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Cogeco Cable, parent, both report higher Q2 revenue, but profit drops

MONTREAL – Cogeco Cable Inc. (TSX:CCA) and its parent, Cogeco Inc. (TSX:CGO), have both reported increases in revenue in the second quarter, but say net profits declined as a result of depreciation and other expenses.

Montreal-based Cogeco Cable, which provides television, Internet and telephone services to customers in Quebec, Ontario and parts of the United States, reported after markets closed Wednesday that net profit fell to $58.9 million or $1.19 per diluted share from $60.4 million or $1.23 per share in the same 2014 period.

It said the decrease was mainly as a result of increases in depreciation and amortization, financial expense and income taxes.

Revenue rose by $23.5 million or 4.8 per cent to $509.5 million, driven by growth of 0.3 per cent in its Canadian cable services segment, 18.3 per cent in the American cable services segment and 6.4 per cent in the Enterprise data services segment.

Cogeco Inc. said its revenue improved $18.4 million or 3.6 per cent to $536.9 million.

However, net profit fell to $55 million from $58.5 million, of which $14.9 million or 89 cents per share was attributable to owners of the corporation compared with $17.4 million or $1.04 per share in the prior-year period.