Canada · Delayed Price · Currency is CAD Cogeco Earnings Call Transcripts
Fiscal Year 2026
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Canadian operations delivered strong growth and stable margins, while U.S. results remained pressured by competition but are expected to improve in the second half. Transformation initiatives, AI deployment, and new digital brands are driving operational efficiencies and future growth.
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The meeting reviewed a year of transformation, with stable EBITDA, increased free cash flow, and higher dividends despite revenue declines. All board and auditor appointments passed with strong support, and shareholder proposals on meeting format, ESG, and climate risk were discussed in detail, with management largely maintaining current practices.
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Q1 results met expectations, with stable Canadian performance and improving U.S. subscriber trends. Revenue and EBITDA declined year-over-year, but guidance is maintained, and stronger U.S. results are expected in the second half. Dividend increased 7% year-over-year.
Fiscal Year 2025
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Year one of the transformation program delivered cost synergies and network upgrades, driving margin and free cash flow improvements. Canadian internet subscriber growth was the strongest in 13 years, while U.S. operations saw improved trends despite ongoing revenue pressure. Fiscal 2026 guidance anticipates modest declines in revenue and EBITDA, with continued investments in network and wireless.
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Canadian Internet and wireless growth offset U.S. revenue declines, with transformation synergies driving strong free cash flow and improved leverage. Fiscal 2025 guidance anticipates stable EBITDA and higher free cash flow despite lower revenue, as operational efficiencies continue to outpace headwinds.
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Q2 saw stable EBITDA despite a 2.7% revenue decline, with free cash flow up 12.8% and strong internet subscriber growth in Canada. Transformation initiatives and cost controls offset revenue pressures, while guidance for 2025 remains unchanged.
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Annual meetings confirmed strong board and auditor approvals, stable revenues, and increased dividends. Strategic focus includes transformation, digitization, wireless expansion, and rural connectivity, with robust governance and sustainability commitments.
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Q1 saw stable Canadian revenue and EBITDA growth, offset by U.S. revenue declines, but overall EBITDA margins expanded. Free cash flow rose 7.8% and EPS increased 18.4% year-over-year, with guidance maintained despite competitive and cost pressures.
Fiscal Year 2024
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Q4 and full-year results slightly exceeded guidance, with strong Free Cash Flow and margin expansion. Fiscal 2025 will focus on reinvestment and transformation, with stable revenue and EBITDA expected amid competitive pressures and ARPU headwinds.
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Revenue and EBITDA grew modestly, driven by Canadian internet subscriber gains and U.S. cost efficiencies. A new North American operating model aims to boost synergies, with restructuring costs impacting EPS but expected to enable future growth investments. Free cash flow declined due to timing and restructuring.