Cogeco Fiscal 2020 First Quarter Revenue, Profit Rise

Q1

COGECO Fiscal 2020 first quarter revenue rose 1.8% year-to-year (1.4% in constant currency) to C$618.5 million, credited to growth in the Communications and Other segments and the acquisition of radio stations from RNC MÉDIA INC. in first quarter 2019, with Adjusted EBITDA up 5.2% (4.7% in constant currency) to C$290.5 million; Free cash flow decreased 3.6% (3.5% in constant currency) to C$108.9 million. Profit rose from C$82.8 million to C$94.2 million.

The company's Board of Directors of Cogeco has also declared a quarterly eligible dividend of C$0.475 per share, up from C$0.43 per share in fourth quarter 2019. The company also announced the purchase of CONNECTICUT broadband company THAMES VALLEY COMMUNICATIONS for US$50 million.

"We are satisfied with the overall performance of COGECO for the first quarter of 2020," said Pres./CEO PHILIPPE JETTÉ. "At COGECO COMMUNICATIONS, COGECO CONNEXION's adjusted EBITDA increased again this first quarter compared to last year as it continues to focus on operational efficiencies, digital transformation and enhanced marketing activities. We see good progress in primary service units for our Canadian broadband segment and are excited by the upcoming launch of the IPTV platform which will provide an enhanced experience and more entertainment choices for our customers.

"In the U.S., we are pleased with the results at ATLANTIC BROADBAND. Our American broadband operations is pursuing its organic growth fueled by increased sales and marketing efforts in both the residential and business markets, while we continue to look for new acquisitions to accelerate our growth.

"Our radio business, now composed of 23 stations, shows satisfying results despite a soft advertising market. COGECO MEDIA remains competitive, thanks to the excellent ratings many of our stations continue to enjoy and a strong focus on high quality programming and cost efficiency."

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