Business
COGECO reports revenue growth and increases its television investments
COGECO reports revenue growth and increases its television investments.
About this update from Cogeco Inc.
[{"type":"text","content":"\n\n\n\n\nMONTREAL, Dec. 15 /CNW Telbec/ - COGECO Inc. reports an improvement in\nits principal results over the previous year, particularly due to the strong\nfinancial performance of its cable distribution subsidiary.\nCOGECO's revenue totalled $675.6 million, up 4.2% over the previous year,\ndue to a $27.9 million revenue increase from the cable sector, partly offset\nby a slight $0.4 million decline in the media sector. Moreover, operating\nincome before amortization increased by 9% to $233.8 million, thanks to a\n$24.3 million contribution from the cable sector, counterbalanced by a\n$3.7 million decrease in the media sector. Excluding the television's\nimpairment of goodwill and other intangible assets for fiscal 2005, net income\nwould have been $9.8 million. However, this unusual item results in a net loss\nof $19.8 million.\n\"COGECO's results, and especially those of its cable subsidiary, have\nimproved. More customers are now users of our high-speed Internet (HSI) and\ndigital services, and the launch of digital telephony allows the customers of\nour cable subsidiary to benefit from a complete offer at a very attractive\nprice. As for our media subsidiary, the RYTHME FM network has continued to\nbuild its base in its new markets, while maintaining its leading position in\nthe Montreal market. For TQS, very tight cost control at the beginning of the\nyear and substantial investments starting in the third quarter position us for\na return to profitability over the next few seasons,\" said Mr Louis Audet,\nCOGECO's President and Chief Executive Officer at the Company's annual\nmeeting.\n\nMedia Sector\n\nIn 2005, the RYTHME FM network consolidated its position throughout\nQuebec. Moreover, according to the BBM all through 2005, the Montreal radio\nstation 105.7 RYTHME FM continues to obtain good results and is establishing\nitself as the leader among the 25-54 age group in the Montreal region.\n93.3 in Quebec City is winning over its audience with programming suited\nto the taste of its target audience, men between 25 and 54.\nTQS is solidifying its programming base to regain its market shares and\nstrengthen its black sheep position. Shows such as Donnez au suivant, Le\nBachelor and Loft Story II will spearhead the achievement of the expected\nresults.\n\nCable Sector\n\nCogeco Cable's revenue increased by $27.9 million...