MONTREAL – Cogeco reported today that growth and acquisitions in the cable sector helped to drive up their consolidated revenue by 16.5% to $292.9 million for their fourth quarter, and by 14.4% to $1.1 billion for their fiscal year end.
Revenue-generating units (RGU) in the cable sector grew by 41,100 for the quarter and 231,209 net additions for the year, for a total of 2,716,874 RGU at August 31, 2008, the company’s press release said. FYI – one subscriber with voice, Internet, analog and digital cable TV equals four RGUs.
"Our fourth-quarter was marked by the entry of Cogeco Cable in the Greater Toronto Area market with the acquisition of Toronto Hydro Telecom. Our new subsidiary, Cogeco Data Services, gives us access to complementary markets and expertise that should contribute to our future commercial growth and development. This acquisition is perfectly aligned with our long-term external growth strategy” said Louis Audet, president and CEO of COGECO in the release. “As for our fiscal year-end results, we are very pleased to report continued growth with the generation of financial results above expectations”, he continued.
Cogeco Cable bought THT earlier this year for $200 million.
The number of net additions to Cogeco’s high speed Internet service was 8,799 customers, compared to 12,363 customers for the same period last year. Telephony customers grew by 19,436 to reach 219,601, compared to a growth of 21,173 for the same period last year.
Net additions of digital cable stood at 16,150 customers well ahead of the 8,747 customers added during the same period last year, due to targeted marketing initiatives in 2008 to improve the penetration rate and the continuing strong interest for HD technology, the release continues.
Fiscal 2008 fourth-quarter consolidated revenue improved by $40.6 million, or 16.6%, to reach $284.9 million, and for the year, by $137.9 million or 14.7% to reach $1,076.8 million. Driven by an increased number of RGU combined with rate increases and the recent acquisitions, 2008 fourth-quarter Canadian operations revenue went up by $32.3 million, or 17.1%, and for the year by $119 million, or 16.7%.
