Cogeco net income surges
Copyright 2006 Toronto Star Newspapers, Ltd.
The Toronto Star
October 17, 2006 Tuesday
From Lexis Nexis
Cogeco Cable Inc., Canada's fourth-biggest cable-television operator, says its net income tripled in the latest quarter after the company paid less tax and added subscribers by buying a Portuguese television company.
Profit in the fourth quarter ended Aug. 31 rose to $34 million, or 85 cents a share, from $11.04 million, or 27 cents, a year earlier, Cogeco said yesterday. The company had about $20 million in gains after the federal government cut corporate taxes. Sales rose 25 percent to $174.9 million.
Cogeco's subscribers grew by almost a third after the purchase of Cabovisao-Televisao por Cabo SA, Portugal's second-biggest cable operator, in August. Cogeco also added more than 20,000 telephone customers, compared with 1,400 a year earlier. Cogeco joins rivals such as Rogers Communications Inc. in seeking more phone customers to avoid depending on cable for revenue.
Excluding items such as the tax gain, earnings at the Montreal-based company were 35 cents a share. Revenue from the Portuguese operations should exceed $215 million in fiscal 2007.