icon, and you will be able -- on your screen, you'll be able to vote the choice that you will make and then will appear in an underlying projection on the screen. You will be able to see the result until the Chairman puts an end to the voting period. So you can see all the points on the agenda for Cogeco Communication and Cogeco Inc. If you're a shareholder in a single company, you can only vote on that company's proposal. If ever you should vote for the wrong company, that is one that you're not a shareholder, it will not be counted. The scrutineers will count the vote during the course of the meeting, and then a report describing the results of the voting will be shown, and all the results will be shown for all holding shares and shares. This being said, I will now hand it over to Mr. Louis Audet as Chairman who will open the meeting.

Thank you, Christian. And dear shareholders, members of the Board, dear friends, partners, colleagues, ladies and gentlemen, hello and thank you very much for joining us today for these 2 shareholder meetings today. The meeting of Cogeco Communication Inc. is now open. The first point on the agenda will be the financial state of the Cogeco Inc. for the year that ended on the 22nd of August 2020. This report has already been sent by mail or through the Internet, as also the Lumi platform, which has a button where you can access the financial statements, if you so wish. I therefore declare these documents as received as submitted. Any questions, Marie, related to the financial statement?

Yes. For the moment, I don't see any questions. But as provided, we will leave a certain delay so the participants who wish to use the text messaging platform can send us questions. But for the moment, I can say that there are no questions on there.

Thank you very much, Marie-Helene. Dear shareholders and participants, I would invite you, nonetheless, to send questions. And if not received in timely manner, we will answer it separately. So as not to delay, don't hesitate to send your questions right away if you so wish. Thank you very much, Marie-Helene. The second point on the agenda is the election of the Board members, and the number of members have been fixed at 10. And we can find the names of the 10 people that were sent in the -- that appear in the circular. Two very special Board members, Mrs. Carole Salomon and Mrs. Lib Gibson. Lib has been a director for over 5 years and Carole for over 10 years, and both were active and committed committee members. Both have contributed tremendously to the Board with their knowledge of the industry as well as their vast experience on marketing and strategy issues. We wish to express our heartfelt thanks to both of them, each one of them for their many years of service and their significant contribution to the Board of Directors and to the wellbeing of the corporation and its customers. Thank you very much. We're also happy to have welcome on the Board 2 new directors this year, Mrs. Robin Bienenstock and Mrs. Caroline Papadatos. Robin will contribute to the Board her in-depth knowledge of the telecommunications industry; and Caroline, her deep and international knowledge in customer management, customer loyalty and digital innovation. Welcome, Mrs. Bienenstock and Mrs. Papadatos. The 10 people that are standing in: Ms. Colleen Abdoulah, Louis Audet, Robin Bienenstock, James Cherry, Pippa Dunn, Joanne Ferstman, Philippe Jetté, and Bernard Lord, David McAulsand, Caroline Papadatos. Marie-Helene, any questions on this point?

Mr. Chairman, let me check the platform to see the text messaging platform and leave a timely delay. I remind you that you can use the text messaging platform to have some questions. And Mr. Chairman, I don't see any questions there.

Thank you very much, Marie-Helene. Can I ask for a proposal to be put forward for the election of the members of the Board of Directors of the Board?

Mr. Chairman, I propose that the 10 people previously named be candidates for the position of Director on the Board until the next general annual meeting when -- or when their next successor is named.

[indiscernible]

Thank you, Annie and Jasmine. Any other candidates?

Mr. Chairman, we will leave a few moments. But for the moment, I don't see any questions or new candidacies for our position. So there are no other candidacies.

Thank you, Marie-Helene. Now I would invite you to vote, and we will have a pause of a few seconds to enable the shareholders who didn't have the opportunity to vote to use the buttons on the screen in front of you to do so. [Voting]

I can tell you right now that the proxy votes that we got went to -- by more than 90% in favor of each of the 10 candidates. They are, therefore, duly elected. The next point on the agenda is the nomination of the auditors of the Cogeco Communication. Marie-Helene, any questions on this issue?

Mr. Chairman, I don't see any questions related to the nomination of the auditors.

Can I ask a proposal to be put forward?

Ms. Jasmine and Annie, I'm a shareholder, and I would propose that Deloitte Professional Accountants be named as the auditors of Cogeco Communication Inc. by mandate ending at the next annual shareholder meeting and that the Board be authorized to determine their remuneration.

I [indiscernible] the same, Mr. Chairman. I'm a shareholder, and I second the proposal.

Thank you, Jasmine and Annie. I would now invite the shareholders who haven't had the opportunity to do so to now vote. [Voting]

I want to inform you that the proxy votes that we have up to now are in favor at a rate of 90% for the nomination of the Deloitte as auditor, and so that is carried. The next is the consultative vote on the remuneration of the management. You are called upon to vote for or against on the proposal, which is in the circular. Marie-Helene, any comments or questions on this point?

Mr. Chairman, after checking, I can inform you that there are no questions related to this.

Thank you very much, Marie-Helene. Can I ask for a proposal to the table?

Jasmine and Annie, I'm a shareholder, and I propose that the consultative proposal in a consultative manner and without any in any way minimizing or reducing the responsibility of the Board, that the Board to determine the remuneration of the [indiscernible].

My name is [ Annie Merelducien ]. I'm a shareholder, Mr. Chairman, and I second the proposal.

Thank you, Jasmine and Annie. I would now invite the shareholders who haven't done so yet to vote. [Voting]

I would like to mention that the proxy votes have been received so far. The resolution has been voted on at more than 90% in favor, and so the proposal is adopted. This concludes the examination of the agenda for this annual meeting of Cogeco Communications. The voting is now ended. The scrutineers will compile the result, and the company will meet them publicly available on the SEDAR platform. The formal part of our meeting is therefore ended for Cogeco Communication. I would remind you that the CEO, Mr. Philippe Jetté, will make an expose on the activities of both companies after the annual meeting of Cogeco Inc., which will follow in a few minutes. We will be answering afterwards questions and comments that was received through the texting platform app, and we invite the shareholders of Cogeco Communication Inc. to remain online until the end of Cogeco meeting. So without further ado. Marie-Helene, do you have any preliminary comments to make before we start the meeting?

Thank you, Mr. Chairman. Welcome to those of you who have just joined us for the Cogeco Inc. meeting. Mr. Louis Audet, the Executive Chairman of the Board, will be presiding on this meeting. And Mr. Audet (sic) [ Mr. Jolivet ], Senior VP of Legal Matters, will be the secretary. And they will be followed by Mr. Jetté and Mr. Audet, who will address the shareholders. The Computershare representatives will be the scrutineers. I was informed that all the shareholders have received their documentation and that we have a quorum. As previously spoken by Mr. Jolivet during the Cogeco Communication meeting, we shall proceed in the same manner. I don't believe it's necessary to describe it again unless the shareholder so request. I would remember -- remind the shareholders and proxyholders of Cogeco Inc. that we need to use the form that was found in the circular if they want to be recognized and just ask in the Cogeco Communication. You can access the platform as a guest if you have already voted and you do not wish to intervene during the Cogeco Inc. meeting. To you, Mr. Audet.

Thank you very much, Marie-Helene. The Cogeco Inc. meeting is now open and the first point on the agenda are the financial statements for the year ending on 31st of August 2020. These have already been provided to the shareholder, either through the Internet or through mail, and you can consult them by accessing them through the platform. So I deem these documents that have been received. Any questions related to this issue?

Mr. Chairman, I don't see any questions on this -- raised on this issue.

Thank you, Marie-Helene. The second point on the agenda is the election of the members of the Board. The Board has determined that 9 directors should be elected during this meeting, and the information were included in the circular that was sent to the shareholders. The 9 people that are candidates for director is -- are Louis Audet, Arun Bajaj, Mary-Ann Bell, James Cherry, Patricia Curadeau-Grou, Samih Elhage, Philippe Jetté, Normand Legault and David McAusland. Marie-Helene, any questions on this point?

Mr. Chairman, I would remind the participants that the platform, the texting platform, enables you to ask a question. And I inform you, Mr. Chairman that there are no question on this point.

Can I ask for a proposal to be put forward on this remuneration?

[ Elizabeth Alves ], I'm a shareholder, Mr. Chairman, and I propose that the 9 people previously named should stand as candidates for the election to directorship to the Cogeco, Inc. until the next general meeting or at the moment where their successors are duly named or elected.

[ Annie Merelducien ]. I'm a shareholder, and I second the proposal.

Thank you to Elizabeth and Annie. Any other candidates?

Mr. Chairman, I've checked the texting platform, and I can inform you that there are no other candidates.

Thank you, Marie-Helene, and so I would invite the shareholder who haven't had the opportunity to vote to do so at this time. [Voting]

I will take this opportunity to inform you that the proxy votes that we've seen so far were in favor of the election for each of those directors in a proportion of more than 90%. The next point on the agenda is the consultative vote on the remuneration of the management. You can vote for or against this consultative proposal, which is described in the circular. Marie-Helene, do we have any questions on this point?

Mr. Chairman, we have no questions on this subject.

Can I ask for a proposal to be put forward?

Mr. Chairman, [ Elizabeth Alves ], I'm a shareholder, and I would propose that the consultative resolution be adopted. As the consultative, as a suggestion and without completing the role of the floor, the shareholders support the proposal, which is described in the information circular of the company related to the present annual shareholder.

Mr. Chairman, [ Annie Merelducien ], I'm a shareholder, and I second the proposal.

Thank you, Elizabeth and Annie. I would now invite you to vote if you haven't done so already. [Voting]

I would also mention that the proxy votes that we've received so far are in favor of this proposal in more than 90%, and so the proposal is carried. We will now examine the proposals of the MÉDAC. Mr. Secretary, would you like to talk to the meeting before we start the examination of this?

Mr. Chairman, I would like to point out to the meeting that we've agreed with the MÉDAC who retracted their proposal, that is the proposal #2, which related to virtual meetings. MÉDAC declared that it was satisfied with the manner at which it can talk to the shareholders at the meeting today in -- because of the measures that have been implemented by the company, which will be carried out or kept. The MÉDAC no longer wants to submit its proposal 2 today.

Thank you very much, Mr. Secretary. We will, therefore, have a separate vote on each 1 of the 2 proposals that remain. I would invite the representative of the MÉDAC, Mr. Willie Gagnon, to present the first of these 2 proposals.

Yes. Hello, Mr. Chairman. Do you hear me well?

Yes, we hear you perfectly.

Thank you very much. My name is Willie Gagnon. I am acting here in the name of MÉDAC, the education and defense holding for shareholders. And for every year, we send proposals. This year, we sent 3. I will say a few words on the proposal that we've accepted not to submit to a vote. We were asking that virtual meetings should be held as closely as possible to the meetings of in-person meetings. We were very wary of the fact that we might not be able to intervene. You are the -- only meeting a portfolio where we can't talk verbally apart from the disease. So we salute the effort that you made here, and you had more time to adapt to the present conditions before the public health measures were adopted. We would ask you to continue to make efforts so that things remain fluid, but we agree that the principles that should decide over those efforts are the ones that make sure that those meetings are close as possible to in-person meetings. Thank you very much for allowing us to speak. It's not possible with every other companies that we're shareholders in. I don't know how you want us to proceed, but I was going to present the 2 proposals right now. Or do you want to stop between the 2?

I would propose that we make -- take a break between the 2. Okay. Go ahead.

So we've submitted a proposal entitled Reason and Commitment. So we wanted the upper management and the Board to come up to get precise answer as to what the solution of Cogeco is, and you said that this is 2.3 -- [indiscernible] of the annual meeting, but I would submit to this rather on point -- 2.6 of Page 14, and I salute this because it's an exemplary way of doing it. But we would like for the Board meetings to follow the implementation to make your strategic orientation more concrete. I would draw the attention of shareholders to an example of what we've succeeded in obtaining in other companies, which is proposals. We asked all our companies where we presented this proposal this year, which is a proposal which underlines our 25th anniversary because it underlines and underpins all the values that we have represented for the past 25 years. That is that we invite into the governance committees the task of looking at the reason of being of the company -- of the entity. And I would attract -- direct your attention to the CGI production circular where it says that the governance committee has this task of making sure that the committee -- that the company sticks to its mission. We did not send this proposal on to you but all -- to all the companies that figure our portfolio. So I would ask shareholders to support our proposal. We would prefer not to have a vote on this proposal. If this modification could have been done, we would like you to make this a proposal in the future -- to adopt this proposal in the future.

Well, we'll take a few moments to tell you how we are thinking about this proposal. Thank you, Mr. Gagnon, for your proposal. You can be assured that in terms of the principles that were listed in your text, the company is perfectly aligned with those goals. And this is precisely the one that we're putting forward and have been doing so for a long time. However, as you know, the Board has given you its -- a proposal, not because we're not in agreement with the premises of your proposal, but because we -- I think we've explained well, and you very appropriately underline the fact that these figures on Page 14 of our annual meeting where we develop our mission, our vision, and we are very resolute to continue our mission in a sustainable way for all stakeholders. We, therefore, do not think that it's necessary to underline this point any further. The Board, in its entirety, makes sure -- we'll make sure that we respect those missions and vision. And the Governance Committee reviews all our environmental, social and governance issues that you mentioned. So it's not because we don't wish to adopt a new mechanism, it's because we -- I think we've already covered this. Marie-Helene, did we get any additional comments?

Mr. Chairman, we have not -- we did not get any more comments on this proposal.

Thank you very much, Marie-Helene, and now I would invite the shareholders to vote on this proposal. [Voting]

I would inform you that the proxy votes that we've received so far are against the proposal in a proportion of 90%. I would like to assure you, Mr. Gagnon, they're against because the shareholders are against this, against the principles that you're putting forward. Would you like now to go to the -- your second proposal?

Yes, I will do so right away, Mr. Chairman. I won't unduly send myself on this proposal that you get every year on motives that don't change. It's proposed that the we would call along a new auditor that the -- we will elect a new auditor. We find the choice of the Board -- you've had the same auditors since 1957. I believe that's the company was founded. And in the answer, you said, you said it would be long and costly. This obviously is not argument in our eyes, and the arguments in favor of our proposal are same as always. The criteria of time is determinant here for us. 1957, this is long before I was born, and I would have liked then to see a new auditor with Cogeco during my lifetime.

Well, of course, Mr. Gagnon. I was 6 years old when these auditors were named, and the financial adviser used to come and outline the financial plan on the kitchen table my father sells. But this being said, let me give you some or formal elements of answer here even if you understand and note [indiscernible]. Now after having considered again with the reasons named in the -- or enumerated in the circular, information circular, the auditors were chosen by independent members of the Board, which look at the quality factors of the audit and the independence of the auditors, their objectivity and their professional certification, the quality of the mission team that they send to us every year. And more precisely, the Canadian public account that the Board report taking account of all those factors, the Board considers that it would be less detrimental for the company to continue to use the same auditors rather than change them. I would add that our business model is not very complicated. It's not like that we have multiple companies that are interrelated or if there were self-dealing risks and things of that type. Our operations are very simple and very clear. This is why the Board recommends that the shareholders hold against your proposal. Marie-Helene, any comments or questions about this issue?

Mr. Chairman, I don't see any comments, and I see that people are trying to call me. So see if there were connection issues or other things of that nature. But right now, I don't see anything on the texting.

Thank you very much, Marie-Helene. I would now invite the shareholders to vote. [Voting]

Well, I would like to inform you that the proxy votes that we've received were against the proposal in a proportion of more than 90%, and this is why it has not been adopted. Thank you very much, Mr. Gagnon, for having taken the trouble to participate in our deliberation on a yearly basis. And I suppose I can tell you see you next year.

Certainly, sir. Thank you. Goodbye.

Now the next point on our agenda is the nomination of the auditors of Cogeco Inc. Marie-Helene, any questions related to this?

Mr. Chairman, there are no questions, but I have also validated, and what I see here is what is happening in the field. And I can confirm there are no questions on this issue.

Thank you very much, Marie-Helene.

Mr. Chairman, [ Elizabeth Alves], shareholder. I would propose that Deloitte Professional Accountants will be named as auditors of Cogeco, Inc. for a mandate ending at the next general annual meeting of shareholders and the Board be authorized to determine their remuneration.

Mr. Chairman, [ Annie Merelducien ]. I'm a shareholder, and I second the proposal.

Thank you, Elizabeth and Annie. I would now invite the shareholders to vote on this proposal. [Voting]

I would inform you that the business of the proxy will proceed so far. The proposal is approved in a proportion of more than 90% of the votes, and therefore, the proposal related to the auditors is adopted. Well, ladies and gentlemen, this concludes the link on our agenda of Cogeco Inc. The voting period is now closed. The scrutineers will be compiling the results, and we'll communicate them, and that it will be posted on the SEDAR platform. The formal part of our meeting is now over. Marie-Helene, would you like to make any comments before we go down to the presentation by the CEO and Chairman?

Mr. Chairman, thank you very much, Mr. Audet and Jetté will now be speaking one after another to talk about the business of both companies. And I would remind you this -- the procedure that these are of a prospective nature, and they will be presented with the usual warning or caution that now appears here. You first, Mr. Audet.

Thank you very much, Marie-Helene. And before I leave Mr. Jetté, the CEO, I would like to take a few minutes to talk about our financial statements here in today's meeting. I'm happy to say that our company was able to face this under the leadership of Philippe Jetté, who completed his second year as CEO. The upper management team has guided Cogeco through a communication and media industry in constant evolution to changes within the management team continuous and obviously through a very unique pandemic. I'm extremely proud of the resiliency of our company and the strength of the Cogeco team, which came together to face this crisis that nobody foresaw. The resilience and determination are at the very heart of the existence of Cogeco, and this will more than exist today. They can rely on us. We treat them with respect and offer the highest quality of service possible, and we are committed to being a contributor in the communities in which we operate as well as in the broader society. We intend to continue building on our strength and expanding our horizons through strong financial management, innovation and solid partnerships with all our stakeholders. Cogeco enjoys a unique and enviable position as the only broadband services company with a significant presence in both Canada and the United States. We invest massively in our fiber coaxial networks to the tune of $450 million every year to improve and increase our high-speed Internet connectivity, especially in rural and underserved areas, bringing new services and competitive choices to the communities we serve. As for our media business, although it was affected more than we would hope by the COVID pandemic, it remained a lighthouse in the storm for so many in the province of Québec. What's more? Cogeco is profitable, with an adjusted EBITDA margin amongst the best in the industry and dividends that have grown at a compound annual rate for the last 5 years of 12% at Cogeco Inc. and 10% at Cogeco Communications. As you've seen today, or GORs are models and matters of diversity and balance, and I'm very proud to see that our governance practice have been recognized year after year as being among the best in Canadas by both the Board gains -- of the Board of the global mail and for companies that are controlled by family to structures of multiple voting shares. There's really something here to be proud about. I would like now to thank our Boards of the continual trust, their -- and our collaboration. I would like to underline their competence and professional that they have -- the proposal of non-solicited, non-containing offers from us in Rogers Communication. The administrators, the independent administrative -- directors represent 80% of the members of both on those 2 companies, and they follow a process of competence that was seriously studied and without any conflicts of interest in the process. Partner deliberation separately on the 2 boards. And in taking account of the position of the Audet family, the Board has decided to recheck the proposal and indicated that they would not enter into any discussions with Altice and Rogers. Multiple voting shares provides this strong business with stability, a long-term perspective and stewardship through its time-honored values of performance and respect among studies. It's easy to understand why the Audet family does not wish to sell its interest in the Cogeco companies. Cogeco Inc. and Cogeco Communications are 2 exceptionally well-managed companies. Cogeco has a tremendous legacy, and we are proud of its achievements, but it also has an exciting future ahead of it. I can assure you that the Audet family intends to maintain its long-term commitment to Cogeco, providing a solid and stable base for the growth of the companies and their commitment to the communities we serve well into the future. Our duty is to make sure that our clients, the community that we serve, our employees and our shareholders continuing to be proud and to trust us. Now before I hand it over to our CEO, Philippe Jetté, for presentation on the state of affairs with the 2 companies, I would like to show you a short video which personifies Cogeco as a dynamic and modern company. Have a nice look. [Presentation]

Very nice video. Thank you for that. And now, Philippe, up to you.

Thank you, Louis. Dear shareholders, members of the Board of Cogeco and Cogeco Communication, guests and colleagues, thank you very much. Thank you for joining us today for our first virtual shareholder meetings. In the fall of 2019, we began our fiscal year 2020 with focused resolve and a solid strategy for long-term growth. We made changes to our leadership team at Cogeco Communications by welcoming a new President, Atlantic Broadband, one who brings a fresh perspective. And later in the year, a new President of Cogeco Connexion. As the year progressed, we had to quickly adapt and adjust to the new reality that was brought about by the pandemic. Our priority was to immediately act to ensure the health and safety of our employees and customers in Canada and the United States. As the lockdown began, access to Internet, TV and telephony service became increasingly indispensable. Our teams at Cogeco Connexion outside of Québec and Ontario -- across Québec and Ontario and Atlantic Broadband on the East Coast of the U.S. worked around the clock to ensure that we maintain high-quality connectivity services and increased access to information and entertainment. Because of the significant investment in our fiber optic infrastructure of [indiscernible] years to build capacity with high levels of reliability and redundancy, we allowed our network to carry increased volume during this time, especially as work-from-home arrangements became increasingly necessary. We quickly adopted our services, and we implemented personalized measures to offer customers the flexibility they needed, including speed increases, temporarily waiving late fees, removing data over fees and offering free movie channels. I'm happy to say that many of these special measures to support our plan in these difficult times are still active today. Cogeco Media was broadcast to billions of listeners across Québec. We quickly transformed our radio programming to provide continuous coverage of the crisis to all regions of the province. Meanwhile, our program hosts were on the job day in and day out to inform listeners with up-to-date news while still offering them much needed entertainment. Work-from-home measures and guidelines that would ensure their health and safety while maintaining the highest standards of productivity. Our technical teams, building and maintaining outside networks to serve our customers and to find creative ways to help customers from outside the home. That's why our zero contact installation became increasingly popular, enabling customers to self-install equipment from the safety of their homes, knowing that they have customer service agents ready to help them if necessary. Despite the many challenges of the crisis, Cogeco maintained a financial discipline, and we are very pleased with how all our teams responded, showing great adaptability and dedication. Let's quickly review some financial highlights for fiscal 2020 and look at how we maintain focus on our strategy throughout this unusual year. For Cogeco Inc., we reported a 1.4% increase on our consolidated revenue, which stood at $2.5 billion; while adjusted EBITDA rose to $1.2 billion, up 3.2%. Profit for the year reached $401.8 million and the corporation generated free cash flow of $464.1 million. Cash flow from operating activities stood at $941.6 million; while acquisitions of property, plant and equipment was $487.2 million. Dividends paid to our shareholders rose 10.5%, reaching $1.90 per share in fiscal year 2020. At Cogeco Communications, consolidated revenue increased by 2.2% in fiscal 2020 to reach $2.4 billion; while adjusted EBITDA reached $1.2 billion, up by 3.7%. Profit for the year reached $396.6 million and the corporation generated free cash flow of $455.4 million. Cash flow from operating activities stood at $917.8 million; while acquisitions of property, plant and equipment was $484 million. Dividends paid to our shareholders increased by 10.5% to $2.32 per share. In fiscal 2020, we continue to fulfill our mission, which is to bring people together through communication and entertainment experiences. We remain focused on our vision to be the organizations that brings the best and most sustainable value to all our shareholders, be they our customers, communities, employees, suppliers or shareholders. We achieve success by keeping focused on our 5 strategic growth pillars, which are both the frame and the backbone of our growth strategy. I'd like to talk about some of the initiatives and achievements we realized that were aligned with these growths that represents some of the major initiatives worked on and successfully delivered in the last fiscal year. At Cogeco Connexion, we enhance our service and product offering to meet and exceed our customers' expectation for a distinctive client experience. We continued the expansion of our 1 gig offering while also enhancing the end-to-end digital experience. As I mentioned, the pandemic accelerated the launch of our zero contract installation, enabling customers to self-install services. At the end of fiscal year, we also progressively introduced our new Internet television entertainment system, EPICO. And I'm very proud to announce that we will officially launch EPICO next Monday, January 18. EPICO is a dynamic Internet protocol TV platform backed by technology that is constantly evolving with the latest development, an interface that is flexible and highly user-friendly. So far, more than 12,000 customers are already benefiting from this enhanced entertainment experience. [Foreign Language] Cloud-based platform across the organization. [Foreign Language] This year was also with a rise in social awareness and social justice. At Cogeco, we firmly reject and do not tolerate any form of racism and discrimination against our employees as [indiscernible] policy on the subject on this resolution. In the context of gender equity, we've always made efforts to continue ensuring greater gender equality at all levels at Cogeco. I'm very happy to report that women at Cogeco have 37% of managerial level position. This surpasses the goal we have said up reaching 35% in 2021, and we will continue our efforts. Through the guidance of members of our senior leadership team, we have formed a diversity leadership committee, which will be responsible for developing a concrete plan to prioritize the capability around equity, diversity and inclusion. Given all the turmoils of the past year and the demands that were made on our employees in the context of the pandemic, we were gratified to see our global engagement score increase among all employees following an employee survey. With regards to our market spending, the acquisitions and organic growth in both Canada and the United States. Over the course of the last 12 months, Cogeco Communication made 3 acquisitions. In the spring, Atlantic Broadband acquired Thames Valley Communications in Connecticut, adding approximately 10,000 customers to our existing geographic footprint. Also in the spring, Cogeco Connexion acquired iTéract, a company that provides full telecommunication service in Southern Québec using a combination of fixed wireless and fiber to the home technologies and serving approximately 2,000 customers. But as part of this transaction, we also acquired exclusive spectrum licenses covering a large region Upper and Southern Québec. Most recently, Cogeco Connexion announced the acquisition of DERYtelecom, the third largest cable operator in the province of Québec. As you can see on this map, this acquisition has enabled us to significantly expand our activities in more than 200 municipalities in the province, some of which are represented here by the red dots, adding approximately 100,000 customers to Cogeco Connexion's client base. In addition to our expansion via acquisitions, we continued network investments in our footprint. So at Atlantic Broadband, we pursued our expansion in bulk residential markets in Florida and executed targeted edge-outs in other regions. At Cogeco Connexion, we proactively participate in calls for applications launched by the federal and provincial governments and started winning a good share of available government funding dedicated to increasing connectivity to high-speed Internet and addressing the digital divide between urban centers and our rural areas. Another key milestone in fiscal 2020 was our submission of targeted regulatory changes designed to increase competition in Canada's mobile wireless market as part of the CRTC's consultation. Our proposed hybrid mobile network operator model would enable the sustainable entry of new mobile wireless carriers across Canada, which would particularly benefit underserved regions and stimulate investments while providing greater choice for consumers. We look forward to bringing more competition to the marketplace with the CRTC's upcoming decision on this. [Foreign Language] Atlantic Broadband and Cogeco Connexion have made important organizational changes to increase team efficiencies and improve their agility in the marketplace, allowing greater autonomy, accountability and quicker decision-making. Strategic initiatives, such as the acceleration of digital sales and digital support, combined with data analytics, are also gradually changing the way we operate while delivering more value for our customers. We aspire to build a strong and socially responsible brand supported by the core values of trust, service and proximity. For our clients, that means delivering -- listening to their needs and delivering a distinctive experience that provides value for money. For the communities we serve, we want to continue contributing to the social, economic and cultural development through focused initiatives, meeting their needs. Through our philanthropic commitment, we have donated more than $12.6 million in cash in airtime during fiscal year 2020, representing 2.4% of Cogeco pretax profit. Among many of the recognition received this past fiscal year, Cogeco Communication was named to Corporate Knights Best 50 Corporate Citizens in Canada for a third consecutive year and receives a carrying company certification from Imagine Canada for philanthropic leadership. Before touching on the outlook for fiscal 2021, I would like to present a few highlights from our financial results for the first quarter, which ended November 30, 2020. These results announced yesterday after the market close generally puts us on a trajectory to exceed the previously announced guidance. At Cogeco Inc., revenue increased by 4.5% to reach $646.4 million. This represents an increase of 4.7% in constant currency. Adjusted EBITDA increased by 10.5% to reach $321.1 million, which represents an increase of 10.7%. Profit for the period amounted to $120.4 million, an increase of 27.8% compared to the same period of the prior year. Free cash flow increased by 36.1% to reach $148.2 million, which represents an increase of 36.3%. The dividend declared was $0.545 per share. And if we turn to Cogeco Communications, revenue increased by 5.5% to reach $618.9 million. This represents an increase of 5.7% in constant currency. Adjusted EBITDA increased by 10.3% to reach $311.1 million, representing a 10.5% increase. Profit for the period amounted to $114.9 million, an increase of 28.1% compared to the same period last year. Free cash flow increased by 36.7% to reach $140.6 million, an increase of 36.9% in constant currency. Dividend declared was $0.64 per share. Now let's look at our priorities for fiscal 2021. We remain focused on executing our profitable growth strategy, investing in our state-of-the-art broadband networks, offering the best services and support to our customers while fostering a highly collaborative and engaging work environment. Our overall priorities are to grow our footprint through a combination of organic growth and targeted acquisitions; constantly focused on delivering great customer experience and participate in the development of the communities we serve; take a prudent approach to financial management and deliver operational excellence, allowing us to allocate capital to pursue acquisitions, to enhance our broadband networks and services and to return capital to investors; innovate and invest in product enhancements and service improvements; and continue to invest in the well-being of our employees while fostering a respectful workplace that is diverse and inclusive. 2020 was certainly a year filled with challenges and unexpected turmoil due to the pandemic, and I am incredibly proud of how our team faced the situation with strength, agility and courage. This would have not been possible without the collaboration of our more than 4,300 colleagues, the leadership team and the Board of Directors. This collaboration willingness to work as one team is what sets us apart and what enables us to fulfill our mission of bringing people together through powerful communications and entertainment experiences. Dear Executive Chairman, dear shareholders, members of the Cogeco Board of Directors, guests and colleagues, thank you for joining us today and for listening. Button is on mute. Mr. Audet is muted.

Oh, thank you. I think this is better, right? So thank you, Philippe, for this very captivating expose on our results and perspective -- future perspectives of Cogeco. In my name and in the name of the Board, I would like to congratulate you and your team for the excellent work that you've done. Now we're going to go on to the question period, and I would remind you that the proxy holders and shareholders of both companies can ask questions through the electronic platform. Marie-Helene, could you tell me what questions we have received?

Mr. Chairman, we got a question from Mr. Willie Gagnon, who represents the MÉDAC. The message contains 2 comments and 1 question, which I shall read the question. It should be possible to ask verbal question just as it is possible in a normal in-person meeting. So the right to speak should be the same for all shareholders who are not asking for any privilege. We're asking that everybody have the right to speak virtually. We are very happy also that you resisted in selling the company. Another matter here is a question. Why is Cogeco still split into 2 listed -- publicly-listed companies? What are the advantages to this? And what are the inconveniences? Is it wise to keep this as it is? Wouldn't this be a way that would enable savings, no? That's the question, and there are many questions within the question.

Well, that's an excellent question. First of all, thank you, Mr. Gagnon, for the comments that you made, and I think that we understand very well where you're coming from here. And I suppose that in the evolution -- the coming evolution of our virtual meetings, it will eventually become possible for everybody to ask their questions. Obviously, we tried to do our best under the circumstances, but I think that I understand perfectly what you're trying to say. And thank you for the positive comments that you made. Now as far as the 2 distinct publicly-traded companies, there are historical things for that, and there are also choose of control about which you don't necessarily agree. But nonetheless, here's an explanation. The first publicly-traded company, Cogeco Inc., became public in 1985 and grew from that date. In 1993, the financial markets let us know that creation of a company that would only be involved in the combo pure play would be welcome in financial market, and so that's why we proceeded. To the question in Cogeco Communication now today, why would we not bring together the 2 companies? Well, the issue is quite simple. It's an issue having to do with the control of the Audet family, control which enabled, in echo to the third comment, which enabled the Audet family to resist the sale of these entities, and let me explain. If the company wanted to issue shares to finance itself but that the 2 companies would have been merged, the margin of the maneuver would be very slim in terms of the possibility of losing control of the company. This is the reason why these 2 companies remain separate. As far as the inconvenience is concerned, as you've seen, upper management, as we have the same chairman of the Board and the same CEO for both companies and same senior management for both companies, and so this minimizes the risk of divergent government. As for the cost involved, they're pretty minimal. And so the inconveniences here are quite minor and enables us to maintain the solidity and stability of the 2 entities of Cogeco. That's the explanation. Marie-Helene, do we have any other questions?

Mr. Chairman, we have another question still from Mr. Willie Gagnon, who acts in the name of MÉDAC, and let me read the question. Does Cogeco check on the contents hosted on its servers? And will it act in the same way that Twitter and Facebook acted against [indiscernible] the nature of this communication? For instance, if a client has a racist website on one of our servers, would it be eliminated? And does Cogeco have a policy to eliminate?

Well, we do, and I will ask Philippe Jetté to describe them.

Yes. First of all, since the sale of Cogeco Peer 1, the external hosting by Cogeco has been [indiscernible]. So commercial activities -- have commercially hosting websites like the ones that you mentioned are not part of our operation anymore. Cogeco Communications in Canada and the U.S. is dedicated to transporting and making secure privacy element and personal information. So we are a carrier of digital content between our company website, but these hosting websites are not at Cogeco. And I would add, if I may, that as far as the behavior of individual clients, we are not authorized to intervene, otherwise then with the order of a judge. So if a judge -- if a court would decide, for instance in the court of -- in the case of [indiscernible] pornography, a court order would be the only circumstance where we could end our hosting service.

Marie-Helene, do we have any other questions?

Mr. Chairman, we have no other questions.

Thank you very much, Marie-Helene. Thank you, Philippe. Thank you all, dear shareholders and collaborators. Our meeting is now over. It's been a pleasure to be able to communicate again with you this year, and please take care of yourselves. And I will say... [Statements in English on this transcript were spoken by an interpreter present on the live call.]