Cogeco Q2 profit surges on benefit of U.S. tax reforms and higher revenues
A Cogeco sign hangs at the company's annual general meeting in Montreal, Tuesday, January 14, 2014. Cogeco Communications Inc. net earnings surged in the second quarter thanks largely to deferred income taxes related to U.S. tax reforms.THE CANADIAN PRESS/Graham Hughes
April 13, 2018 - 7:21 AM
MONTREAL - Cogeco Communications Inc. net earnings surged in the second quarter thanks largely to deferred income taxes related to U.S. tax reforms.
The Montreal-based company says its earnings attributable to shareholders were $138.9 million, up from $76.7 million a year ago.
That equalled $2.79 per diluted share for the period ended Feb. 28, compared to $1.55 per share a year earlier.
The results included $89 million in tax benefits (US$70 million).
Revenues for the period ended Feb. 28 increased 6.8 per cent to $599 million.
Increased revenues in the quarter were driven by a 29 per cent growth in the American broadband services thanks to the January acquisition of MetroCast, rate increases implemented in September and growth in internet and telephone services.
That was partly offset by stable revenues in Canada and a 7.8 per cent decrease in the business information and communications technology services segment.
However, Maher Yaghi of Desjardins Capital Markets said the performance of the Canadian operations was weaker than he had expected.
The company lost 7,020 basic cable subscribers due to lower promotional activities, added 6,880 internet customers and had 5,621 net loss in telephone customers due to increased wireless substitution.
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News from © The Canadian Press, 2018