Cogeco revenue up, profits dip in Q4

In its quarterly results released on Friday, Cogeco Inc. reported overall revenues for the three-month period ending Aug. 31, 2017 that totalled $578.5 million, up 1.1 per cent from a year earlier, though overall profit was down 11 per cent, to $71.1 million from $80.7 million. Cogeco said that the revenue increase was driven by growth of 1.4 per cent in its communication segment, offset by a 4.3 per cent decrease in its “other” segment that was “mainly attributable to market pressure in the media activities in the fourth quarter.” Meanwhile, the profit decline “resulted mainly from a decrease in adjusted .” Revenue in its Canadian broadband services division was up 1.4 per cent, to $324.9 million. The company said in its annual report that was “mainly due to the impact of rate increases implemented in December 2016, the continued growth in Internet services customers combined with the movement of customers to higher value packages,” and offset by a decline in TV and landline customers, the CRTC’s interim decision to reduce wholesale access rates and “last year's non-recurring revenue of $1.7 million.” The company lost 6,130 Canadian landline customers, slightly more than the 5,463 it lost in the same quarter last year, ending the quarter with a total of 426,356. It was also down 9,065 TV customers, up from the 7,934 it lost a year ago, for a total of 720,636. Cogeco said that loss “resulted mainly from service category maturity and a changing video consumption environment, partly offset by the customers' ongoing interest in TiVo's digital advanced video services, as well as bundles with fast Internet offerings, in spite of competitive offers in the industry.” However, it added 5,519 internet customers, a number that was nearly unchanged from the 5,615 it added in Q4 2016. It had a total of 769,869 Canadian internet customers. “Internet net additions continue to stem from customers' ongoing interest in high speed offerings and in digital advanced video services which require an Internet subscription, the continued growth of customers from Internet resellers as well as the sustained interest in bundle offers,” the company said. Those trends made for a net loss of 9,676 customers in the quarter with a total customer base in Canada of 1.9 million. Its U.S. broadband service revenue was up 4.7 per cent to $158.1 million in the quarter, which it said was “a result of the continued growth in Internet and telephony services customers in both the residential and business sectors combined with rate increases implemented in September 2016, partly offset by lower video customers and the depreciation of the US dollar against the Canadian dollar compared to the same period of the prior year.” Cogeco added 1,022 landline customers in the U.S., nearly the same number it added a year ago, for a total of 101,755. It lost 1,180 TV customers, fewer than the 1,520 it lost last Q3, ending the quarter with 236,139 TV subscribers. It added fewer internet subscribers than it did a year ago — 2,791 compared to 4,212 — for a total of 273,127. Its total U.S. customer base stood at 611,021 after adding 2,633 customers in the quarter.

Cogeco revenue up, profits dip in Q4

Brief | November 3, 2017

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Cogeco revenue up, profits dip in Q4

Brief | November 3, 2017

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