MONTREAL – Revenue at cable company and radio broadcaster Cogeco Inc. increased by 13.8% to $284 million in the third quarter and by 13.6% to $816 million for the first nine months of fiscal 2008, ended May 31st.
Operating income from continuing operations before amortization grew by 22.4% to $117.2 million in the third quarter and by 21.1% to $327.8 million for the first nine months. Free cash flow reached $37.1 million in the third quarter and $79.5 million for the first nine months.
In the company’s cable sector – which is by far the largest division of the company with operations in Ontario, Quebec and Portugal – revenue-generating units grew by 50,889 and 190,109 net additions, respectively, for a total of 2,675,774 RGUs at May 31, 2008. When it comes to defining RGUs, a customer which has Cogeco cable, Cogeco digital cable, Cogeco phone and Cogeco high speed Internet, counts as four RGUs.
But, more than just organic growth happened at Cogeco this busy quarter. In order to grow its business telecom base, the company bought or has agreed to buy MaXess Networx, ENWIN Energy’s telecommunications division (City of Windsor’s energy company), FibreWired Burlington Hydro Communications (Burlington Hydro Electric’s telecommunications division), and Toronto Hydro Telecom, the telecommunications subsidiary of Toronto Hydro.
The company also announced its 2009 preliminary fiscal guidelines, setting revenue outlook at about $1.198 billion, an increase of $108 million compared to the revised fiscal 2008 projections issued in April 2008. Operating income before amortization should increase to approximately $500 million, an improvement of $55 million compared to the revised fiscal 2008 projections, and free cash flow should grow by approximately $35 million to reach $110 million.
