Cogeco net income plummets in Q2 without benefit of U.S. tax cuts

MONTREAL – Cogeco Inc. says its net income attributable to shareholders was cut nearly in half to $ 25.7 million in the second quarter despite a 10 per cent increase in revenues.

The Montreal-based company says it earned $ 1.57 per diluted share for the period ended Feb. 28, down from $ 2.82 per share or $ 46.6 million a year earlier.

Overall net income fell to $ 82.3 million from $ 145.8 million, largely due to a $ 94-million income tax reduction a year ago due to U.S. tax reform, depreciation and amortization.

The profit from continuing operations was $ 87.6 million while discontinued operations lost $ 5.4 million.

Cogeco Peer 1 Inc., its business and information and communications services subsidiary were reclassified as discontinued operations following Cogeco Communications’ announcement to sell the operations for $ 720 million on Feb. 27.

Revenues rose to $ 608.6 million from $ 554.1 million in the second quarter of 2018 on a 10 per cent growth in the communications segment following the acquisition of the MetroCast cable systems more than a year ago.

Companies in this story: (TSX:CGO, TSX:CCA)

TORONTO STAR