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Cogeco Cable inc.: Acquisitions and Organic Growth Contributed to Positive Results for Cogeco Cable in Fiscal 2008

^{Published on 2008-12-11 18:08:13 - Market Wire}
 

MONTREAL, QUEBEC--(Marketwire - Dec. 11, 2008) - For fiscal 2008, Cogeco Cable Inc. (TSX: CCA) reported strong financial results.

Key performance indicators:

- Consolidated revenue increased by 14.7% to $1,076.8 million. Consolidated operating income before amortization(1) grew by 20.1% to reach $445.4 million and consolidated net income grew by 57.4% to reach $133.3 million, up by $48.6 million compared to fiscal 2007. Free cash flow(1) amounted to $98.9 million compared to $30.6 million the prior year and operating margin(1) improved to reach 41.4% from 39.5%. Revenue-generating units ("RGU")(2) grew by 231,209 net additions, for a total of 2,716,874 RGU at August 31, 2008.

External growth:

- Cogeco Cable announced its entry into the Greater Toronto Area market through the acquisition of all the shares of Toronto Hydro Telecom Inc., the telecommunications subsidiary of Toronto Hydro Corporation, which now operates under the name of Cogeco Data Services Inc. ("CDS").

- Cogeco Cable also completed the acquisition of all the assets of FibreWired Burlington Hydro Communications, Burlington Hydro Electric's telecommunications division.

"Fiscal 2008 is marked by acquisitions in the Canadian business market field. Our entry in the Greater Toronto Area market with the acquisition of CDS 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. We are also very pleased to report continued growth and the generation of financial results above expectations. Cogeco Cable completed a private placement issuance of Senior Secured Notes for gross proceeds of $257 million which will permit the Corporation to repay maturing debt and reduce bank indebtedness. This financing was completed despite a difficult financial market, and denotes the financial market's confidence in Cogeco Cable. We anticipate a rewarding fiscal 2009", declared Louis Audet, President and CEO of Cogeco Cable.

ABOUT COGECO CABLE

Cogeco Cable ([ www.cogeco.ca ]), a telecommunications company offering a diverse range of services to its customers in Canada and Portugal, is the second largest cable operator in Ontario, Quebec and Portugal, in terms of the number of Basic Cable service customers served. Through its two-way broadband cable networks, Cogeco Cable provides its residential and commercial customers with Analogue and Digital Television, HSI and Telephony services. The Corporation provides approximately 2,717,000 revenue generating units (RGU) to 2,428,000 homes passed in its Canadian and Portuguese service territories. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

(1) The indicated terms do not have standard definitions prescribed by Canadian Generally Accepted Accounting Principles ("GAAP") and therefore, may not be comparable to similar measures presented by other companies. For more details, please consult the "Non-GAAP financial measures" section of the Management's discussion and analysis.

(2) Represent the sum of Basic Cable, High Speed Internet ("HSI"), Digital Television and Telephony service customers.