Canada · Delayed Price · Currency is CAD Cogeco Earnings Call Transcripts
Fiscal Year 2026
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Canadian customer growth, wireless and adjusted EBITDA remained strong, while U.S. competition pressured subscribers and margins. FY2027 guidance calls for lower revenue and EBITDA, with free cash flow of CAD 500–550 million and continued debt repayment.
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Q3 saw strong free cash flow and continued Canadian growth, while the U.S. segment faced challenges, resulting in a significant impairment charge. Ongoing transformation, digital expansion, and capital efficiency remain priorities, with cautious optimism for U.S. improvement over several quarters.
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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 improved margins, with strong Canadian internet growth and stabilizing U.S. subscriber trends. Fiscal 2026 guidance anticipates modest revenue and EBITDA declines, continued network investments, and further dividend growth.
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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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Q3 results showed modest consolidated revenue and EBITDA growth, driven by Canadian internet subscriber gains and U.S. cost efficiencies. Organizational restructuring and digital initiatives are expected to drive future growth, while the impact of the ACP discontinuation in the U.S. is expected to be short-lived.