Business
Cogeco Cable reports substantial growth and expects sustained improvements for fiscal 2007
Cogeco Cable reports substantial growth and expects sustained improvements for fiscal 2007.
About this update from Cogeco Communications Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, July 10 /CNW Telbec/ - Today, Cogeco Cable Inc. (TSX: CCA)\nannounced its financial results for the third quarter of fiscal 2006, ended\nMay 31.\n\nMajor customer growth\n---------------------\n\nCogeco Cable reported strong increases in its revenue-generating units(1)\n(RGU), adding more than 48,000 RGUs, compared to 6,400 for the same period\nlast year, driving a revenue increase of 9.9%. Operating income before\namortization has improved by 8.5% while net income jumped by 50% to stand at\n$12.4 million.\n\nRevised 2006 guidelines\n-----------------------\n\n\"Our operations continue to improve, exceeding most of our projections.\nTherefore, we have revised our 2006 guidelines, setting our revenue\nexpectations to about $600 million, operating income before amortization to\napproximately $245 million and free cash flow(2) should remain between\n$20 million and $25 million\", said Mr. Louis Audet, President and Chief\nExecutive Officer of Cogeco Cable.\n\nGrowth by business acquisition\n------------------------------\n\nOn June 2, Cogeco Cable entered into an agreement with Cable Satisfaction\nInternational Inc. (CSII), Catalyst Fund Limited Partnership I (Catalyst) and\nCabovisao - Televisao por Cabo, S.A. (\"Cabovisao\"), to purchase, at a cost of\n(euro) 464.9 million, all the shares of the second largest cable operator in\nPortugal, an indirect wholly-owned subsidiary of CSII. This agreement and its\nexecution by the monitor and interim receiver RSM Richter Inc. on behalf of\nCSII was approved by the Superior Court of QuDebec on July 4, 2006, thus\nfulfilling one of the conditions precedent to the sale and purchase of the\nCabovisao shares. Cogeco Cable is pleased with Cabovisao's growth potential\nand expects to make attractive additions to the services already provided to\nits customers. \"This acquisition is consistent with Cogeco Cable's strategy to\npursue external growth opportunities and Cabovisao is well positioned in the\nhigh-growth cable telecommunications market in Portugal\", stated Mr. Audet.\n\n2007 projections - Canada\n-------------------------\n\nFor fiscal 2007, Cogeco Cable expects continued increases in high-speed\nInternet (HSI), digital video and digital telephony services. Revenue from the\nCanadian operations should consequently improve by between 10% and 12%. An\noperating margi...