Cogent Communications Holdings, Inc. (Ticker: CCOI) has recently released its quarterly financial report, showcasing remarkable growth in service revenue and customer connections. Among the significant highlights is the approval of a dividend increase by the company's board. Let's delve into the key developments and what they mean for investors.

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Service Revenue Soars

‍In a noteworthy achievement, Cogent reported a staggering $239.8 million in service revenue for the three months ending June 30, 2023. This reflects an impressive 56.1% increase from the preceding quarter and a remarkable 61.5% rise compared to the same period in the previous year. These remarkable figures demonstrate the company's robust performance and growth trajectory.

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On-Net and Off-Net Revenue Surge

‍Cogent's on-net service, catering to customers physically connected to its network, saw revenue of $127.7 million for Q2 2023. This marks a substantial 9.9% increase from the previous quarter and a commendable 14.0% rise from Q2 2022. Off-net revenue, serving customers using other carriers' facilities, surged impressively, reaching $102.0 million, reflecting a remarkable 173.5% growth from Q1 2023 and an astonishing 181.1% growth from Q2 2022.

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Wavelength Services Expanding

‍Cogent's strategic expansion includes offering optical wavelength services and optical transport services over its fiber network. This move caters to existing and new customers seeking dedicated optical transport connectivity without the expenses tied to network infrastructure ownership. Notably, wavelength revenue reached $1.6 million for Q2 2023.

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Dividend Increase Approval

‍An exciting development for investors is the announcement of a dividend increase. The Board of Cogent Communications approved a regular quarterly dividend of $0.945 per share, set to be paid on September 8, 2023. This marks a notable 1.1% increase from the previous quarter's dividend and an impressive 4.4% increase from the dividend in the third quarter of 2022. This decision underscores the company's commitment to shareholder value.

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Cogent Communications continues to make strides in the telecommunications industry, evident through its remarkable financial performance and strategic initiatives. The approved dividend increase further highlights the company's dedication to delivering value to its shareholders. As Cogent's growth trajectory unfolds, investors and industry enthusiasts will be keenly observing its journey in the evolving landscape of communication services.