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Cogeco Communications posted a revenue increase of 8.2% and a slight drop in profit in the second quarter.
Cogeco Communications' (CCA) revenue came in at C$634.5 million in 2Q 2021, increasing from C$586.5 million reported for the prior-year quarter.
Profit was C$102.9 million, or C$2.16 per share, decreasing from C$109.4 million, or C$2.24 per share, for the second quarter of 2020.
The company announced the acceleration of the expansion of its high-speed internet network in Québec in collaboration with the provincial and federal governments.
Cogeco Communications President and CEO Philippe Jetté said, "In our Canadian broadband segment, we have seen growth in our customer base, with many opting for a mix of services or upgrading their existing services, highlighting the importance of our fixed broadband product at this time."
"Our team at Cogeco Connexion has also been hard at work with the integration of DERYtelecom and the announcement to extend high-speed Internet access in 13 regions across Québec in partnership with the Government of Canada and the Government of Québec. The government funding support is excellent news, as we continue supporting our communities and contributing to the economic vitality of regional areas," Jetté added.
Cogeco Communications declared a quarterly dividend of C$0.64. (See Cogeco Communications stock analysis on TipRanks)
On Tuesday, RBC Capital analyst Drew Mcreynolds reiterated a Hold rating on the stock and set a C$121.00 price target (2% upside potential).
The rest of the Street is cautiously optimistic about Cogeco Communications with a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average analyst price target of C$127.00 implies upside potential of about 7.2% to current levels. Shares have risen more than 20% year-to-date.