Business
COGECO Inc.: substantial growth in the third quarter for the cable sector and sustained progress in the media sector
COGECO Inc.: substantial growth in the third quarter for the cable sector and sustained progress in the media sector.
About this update from Cogeco Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, July 10 /CNW Telbec/ - Today, COGECO Inc. (TSX: CGO) announced\nits financial results for the third quarter of fiscal 2006, ended May 31.\n\nSustained improvements\n----------------------\n\nCOGECO continues to generate sustained improvements in its major\nperformance indicators. Revenue is up 9.4%, operating income before\namortization by 3.6% and net income by 11.4%. Following increased demand for\ndigital telephony, high-speed Internet (HSI) and digital video services, the\ncable sector experienced substantial growth. In the media sector, TQS is well\nprepared for the new television season and the radio stations are gaining\nmarket share in audiences and revenue in all markets.\n\nCable Sector:\n-------------\n\nContinued internal 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. The digital telephony service keeps attracting new clients\nhaving snowball effect on all other services. \"Our new digital telephony\nclients are discovering the advantages of cable, most of them enjoying more\nthan one of Cogeco Cable's services\", said Mr. Louis Audet, President and\nChief Executive Officer of COGECO.\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 it already provides\nto its customers. \"This acquisition is consistent with Cogeco Cable's strategy\nto pursue e...