MONTREAL – Cogeco Inc. earned $15.9 million in the second quartered ended February 29 as revenues improved 14%, or $33.5 million, to $271.9 million.
That compares with a profit of $34.5 million on revenues of $238.4 million a year ago. But the results a year ago included a one-time gain of $31 million.
In cable, revenue-generating units (RGUs) reached 2,624,885 with 56,196 net additions in the quarter.
The number of net additions to basic cable in the Canadian market stood at 1,869 customers compared to a growth of 5,277 customers for the same period last year due to the expiry of certain promotional offers.
In Canada, there were 15,058 net additions to Cogeco’s high-speed Internet service in the quarter compared with 20,428 customers for the same period last year. The additions resulted primarily because of enhanced product offerings and bundling.
Canadian net additions to Cogeco’s digital television service were at 17,879 customers compared to 13,961 customers for the same period last year. The increase resulted from targeted marketing initiatives, said Cogeco.
In Canada, there were 16,201 net telephone customer additions for a total of 183,052 at the end of the quarter. That compares to a growth of 24,467 for the same period last year. The lower growth rate for this second quarter was attributed to increased penetration in areas where the service is already offered and to fewer new areas where the service was launched. The telephone service is now available in 80% of Cogeco’s service area.
Cogeco also has a cable system in Portugal.
Radio revenues also improved this second quarter, with the RYTHME FM network and the 93.3 station in Quebec City continuing to draw larger audiences with appealing radio programming.
“On a consolidated basis, Cogeco’s second quarter financial result is positive. In the cable sector, Cogeco Cable continued to grow. In Canada, in a rational competitive environment, Cogeco Cable is performing above expectations,” said Cogeco president and CEO Louis Audet in a statement.
He added, “In radio, we are well positioned to keep our leading position in key markets and gain market share in our other markets. We are confident to exceed our fiscal 2008 guidelines and, as a result, revising them upwards.”
Cogeco also recently unloaded its shares in TQS, along with Bell, to Remstar.
