Canada's Cogeco Q3 revenue falls on weakness in US telecom segment

COGECO

15/07/2026 22:32

Overview
Canada telecom and media firm's Q3 revenue fell 4.5% yr/yr on U.S. segment weakness
Adjusted EPS and profit rose yr/yr, driven by cost reductions and operating efficiencies
Company took $2.2 bln non-cash impairment charge in U.S. telecom segment amid competitive pressures

Outlook
Cogeco re-confirms fiscal 2026 financial guidelines as issued on April 9, 2026
Company now expects current income tax expense of about C$25 mln for fiscal 2026
Cogeco plans to optimize capital investments next fiscal year to support free cash flow

Result Drivers
U.S. TELECOM WEAKNESS - Revenue and adjusted EBITDA in the American telecommunications segment declined due to a lower subscriber base, a higher proportion of Internet-only customers, and a competitive pricing environment
CANADA TELECOM GROWTH - Canadian telecommunications revenue rose 0.5%, driven by high-speed Internet service additions and wireless growth, partly offset by declines in video and wireline phone subscribers and competition
COST REDUCTIONS - Cost reduction initiatives and operating efficiencies from the transformation program partly offset lower revenues

Company press release: ID:nCNW3Nsj6a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Miss*
C$724.17 mln
C$726.30 mln (1 Analyst)
Q3 Adjusted EPS
Beat
C$3.10
C$2.65 (1 Analyst)
Q3 Adjusted EBITDA
 
C$357.01 mln
 
Q3 Capex
 
C$121.52 mln
 
Q3 Free Cash Flow
 
C$170.70 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$74.50, about 19% above its July 14 closing price of C$62.61
The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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.)