Nov 2 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
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
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
Shares of Cogeco Inc closed at C$33.36 on Thursday, while
Cogeco Cable closed at C$37.60 on the Toronto Stock Exchange.