MONTREAL — Cogeco Cable saw its third-quarter net income decline slightly from the same time last year but reported higher revenue as the strength of its Canadian operations offset ongoing challenges in Europe.
Net income for Canada's fourth-largest cable company was $31.2 million with $319.3 million in revenue. That compared with $32.4 million in net income, after adjustments, with $305 million in revenue in the year-earlier period.
The earnings per share was 64 cents in the quarter ended May 31, compared with 67 cents per share a year or 57 cents per share on an adjusted basis.
The third quarter of fiscal 2009 included two tax provisions related to Cogeco's subsidiary in Portugal, which boosted the parent company's bottom line.
Overall revenue in the three months ended May 31 was up 4.5 per cent from the same time last year but Cogeco's European operations experienced a 24.2 per cent revenue decline to $43.6 million.
Cabovisao Televisao por Cabo, SA has experienced intense competition since Cogeco acquired it several years ago as its first operation in Europe.
Cogeco, the parent of Cogeco Cable, reported separately that its net income was $10.7 million in the third quarter – virtually the same as a year earlier. Revenue was $330.9 million, up from $316.3 million.
Simultaneous with its earnings release, the company announced it replaced its $862 million credit facility, which matures later this month, into a $750 million credit facility, with an option to increase to a total amount of up to $1 billion. The new facility will mature in 2014, but can be extended year by year.