Cogeco Q3 earnings virtually unchanged, despite revenue rise

Recent acquisitions boosted the revenue line, while the profit line was offset by purchase costs.
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Cable giant Cogeco has posted virtually unchanged third quarter earnings, despite a steep rise in overall revenue.

Montreal-based Cogeco recorded earnings from continuing operations at $55.1 million for the three months to May 31, against a profit of $55.3 million in the same period of 2012.

Earnings for the owners of the corporation were $18.9 million, against a year-earlier profit for $19.3 million.

The profit lines came as total revenue rose 41% to $504.4 million, a jump due to two recent acquisitions, the U.S. cable group Atlantic Broadband and Canadian internet provider Peer 1 Network Enterprises.

Cogeco said earnings from continuing operations were slightly undercut by acquisition costs, depreciation and amortization and financial expense, including costs of around $3.5 million for debt refinancing associated with recent acquisitions.