Cogeco Câble inc.

December 08, 2005 23:59 ET

Cogeco Cable exceeds its objectives and maintains its growth projections

TORONTO, Dec. 8 2005 - For fiscal 2005, Cogeco Cable Inc. is
reporting satisfactory results. The Corporation's revenue increased by 5.3% to
$554.4 million, Operating Income rose 11.9% to $227.5 million, and operating
margin from 38.6 % to 41%. Net income has more than tripled and stands at
$28.7 million, or $0.72 per share, compared to a net loss of $32 million, or
$0.81 per share in 2004.

The number of digital and high-speed Internet (HSI) customers grew
strongly by 22.5% and 15.9% respectively to 255,000 and 278,000 customers at
year end, which eased the loss of 2,400 basic service customers.

"The 2005 results exceed our objectives. Fiscal 2005 permitted Cogeco
Cable to solidify its position and improve its financial performance. The
Corporation's current growth and promising outlook allow it to look to the
future optimistically. The launch of our digital telephony service expands our
line of products and gives our customers the best quality/price ratio
available on the market. As of the beginning of November, the service was
available to 30% of the territories served by the Corporation," stated Louis
Audet, President and Chief Executive Officer, at the Corporation's annual

During fiscal 2005, several enhancements were made to Cogeco Cable's
offer, such as the addition of many digital tiers and the expansion of high
definition and video-on-demand channels. On the other hand, the HSI service
remains the fastest on the market, and with the addition of F-Secure products,
provides value-added that is keeping with our customers' demand. Cogeco Cable
intends to continue meeting its customers' expectations for leading-edge
technological products and services. Thus, digital telephony will be extended
to most of our major markets by the end of fiscal 2006.

"Fiscal 2006 will be our opportunity to consolidate our growth, both by
increasing and enhancing our product and service offerings and by acquiring
new clienteles, within Canada and abroad. We forecast a clientele growth in
every market segment, along with a 36% increase in net income, Free Cash Flows
of around $35 million to $40 million and a 40% operating margin," Mr. Audet


Cogeco Cable is the second largest cable operator in both Ontario and
Quebec, and ranks fourth in Canada in terms of the number of basic service
customers it serves. Cogeco Cable provides about 1,356,000 revenue-generating
units to about 1,449,000 cabled households within its service territory.
Through its two-way broadband cable infrastructure, Cogeco Cable provides its
residential and commercial customers with analog and digital video and audio
services, high-speed Internet services as well as digital telephony service.
Cogeco Cable's subordinate voting shares are listed on the Toronto Stock
Exchange (CCA.SV).

Contact Information

    Marie Carrier
    Director, Corporate Communications

    Pierre Gagne,
    Vice-President, Finance and Chief Financial Officer