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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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