The cable company and radio broadcaster also lowered its earnings guidance for its 2013 financial year to a profit of $69 million attributable to owners of the corporation, down from an earlier estimate of $75 million.
However, revenue is expected to grow to $1.84 billion from the January estimate of $1.73 billion
The revised guidance came as the company said profit attributable to owners of the corporation amounted to $16.9 million or $1 per diluted share for the quarter ended Feb. 28, down from $25.1 million or $1.49 per share a year ago.
Revenue in the quarter grew 32.7 per cent to $458.5 million.
The company's cable subsidiary, Cogeco Cable (TSX:CCA), reported a profit of $58.7 million or $1.19 per diluted share for the quarter, down from $83.1 million or $1.70 per diluted share a year ago.
Revenue grew to $429.7 million, up from $317.7 million.
The company attributed the increase in revenue to Cogeco Cable's deal to buy Atlantic Broadband cable company last summer for US$1.36 billion and the recently closed purchase of Peer 1 Network Enterprises, a Canadian Internet infrastructure provider, for $526 million.
In its outlook, Cogeco Cable said it expected profit for the year to come in at $205 million compared with earlier expectations of $225 million, as operating margins are expected to slip to 45.2 per cent from 46.2 per cent.
Revenue at Cogeco Cable is expected to increase to nearly $1.7 billion, up from $1.6 billion.
"We are satisfied with the favourable results obtained for the second quarter of fiscal 2013," said Cogeco president and CEO Louis Audet.
"The cable subsidiary continues along a path of steady growth, both organic and through acquisition. I am confident in this subsidiary's ongoing ability to perform and contribute favourably to Cogeco's objectives."Suggest a correction