- Revenue increased by $42.1 million, or 8.3%, to reach $551.5 million;

- Adjusted EBITDA(1) increased by $17.1 million, or 7.4%, to reach $248.4 million compared to $231.3 million for the second quarter of fiscal 2015; and

- A quarterly dividend of $0.39 per share was declared, an increase of 11.4% compared to the same period in fiscal 2015.

/EINPresswire.com/ -- MONTREAL, QUEBEC -- (Marketwired) -- 04/13/16 -- Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the second quarter ended February 29, 2016, in accordance with International Financial Reporting Standards ("IFRS").

For the second quarter of fiscal 2016:

--  Revenue increased by $42.1 million, or 8.3%, to reach $551.5 million
    mainly driven by growth of 36.9% in the American broadband services
    segment (previously named American cable services segment) with
    essentially stable revenue growth in the Canadian broadband services
    segment (previously named Canadian cable services segment), partly
    offset by a decrease of 3.3% in the Business information and
    communications technology ("Business ICT") services segment (previously
    named Enterprise data services segment).
    --  American broadband services revenue increased primarily as a result
        of the acquisition in the fourth quarter of fiscal 2015 of MetroCast
        Communications of Connecticut, LLC (the "Connecticut system"),
        organic growth and favorable foreign exchange rates compared to the
        same period of the prior year;
    --  Canadian broadband services revenue was essentially stable as a
        result of rate increases and the continued growth in the business
        sector, partly offset by lower primary service units ("PSU")(2)
        compared to the same period of the prior year;
    --  Business ICT services revenue decreased primarily as a result of the
        decision to streamline our product offering in order to focus on
        services which generate higher margins as well as the competitive
        pricing pressure on the network connectivity services, partly offset
        by favorable foreign exchange rates;
--  Adjusted EBITDA increased by $17.1 million, or 7.4%, to reach $248.4
    million compared to $231.3 million in the same period of fiscal 2015
    mainly as a result of the following:
    --  Higher adjusted EBITDA in the American broadband services resulting
        from organic growth, favorable foreign exchange rates compared to
        the same period of the prior year and the acquisition of the
        Connecticut system;
    --  Higher adjusted EBITDA in the Canadian broadband services resulting
        from a slight revenue increase combined with continuous operational
        efficiency improvements and lower marketing initiatives compared to
        the second quarter of fiscal 2015 during which higher marketing
        expenses were incurred due to the launch of TiVo digital advanced
        video services in Ontario during the first quarter of fiscal 2015;
    --  Lower adjusted EBITDA in the Business ICT services resulting from
        lower revenue, partly offset by cost reduction initiatives combined
        with favorable foreign exchange rates compared to the comparable
        period of the prior year; and
    --  Higher management fees paid to Cogeco Inc. ("Cogeco") during the
        second quarter of fiscal 2016 under the Amended and Restated
        Management Services Agreement which became effective on September 1,
        2015. The management fees are now payable on a monthly basis. In the
        previous fiscal year, management fees were fully paid in the first
        quarter;
--  Operating margin(1) slightly decreased to 45.0% from 45.4% in the second
    quarter of fiscal 2016, with operating margins of 51.6% in the Canadian
    broadband services, 42.8% in the American broadband services and 35.2%
    in the Business ICT services segments. The decrease for the quarter
    resulted mainly from higher management fees paid to Cogeco during the
    second quarter of the year under the Amended and Restated Management
    Services Agreement combined with a lower margin in the Business ICT
    services segment, partly offset by a higher margin in the Canadian
    broadband services segment and a stable margin in the American broadband
    services segment;
--  Profit for the period amounted to $62.0 million, or $1.27 per share,
    compared to $58.9 million, or $1.21 per share in the comparable period
    of fiscal 2015, an increase of 5.3%, resulting from the improvement of
    the adjusted EBITDA, partly offset by increases in depreciation and
    amortization and integration, restructuring and acquisition costs;
--  Free cash flow(1) increased by $1.6 million, or 2.1%, to reach $74.7
    million compared to $73.1 million for the same period of the prior year
    as a result of the improvement of adjusted EBITDA, partly offset by an
    increase in the acquisitions of property, plant and equipment,
    intangible and other assets;
--  Cash flow from operating activities increased by $7.8 million, or 3.9%,
    to reach $206.0 million compared to $198.2 million for fiscal 2015
    second-quarter. The increase for the quarter is mostly attributable to
    the improvement in adjusted EBITDA combined with a decrease in changes
    in non-cash operating activities primarily due to changes in working
    capital, partly offset by increases in income taxes paid and
    integration, restructuring and acquisition costs;
--  A quarterly eligible dividend of $0.39 per share was paid to the holders
    of subordinate and multiple voting shares, representing an increase of
    $0.04 per share, or 11.4%, compared to an eligible dividend of $0.35 per
    share paid in the second quarter of fiscal 2015; and
--  At its April 13, 2016 meeting, the Board of Directors of Cogeco
    Communications declared a quarterly eligible dividend of $0.39 per share
    for multiple voting and subordinate voting shares payable on May 11,
    2016.

For the six-month period ended February 29, 2016:

--  Revenue increased by $85.4 million, or 8.5%, to reach $1.09 billion
    mainly driven by growth of 38.5% in the American broadband services
    segment with stable revenue in the Canadian broadband services and the
    Business ICT services segments.
    --  American broadband services revenue increased primarily as a result
        of organic growth, the favorable foreign exchange rates compared to
        the same period of the prior year and the acquisition in the fourth
        quarter of fiscal 2015 of the Connecticut system;
    --  Canadian broadband services revenue was stable as a result of rate
        increases and the continued growth in the business sector, partly
        offset by lower PSU compared to the same period of the prior year;
    --  Business ICT services revenue was essentially stable due to the
        decision to streamline our product offering in order to focus on
        services which generate higher margins as well as the competitive
        pricing pressure on the network connectivity services, partly offset
        by favorable foreign exchange rates;
--  Adjusted EBITDA increased by $42.4 million, or 9.4%, to reach $492.5
    million compared to $450.1 million in the same period of fiscal 2015
    mainly as a result of the following:
    --  Higher adjusted EBITDA in the American broadband services resulting
        from organic growth, favorable foreign exchange rates compared to
        the same period of the prior year and the acquisition of the
        Connecticut system;
    --  Higher adjusted EBITDA in the Canadian broadband services resulting
        mainly from continuous operational efficiency improvements and lower
        marketing initiatives compared to the second quarter of fiscal 2015
        during which higher marketing expenses were incurred related to the
        launch of TiVo digital advanced video services in Ontario during the
        first quarter of fiscal 2015;
    --  Lower adjusted EBITDA in the Business ICT services resulting from a
        slight decrease in revenue, partly offset by cost reduction
        initiatives as a result of the operational, financial and
        organizational restructuring combined with favorable foreign
        exchange rates compared to the comparable period of the prior year;
--  Operating margin slightly increased from 44.7% to 45.1% for the six-
    month period ended February 29, 2016, with operating margins of 51.7% in
    the Canadian broadband services, 43.2% in the American broadband
    services and 34.4% in the Business ICT services segments. The increase
    for the first six months resulted mainly from a higher margin in the
    Canadian broadband services segment and stable margins in the American
    broadband services and Business ICT services segments;
--  Profit for the period amounted to $123.1 million, or $2.52 per share,
    compared to $115.6 million, or $2.37 per share in the comparable period
    of fiscal 2015, an increase of 6.5%, resulting from the improvement of
    the adjusted EBITDA, partly offset by increases in depreciation and
    amortization, income taxes and integration, restructuring and
    acquisition costs;
--  Free cash flow decreased by $23.3 million, or 16.9%, to reach $114.7
    million compared to $138.1 million for the same period of the prior year
    resulting from the timing of the acquisitions of property, plant and
    equipment, intangible and other assets and an increase in current income
    taxes, partly offset by the improvement of adjusted EBITDA; and
--  Cash flow from operating activities reached $302.0 million compared to
    $220.3 million an increase of $81.7 million, or 37.1%, compared to the
    first six months of fiscal 2015 mainly due to the improvement in
    adjusted EBITDA combined with a decrease in changes in non-cash
    operating activities primarily due to changes in working capital, partly
    offset by increases in income taxes paid and in integration,
    restructuring and acquisition costs.


(1) The indicated terms do not have standardized definitions prescribed by
    IFRS and, therefore, may not be comparable to similar measures presented
    by other companies. For more details, please consult the "Non-IFRS
    financial measures" section of the MD&A.

(2) Represents the sum of video, Internet and telephony service customers.

"Overall, our results for the second quarter of the 2016 fiscal year have been satisfactory," declared Louis Audet, President and Chief Executive Officer of Cogeco Communications Inc. "Our American broadband services subsidiary, Atlantic Broadband, continues to report strong results and solid organic growth following the acquisition of the Connecticut system. Meanwhile, our Canadian broadband services subsidiary, which was renamed Cogeco Connexion, continues to report satisfactory results in a highly competitive market. Cogeco Connexion also reviewed its product offering during the quarter and launched a new entry-level package and a number of new packages on March 1 which provide customers with greater flexibility and choice."

"Our Business ICT services subsidiary, Cogeco Peer 1, is pursuing its plan to build competitive product portfolios," continued Mr. Audet. "As this exercise progresses, in an increasingly competitive market, we are deploying new sales strategies and streamlining our product-offering, focusing on profitability."

"We have also seen an overall positive reaction to our renaming and rebranding exercise, which we unveiled during the second quarter," added Mr. Audet. "We feel well on our way to building a strong, unified and recognizable brand, to position Cogeco for an inspiring and successful future."

ABOUT COGECO COMMUNICATIONS

Cogeco Communications Inc. is a communications corporation. It is the 11th largest cable operator in North America, operating in Canada under the Cogeco Connexion name in Quebec and Ontario, and in the United States under the Atlantic Broadband name in western Pennsylvania, south Florida, Maryland/Delaware, South Carolina and eastern Connecticut. Cogeco Communications Inc. provides its residential and business customers with video, Internet and telephony services through its two-way broadband fibre networks. Through its subsidiary Cogeco Peer 1, Cogeco Communications Inc. provides its business customers with a suite of information and communications technology services (colocation, network connectivity, managed hosting, cloud services and managed IT services), through its 17 data centres, an extensive FastFiber NetworkTM and more than 50 points-of-presence in North America and Europe. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

Analyst Conference  Thursday, April 14, 2016 at 11:00 a.m. (Eastern Standard
Call:               Time)
                    Media representatives may attend as listeners only.

                    Please use the following dial-in number to have access
                    to the conference call by dialing five minutes before
                    the start of the conference:

                    Canada/United States Access Number: 1 800-505-9573
                    International Access Number: + 1 416-204-9498
                    Confirmation Code: 7646799
                    By Internet at corpo.cogeco.com/cca/en/investors/


                    A rebroadcast of the conference call will be available
                    until April 20, 2016, by dialing: Canada and United
                    States access number: 1 888-203-1112
                    International access number: + 1 647-436-0148
                    Confirmation code: 7646799

SHAREHOLDERS' REPORT

Three and six-month periods ended February 29, 2016

FINANCIAL HIGHLIGHTS

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                               Quarters ended              Six months ended
                 February  February            February  February
                      29,       28,                 29,       28,
                     2016      2015    Change      2016      2015    Change
(in thousands of
 dollars, except
 percentages and
 per share data)        $         $         %         $         $         %
----------------------------------------------------------------------------
Operations
Revenue           551,523   509,470       8.3 1,091,836 1,006,471       8.5
Adjusted
 EBITDA(1)        248,382   231,264       7.4   492,524   450,124       9.4
Operating
 margin(1)           45.0%     45.4%        -      45.1%     44.7%        -
Integration,
 restructuring
 and acquisition
 costs              4,320     1,339         -     6,350     1,339         -
Profit for the
 period            62,042    58,906       5.3   123,148   115,615       6.5
----------------------------------------------------------------------------
Cash flow
Cash flow from
 operating
 activities       205,954   198,195       3.9   302,047   220,317      37.1
Acquisitions of
 property, plant
 and equipment,
 intangible and
 other assets     116,732   102,673      13.7   263,051   205,556      28.0
Free cash
 flow(1)           74,698    73,136       2.1   114,740   138,075     (16.9)
----------------------------------------------------------------------------
Financial
 condition(2)
Property, plant
 and equipment          -         -         - 2,028,703 1,985,421       2.2
Total assets            -         -         - 5,903,564 6,014,038      (1.8)
Indebtedness(3)         -         -         - 3,174,339 3,261,908      (2.7)
Shareholders'
 equity                 -         -         - 1,852,669 1,758,972       5.3
----------------------------------------------------------------------------
Capital
 intensity(1)        21.2%     20.2%        -      24.1%     20.4%        -
----------------------------------------------------------------------------
Per Share
 Data(4)
Earnings per
 share
  Basic              1.27      1.21       5.0      2.52      2.37       6.3
  Diluted            1.26      1.19       5.9      2.49      2.34       6.4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 (1)The indicated terms do not have standardized definitions prescribed by
    the International Financial Reporting Standards ("IFRS") and, therefore,
    may not be comparable to similar measures presented by other companies.
    For more details, please consult the "Non-IFRS financial measures"
    section of the MD&A.
(2) At February 29, 2016 and August 31, 2015.
(3) Indebtedness is defined as the aggregate of bank indebtedness, principal
    on long-term debt and obligations under derivative financial
    instruments.
(4) Per multiple and subordinate voting share.
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Contacts:
Source:
Cogeco Communications Inc.
Patrice Ouimet
Senior Vice President and Chief Financial Officer
514-764-4700

Information:
Media
Rene Guimond
Senior Vice-President, Public Affairs and Communications
514-764-4700

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