Relentlessly disappointing financial results have forced Cogeco Cable to cut 150 jobs by Feb. 1. But further consideration of its financial woes could lead the country’s fourth largest cabler to take the cue from Moffat Communications and sell to the most likely cable giant.

In the company’s recent Q1 report, covering the three months ended Nov. 30, revenues were up to $103.7 million, but net profits slumped to a mere $373,000 or $0.01 a share. For the same period last year, the company generated $5.5 million net profit or $0.17 per share on revenue of $88.6 million.

Cash flow for the period was down to $24.7 million from $25.2 million for the same time last year.

Cogeco attributes its high revenues and slumped earnings to several acquisitions and system upgrades, which may pay off in the long run.

In the short term, however, the company has been motivated to take immediate action by laying off 150 employees – 12% of its roughly 1,200-person workforce. Twenty-five contract workers are among the layoffs, effective Feb. 1. The Montreal-based company has not commented on other cost-cutting measures in the works.

Cogeco stock, which has been hovering around the $39 mark for the past few months, has fallen to roughly $35, reinforcing its prospects as a takeover target for the highest bidder, likely cable giant Rogers.

With Cogeco under its belt, Rogers would secure a stronghold on the eastern Canadian cable market, especially since it lost its bid for Groupe Videotron to Quebecor last year.

To further complete the circle, Cogeco has expressed interest in buying Television Quatre Saisons, Quebec’s third-largest television station, which Quebecor acquired through the Videotron deal.

Because printing-gone-cable-giant Quebecor also has controlling interest in leading Frenchcaster tva, it was urged by the competition bureau to put tqs – in which Cogeco already has a 13% stake – on the block. The estimated value of the asset is $100 million.

Recent acquisitions that have eaten away at Cogeco’s profits include: three Ontario and Quebec cable firms bought in September for $45 million; Cablevue, purchased in November for $79.8 million; and three Northern Ontario cable firms for $30.6 million (pending approval).

As of Nov. 30, 2000, Cogeco’s basic service subscriber base totaled 870,363, an increase of 660 customers since Aug. 31, 2000.

In December, Cogeco had concluded an $11.2-million deal with Decibel shareholders to acquire cable systems serving 6,600 subscribers in and around Quebec. *

-www.cogeco.com