On Wednesday, Cogeco Inc., the Canadian communications firm, posted a 20.9% hike in its first quarter adjusted earnings, mainly on the back of a strong growth in its key subsidiary Cogeco Cable Inc. Also, with the success, the company hiked its 2010 financial year forecast for both the units.

Individually, Cogeco Cable Inc. posted a hike of 17.2% in first quarter adjusted earnings, on the back of strong revenue growth across Canada and steadily stabilizing European operations.

On the news, shares of Cogeco and Cogeco Cable surged by 5.3% and 4.3%, respectively during morning trading.

For the first quarter of the financial year up-to November 20, Cogeco posted earnings of $13. Million, or 79 cents a share, a substantial rise from the figure of $10.9 Million, or 65 cents, posted for the same period last year.

At Cogeco Cable, earnings rose to $26.9 Million, or 55 cents per share, compared to last year's figure of $22.9 Million, or 47 cents per share.

"Cogeco shows signs of good vitality as the economy begins to recover from the recent turmoil", Louis Audet, Chief Executive of both companies, said.