Cogeco 2008 Annual Report Download - page 6

Management’s Discussion and Analysis COGECO CABLE INC. 2008 5
OVERVIEW OF THE BUSINESS
Cogeco Cable is the second largest cable system operator in Ontario, Québec and Portugal in terms of the number of Basic Cable
service customers served. The Corporation’s operations are supported by hybrid fibre and co-axial cable broadband networks. The
Corporation provides its residential customers with Audio, Analogue and Digital Television as well as HSI and Telephony services.
In Canada, the Corporation provides, as at August 31, 2008, Basic Cable service to 857,094 customers, Digital Television service to
441,746 customers, HSI services to 473,467 customers and Telephony service to 219,601 customers. In Portugal, through its
indirect subsidiary Cabovisão—Televisão por Cabo, S.A. (“Cabovisão”), Cogeco Cable provides, as at August 31, 2008, Basic
Cable service to 296,135 customers, Digital Television service to 24,452 customers, HSI service to 159,301 customers and
Telephony service to 245,078 customers. The Corporation provides its business customers data networking, e-business
applications, video conferencing, hosting services, Ethernet, private line, VoIP, HSI access, dark fibre, data storage, data security
and co-location services and other advanced communications services.
CORPORATE OBJECTIVES AND STRATEGIES
Cogeco Cable’s business objectives are all centered on improving profitability, notably operating income before amortization, and
creating value for shareholders. To achieve these objectives, the strategies employed consist of sustained corporate growth,
continuous improvement of the service offering and expansion of the customer base, continuous improvement of networks and
equipment while offering better customer service. These objectives and strategies are supported by tight controls over the
Corporation’s costs and improved business processes.
SUSTAINED CORPORATE GROWTH
Cogeco Cable’s business strategy is driven by a focus on customer satisfaction leading to growth. In addition, by constantly
improving its product and service offerings and by acquiring new businesses, the Corporation attracts new customers and, by
extension ensures sustained growth. To meet the growing consumer demands, Cogeco Cable makes its decisions based on
research studies conducted with its customers, on analyses of the trends occurring in its markets and by taking into account industry
developments in the formulation of its strategies. To sustain its external growth strategy, Cogeco Cable relies on knowledgeable
counselling, meticulous studies coupled with rigorous and stringent acquisition criteria.
CONTINUOUS IMPROVEMENT OF THE SERVICE OFFERING AND EXPANSION OF THE CUSTOMER BASE
The Corporation’s service offerings are adapted regularly so that they constantly meet or exceed the demands of its clients in its
various markets. The Corporation offers a full array of broadband telecommunications services, such as Analogue and Digital
Television, HD, VOD, SVOD, HSI and Telephony, individually and in bundles for its residential customers and several data
communication services to its business customers. The continuous improvement of the Corporation’s service offerings as well as its
superior level of customer service, not only attract new customers, they entice existing customers to subscribe to the Corporation’s
other services.
In Canada, the Corporation expects its Cogeco Complete Connection, which includes Digital Television, HSI and Telephony
services, to continue to play a major role in generating revenue growth. In addition, the Corporation will continue to improve its VOD
offer by forging new partnerships with major studios and other program suppliers, its HD Television offer by gradually proposing a
more diverse offering according to availability, and its HSI service offer by introducing continuous enhancements to its services in
order to meet the growing expectations of its residential customers.
For its business customers, Cogeco Cable expects its Cogeco Business Solutions to bring broadband capacity required for data
networking, HSI access, hosting services, e-business applications, video conferencing and other advanced communications.
Throughout the Greater Toronto Area (“GTA”), Cogeco Data Services Inc. (“CDS”) offers data communications and other
telecommunications services such as Ethernet, private line, VoIP, HSI access, dark fibre, data storage, data security and co-location
to a wide range of business customers and organizations.
In Portugal, Analogue and Digital Television, HSI and Telephony services will be supported with better targeted marketing efforts to
respond to adverse market conditions and a difficult economic environment. During 2009, the Corporation will continue the
deployment of its Digital Television service to many of its customers. The introduction of this service paves the way to a unique
television experience, which will eventually allow interactivity and VOD.
These strategies should generate customer growth and increase ARPU, thus generating higher revenue.