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Cogent Communications Inc. CCOI reported mixed fourth-quarter 2024 results, with the bottom line surpassing the Zacks Consensus Estimate but the top line missing the same. The Washington, DC-based leading Internet service provider reported a top-line decline year over year, owing to weakness in net-centric and corporate business.
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CCOI’s Net Income
The company reported a net loss of $43.3 million or 91 cents per share against a net income of $200.2 million or $4.17 per share in the year-ago quarter. Gain on bargain purchases from the Sprint business elevated the year-ago figure. However, the bottom line beat the Zacks Consensus Estimate by 31 cents.
In 2024, the company reported a net loss of $204.1 million or $4.28 per share against a net income of $1.27 billion or $26.62 per share in 2023.
Cogent Communications Holdings, Inc. Price, Consensus and EPS Surprise
Cogent Communications Holdings, Inc. price-consensus-eps-surprise-chart | Cogent Communications Holdings, Inc. Quote
CCOI’s Revenues
Service revenues decreased to $252.3 million from $272.1 million in the year-earlier quarter, owing to a decline in On-Net and Off-Net revenues. The top line missed the consensus estimate by $5 million.
In 2024, Service revenues increased to $1.03 billion from $940.92 million in 2023.
On-Net revenues in the quarter were $128.8 million, down from $138.1 million in the year-ago quarter. The top line missed our estimate of $135 million. Customer connections of On-Net declined 0.2% year over year to 87,500. The company’s Net-centric customer connections declined to 62,236 from 62,370 a year ago.
Off-Net revenues were $113.2 million compared with $123.7 million in the year-earlier quarter. The segment's customer connections decreased to 28,963 from 36,676 in the year-ago quarter. Net sales beat our revenue estimate of $111.8 million.
Wavelength revenues were $7 million in the quarter, up from $3.1 million in the year-ago quarter. The segment's customer connections were 1,118, up from 661 in the prior-year quarter.
Non-core revenues stood at $3.4 million, down from $7.3 million in the year-ago quarter.
Other Details
GAAP gross profit was $29.83 million, marginally up from $29.74 million a year ago, with respective margins of 11.8% and 10.9%. Operating loss was $32.8 million compared with a loss of $68.5 million a year ago.
EBITDA totaled $41.9 million compared with $6 million in the year-ago quarter for respective margins of 16.6% and 2.2%. Cogent raised its quarterly dividend by a penny to $1.005 per share for the first quarter of 2025. This was the 50th consecutive quarterly dividend increases from the company.