Canada's Cogeco Communications Q2 revenue falls on weaker US subscriber base

Cogeco Communications

09/04/2026 22:14

Overview

Canada telecom's Q2 revenue fell 5.3% yr/yr, slightly missing analysts' expectations

Adjusted diluted EPS for Q2 rose 3.2% yr/yr

Company lowered fiscal 2026 revenue and adjusted EBITDA guidance due to U.S. pricing pressure

Outlook

Cogeco sees fiscal 2026 revenue decreasing by 2% to 4% versus 2025

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

Cogeco maintains fiscal 2026 free cash flow projection; expects lower network expansion capex

Result Drivers

U.S. SUBSCRIBER LOSSES - Revenue in the American telecommunications segment fell due to a lower subscriber base and a shift to Internet-only services in a competitive pricing environment

CANADIAN INTERNET GROWTH - Modest Canadian revenue growth was driven by cumulative high-speed Internet additions, partly offset by declines in video and wireline phone subscriptions

COST REDUCTIONS - Company said cost reduction initiatives and operational efficiencies from its transformation program helped offset lower U.S. revenue

Company press release: ID:nCNWmFmqka

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$693.60 mln
C$699.14 mln (7 Analysts)
Q2 Adjusted EBITDA
C$337.70 mln
Q2 Free Cash Flow
C$155 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 "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and 1 "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 Communications Inc is C$74.13, about 8.8% above its April 8 closing price of C$68.12

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 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.)