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Cogeco, Cogeco Cable see big increases in revenue, profit

File photo of Louis Audet, chief executive of Cogeco Inc.

Ryan Remiorz/The Canadian Press

Telecommunications and media company Cogeco Inc. (TSX:CGO) and its main subsidiary, Cogeco Cable Inc. (TSX:CCA) are both reporting big increases in fourth-quarter revenue and net earnings.

Cogeco said profit attributable to owners of the corporation amounted to $23.1-million, or $1.37 per diluted share, up from $18.5-million, or $1.10 per share in the same year earlier period.

Revenue soared 41 per cent to $517-million from $366.6-million.

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Meanwhile, Cogeco Cable saw its revenue in the three months ended Nov. 30 soar 44.9 per cent to $475-million from $327.9-million in the year-earlier period.

Net profit increased to $49.7-million or $1.01 per diluted share, up from $42.1-million or 86 cents per diluted share a year ago.

Gains were mostly attributable to the improvement in operating income before depreciation and amortization generated by the recent acquisitions and the Canadian cable services segment, partly offset by additional depreciation and amortization and financial expense related to the acquisitions.

"I am happy to report that Cogeco achieved solid financial results for its first quarter of 2014," president an CEO said in announcing the results late Monday.

"Improved free cash flow, stemming from improved profitability and sound cost management puts our cable segment well on its way to reducing its leverage," he said.

"Our media activities, both on the radio and transit display advertising, continue to improve," Audet said, adding that the overall performance "instills confidence in our ability to continue to deliver solid results."

Cogeco is a diversified holding corporation which, through its Cogeco Cable subsidiary, provides residential and business customers analogue and digital television, high speed Internet and telephone services in Quebec, Ontario and parts of several U.S. states.

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