Canada's Cogeco's Q4 revenue misses estimates on subscriber losses

COGECO

30/10/2025 01:57

Overview

Telecom provider Cogeco's fiscal Q4 revenue declines 4.9% to C$731.4 mln yr/yr, missing analysts' expectations

Adjusted EBITDA for Q4 decreases 3.8% to C$357.1 mln, reflecting challenges in telecom segments

Company increases quarterly dividend by 7%

Outlook

Cogeco expects fiscal 2026 revenue to decrease by 1% to 3%

Fiscal 2026 adjusted EBITDA expected to decrease by 0% to 2%

Net capital expenditures anticipated between C$565 mln and C$605 mln

Result Drivers

SUBSCRIBER LOSSES - Revenue decreased due to a decline in subscriber base in U.S., Canada telecommunications' segments

TRANSFORMATION PROGRAM - Year one of the 3-year transformation program met cost reduction targets, focusing on revenue and cost efficiencies

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
C$731.4 mln
C$747 mln (1 Analyst)
Q4 Adjusted EBITDA
C$357.1 mln
Q4 Capex
C$155.9 mln
Q4 Free Cash Flow
C$101.6 mln


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 "hold"

Wall Street's median 12-month price target for Cogeco Inc is C$88.00, about 31.7% above its October 29 closing price of C$60.07

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

Press Release: ID:nCNWl60kGa

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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.)