Loading...
•
Jun 30, 2024
Cogent Q2 2024 Earnings Report
Cogent reported mixed results for Q2 2024, with a decrease in overall service revenue but increases in on-net and wavelength revenue. The company also increased its regular quarterly dividend.
Key Takeaways
Cogent Communications announced service revenue of $260.4 million for the three months ended June 30, 2024, representing a decrease of 2.2% from the previous quarter and an increase of 8.6% year-over-year. The company's on-net revenue increased, while off-net revenue decreased compared to the previous quarter. The Board approved a regular quarterly dividend increase of $0.01 per share.
Service revenue decreased by 2.2% compared to the previous quarter but increased by 8.6% year-over-year.
On-net revenue increased by 1.5% from the previous quarter and 10.3% year-over-year.
Off-net revenue decreased by 5.7% from the previous quarter but increased by 9.3% year-over-year.
The Board approved a regular quarterly dividend increase of $0.01 per share.
Cogent
Cogent
Cogent Revenue by Segment
Revenue by Segment
On-Net Revenue
CapyFin.comOff-Net Revenue
CapyFin.comWavelength Revenue
CapyFin.comNon-Core Revenue
CapyFin.com Forward Guidance
Cogent's future performance is subject to various factors, including the impact of the Wireline Business acquisition, economic conditions, foreign exchange rates, and competition.
Positive Outlook
- Cogent is seeing declining vacancy rates and rising office occupancy rates.
- Positive trends in its corporate business in a number of areas of the United States.
- Corporate customers are integrating some of the new applications that were part of the remote work environment into their everyday use.
- Cogent’s corporate customers are upgrading their Internet access infrastructure to higher capacity connections.
- If and when companies eventually return to the buildings in which Cogent operates, Cogent believes it will present an opportunity for increased sales.
Challenges Ahead
- The exact timing, path and spread of these positive trends remains uncertain.
- Cogent may continue to see increased corporate customer turnover.
- Fewer upgrades of existing corporate customer configurations.
- Fewer new tenant opportunities.
- These factors would negatively impact Cogent’s corporate revenue growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income