Canada's Cogeco Communications Q4 revenue falls on US subscriber losses, competitive pressure

Cogeco Communications

28/10/2026 22:16

Overview
Canada telecom operator's Q4 revenue fell 1.9% but slightly beat analyst expectations
Adjusted EPS for Q4 declined 1.9% year-over-year
Company raised quarterly dividend by 2% to C$1.007 per share

Outlook
Cogeco Communications expects fiscal 2027 revenue to decline low to mid single digits (constant currency)
Company sees fiscal 2027 adjusted EBITDA down mid to high single digits (constant currency)
Cogeco Communications expects fiscal 2027 free cash flow of C$500 mln to C$550 mln (constant currency)

Result Drivers
CANADIAN GROWTH - Co said Canadian telecom segment saw revenue and adjusted EBITDA growth, driven by high-speed Internet additions and wireless sales
US SUBSCRIBER LOSSES - Co said American telecom segment revenue declined due to lower subscriber base and shift to Internet-only services amid competitive market
COST EFFICIENCIES - Co said transformation program delivered cost reductions and operating efficiencies, partly offsetting lower revenue

Company press release: ID:nCNW9Z0xra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
C$695.50 mln
C$692.79 mln (7 Analysts)
Q4 Adjusted EPS
 
C$2.05
 
Q4 Adjusted EBITDA
 
C$344.80 mln
 
Q4 Free Cash Flow
 
C$104.20 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 "buy."
Wall Street's median 12-month price target for Cogeco Communications Inc is C$67.50, about 25.6% above its October 28 closing price of C$53.76
The stock recently traded at 6 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.)