Cogeco second-quarter earnings dropped due to a large loss in its Portugal venture.
Cogeco’s Cabovisao cable operation in Portugal posted an impairment charge of $399.6 million. Cogeco reported a loss of $115.3 million, or $6.89 per share, for the second quarter, ended Feb. 28, compared with a profit of $15.9 million, or 95 cents per share, a year ago.
“Cabovisao’s competitive position continued to deteriorate in the second quarter due to the unfavorable economic climate and recurring intense customer promotions and advertising initiatives from competitors in the Portuguese market during the latter part of the second quarter,” said Louis Audet, president and CEO of Cogeco. “Cogeco Cable is in the process of implementing new marketing and other operating initiatives to improve the results of the European operations.”
Audet said in a conference call yesterday that Cabovisao will launch DOCSIS 3.0 and video-on-demand (VOD), as well as increase its channel offering, in an effort to be more competitive in Portugal.
Cogeco’s Canadian operation did well in the second quarter, with the addition of 47,577 revenue-generating units (RGUs) for a total of 113,040 RGUs.