Cogeco Communications

Press release details


For immediate release
Cogeco Cable announces higher than projected growth in 2009
Montréal, December 10, 2009 – Cogeco Cable (the “Corporation”) (TSX: CCA) presented 2009
financial year-end results that exceeded projections despite a write-down in the value of its
European subsidiary. The results were presented at the Corporation’s Annual Meeting of
Shareholders, held in Toronto.
Consolidated revenue for 2009 grew by $141 million to total $1,217.8 million, a 13.1%
increase over the previous year. Consolidated operating income before amortization
was up
17.7% to $524.4 million. This performance is due mainly to growth in revenue-generating
units (“RGU”)
, rate increases and recent acquisitions in Canada.
The Corporation recorded a net loss of $256.7 million for the year. This loss was affected by
the impairment loss of $383.6 million net of related income taxes recorded on the
Corporation’s investement in Cabovisão, the unfavourable impact of $6.1 million from the
utilization of Cabovisão’s pre-acquisition tax losses and a favourable impact from the
reduction of withholding and stamp tax contingent liabilities in the amount of $16.1 million,
both in Cabovisão, and the favourable impact of $13.4 million from the Part II licence fee
settlement agreement net of related income taxes. Excluding the effect of these items,
adjusted net income for fiscal 2009 amounted to $103.6 million compared with $109.3 million
in 2008.
Free cash flow
was $95.4 million, down 3.5% over the previous year but 19.3% above the
April 2009 revised projections. The operating margin rose to 43.1% from 41.4%.
Cogeco Cable recorded an increase of 175,364 RGU, well above the 100,000 projected, due
mainly to solid growth in Digital Television customers in both Canada and Europe.
“Our Canadian cable distribution operations are the picture of health. Even in spite of the tough
economic times, customers continue to have a particular soft spot for our services in their
information and entertainment choices. As far as the situation of our stock price, we believe that it
remains undervalued. We foresee that the stock will reach a more representative value in 2010
primarily thanks to our strategy, an upturn in the economy and the return of confidence in the
markets. The recovery plan implemented in the spring by our European subsidiary has started to
bear fruit and we won more than 20,000 customers for the different lines in the fourth quarter,
which offsets losses incurred in the previous quarters,” stated Louis Audet, President and Chief
Executive Officer of Cogeco Cable.
The indicated terms do not have standard definitions prescribed by Canadian Generally Accepted Accounting Principles (“GAAP”) and
therefore, may not be comparable to similar measures presented by other companies. For more details, please consult the “Non-GAAP financial
measures” section of the Management’s discussion and analysis of the 2009 Corporation Annual Report.
Represent the sum of Basic Cable, High Speed Internet (“HSI”), Digital Television and Telephony service customers.
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Certain statements in this press release may constitute forward-looking information within the meaning of securities
laws. Forward-looking information may relate to Cogeco Cable’s future outlook and anticipated events, business,
operations, financial performance, financial condition or results and, in some cases, can be identified by terminology
such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential";
"continue"; "foresee", "e nsure" or other simil ar ex pressions concer ning m a tters that are n ot histor ical fac ts. In particu lar ,
statements regarding the Corporation’s future operating results and economic performance and its objectives and
strategies are forward-looking statements. These statements are based on certain factors and assumptions including
expected growth, results of operations, performance and business prospects and opportunities, which Cogeco Cable
believes are reasonable as of the current date. While management considers these assumptions to be reasonable
based on information currently available to the Corporation, they may prove to be incorrect. The Corporation cautions
the reader that the current adverse economic conditions make forward-looking information and the underlying
assumptions subject to greater uncertainty and that, consequently, they may not materialize, or the results may
significantly differ from the Corporation’s expectations. It is impossible for Cogeco Cable to predict with certainty the
impact that the current economic downturn may have on future results. Forward-looking information is also subject to
certain factors, including those described in the “Uncertainties and Main Risk Factors” section of the 2009 Annual
Report that could cause actual results to differ materially from what Cogeco Cable currently expects. These factors
include technologic al changes, changes in market and com petition, governmental or regulator y developments, general
economic conditions, the development of new products and services, the enhancement of existing products and
services, and the introduction of competing products having technological or other advantages, many of which are
beyond the Corporation’s control. Therefore, future events and results may vary significantly from what management
currently foresees. The reader should not place undue importance on forward-looking information and should not rely
upon this information as of any other date. While management may elect to do so, the Corporation is under no
obligation (and expressly disclaims any such obligation), and does not undertake to update or alter this information
before the next quarter, except as required by law.
This press release should be read in conjunction with the 2009 Cor poration’s Annual Report prepared in a ccordance
with Canadian general ly accepted accounting principles (“GAAP”). Throughout this press release, all amounts are in
Canadian dolla r s unless otherwise indicated.
Cogeco Cable (, a telecommunications company offering a diverse range of
services to its customers in Canada and Portugal, is the second largest cable operator in Ontario,
Québec and Portugal, in terms of the number of Basic Cable service customers served. Through
its two-way broadband cable networks, Cogeco Cable provides its residential customers with
Audio, Analogue and Digital Television, as well as HSI and Telephony services. Cogeco Cable
also provides its business customers with data networking, e-business applications, video
conferencing, web hosting, Ethernet, private line, VoIP, HSI, black fibre, data storage and
security, and co-location services and other advanced communication solutions. Cogeco Cable’s
subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).
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Information: Marie Carrier
Director, Corporate Communications
Tel.: (514) 764-4700