Business & Finance
Business and Finance
Business and Finance
Wed, December 17, 2008 COGECO Inc.: Internal Growth and Acquisitions in the Cable Sector Drive COGECO's Financial Results in 2008
MONTREAL, QUEBEC--(Marketwire - Dec. 17, 2008) - For fiscal year 2008, COGECO Inc. (TSX:CGO) reported solid results.
Key performance indicators:
- COGECO has announced improvements across most of its performance indicators for 2008. Much of the improvement owes to the cable sector, which enjoyed internal growth and growth by acquisition. Consolidated revenue increased by 14.4% to $1,108.9 million and consolidated operating income before amortization(1) grew by 20.9% to $448.9 million. Consolidated net income amounted $25.1 million compared to $74.8 million, a decrease compared to last year mainly due to gains on dilution recorded in fiscal 2007. Free cash flow(1) amounted to $100.4 million compared to $29.4 million the prior year while operating margin(1) grew to 40.5% from 38.3%. In the cable sector, 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"). CDS serves large business customers.
- Cogeco Cable also completed the acquisition of all the assets of FibreWired Burlington Hydro Communications, Burlington Hydro Electric's telecommunications division.
"For fiscal 2008 we are very pleased to report continued growth with the generation of financial results above expectations. Fiscal 2008 was also marked by the entry of our cable subsidiary, Cogeco Cable, in the Greater Toronto Area telecommunications market with the acquisition of Toronto Hydro Telecom. Cogeco Cable's new subsidiary, now know as Cogeco Data Services, 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. On the radio side, RYTHME FM network continues to be the favorite choice of the 25-54 year old female audience in Montreal," declared Louis Audet, President and CEO of COGECO.
ABOUT COGECO
COGECO is a diversified communications company. Through its Cogeco Cable subsidiary, COGECO provides approximately 2,717,000 revenue-generating units (RGU) to 2,428,000 homes passed in its Canadian and Portuguese service territories. Through its two-way broadband cable networks, Cogeco Cable provides its residential and commercial customers with Analogue and Digital Television, HSI, as well as Telephony services. Through its Cogeco Radio-Television subsidiary, COGECO owns and operates the RYTHME FM radio stations in Montreal, Quebec City, Trois-Rivieres and Sherbrooke, as well as the 933 radio station in Quebec City. COGECO's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CGO). The subordinate voting shares of Cogeco Cable are also listed on the Toronto Stock Exchange (TSX:CCA).
(1) The indicated terms do not have standardized 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.
