MONTREAL – Despite the weakened economy, Cogeco Inc. maintained a solid growth curve in the first quarter of fiscal 2009, the company reported.
Consolidated revenue at Cogeco Cable (including its territories in Quebec, Ontario and Portugal) increased by 18.9% to $299.4 million, consolidated operating income before amortization grew by 23% to reach $119.7 million, consolidated net income amounted to $23.6 million, compared to $20.4 million for the same period of the prior year, an increase of 15.7%, free cash flow reached $17.8 million, a 17.6% decrease over the prior year, and operating margin increased to 40% from 38.6%.
Revenue-generating units (basic cable + digital cable + high speed Internet + phone) grew by 52,714 net additions, for a total of 2,769,588 RGU at November 30, 2008
"Cogeco Cable has improved most of its key indicators over the prior year, with the exception of a decrease in free cash flow caused by the increases in capital expenditures required to support the enhanced demand for the HD television service in Canada and the deployment of digital television in Portugal,” said company CEO Louis Audet.
“Our Canadian operations benefit from continued organic growth despite the early signs of maturation in some services. In our European operations, the continuing unfavorable economic environment and highly competitive dynamics negatively impacted the RGU growth in all of our services, with the exception of the digital television service which has contributed steady increases in subscriptions to the service since its launch in the second half of fiscal 2008.
“In our commercial activities, Cogeco Data Services successfully bid on a long term contract to provide innovative and cost-efficient solutions for the telecommunications needs of the Toronto District School Board. We are pleased with our financial results to date and will continue to strive to be the first choice for telecommunications services to the customers in all of our territories,” added Audet.
On the company’s radio side, all is pretty well there, too. “The fall BBM Canada survey conducted with the new Portable People Meter showed that the Rythme FM network continues to be the preferred choice of audiences in the adult and female categories in the Montreal market,” added the CEO.
