Business
Cogent Communications Reports Second Quarter 2020 Results and Increases its Regular Quarterly Dividend on its Common Stock by $0.025
WASHINGTON, Aug. 6, 2020 /PRNewswire/ -- Financial and Business Highlights Cogent approved an increase of $0.025 per share to its regular quarterly dividend
About this update from Cogent Communications Holdings, Inc.
[{"type":"text","content":"WASHINGTON, Aug. 6, 2020 /PRNewswire/ -- \n\n \n \n \n \n \n \n\n \nFinancial and Business Highlights\nCogent approved an increase of $0.025 per share to its regular quarterly dividend for a total of $0.705 per share for Q3 2020 as compared to $0.68 per share for Q2 2020 – Cogent's thirty-second consecutive quarterly dividend increase and a greater increase than the $0.02 per share increase in Q2 2020. The Q3 2020 $0.705 dividend per share represents an annual increase of 13.7% from the dividend per share of $0.62 for Q3 2019. Service revenue, on a constant currency basis, increased by 0.2% from Q1 2020 to Q2 2020 and increased from Q2 2019 to Q2 2020 by 5.1%. Service revenue increased by 0.1% from Q1 2020 to Q2 2020 and increased from Q2 2019 to Q2 2020 by 4.6%.GAAP gross profit increased by 11.3% from Q2 2019 to $67.2 million for Q2 2020. Non-GAAP gross profit increased by 8.4% from Q2 2019 to $87.4 million for Q2 2020. GAAP gross margin increased by 290 basis points from Q2 2019 to Q2 2020 to 47.7%. Non-GAAP gross margin increased by 220 basis points from Q2 2019 to Q2 2020 to 62.0%. Net cash provided by operating activities increased by 45.2% from Q1 2020 to $41.3 million for Q2 2020 and increased by 1.7% from Q2 2019. EBITDA increased by 5.9% from Q1 2020 to $53.3 million for Q2 2020 and increased by 13.3% from Q2 2019. EBITDA margin increased by 200 basis points from Q1 2020 to 37.8% for Q2 2020 and increased by 290 basis points from Q2 2019.Cogent issued €215 million of Senior Euro Notes due in 2024 in June for net proceeds of $240.3 million. The net proceeds were used to redeem and extinguish its $189.2 million of Senior Notes due in 2021 at par and to provide cash for general corporate purposes including to dividend cash from its operating companies to Cogent Holdings, Inc. Cogent Communications Holdings, Inc. (NASDAQ: CCOI) (\"Cogent\") today announced service revenue of $141.0 million for the three months ended June 30, 2020, an increase of 0.1% from the three months ended March 31, 2020 and an increase of 4.6% from the three months ended June 30, 2019. Foreign exchange negatively impacted service revenue growth from the three months ended March 31, 2020 to the three months ended June 30, 2020 by $0.2 million and negatively impacted service revenue growth from the three months ended June 30, 2019 to the three months e...