Canada's Cogeco Q2 revenue falls, lowers full-year revenue outlook

COGECO

09/04/2026 22:24

Overview

Canada telecom and media firm's Q2 revenue fell 5.3% yr/yr on weakness in U.S. telecom segment and media activities

Q2 adjusted EBITDA declined 5.6% yr/yr, while adjusted profit was nearly flat

Company raised quarterly dividend by 7% and cut full-year revenue, EBITDA guidance

Outlook

Cogeco lowers fiscal 2026 revenue outlook to decrease of 2% to 4% due to the ongoing competitive pricing environment

Company expects fiscal 2026 adjusted EBITDA to decrease by 1.5% to 3.5%

Cogeco revises network expansion capital spending to C$85 mln-C$110 mln for fiscal 2026

Result Drivers

U.S. TELECOM WEAKNESS - Revenue and adjusted EBITDA in the American telecommunications segment fell due to a lower subscriber base, more customers opting for Internet-only services, and a competitive pricing environment

CANADA INTERNET GAINS - Canadian telecommunications revenue rose slightly, driven by cumulative high-speed Internet service additions, partly offset by declines in video and wireline phone subscribers and a shift to Internet-only services

MEDIA ADVERTISING CHALLENGES - Media revenue declined as the traditional radio advertising market remained difficult

COST REDUCTION EFFORTS - Cost reduction initiatives and operating efficiencies from the transformation program partly offset lower revenue

Company press release: ID:nCNWSNK1la

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$713 mln
C$720.80 mln (1 Analyst)
Q2 Adjusted EBITDA
C$337.10 mln
Q2 Adjusted Free Cash Flow
C$166.90 mln
Q2 Capex
C$122.30 mln
Q2 Free Cash Flow
C$152.90 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "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$76.50, about 15% above its April 8 closing price of C$66.52

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

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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.)