April 9, 2009 / 12:05 PM / 9 years ago

UPDATE 2-Cogeco Inc, Cogeco Cable post quarterly losses

* Losses due to C$399.6 mln non-cash impairment charge

* Excl items, Cogeco Inc Q2 EPS C$0.52

* Excl items, Cogeco Cable Q2 EPS C$0.51

* Shares of both companies down in early trade (Includes results of both companies, adds share price moves)

TORONTO, April 9 (Reuters) - Canadian cable and telecommunications company Cogeco Inc (CGO.TO) and its subsidiary Cogeco Cable Inc (CCA.TO) posted steep quarterly losses on Thursday as results were hurt by a large non-cash impairment charge linked to their European cable operations.

The companies said financial second-quarter results included a C$399.6 million ($324.9 million) non-cash impairment loss related to their investment in Cabovisao -- the companies’ Portuguese subsidiary.

“Cabovisao’s competitive position continued to deteriorate in the second quarter due to the unfavorable economic climate and recurring intense customer promotions and advertising initiatives from competitors in the Portuguese market,” the companies said in separate statements.

Cogeco, the parent company, posted a net loss of C$115.3 million, or C$6.89 a share, for the quarter ended Feb. 28, compared with a year-earlier profit of C$15.9 million, or 95 Canadian cents a share.

Excluding one-time items, the company posted a profit of 52 Canadian cents a share, up slightly from 50 cents a share, a year earlier.

Revenue in the quarter rose to C$311.8 million, driven primarily by gains in its domestic cable operations.

Shares of Cogeco were down 14 Canadian cents at C$24.85 on the Toronto Stock Exchange, while those of Cogeco Cable were down 50 Canadian cents at $32.50 in early trade.

COGECO CABLE RESULTS

Cogeco Cable posted a net loss of C$358.6 million, or C$7.39 a share, compared with a year-earlier profit of C$49.9 million, or C$1.02 a share.

Excluding items, Cogeco Cable posted earnings of C$25.1 million, or 51 Canadian cents a share, down from C$25.9 million, or 53 Canadian cents a share, a year earlier.

$1=$1.23 Canadian Reporting by Euan Rocha and Scott Anderson; Editing by Peter Galloway

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