TORONTO – Despite a write-down in the value of its European subsidiary, Cogeco Cable presented 2009 financial year-end results that exceeded projections at its annual shareholders meeting late last week.
Consolidated revenue for 2009 grew by $141 million to $1.22 million, a 13.1% increase over the previous year. Consolidated operating income before amortization was up 17.7% to $524.4 million, due mainly to growth in revenue-generating units (RGU), rate increases and recent acquisitions in Canada.
However, Cogeco still recorded a net loss of $256.7 million for the year, due in large part to $383.6 million impairment loss of net of related income taxes recorded on the Corporation’s investement in Cabovisao, the unfavourable impact of $6.1 million from the utilization of Cabovisao’s pre-acquisition tax losses and a favourable impact from the reduction of withholding and stamp tax contingent liabilities in the amount of $16.1 million, both in Cabovisao, and the favourable impact of $13.4 million from the Part II licence fee settlement agreement net of related income taxes. Excluding the effect of these items, adjusted net income for fiscal 2009 amounted to $103.6 million compared with $109.3 million in 2008.
"Our Canadian cable distribution operations are the picture of health”, said president and CEO Louis Audet, in a statement. “Even in spite of the tough economic times, customers continue to have a particular soft spot for our services in their information and entertainment choices.”
The company recorded an increase of 175,364 RGU, well above the 100,000 projected, due mainly to “solid growth” in digital television customers in both Canada and Europe.
Free cash flow was $95.4 million, down 3.5% over the previous year but 19.3% above the April 2009 revised projections. The operating margin rose to 43.1% from 41.4%.
