Cogent Communications Holdings Inc (NAS:CCOI)

$ 79.04 -1.41 (-1.75%) Market Cap: 3.87 Bil Enterprise Value: 5.91 Bil PE Ratio: 101.33 PB Ratio: 11.98 GF Score: 90/100

Q3 2024 Cogent Communications Holdings Inc Earnings Call Transcript

Nov 07, 2024 / 01:30PM GMT

Release Date Price: $85.35 (+0.77%)

Transcript 10-Q8-K

Key Points

Positve

Cogent Communications Holdings Inc (CCOI) achieved substantial cost savings of $165 million, which is 75% of their targeted $220 million in annual savings from the Sprint acquisition.
The company's wavelength revenues increased significantly by 45.8% sequentially and 76.7% year over year.
Cogent Communications Holdings Inc (CCOI) reported an 8% sequential increase and a 19% year-over-year increase in network traffic.
The company improved its sales force productivity, increasing from 3.8 installed orders per rep per month in Q2 to 4 orders per rep per month in Q3.
Cogent Communications Holdings Inc (CCOI) increased its quarterly dividend for the 49th consecutive time, reflecting confidence in its cash flow generation capabilities.

Negative

Total revenue was impacted by the grooming of low-margin off-net connections and the elimination of non-core products, leading to a decline in certain revenue streams.
Revenue from the commercial services agreement with T-Mobile decreased sequentially by $1.8 million.
The company's EBITDA as adjusted decreased due to a scheduled reduction of $41.7 million in payments under the IP transit services agreement with T-Mobile.
Cogent Communications Holdings Inc (CCOI) experienced an increase in net debt ratio from 3.14 to 4.13, primarily due to the reduction in IP transit payments from T-Mobile.
The cost of goods sold increased by $5.3 million due to expenses related to converting former Sprint switch sites and vendor contract termination costs.

Operator

Good morning and welcome to Cogent Communications Holdings. Third quarter, 2024 earnings conference call as a reminder, this conference call is being recorded and it will be available for replay at www.cogentco dotcom. That is www.cogentco dotcom.

A transcript of this conference call will be posted on Cogent's website when it becomes available. Cogent. Some of the financial and operational results attached to the press release can be downloaded from the Cogent website.

I would now like to turn the call over to Mr Dave Schafer, Chairman and Chief Executive Officer of Cogent Communications Holdings. Please go ahead, sir.

David Schaeffer

Cogent Communications Holdings Inc - Chairman of the Board, President, Chief Executive Officer, Founder

Thank you and good morning to everyone. Welcome to our third quarter, 2024 earnings conference call. I'm Dave Shaer Koin's Chief Executive Officer. And with me on this morning's call is Tad Weed, our Chief Financial Officer. Hopefully you've had a chance to review our earnings press release. Our press release

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