Business
Cogent Communications Reports First Quarter 2020 Results and Increases Regular Quarterly Dividend on Common Stock
WASHINGTON, May 7, 2020 /PRNewswire/ -- Financial and Business Highlights Cogent approved a $0.02 increase per share to its regular quarterly dividend to
About this update from Cogent Communications Holdings, Inc.
[{"type":"text","content":"WASHINGTON, May 7, 2020 /PRNewswire/ --\n\n \n \n \n \n \n \n\n \nFinancial and Business Highlights\nCogent approved a $0.02 increase per share to its regular quarterly dividend to $0.68 per share for Q2 2020 from $0.66 per share for Q1 2020 – Cogent's thirty-first consecutive quarterly dividend increase. The Q2 2020 $0.68 dividend per share represents an annual increase of 13.3% from the dividend per share of $0.60 for Q2 2019. Service revenue, on a constant currency basis, increased by 0.6% from Q4 2019 to Q1 2020 and increased from Q1 2019 to Q1 2020 by 5.6%. Service revenue increased by 0.4% from Q4 2019 to Q1 2020 and increased from Q1 2019 to Q1 2020 by 5.1%.GAAP gross profit increased by 9.6% from Q1 2019 to $65.5 million for Q1 2020. Non-GAAP gross profit increased by 6.3% from Q1 2019 to $85.2 million for Q1 2020. GAAP gross margin increased by 200 basis points from Q1 2019 to Q1 2020 to 46.5%. Non-GAAP gross margin increased by 70 basis points from Q1 2019 to Q1 2020 to 60.5%.Net cash provided by operating activities decreased to $28.5 million for Q1 2020. EBITDA decreased by 4.4% from Q4 2019 to $50.4 million for Q1 2020 and increased by 6.0% from Q1 2019 to Q1 2020. EBITDA margin decreased by 180 basis points from Q4 2019 to 35.8% for Q1 2020 and increased by 30 basis points from Q1 2019 to Q1 2020.Cogent Communications Holdings, Inc. (NASDAQ: CCOI) (\"Cogent\") today announced service revenue of $140.9 million for the three months ended March 31, 2020, an increase of 5.1% from the three months ended March 31, 2019 and an increase of 0.4% from the three months ended December 31, 2019. Foreign exchange negatively impacted service revenue growth from the three months ended December 31, 2019 to the three months ended March 31, 2020 by $0.2 million and negatively impacted service revenue growth from the three months ended March 31, 2019 to the three months ended March 31, 2020 by $0.7 million. On a constant currency basis, service revenue grew by 0.6% from the three months ended December 31, 2019 to the three months ended March 31, 2020 and grew by 5.6% from the three months ended March 31, 2019 to the three months ended March 31, 2020.\nOn-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. On-net revenue was $103.5 million for the three month...