An expanded data services offering and U.S. cable businesses—and a little help from Canadian cable operations as well--drove up Cogeco Cable profits by 18 percent in the second quarter, the company reported.
Overall profit in the quarter was up 18 percent, to $55.3 million, and net profit climbed from $51 million to $55 million year-over-year. Revenue rose 13 percent to $445 million.
The company credited the revenue increases to a 2.3 percent jump in the Canadian cable services segment; a 14.2 percent hike in American cable services and a whopping 98.4 percent rise in the enterprise service segment.
Cogeco, in an earnings press release, cited "recent acquisitions (Atlantic Broadband and PEER 1), the favorable foreign exchange rates compared to the same period of last year as well as the improvement in the Canadian cable services segment" as reasons why adjusted EBITDA improved by 13.2 percent to $202.9 million for the quarter and by 26.3 percent to $405.8 million for the first half of the year.
"We've remained very diligent with our cost management, which has helped contribute to the strong performance across all our segments and helped maintain the operating margin over the last quarter to a satisfying level," President-CEO Louis Audet said in the press release. "Fluctuations in foreign exchange rates have furthermore positively impacted our operating results and we have revised our 2014 financial guidelines as a result."
Cogeco, he added, remains "on a solid path towards reaching our indebtedness leverage ratio objectives by August 2015."
- See this press release
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