MONTREAL – Surging fourth quarter profits helped drive Cogeco’s “strong” year-end results, the cable and media company said Thursday.
For the fiscal year ended August 31, Cogeco Inc. reported a 9.2% increase in consolidated revenue to reach $1.44 billion, while fourth-quarter consolidated revenue grew 12.5% year-over-year to $375.4 million.
Quarterly net income was $21.1 million, up almost 72% from $12.3 million in the same period last year, though the company recorded a $9 million net loss for the year due in large part to an $225.9 million impairment loss of recorded on its investment in its Cabovisao subsidiary in Portugal.
"Cogeco posted strong results for fiscal 2011, a year marked by both organic and external growth”, said president and CEO Louis Audet, noting the company's acquisitions of Corus' Quebec radio stations, Quiettouch and telco MTO. “For fiscal 2012, we expect growth in most of our performance indicators. Our primary focus will be to integrate our new acquisitions, strengthen our competitive positioning and continuously improve our processes and practices to create more value for our customers, announcers, listeners, shareholders and employees."
At Cogeco Cable, the main operating subsidiary of Cogeco Inc., revenue generating units (RGU) grew by 38,344 and 228,111 net additions in the quarter and fiscal year, respectively, for a total of 3,407,460 at August 31 – 2.58 million in Canada and 831,665 in Europe.
Fourth-quarter profits shot up 75% to $69.6 million from $39.7 million for the corresponding period of the prior year. Despite a 6.2% increase in yearly revenue, the impairment loss at Cabovisao resulted in a consolidated net loss of $47.7 million for fiscal 2011, well below its $157.3 million net income in 2010.
Cogeco Cable ended the year with 877,985 basic cable subscribers (down 1,369 in the fourth quarter), 678,326 digital TV customers, 601,214 Canadian high speed Internet customers, and 418,270 telephony service customers.
“Cogeco Cable finished fiscal 2011 with results meeting or exceeding most of our objectives”, added Audet.
Cogeco also updated it preliminary financial guidelines issued in July to reflect its business acquisitions in the cable sector. For fiscal 2012, it is anticipating revenue of approximately $1.567 billion and operating income before amortization of about $615 million.
