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Cogeco Q4 revenue falls on lower US, media sales

By Reuters News


Overview

  • Canada telecom and media firm's Q4 revenue fell 2.4% yr/yr on lower U.S. and media sales

  • Q4 adjusted EPS dropped 3.8% yr/yr; adjusted EBITDA declined 4.1%

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


Outlook

  • Cogeco expects fiscal 2027 revenue to decline by a low to mid single digit percentage

  • Company sees fiscal 2027 adjusted EBITDA declining by a mid to high single digit percentage

  • Cogeco forecasts fiscal 2027 free cash flow between C$505 mln and C$555 mln


Result Drivers

  • CANADIAN INTERNET GROWTH - Co said Canadian telecom revenue rose 0.6% in Q4, mainly due to cumulative high-speed Internet service additions

  • U.S. SUBSCRIBER LOSSES - Co said American telecom revenue fell 4.6% in Q4, mainly due to lower subscriber base and shift to Internet-only services amid competitive environment

  • MEDIA ADVERTISING WEAKNESS - Co said media revenue dropped 18.9% in Q4 as traditional radio advertising market remained challenging


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

Slight Beat*

C$713.9 mln

C$711.50 mln (1 Analyst)

Q4 Adjusted EPS

C$2.04

Q4 Adjusted EBITDA

C$342.3 mln

Q4 Capex

C$162.9 mln

Q4 Free Cash Flow

C$98.4 mln

*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 "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "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 Inc is C$70.50, about 53.7% above its October 28 closing price of C$45.87

  • The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 7 three months ago


Reuters Recommended Reads

  • Oct 28 - Netherlands' KPN Q3 group service revenue rises; reiterates 2026 outlook

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

  • Oct 27 - Orange raises 2026 profit outlook, talks up satellites as network boost


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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