MONTREAL — An acquisition by Cogeco Inc.’s cable and internet segment pushed up first-quarter revenue, but profit was down due to higher costs associated with integrating and restructuring the business, the telecommunications company said Friday.
The Montreal-based company says last year’s acquisition of the MetroCast cable systems by Cogeco Communications Inc. was the main reason Cogeco Inc.’s revenue increased to $674 million from $585.7 million last year.
But Cogeco Inc.’s net income attributable to shareholders for the quarter ended Nov. 30 fell to $26.2 million or $1.60 per diluted share.
That compared with $29.5 million or $1.78 per diluted share a year ago.
“Were weaker relative to last year, unfortunately,” chief executive Philippe Jette said on a conference call with investors.
The quarterly report was issued ahead of the annual shareholders meeting for both companies in Montreal.
Cogeco Communications has been mulling a push into the wireless business within its cable and internet territory recently. The company acquired licences for spectrum — the radio frequencies required for wireless communication — last year, but opted not to participate in the auction process for more licences in the 600 MHz spectrum band in 2019.
“The structure of the auction based on large geographic areas makes the acquisition of such spectrum uneconomical,” Jette said, stressing a “disciplined and thoughtful” market entrance.
Companies in this story: (TSX:CGO, TSX:CCA)
The Canadian Press