Cogent Grows 2.4% Sequentially, Increases Dividend

November 6th, 2012 by · Leave a Comment

Cogent Communications (NASDAQ:CCOI, news, filings) continued its rebound from the loss of MegaUpload's business in January with a steady third quarter that took revenues back to an all time high.  Their total of $79.7M was a bit above my own guess but slightly below the consensus analyst estimate, although it would have matched that threshold in constant currency terms.  Here's a quick table:

$ in millions Q3/11 Q4/11 Q1/12 Q2/12 Q3/12
Revenue 77.4 79.1 76.9 77.8 79.7
EBITDA 26.7 27.8 22.6 25.3 26.2
Earnings per share 0.01 0.12 -0.05 -0.04 0.00
Gross Margin 56.7% 57.8% 55.4% 55.0% 54.3%
Adj. EBITDA Margin 34.5% 35.2% 29.3% 32.6% 32.9%
On-net Buildings 1707 1744 1769 1799 1832

EBITDA was a bit lower than I had guessed, mostly due to apparent noise in the company's gross margins.  EBITDA margins expanded slightly, but remain in a lower range than they finished last year at.

Along with 33 building additions, Cogent saw a 17% increase in traffic over the previous quarter and expanded its headcount to 621.  On the dividend front, Cogent approved a payout of $0.11 per share, 10% higher than previously disclosed and payable on December 12.

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Categories: Financials · Internet Backbones · Metro fiber

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