Cogeco Câble inc.
TSX : CCA

January 09, 2008 18:04 ET

Strong First Quarter Results for Cogeco Cable

MONTREAL, QUEBEC--(Marketwire - Jan. 9, 2008) - Today, Cogeco Cable Inc. (TSX:CCA) announced its financial results for the first quarter ended November 30, 2007.

First quarter 2008 consolidated results show sustained growth:

- Revenue increased by 13.4% to $251.8 million;

- Operating income before amortization grew by 17.5% to reach $98.3 million;

- Net income amounted to $20.4 million up by 62.4%;

- Free cash flow(1) reached $21.6 million;

- Operating margin grew from 37.7% to 39%;

- Revenue-generating units (RGUs)(2) reached 2,568,689 with 83,024 net additions.

"Cogeco Cable is in an excellent position to achieve superior growth in 2008. Cogeco Cable continues to enhance the features of its services, to attract new customers and to sell additional services to existing customers, thanks to its versatile delivery system," said Louis Audet, President and CEO of Cogeco Cable.

(1) Free cash flow does not have standard definitions prescribed by Canadian generally accepted accounting principles (GAAP) and should be treated accordingly. For more details, please consult the "non-GAAP financial measures" section.

(2) Represent a sum of Basic Cable, High Speed internet (HSI), Digital Television and Telephony service customers.



FINANCIAL HIGHLIGHTS

Quarters ended November 30,
(unaudited)

($000s, except percentages and %
per share data) 2007 2006 Change
----------------------------------------------------------------------
Revenue $251,833 $222,002 13.4

Operating income before
amortization 98,337 83,662 17.5

Net income 20,363 12,535 62.4

Cash flow from operations (1) 79,753 62,060 28.5
Less:
Capital expenditures and
increase in deferred charges 58,144 74,383 (21.8)
-----------------------------------------------------------------------
Free cash flow (1) 21,609 (12,323) -

Per share data
Basic net income $0.42 $0.31 35.5


(1) Cash flow from operations and free cash flow do not have standard
definitions prescribed by Canadian generally accepted accounting
principles (GAAP) and should be treated accordingly. For more
details, please consult the "non-GAAP financial measures" section.


FORWARD-LOOKING STATEMENT

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to our future outlook and anticipated events, our business, our operations, our financial performance, our financial condition or our results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding our future operating results and economic performance and our objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions, including expected growth, results of operations, performance and business prospects and opportunities, which we believe are reasonable as of the current date. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties (described in "Uncertainties and main risk factors" of the Corporation's 2007 annual MD&A that could cause actual results to differ materially from what we currently expect. These factors include technological changes, changes in market and competition, governmental or regulatory developments, general economic conditions, the development of new products and services, the enhancement of existing products and services, and the introduction of competing products having technological or other advantages, many of which are beyond our control. Therefore, future events and results may vary significantly from what we currently foresee. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation (and expressly disclaim any such obligation) and do not undertake to update or alter this information before next quarter.

This analysis should be read in conjunction with the Corporation's financial statements, and the notes thereto, prepared in accordance with Canadian GAAP and the MD&A included in the Corporation's 2007 Annual Report. Throughout this discussion, all amounts are in Canadian dollars unless otherwise indicated.


MANAGEMENT'S DISCUSSION AND ANALYSIS (MD&A)

CORPORATE STRATEGIES AND OBJECTIVES

Cogeco Cable's objectives are to improve profitability and create shareholder value. The strategies for reaching those objectives are constant corporate growth through the diversification and the improvement of products and services as well as clientele and territories; the continuous improvement of networks and equipment; and tight cost control over business processes. The Corporation measures its performance, with regard to these objectives, by monitoring revenue growth, RGU(1) growth and free cash flow(2). Below are the recent achievements in furtherance of Cogeco Cable's objectives.

Continuous improvement of the service offering and expansion of the customer base



Canadian operations
- Digital Television services:
- September 4, launch of the Setanta International Sports Pak in
Ontario, a new premium digital service;

- October 2, launch of RDS HD in Quebec, a speciality channel
transmitting in High Definition ("HD") various sports events,
including all Montreal Canadians hockey games;

- October 11, launch of Leafs TV HD, a Canadian digital specialty
sports channel in HD transmitting all Toronto Maple Leafs hockey
team games;

- October 31, launch of Mpix On Demand in Ontario;

- December 5, launch of the Motorola DCT3080, a new digital video
recorder (DVR) model in Quebec.

- Telephony service:
- September 25, new International calling service with a supplier of
choice in Quebec and Ontario;

- HSI services:
- November 7, launch of Wi-Fi into Kingston and Windsor.


Portuguese operations
- Cabovisao - Televisao por Cabo, S.A. (Cabovisao) continued its Digital
Television service deployment;

- New image and communication concept: Cabovisao, infinite possibilities.

Continuous improvement of networks and equipment

- During the first quarter of 2008, the Corporation has invested
approximately $21.7 million in its infrastructure including headends
and network upgrade / rebuild.

Tight control over costs, business processes

- On September 5th, a new management structure was implemented that will
enable Canadian operations to develop better synergies and therefore
have a positive impact on the way Cogeco Cable delivers its services.

- For the first quarter 2008, operating costs, excluding management fees,
increased by 10.9%, compared to a revenue growth of 13.4% during this
period;

- The design of internal controls over financial reporting as per National
Instrument 52-109 is still underway. As discussed in the 2007
annual MD&A, the Corporation had identified certain material weaknesses
in the design of internal controls over financial reporting and there
have been improvements in the design of internal controls on some
significant processes during the quarter. The documentation and
remediation of internal controls weaknesses are progressing normally.

(1) See the "Customer statistics" section for detailed explanations.

(2) See the "non-GAAP financial measures" section for explanations.


RGU growth

During the first quarter 2008, the consolidated number of RGUs increased by 3.3% to reach over 2.5 million units. The Corporation is expecting an annual RGU growth of approximately 10% and is maintaining its guidelines.

Revenue growth

During the first quarter 2008, revenue increased by $29.8 million, or 13.4%, to reach $251.8 million, mainly due to RGU growth and rate increases implemented in Canada in fiscal 2007. In its 2008 financial guidelines, the Corporation has anticipated a revenue growth of approximately 12% and is on the way to achieving its objectives.

Free cash flow

In the first quarter of fiscal 2008, Cogeco Cable generated free cash flow of $21.6 million, compared to a negative free cash flow of $12.3 million for the same period last year. This increase results from several factors: an increase in operating income before amortization, a decrease in capital expenditures and deferred charges and a reduction in financial expense. The Corporation reduced its capital expenditures compared to last year by $16.5 million from $67.2 million to $50.7 million, mainly due to a $12 million expenditure in the first quarter of fiscal 2007 for the purchase of home terminal devices for the Canadian operations to build an inventory to sustain last year RGU growth.


OPERATING RESULTS - CONSOLIDATED OVERVIEW



Quarters ended November 30,
(unaudited)

($000s, except percentages) %
2007 2006 Change
------------------------------------------------------------------------
Revenue $251,833 $222,002 13.4

Operating costs 148,461 133,900 10.9

Management fees - COGECO Inc. 5,035 4,440 13.4

Operating income before amortization 98,337 83,662 17.5

Operating margin 39.0% 37.7%


Revenue

In the first quarter of fiscal 2008, consolidated revenue grew by $29.8 million, or 13.4%, to reach $251.8 million. Canadian operations revenue, driven by an increased number of RGUs combined with rate increases, went up by $28.3 million, or 16.9%, in the first quarter 2008. Portuguese operations revenue amounted to $55.6 million, an increase of $1.5 million, or 2.8% compared to the same period last year due to RGU growth and rate increases which was partly offset by the strength of the Canadian dollar against the euro.

Operating costs

In the first quarter of fiscal 2008, operating costs excluding management fees payable to COGECO Inc., increased by $14.6 million, or 10.9%, to reach $148.5 million. The increase in operating costs for the first quarter 2008 was mainly attributable to servicing additional RGUs in Canada, including the increased penetration of Telephony service, and in Portugal, to the timing of certain marketing initiatives, including a major campaign to increase brand awareness, to costs to better service additional RGUs and to costs related to the design of internal controls and review of business processes to comply with National Instrument 52-109.

Operating income before amortization

First quarter 2008 operating income before amortization increased by $14.7 million, or 17.5%, to reach $98.3 million, due to RGU growth and various rate increases outpacing operating cost increases. As a result, first quarter 2008 operating margin increased to 39% from 37.7%.

RELATED PARTY TRANSACTIONS

Cogeco Cable is a subsidiary of COGECO Inc., which holds 32.4% of the Corporation's equity shares, representing 82.7% of the votes attached to the Corporation's voting shares. Under a management agreement, the Corporation pays COGECO Inc. monthly management fees equal to 2% of its total revenue for certain executive, administrative, legal, regulatory, strategic and financial planning, and additional services. In 1997, management fees were capped at $7 million per year, subject to annual upward adjustments based on increases in the Consumer Price Index in Canada. Accordingly, for fiscal 2008, management fees have been set at a maximum of $8.7 million. Management fees for the first quarter of fiscal 2008 stood at $5 million compared to $4.4 million for the same period last year. Furthermore, Cogeco Cable granted 22,683 stock options to COGECO's employees during the first quarter 2008, compared to 318,735 for the same period last year. Of these 318,735 stock options granted in the first quarter of fiscal 2007, 262,400 were conditional on the achievement of certain yearly financial objectives by the Portuguese subsidiary over a period of three years. During the first quarter of fiscal 2008, Cogeco Cable charged COGECO Inc. an amount of $0.1 million with regards to Cogeco Cable's options granted to COGECO's employees. Details regarding the management agreement and stock options granted to COGECO Inc.'s employees are provided in the MD&A of the Corporation's 2007 Annual Report. There were no other material related party transactions during the first quarter 2008.



FIXED CHARGES

Quarters ended November 30,
(unaudited)
------------------------------------------------------------------------
($000s, except percentages) %
2007 2006 Change
------------------------------------------------------------------------

Amortization $52,687 $44,309 18.9

Financial expense 16,912 21,221 (20.3)


First quarter 2008 amortization expense amounted to $52.7 million, compared to $44.3 million for the same period last year. The increase in amortization expense is mainly due to the completion in the fourth quarter of fiscal 2007 of the purchase price allocation of the Cabovisao acquisition, which includes the valuation of tangible and intangible assets for an additional amortization expense of approximately $4.4 million and from additional capital expenditures arising from the required customer premise equipment to sustain RGU growth.

First quarter 2008 financial expense decreased by $4.3 million, compared to the same period last year. The Corporation reduced its level of Indebtedness (defined as bank indebtedness and long-term debt) from the net proceeds of subordinate voting shares issued during fiscal 2007.

INCOME TAXES

First quarter 2008 income tax expense amounted to $8.4 million compared to $5.6 million for the same period last year. The increase is mainly due to higher operating income before amortization and lower financial expense that have outpaced the increase in amortization expense.

On October 16, 2007, the Canadian federal government announced in its Economic Statement reduction in corporate income tax rates. According to the new legislation, corporate income tax rates will be further reduced from 20.5% to 19.5% effective January 1, 2008, from 20% to 19% effective January 1, 2009, from 19% to 18% effective January 1, 2010, from 18.5% to 16.5% effective January 1, 2011, and to 15% effective January 1, 2012. These corporate income tax rates were considered substantively enacted on December 14, 2007. The reduction of these corporate income tax rates will reduce future income tax expense by approximately $23 million in the second quarter of fiscal 2008.

NET INCOME

First quarter 2008 net income amounted to $20.4 million, or $0.42 per share, compared to $12.5 million, or $0.31 per share, for the same period last year. Net income progression has been essentially the result of the growth in operating income before amortization exceeding those of the fixed charges.

CASH FLOW AND LIQUIDITY



Quarters ended November 30,
(unaudited)

($000s) 2007 2006
------------------------------------------------------------------------
Operating Activities
Cash flow from operations $79,753 $62,060
Changes in non-cash operating items (34,408) (71,909)
------------------------------------------------------------------------
$45,345 $(9,849)
------------------------------------------------------------------------
------------------------------------------------------------------------

Investing Activities (1) $(58,070) $(74,070)
------------------------------------------------------------------------
------------------------------------------------------------------------

Financing Activities (1) $(34,401) $29,695
------------------------------------------------------------------------
------------------------------------------------------------------------

Net change in cash and cash equivalents $(47,126) $(54,224)
Effect of exchange rate changes on cash
and cash equivalents denominated in
foreign currencies (153) 1,616
Cash and cash equivalents at beginning 64,208 71,516
------------------------------------------------------------------------
Cash and cash equivalents at end $16,929 $18,908
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) Excludes assets acquired under capital leases.


First quarter 2008 cash flow from operations reached $79.8 million, 28.5% higher than for the comparable period last year, primarily due to the increase in operating income before amortization and to a reduction in financial expense. Changes in non-cash operating items generated lower cash outflows compared to the same period last year, mainly as a result of certain non-recurring payments executed by the Portuguese subsidiary in accordance with the terms of the acquisition in the first quarter of fiscal 2007.

Investing activities, including capital expenditures are segmented according to the National Cable Television Association (NCTA) standard reporting categories as follows:



Quarters ended November 30,
(unaudited)

($000s) 2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
Customer Premise Equipment (1) $23,796 $39,417
Scalable Infrastructure 9,823 11,986
Line Extensions 2,589 2,551
Upgrade / Rebuild 11,862 10,856
Support Capital 2,657 2,361
------------------------------------------------------------------------
Total Capital Expenditures (2) $50,727 $67,171
------------------------------------------------------------------------
Deferred charges and other 7,416 7,195
------------------------------------------------------------------------
Decrease (increase) in restricted cash - (91)
------------------------------------------------------------------------
Total other investing activities $58,143 $74,275
------------------------------------------------------------------------

(1) Includes mainly new and replacement drops as well as home
terminal devices.
(2) Includes capital leases, which are excluded from the statements
of cash flow.


First quarter 2008 capital expenditures decreased compared to the same period last year mainly due to lower RGU growth and to the timing of customer premise equipment acquired in the first quarter of fiscal 2007 to build an inventory for the Canadian operations. The Portuguese operations' capital expenditures increased compared to the same period last year as a result of the Digital Television deployment and the network extensions to serve additional homes passed.

First quarter 2008 deferred charges remained essentially the same and are mainly attributable to reconnect costs.

First quarter 2008 free cash flow amounted to $21.6 million compared to a deficit of $12.3 million for the same period of the preceding year. The first quarter free cash flow increase over the same period last year is due to the following factors: a growth in operating income before amortization, a lower level of capital expenditures required to serve RGU growth and to support Telephony growth, a build-up of home terminal devices for an amount of $12 million during the first quarter of fiscal 2007 and a reduction in financial expense.

During the first quarter of fiscal 2008, debt repayment amounted to $32.6 million. This repayment came from the following factors: the generated free cash flow of $21.6 million, the reduction of $47.1 million in cash and cash equivalents partly used to offset the $34.4 million reduction in changes in non-cash operating items and, the increase of $3.1 million in capital stock from the exercise of stock options. These factors have been partly offset by a dividend payment of $4.8 million described below. For the same period last year, the increase in long-term debt and bank indebtedness amounted to $31.1 million due to a decrease of $71.9 million in non-cash operating items explained by the repayment of certain suppliers subsequent to the Cabovisao acquisition and by the free cash flow deficit of $12.3 million, partly offset by a $54.2 million decrease in cash and cash equivalents. In addition, a dividend of $0.10 per share for subordinate and multiple voting shares, totalling $4.8 million, was paid during the first quarter of fiscal 2008 compared to a dividend of $0.04 per share or $1.6 million for the first quarter of fiscal 2007.

As at November 30, 2007, the Corporation had a working capital deficiency of $378.7 million compared to $120.7 million as at August 31, 2007. The greater deficiency is mainly attributable to the US$150 million Senior Secured Notes Series A and the related derivative financial instruments due in October 2008. Cogeco Cable maintains a working capital deficiency due to a low level of accounts receivable since the majority of the Corporation's customers pay before their services are rendered, contrary to accounts payable and accrued liabilities, which are paid after products or services are rendered. In addition, the Corporation generally uses cash and cash equivalents to reduce Indebtedness.

As at November 30, 2007, the Corporation had used $432.9 million of its $900 million Term Facility.


FINANCIAL POSITION

Since August 31, 2007, there have been major changes to "Fixed assets", "Cash and cash equivalents", "Accounts payable and accrued liabilities", "Derivative financial instruments and "Indebtedness".

The $10.6 million rise in fixed assets is mainly related to increased capital expenditures to sustain RGU growth and by the appreciation of the euro currency over the Canadian dollar. The $47.3 million and $37.8 million reductions in cash and cash equivalents and accounts payable and accrued liabilities respectively, are related to suppliers' payments. Finally, derivative financial instruments have increased by $91.3 million and Indebtedness has decreased by $117.6 million as a result of accounting changes and factors previously discussed in the "Cash Flow and Liquidity" section. Please consult "Accounting policies and estimates" section for further details.

A description of Cogeco Cable's share data as of December 31, 2007 is presented in the table below:



Number of Amount
shares/options ($ 000s)
----------------------------------------------------------
Common Shares
Multiple voting shares 15,691,100 98,346
Subordinate voting shares 32,809,659 890,125
----------------------------------------------------------
Options to Purchase
Subordinate Voting Shares
Outstanding options 851,949
Exercisable options 348,804
----------------------------------------------------------



In the normal course of business, Cogeco Cable has incurred financial obligations, primarily in the form of long-term debt, operating and capital leases and guarantees. Cogeco Cable's obligations, discussed in the 2007 annual MD&A, have not materially changed since August 31, 2007, except that on January 8, 2008, the Corporation and the Solidarity Fund QFL entered into an agreement to issue senior unsecured debenture with par value of $100 million by way of private placement, subject to usual market conditions. The debenture which must be issued by no later than May 9, 2008, will bear interest at a fixed rate determined at the then prevailing rate of the ten-year Government of Canada bond plus a spread of 220 basis points, and will mature ten years after issuance. The debenture will be callable under certain conditions.

DIVIDEND DECLARATION

At its January 9, 2008 meeting, the Board of Directors of Cogeco Cable declared a quarterly eligible dividend of $0.10 per share for subordinate and multiple voting shares, payable on February 6, 2008, to shareholders of record on January 23, 2008.

FOREIGN EXCHANGE MANAGEMENT

Cogeco Cable has entered into cross-currency swap agreements to set the liability for interest and principal payments on its US$150 million Senior Secured Notes. These agreements have the effect of converting the U.S. interest coupon rate of 6.83% per annum to an average Canadian dollar fixed interest rate of 7.254% per annum. The exchange rate applicable to the principal portion of the debt has been fixed at CAN$1.5910. Amounts due under the US$150 million Senior Secured Notes Series A decreased by CAN$8.4 million at the end of the first quarter compared to August 31, 2007 due to the Canadian dollar's appreciation. The fair value of cross-currency swaps increased by $7.8 million of which $8.4 million offset the foreign exchange gain on the $US debt. The difference of $0.6 million was recorded as a reduction of comprehensive income.

As noted in the MD&A of the 2007 Annual Report, the Corporation's investment in the Portuguese subsidiary, Cabovisao, is exposed to market risk attributable to fluctuations in foreign currency exchange rates, primarily changes in the values of the Canadian dollar versus the euro. This risk is mitigated since the major part of the purchase price for Cabovisao was borrowed directly in euros. This debt is designated as a hedge of net investments in self-sustaining foreign subsidiaries and, accordingly, the Corporation realized a foreign exchange gain of CAN$4 million in the first quarter 2008, which is presented in other comprehensive income. The exchange rate used to convert the euro currency into Canadian dollars for the balance sheet accounts as at November 30, 2007 was $1.4630 per euro compared to $1.4390 per euro as at August 31, 2007. The average exchange rate prevailing during the first quarter 2008 used to convert the operating results of the Portuguese operations was $1.4119 per euro compared to $1.4363 per euro for the same period last year.



CANADIAN OPERATIONS

CUSTOMER STATISTICS

Net additions % of Penetration(1)(4)
---------------------------------------------------------------------------
Quarters ended
November 30, November 30, November 30,
2007 2007 2006 2007 2006
---------------------------------------------------------------------------
RGUs(2) 1,861,334 72,826 93,015
Basic Cable
service
customers 857,221 8,064 16,240
HSI service
customers(3) 441,130 25,294 28,935 54.8 47.0
Digital
Television
service
customers 396,132 16,253 21,224 47.3 42.0
Telephony
service
customers 166,851 23,215 26,616 24.9 12.9
---------------------------------------------------------------------------

(1) As a percentage of Basic Cable service customers in areas served.
(2) Represent a sum of Basic Cable, HSI, Digital Television and Telephony
service customers.
(3) Customers subscribing only to HSI or Telephony totalled 83,267 as at
November 30, 2007 compared to 61,336 as at November 30, 2006.
(4) An audit of homes passed in Ontario was completed during the first
quarter of fiscal 2007 and, as a result, the number of homes passed
was reduced by 42,386.


In the first quarter of 2008, RGUs' net additions were lower than for the same period last year and reflect early sign of maturation in most services. The number of net additions in Basic Cable stood at 8,064 customers compared to a growth of 16,240 customers for the same period last year due to the expiration of certain promotional offers. Telephony customers grew by 23,215 to reach 166,851 compared to a growth of 26,616 for the same period last year. This growth is mostly attributable to the launch of the service in new markets and increased penetration in areas where the service is already offered. Coverage of homes passed has now reached 78% compared to 72% last year.

The number of net additions to HSI service stood at 25,294 customers compared to 28,935 customers for the same period last year. During the first quarter 2008, the HSI customer net additions is mostly due to the enhancement of the product offering, the impact of the bundled offer of Television, HSI and Telephony services (Cogeco Complete Connection), and promotional activities.

The net additions of Digital Television service stood at 16,253 customers compared to 21,224 customers for the same period last year. The decrease in net additions this quarter compared to the same quarter last year reflects greater maturity of the digital TV segment following a period of robust growth, especially in fiscal 2006. Since then, the Corporation also adjusted the service offering and price gap differential between Analogue Television services and Digital Television, which has also contributed to a moderation of the strong growth experienced in the past years. Nevertheless, customers continue to demonstrate strong interest in HD technology.



OPERATING RESULTS

Quarters ended November 30,
(unaudited)

($000s, except percentages) %
2007 2006 Change
------------------------------------------------------------------------

Revenue $196,241 $167,931 16.9

Operating costs 110,425 98,160 12.5

Management fees - COGECO Inc. 5,035 4,440 13.4

Operating income before amortization 80,781 65,331 23.6

Operating margin 41.2% 38.9%


Revenue

First quarter 2008 revenue grew by $28.3 million to reach $196.2 million, an increase of 16.9% compared to the same period last year. This growth is explained mainly by an increase in the number of Basic Cable, HSI, Telephony and Digital Television service customers as mentioned in the "Customer Statistics" section, combined with the following rate increases implemented in the second half of fiscal 2007: a monthly rate increase of $3 per Digital Television customer effective in March 2007 in Ontario and in April 2007 in Quebec and a rate increase of $1.50 per Analogue Value Pak customer effective in April 2007 in Ontario. These rate increases represent approximately $1.25 per Basic Cable service customer.

Operating costs

First quarter 2008 operating costs, excluding management fees payable to COGECO Inc., increased by $12.3 million to reach $110.4 million, an increase of 12.5% compared to the same period last year. The increase in operating costs is mainly attributable to the increased penetration of Telephony service and to servicing additional RGUs.

Operating income before amortization

First quarter 2008 operating income before amortization rose from $65.3 million to $80.8 million, representing an increase of 23.6%, compared to the same period last year. The rise in operating income before amortization is the result of increased revenue outpacing the rise in operating costs. In addition, Cogeco Cable's operating margin for the Canadian operations increased from 38.9% to 41.2% in the first quarter of fiscal 2008 due to new rate increases implemented during the second half of fiscal 2007.



PORTUGUESE OPERATIONS

CUSTOMER STATISTICS

Net additions % of Penetration(1)
---------------------------------------------------------------------------
Quarters ended
November 30, November 30, November 30,
2007 2007 2006 2007 2006
---------------------------------------------------------------------------
RGUs(2) 707,355 10,198 21,264
Basic Cable
service
customers 298,936 4,933 7,253
HSI service
customers 163,829 3,806 8,077 54.8 52.1
Telephony service
customers 244,590 1,459 5,934 81.8 82.7
---------------------------------------------------------------------------

(1) As a percentage of Basic Cable service customers in areas served.
(2) Represent a sum of Basic Cable, HSI and Telephony service customers.


The first quarter 2008 was driven by fierce price competition in the Portuguese market and as a result all services generated lower customer growth compared to the same period last year. Basic Cable service grew by 4,933 customers compared to 7,253 customers, HSI service customers increased by 3,806 compared to 8,077 in 2007 and Telephony service grew by 1,459 customers compared to 5,934 customers for the same period of the preceding year. RGU's grew at a slower pace since competition offered deep discounts to attract customers during the first half of the quarter. Cabovisao did not match the competition high discounting offering. However, since then, pricing has become more rational. The performance of Cabovisao since its acquisition by Cogeco Cable has been well above management's original expectations and growth prospects for the future remain excellent.



OPERATING RESULTS

Quarters ended November 30,
(unaudited)

($000s, except percentages) %
2007 2006 Change
------------------------------------------------------------------------

Revenue $55,592 $54,071 2.8

Operating costs 38,036 35,740 6.4

Operating income before amortization 17,556 18,331 (4.2)

Operating margin 31.6% 33.9%



Revenue

First quarter 2008 revenue reached $55.6 million, an increase of $1.5 million, or 2.8% compared to the same period last year. This increase is mainly due to the growth of Basic Cable, HSI and Telephony service customers together with a monthly rate increase of $1 (EUR 0.65) per Basic Cable service customer effective in March 2007. First quarter 2008 average exchange rates to convert the operating results was $1.4119 per euro compared to $1.4363 per euro for the same period last year, thus adversely impacting revenue growth year over year.

Operating costs

First quarter 2008 operating costs increased by $2.3 million to reach $38 million, an increase of 6.4% compared to last year. The increase in operating costs is mainly attributable to servicing additional RGUs, to timing of certain marketing initiatives, including a major campaign to increase brand awareness, and to costs related to the design of internal controls and review of business processes to comply with National Instrument 52-109.

Operating income before amortization

For the first quarter of 2008, operating income before amortization decreased from $18.3 million to $17.6 million, or 4.2%, compared to the same period last year. The decrease in operating income before amortization is the result of increased operating costs outpacing the rise in revenue and foreign exchange rate fluctuation.


FISCAL 2008 FINANCIAL GUIDELINES

The Corporation is maintaining its consolidated guidelines for the 2008 fiscal year, except for the reduction of income tax rates announced by the Canadian federal government on October 16, 2007 that will have a favourable impact of approximately $23 million on net income in the second quarter of fiscal 2008.



-------------------------------------------------------------------------
-------------------------------------------------------------------------
Consolidated Projections
(in millions of $, except customer data) Fiscal 2008
-------------------------------------------------------------------------
Financial Guidelines
Revenue 1,050
Operating income before amortization 425
Operating margin 40% to 41%
Financial expense 72
Amortization 215
Net income 118
Capital expenditures and deferred charges 260
Free cash flow 65

Customer Addition Guidelines
Basic Cable service 30,000
HSI services 75,000
Digital Television service 54,000
Telephony service 100,000
RGUs 259,000
-------------------------------------------------------------------------
-------------------------------------------------------------------------


UNCERTAINTIES AND MAIN RISK FACTORS

There has been no significant change in the risk factors and uncertainties facing Cogeco Cable as described in the Corporation's MD&A of the 2007 annual report, except for the Part II Licence Fees payable to the Canadian Radio-television and Telecommunications Commission (CRTC). On December 14, 2006, the Federal Court of Canada ruled that the Part II Licence Fees payable to the CRTC are an unlawful tax. Both the Plaintiffs (the members of the Canadian Association of Broadcasters, Videotron Ltee and CF Cable TV Inc.) and the Defendant (the Crown) have appealed this decision to the Federal Court of Appeal. The Defendant is seeking to reverse the Court decision that Part II Licence Fees are unlawful and the Plaintiffs are seeking a Court order requiring a refund of past fees paid. The Appeal hearing was held on December 4th and 5th in Ottawa. During the hearing, questions were raised by the hearing panel concerning the appropriateness of considering Part II Licence Fees as a tax rather than a fee under the relevant portion of the Broadcasting Act. The decision of the Federal Court of Appeal is not expected before several months. The Corporation believes that there is a reasonable likelihood that the Federal Court's decision will be reversed. Cogeco Cable has accrued $7.8 million with respect to these fees for fiscal year 2007 and the first quarter of fiscal 2008. In the unlikely event that the Federal Court of Appeal or the Supreme Court of Canada, should this case be appealed to that level, maintains the decision from the Federal Court, this would have a beneficial impact on the future financial results of the Corporation.


ACCOUNTING POLICIES AND ESTIMATES

There has been no significant change in Cogeco Cable's accounting policies and estimates and future accounting pronouncements since August 31, 2007, except as described below. A description of the Corporation's policies and estimates can be found in the 2007 annual MD&A.

Financial instruments

Effective September 1, 2007, the Corporation adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530, Comprehensive Income, Section 3855, Financial Instruments - Recognition and Measurement, Section 3861, Financial Instruments - Disclosure and Presentation and Section 3865, Hedges.

Statement of Comprehensive Income

A new statement entitled consolidated statements of comprehensive income was added to the Corporation's consolidated financial statements and includes net income as well as other comprehensive income. Other comprehensive income represents changes in shareholders' equity arising from transactions and events from non-owner sources, such as changes in foreign currency translation adjustments of net investments in self-sustaining foreign subsidiaries and long-term debt designated as hedge of net investments in self-sustaining foreign subsidiaries and changes in the fair value of effective cash flow hedging instruments.

Recognition and Measurement of Financial Instruments

Under these new standards, all financial assets, including derivatives, must be classified as available for sale, held for trading, held to maturity, or loans and receivables. All financial liabilities, including derivatives, must be classified as held for trading or other liabilities. All financial instruments classified as available for sale or held for trading are recognized at fair value on the consolidated balance sheet while financial instruments classified as loans and receivables or other liabilities will continue to be measured at amortized cost using the effective interest rate method. The standards allow the Corporation to designate certain financial instruments, on initial recognition, as held for trading.

All of the Corporation's financial assets are classified as held for trading or loans and receivables. The Corporation has classified its cash and cash equivalents as held for trading. Accounts receivable have been classified as loans and receivables. All of the Corporation financial liabilities were classified as other liabilities, except for the cross-currency swaps which were classified as held for trading. Held for trading assets and liabilities are carried at fair value on the balance sheet, with changes in fair value recorded in the consolidated statements of income, except for the changes in fair value of the cross-currency swaps which are designated as cash flow hedges of the Senior Secured Notes Series A and are recorded in other comprehensive income. Loans and receivables and all financial liabilities are carried at amortized cost using the effective interest method. Upon adoption, the Corporation determined that none of its financial assets are classified as available for sale or held to maturity. Except for the treatment of transaction costs and derivative financial instruments mentioned below, the provisions of the new accounting standards had no impact on the consolidated financial statement on September 1, 2007 and November 30, 2007.

Transaction costs

Effective September 1, 2007, transaction costs are capitalized on initial recognition and presented as a reduction of the related financing, except for transaction costs on the revolving loan and the swingline line facility which are presented as deferred charges. These costs are amortized over the term of the related financing using the effective interest rate method, except for transaction costs on the revolving loan and the swingline facility which are amortized over the term of the related financing on a straight-line basis. Previously, all transaction costs were capitalized and amortized on a straight-line basis over the term of the related financing, over a period not exceeding five years. The impact of these adjustments reduced deferred charges by $1.2 million, reduced long-term debt by $3.1 million, increased future income tax liabilities by $0.6 million and increased retained earnings by $1.3 million.

Cash flow hedge

All derivatives are measured at fair value with changes in fair value recorded in the consolidated statements of income unless they are effective cash flow hedging instruments. The changes in fair value of cash flow hedging derivatives are recorded in other comprehensive income, to the extent effective, until the variability of cash flows relating to the hedged asset or liability is recognized in the consolidated statements of income. Any hedge ineffectiveness is recognized in the consolidated statements of income immediately. Accordingly, the Corporation's cross-currency swaps must be measured at fair value in the consolidated financial statements. Since these cross-currency swaps are used to hedge cash flows on Senior Secured Notes Series A denominated in U.S. dollars, the changes in fair value are recorded in other comprehensive income. The impact of measuring the cross-currency swaps at fair value on the interim consolidated financial statements on September 1, 2007, increased derivative financial instrument liabilities by $83.5 million, decreased deferred credit presented in long-term debt by $80.2 million, decreased future income tax liabilities by $1.1 million and decreased opening accumulated other comprehensive income by $2.2 million. The impact of measuring the cross-currency swaps at fair value on the interim consolidated financial statements for the three month period ended November 30, 2007 increased derivative financial instruments liabilities by $7.8 million, increased future income tax liabilities by $0.2 million and increased accumulated other comprehensive income by $0.4 million.

Net investment hedge

Financial statements of self-sustaining foreign subsidiaries are translated using the rate in effect at the balance sheet date for asset and liability items, and using the average exchange rates during the period for revenue and expenses. Adjustments arising from this translation are deferred and recorded as foreign currency translation adjustment in accumulated other comprehensive income and are included in income only when a reduction in the investment in these foreign subsidiaries is realized. Unrealized foreign exchange gains and losses on long-term debt denominated in foreign currency, that is designated as a hedge of net investments in self-sustaining foreign subsidiaries are recorded as foreign currency translation adjustment in accumulated other comprehensive income, net of income taxes. As a result, an amount of $3.1 million was reclassified as at August 31, 2007 from the foreign currency translation adjustment to the accumulated other comprehensive income and the Corporation's comparative financial statements were restated in accordance with transitional provisions.

Embedded derivatives

All embedded derivatives that are not closely related to the host contracts, are measured at fair value, with changes in fair value recorded in the consolidated statements of income. On September 1, 2007, and at November 30, 2007, there are no significant embedded derivatives or non-financial derivatives that require separate fair value recognition on the consolidated balance sheet. In accordance with the new standards, the Corporation selected September 1, 2002, as its transition date for adopting the standard related to embedded derivatives.

Upcoming standards

In 2006, the CICA issued Handbook Section 3862, Financial Instruments - Disclosures, and Section 3863, Financial Instruments - Presentation. These Sections are to be applied to interim and annual financial statements relating to fiscal years beginning on or after October 1, 2007. The Corporation is currently evaluating the impact of these new standards.

Accounting changes

In July 2006, the CICA issued Section 1506, Accounting Changes, which modifies certain aspects of the previous standard. A reporting entity may not change its accounting method unless required by primary source of GAAP or to provide a more reliable and relevant presentation of the financial statements. In addition, changes in accounting methods must be applied retroactively and additional information must be disclosed. This section applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2007. During the first quarter, the Corporation adopted this new standard and concluded that it had no significant impact on these consolidated financial statements.

NON-GAAP FINANCIAL MEASURES

This section describes non-GAAP financial measures used by Cogeco Cable throughout this MD&A. It also provides reconciliations between these non-GAAP measures and the most comparable GAAP financial measures. These financial measures do not have standard definitions prescribed by Canadian GAAP and may not be comparable with similar measures presented by other companies. These measures include "cash flow from operations" and "free cash flow".

Cash flow from operations

Cash flow from operations is used by Cogeco Cable's management and investors to evaluate cash flow generated by operating activities, excluding the impact of changes in non-cash operating items. This allows the Corporation to isolate the cash flow from operating activities from the impact of cash management decisions. Cash flow from operations is subsequently used in calculating the non-GAAP measure, "free cash flow". Cash flow from operations is calculated as follows:



Quarters ended November 30,
(unaudited)
($ 000) 2007 2006
--------------------------------------------------------------------------
Cash flow from operating activities $45,345 $(9,849)
Changes in non-cash operating items 34,408 71,909
--------------------------------------------------------------------------
Cash flow from operations $79,753 $62,060
--------------------------------------------------------------------------
--------------------------------------------------------------------------


Free cash flow

Free cash flow is used, by Cogeco Cable's management and investors, to measure its ability to repay debt, distribute capital to its shareholders and finance its growth. Free cash flow is calculated as follows:



Quarters ended November 30,
(unaudited)
($ 000) 2007 2006
--------------------------------------------------------------------------
Cash flow from operations $79,753 $62,060
Acquisition of fixed assets (50,654) (66,966)
Increase in deferred charges (7,417) (7,212)
Assets acquired under capital leases -
as per Note 11 b) (73) (205)
--------------------------------------------------------------------------
Free cash flow $21,609 $(12,323)
--------------------------------------------------------------------------
--------------------------------------------------------------------------


ADDITIONAL INFORMATION

This MD&A was prepared on January 9, 2008. Additional information relating to the Corporation, including its Annual Information Form, is available on the SEDAR web site at www.sedar.com.


ABOUT COGECO CABLE

Cogeco Cable (www.cogeco.ca), a telecommunications company offering a diverse range of services to its customers in Canada and in Portugal, is the second largest cable operator in Ontario, Quebec and Portugal, in terms of the number of Basic Cable service customers served. Through its two-way broadband cable networks, Cogeco Cable provides its residential and commercial customers with Analogue and Digital Television, High Speed Internet and Telephony services. The Corporation provides approximately 2,569,000 revenue-generating units (RGUs) to 2,365,000 homes passed in its Canadian and Portuguese service territories. Cogeco Cable's subordinate voting shares are listed on the Toronto Stock Exchange (TSX:CCA).



Analyst Conference Call: Thursday, January 10, 2008 at 11:00 A.M. (EST)
Media representatives may attend as
listeners only.

Please use the following dial-in number
to have access to the conference call by
dialing 5 minutes before the start of
the conference:

Canada/USA Access Number: 1 866 321-8231
International Access Number: + 1 416 642-5213
Confirmation Code: 3458791
By Internet at www.cogeco.ca/investors

A rebroadcast of the conference call will be
available until January 16, by dialing:
Canada and USA access number: 1 888 203-1112
International access number: + 1 647 436-0148
Confirmation code: 3458791


Supplementary Quarterly Financial Information
(unaudited)

Quarters ended November 30, August 31,
2007(1) 2006(1) 2007(1) 2006(1)
-----------------------------------------------------------------------
($000, except
percentages
and per share data)

Revenue $251,833 $222,002 $244,314 $174,875
Operating income
before amortization 98,337 83,662 102,426 72,864
Operating margin 39.0% 37.7% 41.9% 41.7%
Amortization 52,687 44,309 54,164 34,801
Financial expense 16,912 21,221 18,524 16,374
Income taxes (recovery) 8,375 5,597 (6,630) (12,298)
Net income 20,363 12,535 36,368 33,987

Cash flow from operations 79,753 62,060 83,825 56,714

Net income per share $0.42 $0.31 $0.79 $0.85
-----------------------------------------------------------------------


Quarters ended May 31, February 28,
2007(1) 2006 2007(1) 2006
-----------------------------------------------------------------------
($000, except
percentages
and per share data)

Revenue $240,612 $153,956 $231,952 $147,757
Operating income
before amortization 97,874 63,244 86,791 59,568
Operating margin 40.7% 41.1% 37.4% 40.3%
Amortization 47,278 29,048 43,572 28,656
Financial expense 21,273 13,634 23,551 13,776
Income taxes (recovery) 8,942 8,191 4,261 6,936
Net income 20,381 12,371 15,407 10,200

Cash flow from operations 76,416 49,696 62,264 44,940

Net income per share $0.45 $0.31 $0.37 $0.26
-----------------------------------------------------------------------

(1) Include operating results of the cable subsidiary, Cabovisao,
since the date of acquisition of control on August 1, 2006


Cogeco Cable's operating results are not generally subject to material seasonal fluctuations. However, the loss of Basic service customers is usually greater, and the addition of HSI service customers is generally lower in the third quarter, mainly due to students leaving campuses at the end of the school year. Cogeco Cable offers its services in several university and college towns such as Kingston, Windsor, St. Catharines, Hamilton, Peterborough, Trois-Rivieres and Rimouski in Canada. Furthermore, the third and fourth quarters' operating margin is usually higher as lower or no management fees are paid to COGECO Inc. Under a Management Agreement, Cogeco Cable pays a fee equal to 2% of its total revenue subject to a maximum amount. For more details, please refer to the "Related Party Transactions" section.



COGECO CABLE INC.
Customer Statistics
November 30, August 31,
2007 2007
------------------------------------------------------------------
------------------------------------------------------------------
Homes Passed
Ontario (1) 1,002,971 997,498
Quebec 491,788 486,592
------------------------------------------------------------------
Canada 1,494,759 1,484,090
Portugal 869,940 859,376
------------------------------------------------------------------
Total 2,364,699 2,343,466
------------------------------------------------------------------
------------------------------------------------------------------

Revenue Generating Units
Ontario 1,306,163 1,256,244
Quebec 555,171 532,264
------------------------------------------------------------------
Canada 1,861,334 1,788,508
Portugal 707,355 697,157
------------------------------------------------------------------
Total 2,568,689 2,485,665
------------------------------------------------------------------
------------------------------------------------------------------

Basic Cable Service Customers
Ontario 599,733 594,889
Quebec 257,488 254,268
------------------------------------------------------------------
Canada 857,221 849,157
Portugal 298,936 294,003
------------------------------------------------------------------
Total 1,156,157 1,143,160

------------------------------------------------------------------
------------------------------------------------------------------

Discretionnary Service Customers
Ontario 484,611 468,764
Quebec 208,976 204,585
------------------------------------------------------------------
Canada 693,587 673,349
Portugal - -
------------------------------------------------------------------
Total 693,587 673,349

------------------------------------------------------------------
------------------------------------------------------------------

Pay TV Service Customers
Ontario 92,036 88,835
Quebec 44,355 42,180
------------------------------------------------------------------
Canada 136,391 131,015
Portugal 55,867 54,723
------------------------------------------------------------------
Total 192,258 185,738
------------------------------------------------------------------
------------------------------------------------------------------

High Speed Internet Service Customers
Ontario 335,152 316,363
Quebec 105,978 99,473
------------------------------------------------------------------
Canada 441,130 415,836
Portugal 163,829 160,023
------------------------------------------------------------------
Total 604,959 575,859
------------------------------------------------------------------
------------------------------------------------------------------

Digital Television Service Customers
Ontario 255,919 246,267
Quebec 140,213 133,612
------------------------------------------------------------------
Canada 396,132 379,879
Portugal - -
------------------------------------------------------------------
Total 396,132 379,879
------------------------------------------------------------------
------------------------------------------------------------------

Telephony Service Customers
Ontario 115,359 98,725
Quebec 51,492 44,911
------------------------------------------------------------------
Canada 166,851 143,636
Portugal 244,590 243,131
------------------------------------------------------------------
Total 411,441 386,767
------------------------------------------------------------------
------------------------------------------------------------------

(1) An audit of homes passed in Ontario was completed during the
first quarter of fiscal 2007 and, as a result, the number of
homes passed was reduced by 42,386



COGECO CABLE INC.
CONSOLIDATED STATEMENTS OF INCOME

Three months ended November 30,
(In thousands of dollars,
except per share data)) 2007 2006
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited)
Revenue
Service $250,406 $221,114
Equipment 1,427 888
-----------------------------------------------------------------------
251,833 222,002

Operating costs 148,461 133,900
Management fees - COGECO Inc. 5,035 4,440
-----------------------------------------------------------------------

Operating income before amortization 98,337 83,662
Amortization (note 3) 52,687 44,309
------------------------------------------------------------------------

Operating income 45,650 39,353
Financial expense (note 4) 16,912 21,221
------------------------------------------------------------------------

Income before income taxes 28,738 18,132
Income taxes (note 5) 8,375 5,597

-----------------------------------------------------------------------

Net income $20,363 $12,535
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Earnings per share (note 6)
Basic $0.42 $0.31
Diluted 0.42 0.31
-----------------------------------------------------------------------
-----------------------------------------------------------------------


COGECO CABLE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three months ended November 30,
-----------------------------------------------------------------------
(In thousands of dollars) 2007 2006
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited)

Net income $20,363 $12,535

Other comprehensive income

Unrealized gains and losses on
derivative financial instruments
designated as cash flow hedges, net
of income taxes of $1,143,000 (6,653) -

Reclassification of realized gains and
losses to net income on derivative
financial instruments designated as
cash flow hedges, net of income taxes
of $1,345,000 7,085 -

Unrealized gain on translation of net
investments in self-sustaining foreign
subsidiaries 10,340 42,170

Unrealized loss on translation of
long-term debt designated as hedge of
net investments in self-sustaining
foreign subsidiaries (net of income
taxes of $1,703,000 in 2006) (6,376) (30,358)
-----------------------------------------------------------------------
4,396 11,812
-----------------------------------------------------------------------
Comprehensive income $24,759 $24,347
-----------------------------------------------------------------------
-----------------------------------------------------------------------



COGECO CABLE INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS

Three months ended November 30,
-----------------------------------------------------------------------
(In thousands of dollars) 2007 2006
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited)

Balance at beginning, as reported $181,952 $117,760
Changes in accounting policy (note 1) 1,307 -
-----------------------------------------------------------------------
Balance at beginning, as restated 183,259 117,760
Net income 20,363 12,535
Dividends on multiple voting shares (1,569) (628)
Dividends on subordinate voting shares (3,272) (972)
-----------------------------------------------------------------------
Balance at end $198,781 $128,695
-----------------------------------------------------------------------
-----------------------------------------------------------------------



COGECO CABLE INC.
CONSOLIDATED BALANCE SHEETS

-----------------------------------------------------------------------
November 30, August 31,
(In thousands of dollars) 2007 2007
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (audited)

Assets
Current
Cash and cash equivalents $16,929 $64,208
Accounts receivable 47,634 46,945
Income tax receivable 1,020 1,112
Prepaid expenses 6,283 7,606
Future income tax assets 14,157 17,986
-----------------------------------------------------------------------
86,023 137,857
-----------------------------------------------------------------------

Income tax receivable 1,368 1,345
Fixed assets 1,130,081 1,119,498
Deferred charges 55,087 54,645
Intangible assets (note 7) 1,057,027 1,058,410
Goodwill (note 7) 348,298 342,584
-----------------------------------------------------------------------
$2,677,884 $2,714,339
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Liabilities and Shareholders' equity
Liabilities
Current
Accounts payable and accrued
liabilities $172,722 $210,496
Income tax liabilities 3,540 953
Deferred and prepaid income 30,370 29,837
Derivative financial instruments 91,294 -
Current portion of long-term
debt (note 8) 166,821 17,292
-----------------------------------------------------------------------
464,747 258,578
-----------------------------------------------------------------------

Long-term debt (note 8) 743,480 1,010,634
Deferred and prepaid income 11,939 11,501
Pension plans liabilities 2,135 1,918
Future income tax liabilities 267,547 266,042
-----------------------------------------------------------------------
1,489,848 1,548,673
-----------------------------------------------------------------------

Shareholders' equity
Capital stock (note 9) 988,250 984,405
Contributed surplus - stock-based
compensation 1,950 2,419
Retained earnings 198,781 181,952
Accumulated other comprehensive income
(loss) (note 10) (945) (3,110)
-----------------------------------------------------------------------
1,188,036 1,165,666
-----------------------------------------------------------------------
$2,677,884 $2,714,339
-----------------------------------------------------------------------
-----------------------------------------------------------------------


COGECO CABLE INC.
CONSOLIDATED STATEMENTS OF CASH FLOW

Three months ended November 30,
-----------------------------------------------------------------------
(In thousands of dollars) 2007 2006
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited)

Cash flow from operating activities
Net income $20,363 $12,535
Adjustments for:
Amortization (note 3) 52,687 44,309
Amortization of deferred financing costs 722 646
Future income taxes (note 5) 5,186 3,911
Stock-based compensation 236 365
Loss (gain) on disposal of fixed assets 342 (17)
Other 217 311
-----------------------------------------------------------------------
79,753 62,060
Changes in non-cash operating
items (note 11a)) (34,408) (71,909)
-----------------------------------------------------------------------
45,345 (9,849)
-----------------------------------------------------------------------

Cash flow from investing activities
Acquisition of fixed assets (note 11b)) (50,654) (66,966)
Increase in deferred charges (7,417) (7,212)
Decrease in restricted cash - 91
Other 1 17
-----------------------------------------------------------------------
(58,070) (74,070)
-----------------------------------------------------------------------

Cash flow from financing activities
Increase in bank indebtedness - 29,322
Increase in long-term debt - 10,000
Repayment of long-term debt (32,616) (8,255)
Issue of subordinate voting shares 3,056 228
Dividends on multiple voting shares (1,569) (628)
Dividends on subordinate voting shares (3,272) (972)
-----------------------------------------------------------------------
(34,401) 29,695
-----------------------------------------------------------------------

Net change in cash and cash equivalents (47,126) (54,224)
Effect of exchange rate changes on cash
and cash equivalents denominated in
foreign currencies (153) 1,616
Cash and cash equivalents at beginning 64,208 71,516
-----------------------------------------------------------------------
Cash and cash equivalents at end $16,929 $18,908
-----------------------------------------------------------------------
-----------------------------------------------------------------------

See supplemental cash flow information in note 11.


COGECO CABLE INC.

Notes to Consolidated Financial Statements

November 30, 2007

(amounts in tables are in thousands of dollars, except per share data)

1. Basis of Presentation

In the opinion of management, the accompanying unaudited interim consolidated financial statements, prepared in accordance with Canadian generally accepted accounting principles ("GAAP"), contain all adjustments necessary to present fairly the financial position of Cogeco Cable Inc. as at November 30, 2007 and August 31, 2007 as well as its results of operations and its cash flow for the three month periods ended November 30, 2007 and 2006.

While management believes that the disclosures presented are adequate, these unaudited interim consolidated financial statements and notes should be read in conjunction with Cogeco Cable Inc.'s annual consolidated financial statements for the year ended August 31, 2007. These unaudited interim consolidated financial statements follow the same accounting policies as the most recent annual consolidated financial statements, except for the adoption of new accounting policy on financial instruments described below.

Financial instruments

Effective September 1, 2007, the Corporation adopted the Canadian Institute of Chartered Accountants ("CICA") Handbook Section 1530, Comprehensive Income, Section 3855, Financial Instruments - Recognition and Measurement, Section 3861, Financial Instruments - Disclosure and Presentation and Section 3865, Hedges.

Statement of Comprehensive Income

A new statement entitled consolidated statements of comprehensive income was added to the Corporation's consolidated financial statements and includes net income as well as other comprehensive income. Other comprehensive income represents changes in shareholders' equity arising from transactions and events from non-owner sources, such as changes in foreign currency translation adjustments of net investments in self-sustaining foreign subsidiaries and long-term debt designated as hedge of net investments in self-sustaining foreign subsidiaries and changes in the fair value of effective cash flow hedging instruments.

Recognition and Measurement of Financial Instruments

Under these new standards, all financial assets, including derivatives, must be classified as available for sale, held for trading, held to maturity, or loans and receivables. All financial liabilities, including derivatives, must be classified as held for trading or other liabilities. All financial instruments classified as available for sale or held for trading are recognized at fair value on the consolidated balance sheet while financial instruments classified as loans and receivables or other liabilities will continue to be measured at amortized cost using the effective interest rate method. The standards allow the Corporation to designate certain financial instruments, on initial recognition, as held for trading.

All of the Corporation's financial assets are classified as held for trading or loans and receivables. The Corporation has classified its cash and cash equivalents as held for trading. Accounts receivable have been classified as loans and receivables. All of the Corporation financial liabilities were classified as other liabilities, except for the cross-currency swaps which were classified as held for trading. Held for trading assets and liabilities are carried at fair value on the balance sheet, with changes in fair value recorded in the consolidated statements of income, except for the changes in fair value of the cross-currency swaps which are designated as cash flow hedges of the Senior Secured Notes Series A and are recorded in other comprehensive income. Loans and receivables and all financial liabilities are carried at amortized cost using the effective interest method. Upon adoption, the Corporation determined that none of its financial assets are classified as available for sale or held to maturity. Except for the treatment of transaction costs and derivative financial instruments mentioned below, the provisions of the new accounting standards had no impact on the consolidated financial statement on September 1, 2007 and November 30, 2007.

Transaction costs

Effective September 1, 2007, transaction costs are capitalized on initial recognition and presented as a reduction of the related financing, except for transaction costs on the revolving loan and the swingline facility which are presented as deferred charges. These costs are amortized over the term of the related financing using the effective interest rate method, except for transaction costs on the revolving loan and the swingline facility which are amortized over the term of the related financing on a straight-line basis. Previously, all transaction costs were capitalized and amortized on a straight-line basis over the term of the related financing, over a period not exceeding five years. The impact of these adjustments reduced deferred charges by $1.2 million, reduced long-term debt by $3.1 million, increased future income tax liabilities by $0.6 million and increased retained earnings by $1.3 million.

Cash flow hedge

All derivatives are measured at fair value with changes in fair value recorded in the consolidated statements of income unless they are effective cash flow hedging instruments. The changes in fair value of cash flow hedging derivatives are recorded in other comprehensive income, to the extent effective, until the variability of cash flows relating to the hedged asset or liability is recognized in the consolidated statements of income. Any hedge ineffectiveness is recognized in the consolidated statements of income immediately. Accordingly, the Corporation's cross-currency swaps must be measured at fair value in the consolidated financial statements. Since these cross-currency swaps are used to hedge cash flows on Senior Secured Notes Series A denominated in U.S. dollars, the changes in fair value are recorded in other comprehensive income. The impact of measuring the cross-currency swaps at fair value on the interim consolidated financial statements on September 1, 2007, increased derivative financial instrument liabilities by $83.5 million, decreased deferred credit presented in long-term debt by $80.2 million, decreased future income tax liabilities by $1.1 million and decreased opening accumulated other comprehensive income by $2.2 million. The impact of measuring the cross-currency swaps at fair value on the interim consolidated financial statements for the three month period ended November 30, 2007 increased derivative financial instrument liabilities by $7.8 million, increased future income tax liabilities by $0.2 million and increased accumulated other comprehensive income by $0.4 million.

Net investment hedge

Financial statements of self-sustaining foreign subsidiaries are translated using the rate in effect at the balance sheet date for asset and liability items, and using the average exchange rates during the period for revenue and expenses. Adjustments arising from this translation are deferred and recorded as foreign currency translation adjustment in accumulated other comprehensive income and are included in income only when a reduction in the investment in these foreign subsidiaries is realized. Unrealized foreign exchange gains and losses on long-term debt denominated in foreign currency, that is designated as a hedge of net investments in self-sustaining foreign subsidiaries are recorded as foreign currency translation adjustment in accumulated other comprehensive income, net of income taxes. As a result, an amount of $3.1 million was reclassified as at August 31, 2007 from the foreign currency translation adjustment to the accumulated other comprehensive income and the Corporation's comparative financial statements were restated in accordance with transitional provisions.

Embedded derivatives

All embedded derivatives that are not closely related to the host contracts, are measured at fair value, with changes in fair value recorded in the consolidated statements of income. On September 1, 2007, and at November 30, 2007, there are no significant embedded derivatives or non-financial derivatives that require separate fair value recognition on the consolidated balance sheet. In accordance with the new standards, the Corporation selected September 1, 2002, as its transition date for adopting the standard related to embedded derivatives.

Upcoming standards

In 2006, the CICA issued Handbook Section 3862, Financial Instruments - Disclosures, and Section 3863, Financial Instruments - Presentation. These Sections are to be applied to interim and annual financial statements relating to fiscal years beginning on or after October 1, 2007. The Corporation is currently evaluating the impact of these new standards.

Accounting changes

In July 2006, the CICA issued Section 1506, Accounting Changes, which modifies certain aspects of the previous standard. A reporting entity may not change its accounting method unless required by primary source of GAAP or to provide a more reliable and relevant presentation of the financial statements. In addition, changes in accounting methods must be applied retroactively and additional information must be disclosed. This section applies to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2007. During the first quarter, the Corporation adopted this new standard and concluded that it had no significant impact on these consolidated financial statements.


2. Segmented Information

The Corporation's activities are comprised of Cable Television, High Speed Internet and Telephony services. The Corporation considers its Cable Television, High Speed Internet and Telephony activities as a single operating segment. The Corporation's activities are carried out in Canada and in Europe.

The principal financial information per business segment is presented in the tables below:



Three months ended
November 30, Canada Europe Consolidated
(unaudited) 2007 2006 2007 2006 2007 2006
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Revenue $196,241 $167,931 $55,592 $54,071 $251,833 $222,002
Operating
costs 110,425 98,160 38,036 35,740 148,461 133,900
Management
fees -
COGECO Inc. 5,035 4,440 - - 5,035 4,440
Operating
income before
amortization 80,781 65,331 17,556 18,331 98,337 83,662
Amortization 35,879 31,704 16,808 12,605 52,687 44,309
Operating
income 44,902 33,627 748 5,726 45,650 39,353
Financial
expense 16,821 21,764 91 (543) 16,912 21,221
Income taxes 9,314 4,218 (939) 1,379 8,375 5,597
Net income 18,767 7,645 1,596 4,890 20,363 12,535
---------------------------------------------------------------------------
Net assets
employed
(1)(2) $1,783,250 $1,744,616 $662,674 $653,681 $2,445,924 $2,398,297
Total
assets(2) 1,914,103 1,955,218 763,781 759,121 2,677,884 2,714,339
Fixed
assets(2) 819,666 811,982 310,415 307,516 1,130,081 1,119,498
Goodwill(2) - - 348,298 342,584 348,298 342,584
Acquisition
of fixed
assets 38,293 57,588 12,434 9,583 50,727 67,171
---------------------------------------------------------------------------
---------------------------------------------------------------------------

(1) Total assets less cash and cash equivalents, accounts payable and
accrued liabilities, and deferred and prepaid income.
(2) As at November 30, 2007 and August 31, 2007.


3. Amortization

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)

Fixed assets $44,874 $39,263
Deferred charges 5,370 5,046
Intangibles assets 2,443 -
------------------------------------------------------------------------
$52,687 $44,309
------------------------------------------------------------------------
------------------------------------------------------------------------

4. Financial expense

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)

Interest on long-term debt $16,525 $20,246
Amortization of deferred financing costs 407 646
Other (20) 329
------------------------------------------------------------------------
$16,912 $21,221
------------------------------------------------------------------------
------------------------------------------------------------------------


5. Income Taxes

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)

Current $3,189 $1,686
Future 5,186 3,911
------------------------------------------------------------------------
$8,375 $5,597
------------------------------------------------------------------------
------------------------------------------------------------------------


The following table provides the reconciliation between Canadian
statutory federal and provincial income taxes and the consolidated
income tax expense:


Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)

Income before income taxes $28,738 $18,132
Combined income tax rate 34.17% 35.14%
Income taxes at combined income tax rate $9,820 $6,371
Loss or income subject to lower or
higher tax rates (385) (50)
Income taxes arising from
non-deductible expenses 101 -
Effect of foreign income tax
rate differences (1,164) (824)
Other 3 100
------------------------------------------------------------------------
Income taxes at effective income tax rate $8,375 $5,597
------------------------------------------------------------------------
------------------------------------------------------------------------

6. Earnings per Share

The following table provides a reconciliation between basic and
diluted earnings per share:

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)

Net income $20,363 $12,535
Weighted average number of multiple
voting and subordinate voting
shares outstanding 48,380,353 40,002,441
Effect of dilutive stock options (1) 337,568 224,302
------------------------------------------------------------------------
Weighted average number of diluted
multiple voting and subordinate
voting shares outstanding 48,717,921 40,226,743
------------------------------------------------------------------------

Earnings per share
Basic $0.42 $0.31
Diluted 0.42 0.31
------------------------------------------------------------------------
------------------------------------------------------------------------

(1) For the three month period ended November 30, 2007, 97,214 stock
options (141,740 in 2006) were excluded from the calculation of
diluted earnings per share since the exercise price of the
options was greater than the average share price of the subordinate
voting shares.


7. Goodwill and Other Intangible Assets

------------------------------------------------------------------------
November 30, August 31,
2007 2007
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (audited)
Customer relationships $67,475 $68,858
Customer base 989,552 989,552
------------------------------------------------------------------------
1,057,027 1,058,410
Goodwill 348,298 342,584
------------------------------------------------------------------------
$1,405,325 $1,400,994
------------------------------------------------------------------------
------------------------------------------------------------------------


a) Intangible assets

During the first three months, intangible assets variations
were as follows:
-----------------------------------------------------------------------

Customer Customer
relationships base Total
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
Balance as at
August 31, 2007 $68,858 $989,552 $1,058,410
Amortization (2,443) - (2,443)
Foreign currency
translation adjustment 1,060 - 1,060
-----------------------------------------------------------------------
-----------------------------------------------------------------------
Balance as at
November 30, 2007 $67,475 $989,552 $1,057,027
-----------------------------------------------------------------------
-----------------------------------------------------------------------


b) Goodwill

During the first three months, goodwill variation was as follows:

-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited)
Balance as at August 31, 2007 $342,584
Foreign currency translation adjustment 5,714
-----------------------------------------------------------------------
Balance as at November 30, 2007 $348,298
-----------------------------------------------------------------------
-----------------------------------------------------------------------


8. Long-Term Debt

-----------------------------------------------------------------------
Maturity Interest November 30, August 31,
rate 2007 2007
(unaudited) (audited)

Parent company
Term Facility
Term loan -
104,551,500 euros 2011 5.38 % (1) $151,862 $150,450
Term loan -
17,358,700 euros 2011 5.25 (1) 25,190 24,979
Revolving loan -
174,000,000 euros
(196,725,000 euros
as at August 31,
2007) 2011 5.38 (1) 254,562 283,087
Senior Secured
Debentures Series 1 2009 6.75 149,636 150,000
Senior - Secured Notes
Series A -
US$150 million 2008 6.83 (2) 149,638 158,430
Series B 2011 7.73 174,203 175,000
Deferred credit (3) 2008 - - 80,220

Subsidiaries
Obligations under
capital leases 2011 6.42 - 8.30 5,210 5,760
-----------------------------------------------------------------------
910,301 1,027,926
Less current portion 166,821 17,292
-----------------------------------------------------------------------
$743,480 $1,010,634
-----------------------------------------------------------------------
-----------------------------------------------------------------------

(1) Average interest rate on debt as at November 30, 2007, including
stamping fees.
(2) Cross-currency swap agreements have resulted in an effective
interest rate of 7.254% on the Canadian dollar equivalent of the
U.S. denominated debt.
(3) The deferred credit represents the amount that was deferred for
hedge accounting purpose as at August 31, 2007 under cross-
currency swaps entered into by the Corporation to hedge Senior
Secured Notes Series A denominated in U.S. dollars. In
accordance with the standards on financial instruments, the
Corporation's cross-currency swaps are now presented as
derivative financial instrument liabilities (see note 1).


9. Capital Stock

Authorized, an unlimited number

Class A Preference shares, without voting rights, redeemable by the Corporation and retractable at the option of the holder at any time at a price of $1 per share, carrying a cumulative preferential cash dividend at a rate of 11% of the redemption price per year.

Class B Preference shares, without voting rights, could be issued in series.

Multiple voting shares, 10 votes per share.

Subordinate voting shares, 1 vote per share.



----------------------------------------------------------------------
November 30, August 31,
2007 2007
----------------------------------------------------------------------
----------------------------------------------------------------------
(unaudited) (audited)
Issued

15,691,100 multiple voting shares $98,346 $98,346
32,804,116 subordinate voting shares
(32,663,587 as at August 31, 2007) 889,904 886,059
----------------------------------------------------------------------
$988,250 $984,405
----------------------------------------------------------------------
----------------------------------------------------------------------


During the period, subordinate voting share transactions
were as follows:

-----------------------------------------------------------------------
Three months ended Twelve months ended
November 30, 2007 August 31, 2007
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (audited)
-----------------------------------------------------------------------
Number of Number of
shares Amount shares Amount
-----------------------------------------------------------------------
Balance at
beginning 32,663,587 $886,059 24,308,112 $532,112
Shares issued for
cash consideration - - 8,000,000 345,950
Shares issued for
cash under the
Employee Stock
Purchase Plan and
the Stock Option
Plan 140,529 3,056 355,475 7,014
Compensation expense
previously recorded
in contributed
surplus for options
exercised - 789 - 983
-----------------------------------------------------------------------
Balance at end 32,804,116 $889,904 32,663,587 $886,059
-----------------------------------------------------------------------
-----------------------------------------------------------------------


Stock-based plans

The Corporation offers for the benefit of its employees and those of its subsidiaries, an Employee Stock Purchase Plan and a Stock Option Plan for certain executives which are described in the Corporation's annual consolidated financial statements. During the first quarter, the Corporation granted 97,214 stock options (197,407 in 2006) with an exercise price of $49.82 ($26.63 in 2006) of which 22,683 stock options (56,335 in 2006) were granted to COGECO Inc.'s employees. In 2006, the Corporation also granted 376,000 conditional stock options with an exercise price of $26.63 of which 262,400 stock options were granted to COGECO Inc.'s employees. These conditional options vest over a period of three years beginning one year after the day such options are granted and are exercisable over ten years. The vesting of these options is conditional to the achievement of certain yearly financial objectives by the Portuguese subsidiary, Cabovisao - Televisao por Cabo, S.A., over a period of three years. During the first quarter of 2007, the Corporation charged an amount of $84,000 with regards to the Corporation's options granted to Cogeco Inc.'s employees. The Corporation records compensation expense for options granted on or after September 1, 2003. As a result, a compensation expense of $236,000 ($261,000 in 2006) was recorded for the three month period ended November 30, 2007.

The fair value of stock options granted for the three month period ended November 30, 2007 was $12.88 ($7.37 in 2006) per option. The fair value of each option granted was estimated at the grant date for purposes of determining stock-based compensation expense using the binomial option pricing model based on the following assumptions:


----------------------------------------------------------------
2007 2006
----------------------------------------------------------------
Expected dividend yield 0.90% 1.27%
Expected volatility 27% 32%
Risk-free interest rate 4.25% 4.05%
Expected life in years 4.0 4.0
----------------------------------------------------------------


As at November 30, 2007, the Corporation had outstanding stock options providing for the subscription of 850,079 subordinate voting shares. These stock options, which include 250,667 conditional stock options, can be exercised at various prices ranging from $7.05 to $49.82 and at various dates up to October 26, 2017.

The Corporation had also a Performance Unit Plan for key employees, which was terminated in June 2007. A compensation expense of $104,000 was recorded for the three month period ended November 30, 2006 related to this plan.

10. Accumulated Other Comprehensive Income (Loss)



Translation of net
investments in self-
sustaining foreign
subsidiaries Cash flow hedges Total
-----------------------------------------------------------------------
-----------------------------------------------------------------------
(unaudited) (unaudited) (unaudited)
Balance as at
August 31, 2007 $(3,110) $- $(3,110)
Cumulative effect of
changes in accounting
policy (note 1) - (2,231) (2,231)
Other comprehensive income 3,964 432 4,396
-----------------------------------------------------------------------
Balance as at November 30, 2007 $854 $(1,799) $(945)
-----------------------------------------------------------------------
-----------------------------------------------------------------------


11. Statements of Cash Flow

a) Changes in non-cash operating items

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)
Accounts receivable $(443) $(3,253)
Income tax receivable 101 (1,593)
Prepaid expenses 1,335 (360)
Accounts payable and accrued liabilities (38,992) (73,915)
Income tax liabilities 2,616 3,280
Deferred and prepaid income 975 3,932
------------------------------------------------------------------------
$(34,408) $(71,909)
------------------------------------------------------------------------
------------------------------------------------------------------------


b) Other information

Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)
Fixed asset acquisitions through
capital leases $73 $205
Financial expenses paid 20,922 24,132
Income taxes paid - 889
------------------------------------------------------------------------
------------------------------------------------------------------------


12. Employee Future Benefits

The Corporation and its Canadian subsidiaries offer their employees contributory defined benefit pension plans, a defined contribution pension plan or a collective registered retirement savings plan which are described in the Corporation's annual consolidated financial statements. The total expenses related to these plans are as follows:



Three months ended November 30,
------------------------------------------------------------------------
2007 2006
------------------------------------------------------------------------
------------------------------------------------------------------------
(unaudited) (unaudited)
Contributory defined benefit
pension plans $282 $230
Defined contribution pension plan and
collective registered retirement
savings plan 690 528
------------------------------------------------------------------------
$972 $758
------------------------------------------------------------------------
------------------------------------------------------------------------


13. Contingent liability

The Canadian Radio-television and Telecommunications Commission ("CRTC") collects two different types of fees from broadcast licensees. These are known as Part I and Part II fees. In 2003 and 2004, lawsuits were commenced in the Federal Court, alleging that the Part II licence fees are taxes rather than fees and that the regulations authorizing them are unlawful. On December 14, 2006, the Federal Court ruled that the CRTC did not have the jurisdiction to charge Part II fees. The Court ruled that licensees were not entitled to a refund of past fees paid. Both the Crown and the applicants have appealed this case to the Federal Court of Appeal. The applicants are seeking an order requiring a refund of past fees paid. The Crown is seeking to reverse the finding that Part II fees are unlawful. On October 1st, 2007, the CRTC sent a letter to all broadcast licensees, including Cogeco Cable Inc. The letter stated that the CRTC will not collect Part II license fees due on November 30, 2007 and subsequent years unless the Federal Court of appeal or the Supreme Court of Canada (should the case be appealed to that level) reverses the Federal Court's decision. The Appeal hearing was held on December 4th and 5th, 2007 in Ottawa. During the hearing, questions were raised by the hearing panel concerning the appropriateness of considering Part II Licence Fees as a tax rather than a fee under the relevant portion of the Broadcasting Act. The decision is not expected before several months. The Corporation believes that there is a reasonable likelihood that the Federal Court's decision will be reversed. The Corporation has accrued $7.8 million with respect to these fees for fiscal year 2007 and the first quarter of fiscal 2008. In the unlikely event that the Federal Court of Appeal or the Supreme Court of Canada, should this case be appealed to that level, maintains the decision from the Federal Court, this would have a beneficial impact on the future financial results of the Corporation.


14. Subsequent events

a) Corporate income tax rates

On October 16, 2007, the Canadian federal government announced in its Economic Statement reduction in corporate income tax rates. According to the new legislation, corporate income tax rates will be further reduced from 20.5% to 19.5% effective January 1, 2008, from 20% to 19% effective January 1, 2009, from 19% to 18% effective January 1, 2010, from 18.5% to 16.5% effective January 1, 2011, and to 15% effective January 1, 2012. These corporate income tax rates were considered substantively enacted on December 14, 2007. The reduction of these corporate income tax rates will reduce future income tax expense by approximately $23 million in the second quarter of fiscal 2008.

b) Senior unsecured debenture

On January 8, 2008, the Corporation and the Solidarity Fund QFL entered into an agreement to issue senior unsecured debenture with par value of $100 million by way of private placement, subject to usual market conditions. The debenture which must be issued by no later than May 9, 2008, will bear interest at a fixed rate determined at the then prevailing rate of the ten-year Government of Canada bond plus a spread of 220 basis points, and will mature ten years after issuance. The debenture will be callable under certain conditions.


15. Comparative figures

Certain comparative figures have been reclassified in order to conform to the presentation adopted in 2007.

Contact Information

  • Source:
    Cogeco Cable Inc.
    Pierre Gagne
    Vice President, Finance and Chief Financial Officer
    514-874-2600
    or
    Information:
    Media
    Marie Carrier
    Director, Corporate Communications
    514-874-2600