Cogeco net income plummets in Q2 without benefit of US 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.Related Stories:HBC Reports Second Quarter 2019 Financial ResultsBlackberry plunges to 4-year low in first five minutes of trading on earnings miss, outlook cutCintas Corporation Announces Fiscal 2020 First Quarter ResultsCompanies in this story: (TSX:CGO, TSX:CCA)

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