Business case Cogent Communications
Cogent Communications: key information
- Internet services provider (the group carries ca. 18% of the world’s internet traffic)
- Multinational founded in 1999
- Corporate headquarters: Washington
- NASDAQ: CCOI
- European headquarters: Luxembourg
- 47 companies in 40 countries
- Consolidation in US GAAP
- More information: cogentco.com
The return on investment – in a few words
- Automated process: one single data entry point and multiple output possibilities
- Endless analysis capability: per point of view, per category, per dimension …
- Timely production of a set of various reports
Cogent Europe is part of a US group. They acquired Consolidation & Reporting a few years ago for the monthly consolidated reporting of the European subgroup. In a second phase, the headquarters in the United States was looking for a software to provide the relevant information and documentation to several stakeholders (management, analysts, tax authorities, auditors) and perform a monthly hard close.
The license for Consolidation & Reporting is now used across the group to provide a variety of reports in several currencies:
- Worldwide consolidated financials in USD
- Europe consolidated package in EUR
- American consolidation in USD, Canadian financials in CAD
- A regional consolidated view in USD
- A roll forward revenue (revenue by type of client, type of sale, type of product)
- A rolling budget
The local data is automatically imported into Consolidation & Reporting from different accounting systems and databases. It includes both financial data and non-financial data. The group also makes use of different possibilities of the software:
- Linked categories: they allow the creation of different environments that share the same input data. This functionality is very useful when it comes to create different consolidation scopes (i.e. sub-consolidations) or consolidations in different currencies. For instance: the Canadian flash revenue is produced in CAD, the European flash revenue is in EUR, while the consolidated flash revenue is in USD with only one import into Consolidation & Reporting.
- Points of view: they make it possible to have a segmented view of consolidated data in the group currency. In the case of Cogent, the segmentation is used for a regional consolidated view.
- Analytical dimensions: they are used for detailed activities reporting, revenue and customer analysis.
By the use of the software and its functionalities, the group is able to:
- Create monthly closing and management reports (monthly hard close at D+15)
- Produce local and worldwide consolidation reports, from different consolidation scopes and in multiple currencies, based on one data entry point
- Generate a monthly “flash report” at D+11, consisting in a revenue analysis by product type and by entity
- Analyze the data according to endless possibilities: per point of view, category, analytical dimensions …