Cogeco writes off IPTV, signs up with Tivo

Cogeco Cable reported profit for its fiscal third quarter down to CAD 35.5 million from CAD 48.1 million a year earlier after taking a CAD 32 million impairment charge to write off a failed IPTV project in Canada. The cable operator has since signed a contract to launch Tivo in Canada, with a launch expected by the middle of the fiscal year. Its US subsidiary Atlantic Broadband already uses Tivo. 

Cogeco's revenues for the three months to May still rose 6.9 percent to CAD 496.4 million, helped by the company's expansion in the US and enterprise markets. Adjusted EBITDA was up 6.6 percent to CAD 229.4 million, and free cash flow more than doubled to USD 91.1 million, helped by lower capital equipment investments. Cogeco said it still expects to meet its full-year guidance, excluding the impairment charge.

Cogeco lost just over 2,500 revenue-generating units in the US and Canada in the quarter, for a total 2.452 million at the end of May. The loss of over 9,600 TV customers and 700 telephony clients was partially offset by the addition of 7,800 broadband subscribers. In the US, Atlantic gained a net 3,125 RGUs, while Cogeco in Canada shed 5,633 in the quarter.