Cogeco Cable's profit declines on higher taxes, depreciation

Fri Nov 2, 2012 7:25am EDT

Nov 2 (Reuters) - Cogeco Cable Inc, the main unit of media and telecom company Cogeco Inc, reported a lower quarterly profit, hit by an increase in corporate taxes in Ontario and faster depreciation.

Net income from continuing operations fell to C$45.7 million for the quarter ended August, or 93 Canadian cents per share, from C$62.7 million, or C$1.29 per share, a year earlier.

Revenue rose 6.2 percent to C$324.8 million ($325.7 million).

The Montreal-based company offers cable TV and internet and phone services mostly in rural Ontario and Quebec, and competes with bigger rivals BCE Inc and Quebecor Inc.

The fall in profit was "mostly attributable to the increase in depreciation and amortization expense due to the reduction of depreciation period for certain property plant and equipment combined with the increase in income taxes," the company said.

The company's fourth-quarter tax bill increased to C$15.1 million from C$91,000.

Cogeco Cable had sold its struggling Portuguese unit earlier this year.

Parent company Cogeco Inc said its fourth-quarter earnings from continuing operations fell to C$44.9 million, or 83 Canadian cents per share, compared with C$63.9 million, or C$1.27 per share, a year earlier. Revenue rose 7.7 percent to C$356.7 million.

Shares of Cogeco Inc closed at C$33.36 on Thursday, while Cogeco Cable closed at C$37.60 on the Toronto Stock Exchange.