Cogeco Cable profit falls on impairment charges
(Reuters) - Canadian telecommunications company Cogeco Cable Inc reported a lower third-quarter profit and cut its full-year profit outlook by 10.6 percent hurt by impairment charges at its Cogeco Cable Canada unit.
The company expects revenue for the next financial year to be $2.03 billion, up 3.8 percent from the projected revenue for the current year ending August.
The company, which provides cable TV, Internet and phone services, said net profit fell to C$35.5 million ($33.3 million) or C$0.72 per share, for the quarter ended May 31, from C$48.1 million, or C$0.98 per share, a year earlier.
Cogeco Cable Canada recognized an impairment charge of C$32.2 million related to an Internet Protocol Television project.
The Montreal-based company's Canadian cable services unit lost 8,021 cable customers, while 1,433 telephone customers canceled their services in the third quarter.
Cogeco's U.S. cable services unit lost 1,599 cable customers, while it added 733 new telephone customers during the quarter.
The company said it signed a partnership with Digital video recorder maker TiVo Inc in Canada and expects the service to be launched by mid-fiscal 2015.
Third-quarter revenue rose 6.9 percent to C$496.4 million.
Owned by media and telecommunications company Cogeco Inc, Cogeco Cable competes with Rogers Communications Inc, Telus Corp and BCE Inc. Continued...