Cogeco Q4 revenue falls on lower US, media sales

COGECO

28/10/2026 22:17

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: ID:nCNWpyyh1a

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

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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.)