Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Cogeco Cable reports higher third quarter revenue, but lower profit

MONTREAL - Cogeco Cable (TSX:CCA) and its parent company Cogeco Inc. (TSX:CGO) are reporting higher revenue but lower profits for the third quarter.

The cable company made a profit of $35.5 million, or 73 cents per share, compared with $48.1 million, or 98 cents per share, in fiscal 2013. Revenue was $496.4 million, up from 464.4 million.

Revenue beat street estimates but profits were below what was expected.

For the parent company, third-quarter profit amounted to $35.6 million, or 69 cents per share, compared to profit of $50.0 million, or $1.03 per share, in the year-ago quarter. Revenue was $536 million, up from $504.4 million.

Cogeco Cable had an impairment of $32.2 million related to an Internet Protocol Television solution project on which its Canadian cable services segment had worked.

Cogeco Cable paid a quarterly dividend of 30 cents to the holders of subordinate and multiple voting shares, an increase from 26 cents per share in the third quarter of fiscal 2013. The parent company paid a dividend of 22 cents per share, up from 19 cents in the year ago quarter.

Analysts generally expected Cogeco Cable's results for the March-May quarter would be in line with the second quarter ended Feb. 28. Earnings were estimated at $1.23 per diluted share and revenue was expected at $488.7 million, according to date compiled by Thomson Reuters.

In the second quarter, Cogeco Cable had a profit of $60.3 million, or $1.23 a diluted share, and $486 million in revenue. Its parent company also owns a Quebec-based media business but generates most of its revenue and profit through the cable division.

Over the past few months, Cogeco Cable has been rolling out enhanced high-speed Internet service in some of the communities it serves in Ontario and Quebec. The enhancements included faster versions of existing packages and the launch of a new, even faster service that claims download speeds of up to 120 million bits per second.

In Magog, Que., about 130 kilometres east of Montreal, Cogeco Cable launched a free public WiFi service along two streets in the downtown area. It was described as a pilot project for the community of about 26,500 residents, which has a vision of becoming one of the province's first "smart" cities.

A similar strategy has been undertaken in Calgary with Shaw Cable (TSX:SJR.B), which has decided against investing in a conventional wireless service — which would require federal licences — in favour of free WiFi in public places for its customers in several communities throughout Alberta.

In April, when Cogeco Cable and its parent issued their results for the second quarter ended Feb. 28, president and CEO Louis Audet said the Montreal-based companies would attempt to avoid discounts to keep television customers from switching to a rival service offered by BCE Inc.'s Bell.

Canada's large telephone companies, such as Bell, Bell Aliant (TSX:BA), Telus (TSX:T) and Manitoba Telecom (TSX:MBT), have been winning over thousands of cable subscribers for the past several years by offering fibre-optic television service in addition to conventional phone, mobile phone and Internet.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates