Canada's Cogeco Communications Q4 revenue falls on US subscriber losses, competitive pressure

Overview

• Canada telecom operator's Q4 revenue fell 1.9% but slightly beat analyst expectations

• Adjusted EPS for Q4 declined 1.9% year-over-year

• Company raised quarterly dividend by 2% to C$1.007 per share

Outlook

• Cogeco Communications expects fiscal 2027 revenue to decline low to mid single digits (constant currency)

• Company sees fiscal 2027 adjusted EBITDA down mid to high single digits (constant currency)

• Cogeco Communications expects fiscal 2027 free cash flow of C$500 mln to C$550 mln (constant currency)

Result Drivers

• CANADIAN GROWTH - Co said Canadian telecom segment saw revenue and adjusted EBITDA growth, driven by high-speed Internet additions and wireless sales

• US SUBSCRIBER LOSSES - Co said American telecom segment revenue declined due to lower subscriber base and shift to Internet-only services amid competitive market

• COST EFFICIENCIES - Co said transformation program delivered cost reductions and operating efficiencies, partly offsetting lower revenue

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the integrated telecommunications services peer group is "buy."

• Wall Street's median 12-month price target for Cogeco Communications Inc is C$67.50, about 25.6% above its October 28 closing price of C$53.76

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

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• Oct 28 - Norway's Telenor Q3 service revenue rises, maintains 2026 forecast

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)