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Management’s Discussion and Analysis COGECO CABLE INC. 2006 21
PORTUGUESE OPERATIONS
% OF
NET ADDITIONS PENETRATION(1)
AUGUST 31,
2006 ACTUAL(3) 2006
RGUS(2) 629,041 3,141 NA
BASIC SERVICE CUSTOMERS 269,694 1,117 NA
HSI SERVICE CUSTOMERS 136,278 1,165 50.5
TELEPHONY SERVICE CUSTOMERS 223,069 859 82.7
( 1 ) AS A PERCENTAGE OF BASIC SERVICE CUSTOMERS IN AREAS SERVED.
(2) REPRESENT THE SUM OF BASIC, HSI AND TELEPHONY SERVICE CUSTOMERS.
(3) CUSTOMER ADDITIONS ARE FOR THE MONTH OF AUGUST 2006 ONLY.
For the one-month operation period as a subsidiary, all services generated customer growth. Basic service customers grew
by 1,117; HSI by 1,165 customers; and telephony by 859 customers.
PERFORMANCE HIGHLIGHTS
CUSTOMER STATISTICS
CANADIAN OPERATIONS
NET ADDITIONS (LOSSES) % OF PENETRATION(1)
2006 2005 AUGUST 31,
AUGUST 31, INITIAL
2006 ACTUAL GUIDANCE(2) ACTUAL 2006 2005
RGUS(3) (5) 1,555,936 208,203 111,000 – 129,000 81,834 NA NA
BASIC SERVICE CUSTOMERS 833,177 11,744 0 – 3,000 (2,422) NA NA
HSI SERVICE CUSTOMERS(4) 343,080 65,432 32,000 – 37,000 38,040 44.3 37.7
DIGITAL TELEVISION SERVICE CUSTOMERS(5) 327,364 80,160 47,000 – 52,000 44,768 40.0 30.7
DIGITAL TELEPHONY SERVICE CUSTOMERS 52,315 50,867 32,000 – 37,000 1,448 10.4 0.2
( 1 ) AS A PERCENTAGE OF BASIC SERVICE IN AREAS SERVED.
(2) ACCORDING TO THE FISCAL 2005 ANNUAL REPORT.
(3) REPRESENT THE SUM OF BASIC, DIGITAL TELEVISION, HSI AND DIGITAL TELEPHONY SERVICE CUSTOMERS.
(4) CUSTOMERS SUBSCRIBING ONLY TO INTERNET SERVICES AMOUNTED TO 61,208 AS AT AUGUST 31, 2006 COMPARED TO 55,057 AS AT AUGUST 31, 2005.
(5) THE NUMBER OF DIGITAL TELEVISION SERVICE CUSTOMERS FOR FISCAL 2005 WAS RESTATED TO REFLECT CHANGES BROUGHT ABOUT BY THE CORPORATION’S
BILLING IMPROVEMENT PROGRAM, WHICH HAS ALLOWED COGECO CABLE TO IDENTIFY DIGITAL TELEVISION SERVICE CUSTOMER ACCOUNTS THAT WERE NOT
CANCELLED WHEN THEY BECAME INACTIVE. THIS CHANGE RESULTED IN A DOWNWARD ADJUSTMENT OF 8,085 CUSTOMERS AS AT AUGUST 31, 2005.
In fi scal 2006, all services generated higher growth compared to the same period last year, especially the growth in the
Digital Telephony service, which is mostly attributable to the launch of this service in new markets. Service coverage has
reached 66% of homes passed as at August 31, 2006 compared to 21% last year. Net additions of basic service customers
stood at 11,744 compared to a loss of 2,422 in fi scal 2005. The number of net additions of HSI service stood at 65,432
compared to 38,040 in fi scal 2005. The growth of HSI and basic service customers compared to last year is mostly due to
the impact of the bundled offer of Television, HSI and Digital Telephony services (triple play), enhancement of the product
offering and promotional activities.
The net additions of Digital Television service customers stood at 80,160 compared to 44,768 in fi scal 2005. The 32%
increase in the number of Digital Television service customers is driven by the growing interest and increasing demand for the
HD format among customers. The impact of the triple play offering and attractive promotional offers were also additional factors.