Canada's cable operator Cogeco Q1 revenue falls on US telecom segment weakness

COGECO

15/01/2026 01:15

Overview

Cable operator's Q1 revenue decreased 3.8% yr/yr, slightly missing analysts' estimates

Adjusted EBITDA fell 2.5% yr/yr, driven by lower U.S. telecom revenue

Adjusted profit attributable to owners rose 6.3% yr/yr

Outlook

Cogeco reaffirms fiscal 2026 financial guidelines

Expects to continue growing its customer base in Canada as wireless service increase

Cogeco plans to launch digital brand in U.S. next month

Result Drivers

U.S. TELECOM PRESSURE - Revenue in the American telecom segment decreased due to a lower subscriber base, competitive pricing environment

MEDIA REVENUE GROWTH - Revenue in the media activities increased by 8.1%, driven by a solid market position and growth in digital advertising solutions

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
C$735.60 mln
C$739.90 mln (1 Analyst)
Q1 Adjusted EBITDA
C$361.80 mln
Q1 Adjusted Free Cash Flow
C$149.60 mln
Q1 Capex
C$157.20 mln
Q1 Free Cash Flow
C$130.90 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$85.50, about 29.3% above its January 14 closing price of C$66.13

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

Press Release: ID:nCNWJ9L6Xa

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