MONTREAL – First quarter net income at Cogeco Inc, jumped 47.4% to $4.6 million compared to the same period last year.
This increase in the first three months of fiscal 2006, ended November 30th, 2005, is mainly attributable to the cable sector, which benefits from increased digital video services, high-speed Internet (HSI) and digital telephony penetration as well as rate increases. Higher radio advertising revenue also helped.
Net additions of Cogeco Cable basic customers were approximately 10,900 compared to about 7,700 for the same period last year. “The sustained appetite for digital video and HSI services continues to prevail as shown by over 21,000 digital video customer additions and close to 23,000 HSI customer additions during the quarter. As for digital telephony, at the end of the first quarter, 6,900 clients subscribed to this new service and 2,200 installations were pending.
The company also added to its video on demand library and subscribers can access movies representing about 60% of domestic box office receipts.
"In our cable subsidiary, the first quarter showed strong marks in attracting customers and improving financial results. Demand for Cogeco Cable’s products and services continues to prevail in our markets as customers show increasing interest for our triple-play bundled offer," said Louis Audet, president and CEO.
The company’s radio stations all showed “notable improvement in advertising revenue,” said the press release, while the advertising market remains difficult for TV broadcaster TQS in Quebec. "Our RYTHME FM station in Montréal continues to lead the market and we are very proud of that. Furthermore, the other company’s radio stations performed according to our expectations. As for the television side, TQS continues to be a challenge, but we foresee improvements as a result of an increase in programming investments.”
