Cogeco Cable Reports Solid Profit Growth in Q1

Cogeco Cable's TiVo Service, lauched in Canada last year "a game-changer in the cable market."

Cogeco Cable Inc. and its parent, Cogeco Inc. (TSE:CGO, Mkt cap 901.46M, P/E 14.18, Div/yield 0.25/1.70, EPS 4.24, Shares 14.99M) have both reported double-digit growth in their fiscal 2015 first-quarter profits, attributed primarily to improvements in adjusted earnings before interest, taxes, depreciation and amortization.

The Montreal-based telecoms and media company said it has had to absorb an increase in financial expense, but that hasn't stopped it from being able to report a healthy rise in profits.

Cogeco Cable enjoyed a 14.1% jump in net income to $56.7 million from $49.7 million in the quarter ended Nov. 30, which amounted to $1.15 per diluted share, up from $1.01 a year ago.

Revenue climbed to $497 million in the three months, from just shy of $475 million in the year-earlier period.

It's a similar story for Cogeco Inc., which reported that first-quarter profits attributable to owners of the corporation rose to $26.8 million or $1.59 per diluted share from $23.1 million or $1.37 in the year-earlier period.

Revenue increased 4.1% to $538.4 million from just under $517 million, leaving Louis Audet, president and CEO of both companies, a very happy man.

"Once again we've shown our ability to grow profitably despite intense competition from existing and new players, changing market dynamics and rapid technology advances," he said.

Audet drew special attention to Cogeco Cable's TiVo Service, lauched in Canada last year, which he called "a game-changer in the cable market." He announced that Cogeco Cable Canada will launch the service in Québec in the spring, following a successful trial in Ontario.

"We have begun our fiscal year with a strong performance and I am confident that Cogeco will continue on its growth path and deliver on its 2015 projections," Audet concluded.

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