Cogeco Inc. (TSX:CGO) said Thursday that its fourth-quarter profits soared nearly 72 per cent

October 27, 2011 5:54 AM0 commentsViews: 14

Cogeco Inc. (TSX:CGO) said Thursday that its fourth-quarter profits soared nearly 72 per cent

MONTREAL – Cogeco Inc. (TSX:CGO) said Thursday that its fourth-quarter profits soared nearly 72 per cent with net income rising to $21.1 million.

That amounts to $1.26 per share in the three-month period ended Aug. 31, up from $12.3 million a year ago, or 73 cents per share.

Revenues jumped 12.5 per cent to $375.4 million, up from $333.7 million, the company said.

Cogeco Inc. beat estimates from analysts compiled by Thomson Reuters who had put earnings per share at 86 cents on $374 million of revenues.

“Cogeco posted strong results for fiscal 2011, a year marked by both organic and external growth,” chief executive Louis Audet said in a news release.

“In 2011, we welcomed Corus Quebec radio stations, Quiettouch and MTO into the COGECO family,” Audet said of recent acquisitions.

At Cogeco Cable Inc. (TSX:CCA), quarterly profits grew 75.4 per cent to $69.6 million, or $1.42 per share, an increase from $39.7 million, or 81 cent per share, a year earlier.

Revenues were up eight per cent to $350.2 million, from $324.3 million.

Analysts had expected Cogeco Cable to earn 90 cents per share on $349 million of revenues during the quarter.

Cogeco Cable also announced it will increase its quarterly dividend to 25 cents, representing an increase of five cents. The dividend will be payable on Nov. 23 to shareholders of record on Nov. 9.

“For fiscal 2012, we expect growth in most of our performance indicators. Our primary focus will be to integrate our new acquisitions, strengthen our competitive positioning and continuously improve our processes and practices to create more value for our customers, announcers, listeners, shareholders and employees.”

Cogeco is the fourth-largest cable operator in Canada and has the second-largest cable system in Ontario, after Rogers Communications Inc. (TSX:RCI.B), and No. 2 in Quebec after Quebecor’s Videotron (TSX:QBR.B) in terms of the number of basic cable service customers.

The Montreal company also has a Portuguese subsidiary, which has faced difficult economic and market conditions since Cogeco Cable acquired it.

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