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Mar 31, 2020
Cogent Q1 2020 Earnings Report
Cogent reported an increase in service revenue and customer connections, impacted by foreign exchange rates, and approved a dividend increase.
Key Takeaways
Cogent Communications announced service revenue of $140.9 million for Q1 2020, a 5.1% increase year-over-year and a 0.4% increase from the previous quarter. The company's total customer connections reached 87,213, a 5.7% increase from the previous year. The Board approved a regular quarterly dividend of $0.68 per common share.
Service revenue increased by 5.1% year-over-year to $140.9 million.
On-net revenue increased by 6.5% year-over-year to $103.5 million.
Total customer connections increased by 5.7% year-over-year to 87,213.
The Board approved a quarterly dividend increase of 3.0% to $0.68 per share.
Revenue by Segment
Forward Guidance
Cogent expects potential impacts from the COVID-19 pandemic, including slowdowns in new customer orders and difficulties in collecting from customers.
Positive Outlook
- Transitioned entire workforce to work remotely.
- Saw a positive impact on net-centric revenue in late March.
- Experienced a material increase in network traffic in late March.
- Cogent's network is fully operational.
- The company is financially stable.
Challenges Ahead
- The ultimate impact of the pandemic on Cogent is unknown.
- May see slowdowns in new customer orders.
- May find it difficult to collect from customers experiencing financial distress.
- May encounter difficulties accessing buildings and locations.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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