Cogeco reports year end financial results

cogecoCogeco, the nation’s fourth largest cable provider, today announced its financial results for the fourth quarter and fiscal year ending August 31, 2011.

The company reported consolidated revenue of $375.4 million during the final quarter of the year, up 12.5% over the same period in 2010. Revenues for the entire 2011 fiscal year were $1.44 billion, up 9.2% from 2010.

Operating income for the quarter and the year were up 15.3% and 11.6% to $158.8 million and $579.6 million respectively.

Unfortunately for Cogeco shareholders, despite the large increase in revenues and operating income, the company actually lost $9 million during the year primarily due to a write-down of its Portuguese subsidiary of $225.9 million. The write down, which took place in the third quarter, was necessary as Cabovisão loses customers and is forced to lower prices during Portugal’s current economic crisis.

Subscriber Counts

By August 31, 2011, the consolidated number of Revenue Generating Units or RGUs, in the Portuguese and Canadian cable sector reached 3,407,460, up 38,344 in the final quarter and up 228,111 for the year. RGU’s represent the sum of basic service, digital video service, HSI service and digital telephony service customers.

In Canada, Cogeco’s revenue-generating units reached 2,575,795, up 225,218 for the year. The following are Cogeco Canadian subscriber counts as of August 31, 2011. (numbers in parenthesis’ are for August 31, 2010)

  • Homes Passed – 1,622,420 (1,593,743)
  • Revenue Generating Units – 2,575,795 (2,350,577)
  • Basic cable customers – 877,985 (874,505)
  • Digital Television customers – 678,326 (559,418)
  • High Speed Internet customers – 601,214 (559,057)
  • Digital phone lines – 418,270 (357,597)

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