MONTREAL – Cogeco Communications Inc. says its earnings fell by about 15 per cent in the third quarter, primarily due to asset impairment and financial charges.
The Montreal-based company said after the markets closed Wednesday that its quarterly profit was $64.5 million, down from $76.2 million in the same period of fiscal 2017.
Cogeco said that was primarily due to increases in depreciation and financial costs, which were partly offset by a decrease of income taxes and other factors.
Revenues increased 12.7 per cent to $637.1 million, driven primarily by 44 per cent growth in the U.S. broadband sector. Revenues held stable in the Canadian Internet services sector.
Earnings per share in the quarter were $1.24, compared with $1.55 a year ago.
The company also announced a quarterly dividend of $0.475 per share.
Cogeco, the parent company, said it posted a gain of $70.1 million in the quarter, down from $82.1 million in the same quarter last year while revenues grew by about 11 per cent to $668.9 million.
Cogeco announced last month that its subsidiary, Cogeco Connexion, had acquired 10 spectrum licenses of 2500 megahertz in non-metropolitan areas of Ontario, from Kian Telecom, for $8 million.
In May, Cogeco Connexion successfully bid for 23 spectrum licenses of 2500 and 2300 megahertz primarily in its Ontario and Quebec wireline footprints for $24.3 million.
The cost of these licenses will be recorded in the fourth quarter of fiscal 2018.
“Overall we are satisfied with our performance for the third quarter of fiscal 2018,” said Cogeco Communications president and CEO Louis Audet.
“Results at Cogeco Connexion have remained stable compared to the third quarter of fiscal 2017, despite the fact that our Canadian broadband services subsidiary implemented a new advanced customer management system and had consequently temporarily reduced its marketing and sales activities.”
Audet also said the positive results in the company’s American broadband services are in line with expectations following the acquisition of the MetroCast cable systems in January.
“We are now ready to launch TiVo and Internet speed upgrades to these customers,” he said.
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