MONTREAL — Cogeco Inc. last night released its financial results for the second quarter of 2021, reporting its overall revenue increased by 6.9% to reach $653.2 million for the three months ended February 28, 2021, compared to the same quarter of 2020.
Looking at which aspects of the company’s business enjoyed revenue increases in Q2 2021, Cogeco’s Canadian broadband services revenue increased by 10.1% “as a result of the DERYtelecom acquisition completed on December 14, 2020, the cumulative effect of sustained demand for residential high speed Internet since the beginning of the pandemic, and rate increases implemented for certain services, partly offset by a decline in video service customers,” reads the company’s press release.
Cogeco’s U.S. Atlantic Broadband division saw its broadband services revenue increase by 9.5% year-over-year “resulting mainly from a higher Internet service customer base, rate increases implemented for certain services and the impact of the Thames Valley Communications acquisition completed on March 10, 2020,” says the release.
However, the company’s Cogeco Media subsidiary, which owns and operates 23 radio stations mainly in Quebec, experienced lower revenue due to a decline in the radio advertising market resulting directly from the Covid-19 pandemic, the company says.
“As for our radio operations, they were negatively impacted by the pandemic with a revenue decline of 18% in the first half compared to the previous year, due to certain segments of the retail industry reducing or cutting their advertising activities. As it did in prior quarters, Cogeco Media managed its operating expenses tightly while maintaining quality programming,” says the press release.
The company’s overall adjusted EBITDA increased 10.3% to reach $308.4 million in the second quarter of 2021, with its Canadian broadband services adjusted EBITDA increasing by 11.2% and its American broadband services adjusted EBITDA increasing by 12.4%, compared to the same quarter of 2020.
Profit for Q2 2021 amounted to $110.2 million, a 2.8% decrease from Q1 2020. Free cash flow increased by 12.4% to reach $140.6 million.
“For the second quarter of fiscal 2021, we are pleased with Cogeco’s overall performance, which includes continued growth in revenue and adjusted EBITDA,” said Philippe Jetté, president and CEO, in the press release.
“In our Canadian broadband segment, we have seen growth in our customer base, with many opting for a mix of services or upgrading their existing services, highlighting the importance of our fixed broadband product at this time,” added Jetté. “Our team at Cogeco Connexion has also been hard at work with the integration of DERYtelecom and the announcement to extend high-speed Internet access in 13 regions across Québec in partnership with the Government of Canada and the Government of Québec. The government funding support is excellent news, as we continue supporting our communities and contributing to the economic vitality of regional areas.”
For more on Cogeco’s Q2 2021 financial results, please click here.
