File photo of Louis Audet, CEO of Cogeco Inc.J.P. Moczulski/The Canadian Press
Telecommunications and media company Cogeco Inc. (TSX:CGO) and its main subsidiary, Cogeco Cable Inc. (TSX:CCA) are raising their respective dividends by about 15 per cent.
Cogeco Inc., which owns broadcasting operations in Quebec as well as a controlling stake in Canada's fourth-largest cable system, says its quarterly dividend will increase three cents to 22 cents per share.
At Cogeco Cable Inc., a publicly traded subsidiary that accounts for most of its parent's revenue and profit, the dividend is rising to 30 cents per share from the 26 cents paid in the fiscal fourth quarter.
Both companies recorded slightly lower profit but higher revenue in the fiscal fourth quarter ended Aug. 31 as a result of acquisitions.
Cogeco purchased U.S.-based Atlantic Broadband cable company in 2012 for US$1.36-billion, its first big acquisition since its failed venture into Portugal. Cogeco followed that purchase with a friendly $526-million deal last December to buy Peer 1 Network Enterprises, a Vancouver-based Internet infrastructure provider to businesses.
Cogeco Inc. reported late Thursday that its profit was $43.8-million or 82 cents per diluted share, down from a profit of $44.9-million, or 83 cents per diluted share, a year earlier. Revenue in the fourth quarter increased by 41.5 per cent to $504.7-million year-over-year.
Cogeco Cable reported a lower profit of $43.9-million, or 90 cents per share diluted – down from $45.7-million, or 93 cents per share, a year earlier. Revenues in the cable division increased by 45 per cent to $470.4-million, the company said.
Cogeco Cable (TSX:CCA) said it lost more than 15,200 cable customers in the quarter, which spans the seasonally weak months of June through August.
"Fiscal 2013 proved to be a strong financial year for Cogeco and its subsidiaries, during which good headway was made in positioning the business toward sustained profitable growth," Louis Audet, who is president and CEO of both companies, said in a news release.
The Montreal company also owns 13 radio stations in Quebec.