Four straight quarters of improved financials TERAGO Retains and renews mmWave Spectrum Licences, Removing Uncertainty TORONTO, Aug. 7, 2024 /CNW/ - TERAGO Inc. ("TERAGO" or the "Company") (TSX: TGO) (https://terago.ca/), today reported financial and operating results for the second quarter ended June 30, 2024. "Revenue, ARPU and Gross Margin continue to increase combined with optimized operating expenses driving Adjusted EBITDA growth over my first four quarters as CEO. Our smart growth strategy includes a disciplined approach to capital expenditure, substantially improving profitability. The improvements during these four quarters compared to the prior four quarters have resulted in: Increased cumulative Adjusted EBITDA1 by $706K; Cumulative positive cashflow generated from operations1 of $4.2M; and Decreased use of debt facility by $7.6M. In addition to the strong financials reported, ISED's announcement in May 2024 ensures TERAGO retains and renews its mmWave spectrum licences", said Daniel Vucinic, CEO of TERAGO. "This Decision provides certainty and clarity on our licences allowing TERAGO to continue to drive competition, innovation and increased investments in its next generation wireless connectivity offerings for Canadian businesses. Our comprehensive strategy is enhancing value for our clients, employees and shareholders, delivering exceptional results. As we move forward, our primary focus will be on accelerating revenue growth as Canadian businesses demand an alternative managed service provider who focuses on customer experience, carrier diversity and being agile and nimble.  TERAGO's revived narrative is getting positive reception from the investor community as the business progresses." Financial Highlights and Key Developments (in thousands of dollars, except with respect to gross profit margin1, loss per share, backlog MRR1, and ARPU1) Total revenue increased by 0.9% to $6,577 for the three months ended June 30, 2024 compared to $6,516 in the same quarter in the prior year period. For the six months ended June 30, 2024, total revenue marginally increased by 0.2% to $13,049 compared to $13,025 in the same period in the prior year. The increase in revenue in both periods is the result of higher bookings1 and lower churn1 in the current year period. Adjusted EBITDA1 for the three months ended June 30, 2024 increased by 88.2% to $941 as compared to an Adjusted EBITDA1 of $500 for the comparative period in 2023. Adjusted EBITDA1 for the six months ended June 30, 2024 increased by 41% to $1,871 as compared to $1,327 for the comparative period in 2023. The increase is a result of higher revenues combined with overall lower operating expenses in the current period compared to same periods in the prior year. Net loss for the three months ended June 30, 2024 was $3,212 compared to a loss of $3,988 in the same period in 2023. The decreased net loss position is the result of lower salaries and other operating expenses, partially offset by higher long-term debt interest costs due to additional drawdowns in the prior and current year period. For the six months ended June 30, 2024, net loss was $6,759 compared to a loss of $6,537 in the same period in 2023 resulting from higher long-term debt interest costs. ARPU1 for the connectivity business for the three and six months increased by 8.7% to $1,200 and by 6.8% to $1,179, respectively, compared to $1,104 and $1,104, respectively, for the same periods in 2023. The improvement in ARPU1 is a result of changes in customer base and product mix and a new pricing strategy implemented in the last quarter of the prior year. _____________________________ (1) See " Non-IFRS Measures" Churn1 for the connectivity business for the three ended June 30, 2024 decreased to 1.0% compared to 1.2% for the same period in 2023. Churn1 for the connectivity business for the six months ended June 30, 2024 decreased to 0.9% compared to 1.2% for the same period in 2023. The decrease in customer churn1 was due to the continued execution of the Company's value creation strategy to focus on mid-market and large-scale customers, as well as implementing new strategies for customer renewals and retention. Backlog MRR1 in the connectivity business decreased year over year to $46,584 as of June 30, 2024, compared to $85,471 for the same period in 2023. The decrease in backlog MRR1 was due to a combination of onboarding of new customers with faster installations and the Company's focus on profitable revenue generation. Conference Call Management will host a conference call on Thursday, August 8, 2024, at 10:00 AM ET to discuss these results. To access the conference call, please dial 877-545-0523 or 973-528-0016 and use conference ID 405002 if applicable. Please call the conference telephone number 15 minutes prior to the start time so that you are in the queue for an operator to assist in registering and patching you through. An archived recording of the conference call will be available through Thursday, August 22, 2024. To listen to the recording, call 877-481-4010 or 919-882-2331 and enter passcode 50983# if applicable. RESULTS OF OPERATIONS Comparison of the three and six months ended June 30, 2024 and 2023 (in thousands of dollars, except with respect to gross profit margin1, loss per share1, backlog MRR1, churn1 and ARPU1)  (unaudited)   Three months ended June 30    Six months ended June 30    2024     2023     2024     2023     Financial   Total Revenue $ 6,577 6,516 13,049 13,025 Cost of Services1 $ 1,776 1,822 3,527 3,353 Gross Profit Margin1 73.0 %