MONTREAL — Cogeco Inc. announced yesterday that its revenues and profits increased in its fiscal second quarter compared to the same period last year, with activity south of the border helping drive those numbers.
For the period ending on February 28, revenues increased by 14.5% to $748.1 million and profits increased 7.8% to $118.8 million versus the comparable period last year, with carry from its purchase last year of the broadband facilities of WideOpenWest in Ohio and organic growth in the US, as well as the purchase of Quebec’s Derytelecom in late 2020.
Revenues from American broadband services — called Breezeline as of January — increased by 31.3% in constant currency (the company deals with both US and Canadian dollars), while Canadian broadband services revenues increased by 2.1% — driven by Derytelecom.
The Montreal-based company said its numbers were in line with its expectations. Earnings before interest, taxes, depreciation and amortization increased by 13.2% to $349.2 million. American operations increased EBITDA by 31.4% and that figure on the Canadian side increased by 1.7%.
The company saw fewer net new additional subscribers this quarter at 2,739 compared to 4,431 in the same quarter last year. Its total based of subscribers is 921,043 as of the end of the second quarter.
Canaccord Genuity analyst Aravinda Galappatthige said in a Thursday note that the internet additions were below its expectation of 5,000.
The company lost 5,152 video subscribers this quarter compared to 5,029 in the comparable period in 2021, while losing 3,222 telephone customers – fewer than the 4,175 customers it last in the equivalent period last year.
The company’s media division limped in the previous quarter due to pandemic restrictions on advertising, but bounced back this quarter due with revenues increasing by 5% due to “easing of public health restrictions.”
Galappatthige said he expects some commentary on the company’s wireless expansion plans, which it has been hinting at for months and is expected following the company’s purchase of $295-million worth of 3.5 GHz spectrum in the summer auction.
But on a conference call today, executives said the company still awaits news of terms and conditions from the CRTC on its mobile virtual network operator regime, which it said would give the company a better idea of whether a mobile business is feasible. Cogeco CEO Philippe Jette previously said he expects a ‘late spring, early summer’ release for the terms.
