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Cable Sector: Cogeco
Cable Inc. > Media Sector: Cogeco Radio-Television Inc.
COGECO Inc.
COGECO Inc. (TSX:CGO) is a diversified communications company that strives to meet the communication needs of consumers and advertisers through cable distribution and broadcasting.
Cogeco Cable, the cable subsidiary (TSX:CCA), builds on its cable distribution base by offering Analogue and Digital Television, High Speed Internet and Telephony services.
Cogeco Cable provides 2,569,000 revenue-generating units to the 2,365,000 homes passed by its cable network in the territories it serves. It is the second largest cable telecommunications company in Ontario, Québec, and Portugal in terms of Basic Cable service customers.
Cogeco Cable focusses its attention on the satisfaction of customers’ varied electronic communication needs by investing in state-of-the-art broadband network facilities, delivering a wide range of services over these facilities with great speed and reliability at attractive prices, and striving to provide superior customer care and growing profitability.
Through its Cogeco Radio-Television Inc. subsidiary (CRTI), COGECO operates and wholly-owns the RYTHME FM network which has four radio stations throughout the Province of Québec, in Montréal, Québec City, and in the Mauricie and Eastern Townships regions, as well as radio station 933 in Québec City.
COGECO intends to remain at the forefront of the communications sector through sound investments in facilities, the offering of leading edge communications services while pursuing increased profitability
Financial Highlights
| |
Quarters ended
November 30,
|
| ($000s) |
2007
(unaudited)
|
2006
(unaudited)
|
| Revenue |
292,770 |
263,292 |
| Operating income before amortization |
104,010 |
88,367 |
Net income (loss)
|
(9,976) |
6,751 |
|
| Cash flow from operations(1) |
83,858 |
66,035 |
| Less: |
|
|
| Capital expenditures & increase in deferred charges |
58,549 |
74,615 |
| Free Cash Flow(1) |
25,309 |
(8,580) |
(1) Cash flow from operations and free cash flow do not have standard definitions prescribed by Canadian generally accepted accounting principles (GAAP) and should be treated accordingly. For more details, please consult the MD&A section of the 2007 annual report.
Share Information
As of December 31, 2007
| Trading symbol |
CGO |
| Stock exchange listing |
The Toronto Stock Exchange |
| Multiple voting shares |
|
| (20 votes per share) outstanding |
1,842,860 |
Subordinate voting shares (1 vote per share) outstanding |
14,830,086 |
| Total voting shares outstanding |
16,672,946 |
| Gestion Audem Inc., private company controlled by Mr. Henri Audet:
|
| - Equity ownership |
16.5% |
| - Voting rights |
71.8% |
Dividend Information
| Quarterly dividend: |
$0.07 |
| Payable date: |
February 6, 2008 |
| Record date: |
January 23, 2008 |
Cable
Sector
Cogeco Cable Inc
Profile
Cogeco Cable Inc. (TSX:CCA) is a major cable telecommunications company that builds on its cable distribution base offering Analogue and Digital Television, High speed Internet and Telephony services.
Cogeco Cable provides 2,569,000 revenue-generating units to the 2,365,000 homes passed by its cable network in the territories it serves. It is second largest cable system operator in Ontario, Québec and Portugal in terms of Basic Cable service customer served.
Mission
Cogeco Cable focusses its attention on the satisfaction of customers’ varied electronic communication needs by investing in state-of-the-art broadband network facilities, delivering a wide range of services over these facilities with great speed and reliability at attractive prices, and striving to provide superior customer care and growing profitability.
Services Offered
In addition to the Basic Cable, Digital Television, High Speed Internet (''HSI'') and Telephony services, Cogeco Cable offers customers a wide range of discretionary services, including specialty television service tiers, pay television services, pay-per-view services, Video on Demand, Subscription Video on Demand, digital music channels. High Definition programming services are available to 94.1% of the customer base. Cogeco Cable also offers businesses and institutional customers competitive telecommunications services.
Network
In Canada
- 94% of homes passed are currently served by a two-way cable
system.
- 98% of homes passed have access to the Digital
Television service.
In Portugal
- 100% of homes passed are currently served by a two-way cable
system.
Breakdown of Customers
As of November 30, 2007
|
|
Homes passed |
Basic Cable Service Customers |
% of penetration (1)
|
| Canada |
1,494,759 |
857,221 |
57.3% |
| Portugal |
869,940 |
298,936 |
34.4% |
| Total |
2,364,699 |
1,156,157 |
48.9% |
|
|
Digital Television Service Customers |
HSI Service Customers |
Telephony Service Customers |
| Canada |
369,132 |
441,130 |
166,851 |
| Portugal |
---- |
163,829 |
244,590 |
| Total |
396,132 |
604,959 |
411,441 |
(1) As a percentage of homes passed.
Financial Highlights
| |
Quarters ended
November 30,
|
| ($000s) |
2007
(unaudited)
|
2006
(unaudited)
|
| Revenue |
251,833 |
222,002 |
| Operating income before amortization |
98,337 |
83,662 |
| Operating margin |
39.0% |
37.7% |
| Net income |
20,363 |
12,535 |
Cash flow from operations(1) |
79,753 |
62,060 |
| Less: |
|
|
| Capital expenditures & increase in deferred charges |
58,144 |
74,383 |
| Free Cash Flow(1) |
21,609 |
(12,323) |
(1) Cash flow from operations and free cash flow do not have standard definitions prescribed by Canadian generally accepted accounting principles (GAAP) and should be treated accordingly. For more details, please consult the MD&A of the 2007 annual report.
Share Information
As of December 31, 2007
| Trading symbol |
CCA |
| Stock exchange listing |
The Toronto Stock Exchange |
| Multiple voting shares (10 votes per share) outstanding |
15,691,100 |
Subordinate voting shares (1 vote per share) outstanding |
32,809,659 |
| Total voting shares outstanding |
48,500,759 |
| Shares held by COGECO Inc., the parent company: |
|
| - Equity ownership |
32.4% |
| - Voting rights |
82.7% |
Dividend Information
| Quarterly dividend: |
$0.10 |
| Payable date: |
February 6, 2008 |
| Record date: |
January 23, 2008 | |
|
Media Sector
COGECO RADIO-TELEVISION INC.
Television
Through its wholly-owned subsidiary, Cogeco Radio-Television
Inc., COGECO holds a major interest in (60% of the capital) and operates the TQS
network, serving Québec's major markets in the French language through the
operation of eight television stations: five TQS television stations and three SRC
(Société Radio-Canada) affiliated televisions stations, in partnership with an
indirect subsidiary of CTV Globemedia Inc. (40% of the capital).
The stations operate in some of these markets on the twin
broadcast antenna model, offering services from a common local production and
broadcasting infrastructure.
|
Television
Stations |
Affiliation |
Location |
|
CFJP-TV |
TQS |
Montréal |
|
CFAP-TV |
TQS |
Québec City |
|
CKSH-TV |
SRC |
Sherbrooke |
|
CFKS-TV |
TQS |
Sherbrooke |
|
CKTM-TV |
SRC |
Trois-Rivières |
|
CFKM-TV |
TQS |
Trois-Rivières |
|
CKTV-TV |
SRC |
Saguenay |
|
CFRS-TV |
TQS |
Saguenay |
However, on December 18, 2007, Cogeco ended its participation in the Television sector.
Radio
Cogeco
Radio-Television Inc. wholly owns and operates RYTHME FM radio stations in
Montréal, Québec City, and in the Mauricie and Eastern Townships regions as well
as radio-station 933 in Québec City.
|
Radio Stations |
| |
Affiliation
|
Location
|
|
105.7 FM
|
RYTHME FM
|
Laval/Montréal
|
|
91.9 FM
|
RYTHME FM
|
Québec City
|
|
93.7 FM
|
RYTHME FM
|
Sherbrooke
|
|
100.1 FM
|
RYTHME FM
|
Trois-Rivières
|
|
933
|
Independent FM Station
|
Québec
City
|
Financial Highlights
| |
Quarters ended
November 30,
|
| ($000s) |
2007
(unaudited)
|
2006
(unaudited)
|
| Revenue |
40,988 |
41,341 |
| Operating income before amortization |
3,552 |
3,054 |
| Operating margin |
8.7% |
7.4% |
Profiles updated January 9, 2008
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