Cogeco Inc. and its cable subsidiary are raising their financial guidelines for the current fiscal year following a stronger-than-expected first quarter.
Cogeco, which owns radio and television assets in addition to a stake in a cable company, beat analysts’ profit expectations.
It reported 95 cents per share or nearly $16 million in net income with $342.8 million revenue. Analysts had estimated 87 cents per share of profit.
A year earlier, Cogeco Inc. earned $1.35 per share, or 78 cents per share on an adjusted basis, with $328 million in revenue.
The company is now projecting $1.44 billion of annual revenue and $50 million of net income for 2011, up from $1.38 billion revenue and $45 million of net income projected in October.
The company’s cable provider division expects to generate $140 million of annual net income, up from $120 million, while its revenue is expected to be $1.36 billion–slightly better than anticipated.
“Cogeco’s first quarter financial results are very positive,” said Louis Audet, president and CEO.
“Cogeco Cable demonstrates strong internal growth and is in an excellent position to achieve superior performance in 2011.”
Audet added that the parent company’s acquisition of 11 radio stations from Toronto-based Corus Entertainment has positioned the company well in the Quebec radio market.
“In light of these positive results, management has revised most of its guidelines for the 2011 fiscal year,” Audet said.
Cogeco has the fourth-largest cable system in Canada. It’s the second-largest cable system in Ontario after Rogers Communications and second-largest in Quebec after Quebecor Inc.’s Videotron.
Cogeco has announced that it will be the first in Canada to test technology that will deliver targeted advertising on TV with a trial on Hamilton’s CHCH television station.
