(Montreal) Cogeco Communications posted increases of 16% in revenues and 0.1% in profits in the first quarter, a result fueled by its American subsidiary Breezeline, formerly known as Atlantic Broadband.
Posted at 8:03 p.m.
Updated at 8:09 p.m.
Revenue for the three months ended Nov. 30, 2021 was $718.5 million largely due to a 31% increase in constant currency U.S. broadband revenue.
Cogeco communications attributes this increase mainly to the acquisition of cable systems in Ohio, completed on 1er last September and the higher number of internet service customers.
These factors were partially offset by costs related to Atlantic Broadband’s brand repositioning.
Breezeline completed the acquisition of the systems in Ohio for a purchase price of C$1.418 billion.
For their part, revenues from Canadian broadband services increased by 8.2%, mainly due to the acquisition of DERYtelecom completed on December 14, 2020.
Cogeco Communications’ first-quarter profit was $106.8 million, up 0.1% from the same period a year earlier, said Thursday’s quarterly earnings release, after markets closed. .
Earnings per share were $2.29, compared with $2.24 a year earlier.
According to the Montreal-based company, the increase was primarily due to higher adjusted EBITDA and lower income tax expense, partially offset by higher amortization expense, integration, restructuring and acquisition and financial charges.
Cash flow from operating activities increased by 18.7% to $286.9 million.
Analysts polled by Refinitiv had expected revenues of $717.7 million and earnings per share of $2.06 for Cogeco Communications in the first quarter.
Earnings at parent company Cogeco fell 4.9% from the first quarter last year.
It amounted to 38.5 million, or $2.42 per share, compared to 40.5 million, or $2.55 per share, a year earlier.
Cogeco attributes the decline mainly to an increase in depreciation and amortization, integration, restructuring and acquisition costs and financial charges.
Revenues within the media sector fell 2.6%, mainly because radio advertising “continues to be directly impacted by reductions or halts in advertising activities in certain segments of the retail sector in the context of the COVID-19 pandemic, as well as due to the slow economic recovery for media companies.
During its January 13 meeting, the Board of Directors of Cogeco Communications declared a quarterly eligible dividend of $0.705 per share, compared to a dividend of $0.64 per share during the corresponding quarter of fiscal 2021 .