(Montreal) Cogeco announced revenues up 16.3% in the third quarter compared to last year with revenues of 754.8 million. For the same period, the telecommunications and media company saw its profit grow by 3.3%.
Posted at 7:54 p.m.
With this increase, profits for the third quarter amounted to 108.5 million. For shareholders, this translates into a quarterly dividend of $0.625 per share, the company said in a press release. Again, this is a gain from the $0.545 per share earned the previous year.
The strong revenue growth is mainly explained, according to Cogeco, by the performance of American Broadband Services, stimulated by the acquisition of cable systems in Ohio, last September. Added to this is internal growth linked to an increase in the number of customers and price increases.
Regarding the media sector, revenues also experienced an interesting growth of 6.8%. A performance attributed to the relaxation of health restrictions. During the previous fiscal year, radio advertising revenues had suffered greatly from the containment measures imposed in Quebec to fight against COVID-19.
Going back to the quarterly profit of 108.5 million, a share of $2.38 per share goes to the owners of the company.
Due to its performance, Cogeco is maintaining its financial projections for 2022.
“Our achievement […] was in line with expectations, despite an increasingly difficult economic context,” said President and Chief Executive Officer Philippe Jetté in a press release.
For 2023, Cogeco discloses financial projections, based on a constant exchange rate, including revenue growth between 2% and 4%. Investments of 750 million to 800 million are planned, in particular for projects to expand its telecommunications network.