Business
Cogeco Cable revises its guidance due to strong first quarter 2007 results
Cogeco Cable revises its guidance due to strong first quarter 2007 results.
About this update from Cogeco Communications Inc.
[{"type":"text","content":"\n\n\n\nMONTREAL, Jan. 11 /CNW Telbec/ - Today, Cogeco Cable Inc. (TSX: CCA)\nannounced its financial results for the first quarter ended November 30, 2006.\n\n\nGrowth from business acquisition\n\n\n--------------------------------\n\n\nThe newly acquired Portuguese operations, Cabovisao-Televisao por Cabo,\nS.A. (Cabovisao), is on its way to achieving its 2007 financial projections,\nsupported by the increase of about 21,300 revenue generating units (RGUs(1)).\n\"Cabovisao is progressing according to our plan\", said Mr. Louis Audet,\nPresident and CEO of Cogeco Cable. The Portuguese operations generated revenue\nof $54.1 million while operating income before amortization was $18.3 million\nfor an operating margin of 33.9%.\n\n\nExceptional growth from the Canadian operations propels financial results\n\n\n-------------------------------------------------------------------------\n\n\n\"The Canadian operation's first quarter of fiscal 2007 was certainly one\nof Cogeco Cable's best. RGU growth increased revenue and operating income\nbefore amortization, thus exceeding our expectations,\" continued Mr. Audet.\nDuring the first quarter, the Canadian operations reported very strong RGU\nincreases, with more than 93,000 net additions compared to about 61,000 for\nthe same period last year. First quarter revenue grew by 17.1% compared to the\nsame period last year, reaching $167.9 million while operating income before\namortization improved by 14%, reaching $65.3 million.\n\n\nSolid consolidated financial results\n\n\n------------------------------------\n\n\nOn a consolidated basis, revenue increased by 54.8%, operating income\nbefore amortization by 46% and net income by 39.3% compared to the same period\nlast year. The Corporation's first quarter operating margin was 37.7% compared\nto 40% last year due to newly acquired Cabovisao's lower but rising operating\nmargin.\n\n\nImproved 2007 financial projections\n\n\n-----------------------------------\n\n\nThe first quarter's higher than expected results from the Canadian\noperations lead the Corporation to revise most of its projections upwards for\nthe fiscal 2007. Management expects to add between 287,000 and 305,000 RGUs,\nconsolidated revenue should reach $925 million, operating income before\namortization should reach approximately $355 million, while the operating\nmargin shou...