Cogeco grows; market is ‘maturing’
Cogeco Cable reported higher revenue but lower profit, a decrease attributed largely to higher taxes resulting from changes in Canada’s tax code.
Revenue in the company’s fourth quarter increased by 6.2 percent to reach $324.8 million.
Profit was $45.7 million in the fourth quarter, compared with $62.7 million for the like period of the previous fiscal year.
For the year, the company swung from a $45.6 million loss last year to a $225 million profit this year, the result of the company’s divestiture of Cabovisao, its former subsidiary in Portugal. The company is also still in the process of a $1.36 billion acquisition of Atlantic Broadband, which operates cable systems in Pennsylvania, Florida, Maryland, Delaware and South Carolina.
Cogeco reported a loss of 5,758 basic TV subscribers, balanced by the gain of 5,915 digital television subscriptions, 5,682 broadband additions and an increase of 7,035 voice connections.
The company reported that “net additions were lower than in the comparable period of the prior year, mainly as a result of category maturity, competitive offers, and tightening of our credit controls and processes.”
Cogeco noted that 83 percent of its customers are now served by DOCSIS 3.0 plant.