News

MetroCast acquisition pushes up Cogeco’s Q1 revenue, costs; profit declines

MetroCast acquisition pushes up Cogeco’s Q1 revenue, costs; profit declines
Business
MONTREAL - An acquisition by Cogeco Inc.’s cable and internet segment pushed up first-quarter revenue, but profit was down due to higher costs associated with integrating and restructuring the business, the telecommunications company said Friday.

The Montreal-based company says last year’s acquisition of the MetroCast cable systems by Cogeco Communications Inc. was the main reason Cogeco Inc.’s revenue increased to $674 million from $585.7 million last year.

But Cogeco Inc.’s net income attributable to shareholders for the quarter ended Nov. 30 fell to $26.2 million or $1.60 per diluted share.

That compared with $29.5 million or $1.78 per diluted share a year ago.

“Were weaker relative to last year, unfortunately,” chief executive Philippe Jette said on a conference call with investors.

The quarterly report was issued ahead of the annual shareholders meeting for both companies in Montreal.

Cogeco Communications has been mulling a push into the wireless business within its cable and internet territory recently. The company acquired licences for spectrum — the radio frequencies required for wireless communication — last year, but opted not to participate in the auction process for more licences in the 600 MHz spectrum band in 2019.

“The structure of the auction based on large geographic areas makes the acquisition of such spectrum uneconomical,” Jette said, stressing a “disciplined and thoughtful” market entrance.
Read more on Toronto Star
News Topics :
Similar Articles :
Business
MONTREAL Cogeco Inc. s new CEO is leaving the door open to a slim down or selloff of its cloud services provider down the line, though he stressed continued commitment...
Business
MONTREAL Cogeco Inc. says its net income attributable to shareholders was cut nearly in half to $25.7 million in the second quarter despite a 10 per cent increase in...
Business
Cogeco Inc. chief executive officer Louis Audet says he admires recent moves by fellow cable operator Shaw Communications Inc. to gain a toehold in the wireless business, but sees no...
Business
MONTREAL—Cogeco Communications Inc. is preparing to expand in the eastern United States by purchasing the MetroCast cable systems business in a deal valued at $1.4 billion U.S. . The Montreal based company...
Business
Quebecor Inc. is in a strong financial position and prepared to invest in its wireless and cable operations, CEO Pierre Karl Peladeau said Wednesday as the company reported its latest...