MONTREAL — Analysts say they are surprised by the reported financial and subscriber strength of Atlantic Broadband, the main U.S. subsidiary of Montreal-based cable and internet provider Cogeco Communications Inc.
Notes issued by RBC Dominion Securities and Canaccord Genuity say Cogeco added more than 14,000 internet subscribers in the United States during the company’s fiscal third quarter ended May 31.
They also say Cogeco’s preliminary outlook for the 2020 financial year, which begins Sept. 1, is slightly stronger than anticipated because of Atlantic Broadband.
However, they say overall third-quarter results included unexpectedly weak subscriber performance at Cogeco’s Canadian cable TV and internet operations across southern Quebec and Ontario.
Cogeco Communications reported late Wednesday that it had $587.3 million of revenue for the third quarter, up 3.6 per cent from a year ago or 1.7 per cent after adjusting for $10.8 million in positive currency effects.
Net profit was $182.0 million, including $82.45 million from discontinued operations that have been sold. Diluted earnings per share totalled $3.59, including $1.65 from discontinued operations.
Cogeco Communications and its parent Cogeco Inc. are scheduled to discuss their reports in a conference call Thursday.
Companies in this story: (TSX:CCA, TSX:CGO)
The Canadian Press