Cogeco Reports Q2Cogeco Reports Q2

Cogeco Cable's revenue increased by 57% to $232M and operating income before amortization by 45.7% to $86.8M in Q2

April 12, 2007

2 Min Read

MONTREAL -- Today, COGECO Inc. (TSX: CGO) announced its financial results forthe second quarter ended February 28, 2007.In the second quarter of fiscal year 2007, COGECO’s results showed substantial growth, thanks tothe cable sector. On a consolidated basis, revenue increased by 47.2% standing at $261.1 million,operating income before amortization increased by 44.8%, reaching $83.7 million, and net income,excluding the gain on dilution attributable to the issuance of shares by the cable subsidiary,increased by 32.7% compared to the same period last year. The cable subsidiary continued to addrevenue generating units (RGUs) and improved its overall financial results. The media sector is stillcommitted to gain market share and its results for the first six months were essentially stable.

Cable sector

Cogeco Cable has continued to exceed its last financial projections during the second quarter.RGUs grew by 84,399, compared to 55,109 for the same period last year. For the Canadianoperations, RGUs increased by 64,133 compared to 55,109 for the same period last year, anincrease of 16%. For the Portuguese operations, with net additions of 20,266 RGUs, the total nowstands at 670,571.Cogeco Cable’s revenue has increased by 57%, standing at $232 million and operating incomebefore amortization by 45.7%, reaching $86.8 million.

“We are exceeding our projections of last January. All our operating units are well positioned toprovide a premium customer service and a very competitive offering. We are very pleased with theprogression we are experiencing, thanks to our Portuguese subsidiary and the improvement in thepenetration of all of our services including our Digital Telephony in Canada,” said Mr. Louis Audet,President and CEO of COGECO.

Media Sector

"RYTHME FM revenue echoes our position in the markets. TQS continues to invest inprogramming to recapture market share and to counteract the difficult market conditions thatcontinue to prevail for generalist televisions. Furthermore the sector was impacted by the warmweather of the first half of the second quarter which had an incidence on the advertisingenthusiasm in these markets," added Mr. Audet.

Improved 2007 financial projections

The second quarter results lead the Company to adjust upwardly its financial projections for fiscal2007. Consolidated revenue should reach between $1,075 million and $1,080 million, operatingincome before amortization should increase to $365 million and net income should increase toapproximately $50 million.Cogeco Cable has recently implemented rate increases in Canada and in Portugal. In addition,debt reduction from the issuance in early February of subordinate voting shares will diminishfinancial expense. The combination of these factors will improve Cogeco Cable revenue, operatingincome before amortization and net income. For fiscal 2007, Cogeco Cable’s consolidated revenueshould reach $945 million, operating income before amortization should reach approximately$365 million, while the operating margin should increase to about 39%. For the media sector,management maintains its initial 2007 financial projections.

"COGECO will exceed its original goals for fiscal 2007. Our cable subsidiary revised its guidelinesto reflect its ability to deliver good results and our media sector is maintaining its pace to fulfill itsobjectives," concluded Mr. Audet.

Cogeco Communications (Toronto: CCA)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like