Cogeco Cable fourth-quarter profit slips; loses 10,000 Canadian subscribers
TORONTO (Reuters) - Cogeco Cable Inc (CCA.TO: Quote) reported a 4 percent drop in fourth-quarter profit after costs to integrate two recent acquisitions and the loss of cable and telephone customers.
The Montreal-based company, the primary unit of media and telecommunications company Cogeco Inc (CGO.TO: Quote), said late Wednesday its profit fell to C$43.9 million in the quarter, or 90 Canadian cents a share, from C$45.7 million, or 93 Canadian cents a share, a year ago.
Revenue jumped almost 45 percent to C$470.4 million.
Analysts, on average, expected Cogeco Cable to earn C$1.02 a share on revenue of C$471.1 million, according to Thomson Reuters I/B/E/S.
The Canadian government served notice this month that cable and satellite TV distributors will have to make it easier for customers to buy smaller bundles of channels, which could put pressure on Cogeco.
It bought U.S. cable company Atlantic Broadband and Peer 1 data centers earlier this year, and said both units performed in line with expectations.
The Atlantic Broadband subsidiary gives Cogeco operations in western Pennsylvania, South Florida, Maryland, Delaware and South Carolina.
The company lost more than 10,000 cable TV customers in Canada and another 3,600 in the United States, while more than 1,600 Canadian telephone customers and 500 U.S. customers also canceled their service in the quarter. Continued...