UPDATE 1-Acquisitions help boost Cogeco Cable profit
Jan 13 (Reuters) - Cogeco Cable Inc, a Canadian provider of cable TV and internet and phone services, reported an 18 percent rise in quarterly profit, helped by recent acquisitions.
Cogeco Cable acquired U.S. cable company Atlantic Broadband and Canadian data centers operator Peer 1 Network Enterprises Inc in 2012.
The company said the acquisitions, completed at the end of the first quarter and second quarter of the fiscal year ended August, and increased rates for its Canadian cable services, helped push revenue up 44.9 percent to C$475 million ($437.16 million) in the first quarter.
Cogeco Cable, which competes with Rogers Communications Inc and Telus Corp, has been losing cable and telephone customers and is trying to increase its presence in the fast-growing data-center business.
Data centers house large-capacity server computers and data-storage systems that are connected to the Internet via high-bandwidth links.
The company, owned by media and telecommunications company Cogeco Inc, lost over 9,000 cable TV customers, while 4,000 Canadian telephone customers canceled their service in the quarter.
The Montreal-based company's net profit rose to C$49.7 million ($45.74 million), or C$1.02 per share, in the first quarter ended Nov. 30, from C$42.1 million, or 87 Canadian cents per share, a year earlier.
Analysts on an average had expected a profit of C$1.02 per share on revenue of C$478.4 million, according to Thomson Reuters I/B/E/S.
Cogeco Cable's shares closed at C$50.32 on the Toronto Stock Exchange on Monday.