Business
Growth and increased profitability for COGECO in 2006
Growth and increased profitability for COGECO in 2006.
About this update from Cogeco Inc.
[{"type":"text","content":"\n\n\n\nMONTREAL, Dec. 12 /CNW Telbec/ - For fiscal 2006, COGECO Inc. (TSX: CGO)\nannounced improvement in most of its performance indicators. Whereas the cable\nsector greatly contributed to this improvement with strong internal and\nexternal growth, results in the media sector were characterized by growth in\nradio and stabilization in television.\n\n\nCOGECO's revenue totalled $746.9 million, an increase of 10.6% compared\nto the prior fiscal year mainly as a result of the cable sector's revenue\ngrowth of $65.6 million. In addition, operating income before amortization\nincreased by 8.2% to reach $253.1 million thanks to a $25.5 million\ncontribution from the cable sector, offset by a $7.4 million decrease in the\nmedia sector. Excluding the net effect of the income tax recovery after\nnon-controlling interest, net income would have stood at $15.2 million.\nHowever, net income stood at $23.1 million when this element was included.\n\n\n\"COGECO's results, especially those of its cable subsidiary, improved. An\nexceptional increase of 62.1% in the number of revenue-generating units (RGU)\nwas reported, with more than 208,000 coming from Canada, mainly as a result of\nthe positive impact of the deployment of our Digital Telephony service that\nencouraged our customers to subscribe to more than one service. Furthermore,\nthe acquisition of Cabovisao - Televisao por Cabo, S.A., the second largest\ncable telecommunications company in Portugal, contributed to this growth with\nthe addition of 629,000 RGUs. As for our media subsidiary, the RYTHME FM\nnetwork is making its mark in its regional markets while maintaining its\nleadership position in Montreal's Francophone market. In addition, TQS\nexperienced a year of transition and stabilization, thanks to changes made\nwithin the management team and to new and very successful shows\", said\nMr. Louis Audet, President and CEO of COGECO, at the Company's annual\nshareholders' meeting.\n\n\nCable sector\n\n\nFor fiscal year 2006, consolidated revenue increased by $65.6 million to\nreach $620 million, consolidated operating income before amortization rose by\n$25.5 million, net income amounted to $65.6 million, and to $45.6 million,\nwhen excluding the impact of the income tax recovery.\n\n\nDuring fiscal 2006, Canadian operations in the cable sector reported\ncontinuous growth in all s...