On Wednesday, the Quebec-based media and communications company reported its Q2, 2013 numbers. Cogeco earned $58.45-million on revenue of $429.7-million, which was up 35.2% over last year’s Q1.
CEO Louis Audette commented on the Peer 1 pickup in Wednesday’s press release.
“The integration of our more recent acquisition of Peer 1 is running smoothly, and we are in line with meeting the objectives we had communicated last December,” he said. “With increased operating margin, moderate yet steady organic revenue increase, and encouraging growth prospects for the Enterprise services segment, I am confident that we will deliver on our updated projections for 2013, which were modified to include Peer 1 operating results. Looking forward to the third quarter, we are focused on continuing our efforts to fully capitalize on our acquisitions and maintaining efficiencies across all of our operations.”
Goff says he remains positive about Cogeco’s growth potential in cable, despite some recent moderation seen in residential subscriber growth domestically. He says the company’s acquisition of Atlantic Broadband, which he initially thought would be very difficult, has actually contributed to free cash flow. Management’s positive $65 million revision to its fiscal 2013 free cash flow guidance after the first quarter of this year, was largely attributed to Atlantic Broadband, he says. In a research update to clients this morning, Goff maintained his BUY rating and raised one-year price target by two dollars to $52.
Founded in 1957, Quebec-based Cogeco is Canada’s fourth largest cable systems operator. The company, which also owns local community TV and adult contemporary radio assets, has grown its revenue from $746.9-million in 2006 to nearly $1.3-billion in fiscal 2012, which it reported last November 1st.
Shares of Cogeco closed today up .1% to $44.52.
We Hate Paywalls Too!
At Cantech Letter we prize independent journalism like you do. And we don't care for paywalls and popups and all that noise That's why we need your support. If you value getting your daily information from the experts, won't you help us? No donation is too small.