Cogeco scraps IPTV project; quarterly revenues climb 6.9%

10 Jul 2014

Canadian and US cable group Cogeco’s fiscal third-quarter consolidated revenue increased by 6.9% year-on-year to CAD496.4 million (USD465.2 million), driven by growth of 3.5% in the Canadian cable segment (Cogeco Cable), improvement of 12.2% in the American cable market (Atlantic Broadband) and a 15.3% increase in the enterprise services segment (Cogeco Data Services). For the nine-month period ended 31 May 2014, revenue reached close to CAD1.5 billion, an increase of CAD235.4 million, or 19.3% driven by growth of 2.4% in Canadian cable, 65.7% in US cable and 75.4% in enterprise services, boosted significantly by the acquisitions of Atlantic Broadband and Peer 1 Hosting. Adjusted EBITDA increased by 6.6% year-on-year to CAD229.4 million in the three months to the end of May 2014, and by 18.7% to CAD662.5 million for the first nine months of the fiscal year.

During the March-May 2014 quarter, Cogeco Cable Canada recognised an impairment of CAD32.2 million related to an Internet Protocol Television (IPTV) project which has now been abandoned as a result of ‘unexpected performance issues encountered with the platform.’ Subsequently, Cogeco Cable Canada has concluded a partnership with TiVo to allow it to offer next-generation television services that enable viewers to access content across multiple screens in and out of the home, which it will launch in Canada commercially ‘by mid-fiscal 2015’. The TiVo solution was successfully launched in the first half of fiscal 2014 in the US by Atlantic Broadband, ‘with great customer acceptance,’ according to Cogeco’s release.

Canada, Cogeco Connexion