Business
COGECO maintains its cable sector growth and will invest more in television
COGECO maintains its cable sector growth and will invest more in television.
About this update from Cogeco Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, July 11 /CNW Telbec/ - Today COGECO Inc. (TSX: CGO) announces\nfinancial results for the third quarter of fiscal 2005 ended May 31, 2005 and\nits preliminary financial outlook for fiscal 2006.\n\"COGECO is reporting higher net income compared to the same period last\nyear, thanks to excellent results from its cable sector. Though radio\noperations had tremendous audience ratings, the difficult environment in which\nTQS operates obliges us to evaluate our forecasts for the media sector\ndownwards for the 2006 fiscal year,\" says Mr. Louis Audet, President and CEO\nof COGECO.\n\nImproving performance indicators in the cable sector\n----------------------------------------------------\n\n\"Cogeco Cable continues to attract new customers, particularly with its\ndigital television and high-speed Internet services. This increased number of\ncustomers has a very positive impact on the subsidiary's revenue and on its\noperating margin. Cogeco Cable's contribution to COGECO's performance remains\nstrong year after year, and we are confident that this trend will continue for\nfiscal 2005, as well as for 2006,\" adds Mr. Audet.\n\nReadjustment in the media sector\n--------------------------------\n\n\"As far as radio is concerned, results should improve significantly due\nto the excellent audience ratings of our network stations, in progression in\ntheir markets. In television, TQS revenues are suffering from declining\naudience ratings, which continues to face a difficult advertising environment\nfor conventional television. However, the additional investments in\nprogramming that are planned for the coming fiscal year should generate\nratings in line with our expectations and therefore, should increase our\nprofitability,\" concludes Mr. Audet.\n\n>\n\n(1) During the third quarter of fiscal 2004, Cogeco Cable, a subsidiary\n of the Company, adopted new accounting standards regarding revenue\n recognition and certain related costs and the classification of\n certain items as revenue or expense. These changes were made on a\n retroactive basis in accordance with Abstracts 141 and 142 issued by\n the Canadian Institute of Chartered Accountants' (CICA) Emerging\n Issues Committee (EIC). See the section \"Changes in Accounting\n Policies\" of the Management's Discussion and Analysis in the\n accompanying interim financial ...