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)