Cogeco Communications posted increased profits in the fourth quarter, and said it is revising its financial projections for fiscal 2022 upwards to take into account the impact of the acquisition of the cable systems in Ohio.
The company reported on Thursday after markets closed a profit of $ 96.2 million, or $ 2.05 per share, up from a profit of 90.8 million, or 1 , $ 90 per share a year earlier.
This increase is mainly due to the decrease in financial charges, Cogeco indicates in the press release presenting its financial results.
Adjusted EBITDA was $ 290.6 million, a decrease of 1.3% compared to the corresponding period last year due in particular to the depreciation of the US dollar and the intensification of marketing and advertising within the broadband service industries.
Its revenues increased 4.5% to $ 632.7 million.
Thus, revenues from Canadian broadband services increased by 10.1% mainly due to the acquisition of DERYtelecom concluded on December 14, 2020 and, “to a lesser extent, due to the growth in the number of customers of the internet service and a combination of higher value products, ”says the company.
US broadband service revenues increased 5.8%, mainly due to the higher number of internet service customers as well as a combination of higher value products.
Cash flow from operating activities increased 10.5% to $ 281.5 million.
“In the United States, Atlantic Broadband posted good results during the last quarter, which is in line with our annual financial projections,” Cogeco Communications President and CEO Philippe Jetté said in a statement.
Regarding the acquisition by Atlantic Broadband, on 1er WideOpenWest cable systems in Ohio for a purchase price of US $ 1.125 billion in September, Jetté said he “looks forward to reporting on integration activities in the next quarter.”
To take into account the impact of this acquisition, Cogeco Communications is revising upwards its financial projections for fiscal 2022.
The company expects revenue growth to be between 15% and 17%, and adjusted EBITDA between 14% and 16%. Acquisitions of property, plant and equipment are expected to be between $ 815 million and $ 845 million.
In addition, a quarterly eligible dividend of $ 0.705 was declared, compared to $ 0.64 for the previous year.