GROWTH, ACQUISITION AND POSITIVE RESULTS FOR COGECO CABLE IN 2006
For immediate release
Growth, acquisition and positive results for Cogeco Cable in 2006
Toronto, December 5, 2006 – 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,
Cabovisão – Televisão por Cabo, S.A., (Cabovisão). 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 Cabovisão as a contributing factor, the number of revenue-generating
(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 Cabovisão 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
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
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
Cabovisão integration plan is well advanced and we believe Cabovisão will contribute to the
creation of value for Cogeco Cable’s shareholders as early as this fiscal year”, concluded Mr.
Revenue-generating units represent the sum of basic service, Digital Television service, HSI service and Telephony service customers.
- 2 -
ABOUT COGECO CABLE
Cogeco Cable (www.cogeco.ca), 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 home s 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).
- 30 -
Source: Cogeco Cable Inc.
Vice President, Finance and Chief Financial Officer
Tel.: (514) 874-2600
Director, Corporate Communications
Tel.: (514) 874-2600