Cogeco Communications | Revenue up 16%

(Montreal) Cogeco Communications posted 16% revenue and 0.1% profit increases in the first quarter, a result fueled by its US subsidiary Breezeline, previously known as Atlantic Broadband.

Revenue for the quarter ended November 30, 2021 was $ 718.5 million, due in large part to a 31% increase at constant exchange rates in broadband service revenues in the United States.

Cogeco communications mainly attributes this progress to the acquisition of the cable systems in Ohio, concluded on 1is last September and to the higher number of internet service customers.

These factors were partially offset by costs associated with the brand repositioning of Atlantic Broadband.

Breezeline completed the acquisition of the systems in Ohio for a purchase price of CAN 1.418 billion.

For their part, revenues from Canadian broadband services increased by 8.2%, mainly due to the acquisition of DERYtelecom concluded on December 14, 2020.

Cogeco Communications’ first quarter profit was 106.8 million, up 0.1% from the same period last year, said the press release releasing the quarterly results on Thursday after the markets closed. .

Earnings per share were $ 2.29, compared to $ 2.24 a year earlier.

According to the Montreal-based company, the increase is mainly due to an increase in Adjusted EBITDA and a decrease in income tax expense, factors partially offset by the increase in depreciation and amortization costs, integration, restructuring and acquisition and financial charges.

Cash flow from operating activities increased 18.7% to $ 286.9 million.

Analysts polled by the firm Refinitiv had expected revenues of $ 717.7 million and earnings per share of $ 2.06 for Cogeco Communications in the first quarter.

Earnings at parent company Cogeco were down 4.9% from the first quarter of last year.

It was $ 38.5 million, or $ 2.42 per share, compared to $ 40.5 million, or $ 2.55 per share, a year earlier.

Cogeco mainly attributed the decline to an increase in depreciation and amortization, integration, restructuring and acquisition costs and finance charges.

Revenues within the media sector fell 2.6%, mainly because radio advertising “continues to be directly affected by cuts or stoppages in advertising activity by certain segments of the retail sector. in the context of the COVID-19 pandemic, as well as due to the slow economic recovery for media companies, ”it says.

During its meeting on January 13, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $ 0.705 per share, compared to a dividend of $ 0.64 per share in the corresponding quarter of fiscal 2021 .

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