Cogeco Câble inc.

December 05, 2006 23:59 ET

Growth, acquisition and positive results for Cogeco Cable in 2006

TORONTO, Dec. 5 - For fiscal 2006, Cogeco Cable Inc. (TSX:CCA) reported important customer growth thanks to a sustained addition of customers in its Canadian territories and to the addition of customers from
its newly acquired Portuguese affiliate, Cabovisao - Televisao por Cabo, S.A.,
(Cabovisao). Thus, most performance indicators showed increases. For fiscal
year 2006, consolidated revenue increased by $65.6 million, consolidated
operating income before amortization rose by $25.5 million, net income
amounted to $65.6 million, or $1.64 per share, and to $45.6 million, or
$1.14 per share, excluding the impact of the income tax recovery.

Growth by business acquisition


With the acquisition of Cabovisao as a contributing factor, the number of
revenue-generating units(1) (RGUs) jumped from about 1,348,000 at the
beginning of the fiscal year to approximately 2,185,000 at the end of August
2006. "The arrival of Cabovisao in our Corporation, with about 629,000 RGUs,
is very promising. With the well-trained and enthusiastic people in Portugal,
we are working to improve our position in that market", said Mr. Louis Audet,
President and CEO of Cogeco Cable.

Customer growth in Canada


In fiscal 2006, the Canadian operations reported continuous growth in all
services. "We are in a very good position to sustain growth in Canada with
more than 208,000 RGUs added to our base in 2006 as a result of the positive
impact of our Digital Telephony service," added Mr. Audet. For fiscal 2007,
Cogeco Cable is aiming to continuous improvement in attracting new customers.

2007 Customer growth in Portugal


In Portugal, we expect to add more than 75,000 RGUs, essentially equally
divided between basic cable, High Speed Internet (HSI), and Telephony. Revenue
generated from the Portuguese operations should exceed $215 million and
operating income before amortization should reach approximately $70 million.

"For fiscal 2007, all Cogeco Cable employees here and abroad will aim to
increase customer satisfaction through improved customer service and enhanced
product and service offerings. We will maintain tight controls over the
Corporation's costs and we will work to continue to improve our business
processes. With regards to our new Portuguese subsidiary, the Cabovisao
integration plan is well advanced and we believe Cabovisao will contribute to
the creation of value for Cogeco Cable's shareholders as early as this fiscal
year", concluded Mr. Audet.


Cogeco Cable (, a telecommunications company offering a
diverse range of services to its customers in Canada and in Portugal, is the
second largest cable operator in Ontario, Québec and Portugal, in terms of the
number of basic cable service customers served. The Corporation invests in
state-of-the-art broadband network facilities, delivers a wide range of
services over these facilities with great speed and reliability at attractive
prices, and strives to provide both superior customer care and growing
profitability to satisfy its customers' varied electronic communication needs.
Through its two-way broadband cable networks, Cogeco Cable provides its
residential and commercial customers with analog and digital video and audio
services, high speed Internet access as well as telephony services. The
Corporation provides about 1,556,000 revenue-generating units (RGUs) to
approximately 1,477,000 homes passed in its Canadian service territory and
629,000 RGUs to approximately 826,000 homes passed in its Portuguese service
territory. Cogeco Cable's subordinate voting shares are listed on the Toronto
Stock Exchange (CCA).

(1) Revenue-generating units represent the sum of basic service, Digital Television service, HSI service and Telephony service customers.

Contact Information

  • Media : Marie Carrier, Director, Corporate
    Communications, (514) 874-2600; Source: Cogeco Cable Inc., Pierre Gagné, Vice
    President, Finance and Chief Financial Officer, (514) 874-2600