MONTREAL – While recent news swirling around the company has been about other things, Cogeco Inc. posted good fourth quarter and year-end 2020 results as broadband demand remained high in Canada and the U.S.
For the quarter ended August 31, 2020, revenue increased by 2.2% over Q4 2019 to reach $624.2 million while adjusted EBITDA reached $300 million, an increase of 6.7%. Cogeco Inc. contains Cogeco Communications (Cogeco Connexion in Canada and Atlantic Broadband in the States) as well as the company’s Quebec radio stations.
Full year revenue came in at $2.48 billion, a 1.4% increase over 2019 and full year adjusted EBITDA was $1.17 billion, a 3.2% increase.
“The fourth quarter results of our media business were negatively impacted by the Covid-19 pandemic as the lower level of economic activity, notably in the retail industry, had an adverse impact on advertising revenues,” reads the Tuesday evening press release. “However, the quarterly revenue decline compared to last year was slightly less than experienced during the third quarter and advanced bookings for the new fiscal year are improving as it relates to certain advertising verticals and in non-urban areas.”
Profit for the period from continuing operations amounted to $96.7 million, compared to $95.2 million in Q4 2019. Free cash flow increased by 26.7% to reach $111 million in the quarter. Cash flow from operating activities decreased by 16.7% to reach $262.4 million “mainly due to the decrease in changes in non-cash operating activities primarily due to changes in working capital and the increase in financial expense paid, partly offset by higher adjusted EBITDA and the decrease in income taxes paid,” reads the release
“Given that we were still in the midst of the Covid-19 pandemic throughout the summer, we are very pleased with our operational and financial performance for the fourth quarter,” said president and CEO Philippe Jetté, in the release. “We remained focused on executing our profitable growth strategy, investing in our state of the art broadband networks and offering the best services and support to our customers.”
“We are pleased with the results of Cogeco Connexion in Canada which reported increases in revenue and adjusted EBITDA,” he added. “These were largely driven by a healthy demand for our Internet services coupled with disciplined operations. In addition, Cogeco Connexion announced network expansions in several regions across our Canadian footprint and started offering our new IPTV platform.”
“Atlantic Broadband, our American subsidiary, also reported positive results. Adjusted EBITDA and primary service units increased compared to last year, in large part thanks to organic growth as well as the integration of Thames Valley Communications in Connecticut.”
For the full Cogeco Inc. release, please click here.
For Cogeco Communications, click here.
