October 30, 2008 / 12:07 PM / in 10 years

UPDATE 2-Cogeco reports weaker results, lowers outlook

* Cogeco Inc EPS C$0.58 vs C$1.81

* EPS at subsidiary Cogeco Cable C$0.65 vs C$0.78

* 2009 net income forecast cut

* Cogeco Inc shares down 3.6 pct at C$23.50

* Cogeco Cable shares off C$3.3 pct at C$33.00

(Adds details and includes Cogeco Cable results)

TORONTO, Oct 30 (Reuters) - Canadian media company Cogeco Inc (CGO.TO) reported a weaker quarterly profit on Thursday in comparison with year-before results that were boosted by a special gain, and it lowered its 2009 outlook due to a slowing economy and mounting competition.

Cogeco said it earned C$9.6 million ($8 million), or 58 Canadian cents in its fourth quarter, down from C$30.4 million, or C$1.81 a share, in the year-before quarter.

Profit in the comparable 2007 quarter included a gain of C$27 million on shares issued by its publicly-traded cable division.

Revenue for the Montreal-based radio, television and communications company was C$292.9 million, up 16.5 percent from C$251.3 million from the fourth quarter last year.

The company’s cable division, Cogeco Cable (CCA.TO), also reported a lower quarterly profit compared with the year-earlier period, when it benefited from a favorable tax adjustment.

Cogeco Cable said it earned C$31.9 million, or 65 Canadian cents a diluted share, in its fourth quarter, ended Aug. 31, down from C$36.4 million, or 78 Canadian cents a share, a year earlier.

The decrease was mainly due to favorable income tax adjustments of C$14.7 million in 2007.

Revenue for the cable division was C$284.9 million, up 16.6 percent from C$244.3 million.

The companies revised their forecasts for their 2009 financial year, pointing to the slowing economy and lower-than-expected growth in the cable division.

The parent company now forecasts net income at C$35 million, down from its July forecast of C$42 million. Cogeco Cable expects profit at C$107 million, down from C$125 million. ($1=$1.21 Canadian) (Reporting by Scott Anderson; Editing by Peter Galloway)

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