Cogeco Communications announces its Q1 2026 financial results

January 14, 2026
Cogeco Communications
  • Sustained Canadian customer growth 
  • Marked improvement in U.S. subscriber trends 
  • Network upgrades continue, including the introduction of 2.5 Gigabit speeds in the U.S. 
  • Launching an oxio-like digital brand in the U.S. next month 
  • Fiscal 2026 financial guidelines re-confirmed 
  • Credit outlooks improved by both S&P and Moody's

MONTRÉAL, Jan. 14, 2026 /CNW/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the first quarter ended November 30, 2025.



"Our consolidated financial results for the quarter were in line with our expectations," said Frédéric Perron, President and CEO. "In the U.S., we've materially improved our subscriber trends for a second consecutive quarter, just as we said we would. This has translated into our best U.S. subscriber metrics in the past 15 quarters and we are just getting started, as we continue to deploy new sales and marketing strategies and invest in even faster network speeds.


"Simply put, we are turning around our U.S. subscriber trends, leading to improved financials in the second half of the fiscal year," continued Mr. Perron.


"In Canada, we expect to keep growing our customer base over time, as wireless and Ontario rural network expansions reach larger scale.


"We were also pleased to see our capital allocation discipline being recognized by S&P and Moody's, who both recently improved their credit outlooks on our company."


Consolidated financial highlights


Three months ended November 30


2025



2024



Change


Change in


constant
currency


(1)


(In thousands of Canadian dollars, except % and per share data) (unaudited)  


$



$



%


%



Revenue


707,247



738,695



(4.3)


(4.9)



Adjusted EBITDA (1)


353,823



365,215



(3.1)


(3.7)



Adjusted EBITDA margin (1)


50.0 %



49.4 %






Profit for the period


93,095



107,160



(13.1)




Profit for the period attributable to owners of the Corporation


88,676



100,588



(11.8)




Adjusted profit attributable to owners of the Corporation (1)(2)


89,524



90,674



(1.3)












Cash flows from operating activities


176,323



218,865



(19.4)




Free cash flow (1)


125,537



148,858



(15.7)


(15.9)



Free cash flow, excluding network expansion projects (1)


144,291



170,657



(15.4)


(15.7)











Acquisition of property, plant and equipment


157,151



153,243



2.6




Net capital expenditures (1)(3)


156,963



150,645



4.2


3.5



Net capital expenditures, excluding network expansion projects (1)


138,209



128,846



7.3


6.5











Capital intensity (1)


22.2 %



20.4 %






Capital intensity, excluding network expansion projects (1)


19.5 %



17.4 %














Diluted earnings per share


2.09



2.38



(12.2)




Adjusted diluted earnings per share (1)(2)


2.11



2.14



(1.4)




















Operating results


For the first quarter of fiscal 2026 ended on November 30, 2025:


  • Revenue decreased by 4.3% to $707.2 million. On a constant currency basis(1), revenue decreased by 4.9%, mainly explained as follows:
    • American telecommunications' revenue decreased by 8.6%, or 9.9% in constant currency, mainly due to a lower subscriber base compared to the previous year, especially for entry-level services, and to a higher proportion of customers subscribing to Internet-only services, as well as a competitive pricing environment.
    • Canadian telecommunications' revenue remained stable, mainly due to a lower revenue per customer as a result of a decline in video and wireline phone service subscribers, as an increasing proportion of customers subscribe to Internet-only services, as well as a competitive pricing environment, offset by the cumulative effect of high-speed Internet service additions over the past year.
  • Adjusted EBITDA decreased by 3.1% to $353.8 million. On a constant currency basis, adjusted EBITDA decreased by 3.7%, mainly due to lower revenue in the American telecommunications segment, offset in part by growth in the Canadian telecommunications segment driven by cost reduction initiatives and operating efficiencies as a result of our ongoing three-year transformation program.
    • American telecommunications' adjusted EBITDA decreased by 7.8%, or 9.1% in constant currency.
    • Canadian telecommunications' adjusted EBITDA increased by 1.9%(4), or 2.0%(4) in constant currency.
  • Profit for the period amounted to $93.1 million, of which $88.7 million, or $2.09 per diluted share, was attributable to owners of the Corporation compared to $107.2 million, $100.6 million, and $2.38 per diluted share, respectively, in the comparable period of fiscal 2025. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from lower adjusted EBITDA and higher acquisition, integration, restructuring and other costs, mainly due to last year's pre-tax $13.8 million non-cash gain recognized in connection with a sale and leaseback transaction, partly offset by lower financial expense and depreciation and amortization expense.
    • Adjusted profit attributable to owners of the Corporation(2) was $89.5 million, or $2.11 per diluted share(2), compared to $90.7 million, or $2.14 per diluted share, last year.
  • Net capital expenditures were $157.0 million, an increase of 4.2% compared to $150.6 million in the same period of the prior year. In constant currency, net capital expenditures(1) were $155.9 million, an increase of 3.5% compared to last year, mainly due to higher capital spending related to customer premise equipment in the Canadian telecommunications segment, partly offset by the timing of certain initiatives in both the American and Canadian telecommunications segments.
    • Net capital expenditures in connection with network expansion projects were $18.8 million, or $18.7 million in constant currency(1), compared to $21.8 million in the same period of the prior year. Excluding network expansion projects, net capital expenditures were $138.2 million, an increase of 7.3% compared to $128.8 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(1) were $137.2 million, an increase of 6.5% compared to last year.
    • Network expansion projects continued with additions over 4,000 homes passed during the first quarter of fiscal 2026.
    • Capital intensity was 22.2% compared to 20.4% last year. Excluding network expansion projects, capital intensity was 19.5% compared to 17.4% in the same period of the prior year.
  • Acquisition of property, plant and equipment increased by 2.6% to $157.2 million, mainly resulting from higher spending.
  • Free cash flow decreased by 15.7%, or 15.9% in constant currency, and amounted to $125.5 million, or $125.2 million in constant currency(1), mainly due to lower net proceeds from disposals of property, plant and equipment, primarily resulting from last year's $16.5 million net proceeds received in connection with a sale and leaseback transaction, lower adjusted EBITDA, and higher net capital expenditures, offset in part by lower financial expense and current income taxes. Free cash flow, excluding network expansion projects decreased by 15.4%, or 15.7% in constant currency, and amounted to $144.3 million, or $143.8 million in constant currency.
  • Cash flows from operating activities decreased by 19.4% to $176.3 million, mostly due to higher income taxes paid and to the timing of payments of trade and other payables, as well as to lower adjusted EBITDA, offset in part by lower interest paid.
  • At its January 14, 2026 meeting, the Board of Directors of Cogeco Communications declared a quarterly dividend of $0.987 per share, an increase of 7.0% compared to $0.922 per share in the comparable quarter of fiscal 2025.

(1)


Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.


(2)


Excludes the impact of acquisition, integration, restructuring and other costs (gains), net of tax and non-controlling interest.


(3)


Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.


(4)


Following a full-scale launch of its Canadian wireless service offering across the majority of its operating footprint in Québec and Ontario during the first quarter of fiscal 2026, the Corporation changed the presentation of its reportable segments by including the Canadian wireless operations within its Canadian telecommunications segment. Cogeco Mobile's operations were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation.


Financial highlights







Change in


constant
currency



Three months ended November 30


2025


2024



Change


(1)
(2)


(In thousands of Canadian dollars, except % and per share data)


$


$



%


%



Operations








Revenue


707,247


738,695



(4.3)


(4.9)



Adjusted EBITDA (2)


353,823


365,215



(3.1)


(3.7)



Adjusted EBITDA margin (2)


50.0 %


49.4 %






Acquisition, integration, restructuring and other costs (gains) (3)


1,298


(9,958)



—




Profit for the period


93,095


107,160



(13.1)




Profit for the period attributable to owners of the Corporation


88,676


100,588



(11.8)




Adjusted profit attributable to owners of the Corporation (2)(4)


89,524


90,674



(1.3)




Cash flow








Cash flows from operating activities


176,323


218,865



(19.4)




Free cash flow (2)


125,537


148,858



(15.7)


(15.9)



Free cash flow, excluding network expansion projects (2)


144,291


170,657



(15.4)


(15.7)



Acquisition of property, plant and equipment


157,151


153,243



2.6




Net capital expenditures (2)(5)


156,963


150,645



4.2


3.5



Net capital expenditures, excluding network expansion projects (2)  


138,209


128,846



7.3


6.5



Capital intensity (2)


22.2 %


20.4 %






Capital intensity, excluding network expansion projects (2)


19.5 %


17.4 %






Per share data (6)








Earnings per share








Basic


2.11


2.39



(11.7)




Diluted


2.09


2.38



(12.2)




Adjusted diluted (2)(4)


2.11


2.14



(1.4)




Dividends per share


0.987


0.922



7.0











(1)


Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current period denominated in US dollars at the foreign exchange rate of the comparable period of the prior year. For the three-month period ended November 30, 2024, the average foreign exchange rate used for translation was 1.3759 USD/CDN.


(2)


Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.


(3)


For the three-month period ended November 30, 2025, acquisition, integration, restructuring and other costs were mainly related to costs associated with the configuration and customization related to cloud computing and other arrangements, as well as restructuring costs incurred. For the three-month period ended November 30, 2024, acquisition, integration, restructuring and other costs (gains) were mostly related to a $13.8 million non-cash gain recognized in connection with a sale and leaseback transaction.


(4)


Excludes the impact of acquisition, integration, restructuring and other costs (gains), net of tax and non-controlling interest.


(5)


Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.


(6)


Per multiple and subordinate voting share.





As at


November 30, 2025


August 31, 2025


(In thousands of Canadian dollars)


$


$


Financial condition




Cash


65,129


75,152


Total assets


9,798,028


9,692,395


Long-term debt




Current


253,715


43,632


Non-current


4,383,980


4,510,769


Net indebtedness (1)


4,620,979


4,527,171


Equity attributable to owners of the Corporation  


3,226,145


3,160,522





(1)


Net indebtedness is a capital management measure. For more information on this financial measure, please consult the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three-month period ended November 30, 2025, available on SEDAR+ at www.sedarplus.ca.


Forward-looking statements


Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.'s ("Cogeco Communications" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategy" and "Fiscal 2026 financial guidelines" sections of the Corporation's fiscal 2025 annual Management's Discussion and Analysis ("MD&A") for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks (including changes in laws or government policies and the impact of regulatory decisions, such as those of the Canadian Radio-television and Telecommunications Commission ("CRTC") in Canada or of the Federal Communications Commission in the U.S.), tax risks, technology risks (including the evolution of technology and the threat of cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, trade tariffs, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation's network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" section of the Corporation's fiscal 2025 annual MD&A and of the fiscal 2026 first-quarter MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications' expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.


All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the Corporation's MD&A for the three-month period ended November 30, 2025, the Corporation's condensed interim consolidated financial statements and the notes thereto for the same period prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the Corporation's fiscal 2025 Annual Report.


Non-IFRS Accounting Standards and other financial measures


This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.


Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three-month period ended November 30, 2025, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications' non-IFRS Accounting Standards ratios.




Specified non-IFRS Accounting Standards measures


Used in the component of the following non-IFRS Accounting Standards ratios


Adjusted profit attributable to owners of the Corporation


Adjusted diluted earnings per share


Constant currency basis


Change in constant currency


Net capital expenditures, excluding network expansion projects  


Capital intensity, excluding network expansion projects




Financial measures presented on a constant currency basis for the three-month period ended November 30, 2025 are translated at the average foreign exchange rate of the comparable period of the prior year, which was 1.3759 USD/CDN.


Constant currency basis and foreign exchange impact reconciliation


Consolidated














Three months ended November 30


2025



2024




Change



(In thousands of Canadian dollars, except percentages)  


Actual



Foreign
exchange
impact



In


constant
currency



Actual



Actual


In


constant
currency



$



$



$



$



%


%



Revenue


707,247



(4,784)



702,463



738,695



(4.3)


(4.9)



Operating expenses


347,410



(2,602)



344,808



368,558



(5.7)


(6.4)



Management fees – Cogeco Inc.


6,014



—



6,014



4,922



22.2


22.2



Adjusted EBITDA


353,823



(2,182)



351,641



365,215



(3.1)


(3.7)



Free cash flow


125,537



(383)



125,154



148,858



(15.7)


(15.9)



Net capital expenditures


156,963



(1,106)



155,857



150,645



4.2


3.5















Canadian telecommunications segment















Three months ended November 30


2025



2024





Change



(In thousands of Canadian dollars, except percentages)  


Actual



Foreign
exchange
impact



In


constant
currency



Actual


(1)


Actual



In


constant
currency



$



$



$



$



%



%



Revenue


376,912



—



376,912



377,266



(0.1)



(0.1)



Operating expenses


176,591



(198)



176,393



180,706



(2.3)



(2.4)



Adjusted EBITDA


200,321



198



200,519



196,560



1.9



2.0



Net capital expenditures


105,691



(357)



105,334



76,918



37.4



36.9
















(1)


Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $2.9 million of operating expenses which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.


American telecommunications segment















Three months ended November 30


2025



2024





Change



(In thousands of Canadian dollars, except percentages)  


Actual



Foreign
exchange
impact



In


constant
currency



Actual



Actual



In


constant
currency



$



$



$



$



%



%



Revenue


330,335



(4,784)



325,551



361,429



(8.6)



(9.9)



Operating expenses


165,502



(2,404)



163,098



182,617



(9.4)



(10.7)



Adjusted EBITDA


164,833



(2,380)



162,453



178,812



(7.8)



(9.1)



Net capital expenditures


51,272



(749)



50,523



73,727



(30.5)



(31.5)
















Adjusted profit attributable to owners of the Corporation






Three months ended November 30



2025


2024


(In thousands of Canadian dollars)


$


$


Profit for the period attributable to owners of the Corporation  


88,676


100,588


Acquisition, integration, restructuring and other costs (gains)


1,298


(9,958)


Tax impact for the above items


(337)


281


Non-controlling interest impact for the above items


(113)


(237)


Adjusted profit attributable to owners of the Corporation


89,524


90,674





Free cash flow and free cash flow, excluding network expansion projects reconciliations






Three months ended November 30



2025


2024


(In thousands of Canadian dollars)


$


$


Cash flows from operating activities


176,323


218,865


Changes in other non-cash operating activities


92,442


74,174


Income taxes paid


28,544


6,639


Current income taxes


(10,978)


(14,628)


Interest paid


57,554


61,471


Financial expense


(61,643)


(65,489)


Amortization of deferred transaction costs and discounts on long-term debt (1)


2,620


1,464


Net capital expenditures (2)


(156,963)


(150,645)


Proceeds from disposals of property, plant and equipment, including sale and leaseback transactions  


1,212


19,613


Repayment of lease liabilities


(3,574)


(2,606)


Free cash flow


125,537


148,858


Net capital expenditures in connection with network expansion projects


18,754


21,799


Free cash flow, excluding network expansion projects


144,291


170,657





(1)


Included within financial expense. 


(2)


Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.


Adjusted EBITDA reconciliation






Three months ended November 30



2025


2024


(In thousands of Canadian dollars)


$


$


Profit for the period


93,095


107,160


Income taxes


25,708


26,625


Financial expense


61,643


65,489


Depreciation and amortization


172,079


175,899


Acquisition, integration, restructuring and other costs (gains)  


1,298


(9,958)


Adjusted EBITDA


353,823


365,215





Net capital expenditures and net capital expenditures, excluding network expansion projects reconciliations












Three months ended November 30


2025



2024





Change



Actual


Foreign
exchange
impact


In


constant
currency



Actual



Actual



In


constant
currency


(In thousands of Canadian dollars, except percentages)


$


$


$



$



%



%


Acquisition of property, plant and equipment


157,151





153,243



2.6




Subsidies received in advance recognized as a reduction of the cost of property,  
    plant and equipment during the period


(188)





(2,598)



(92.8)




Net capital expenditures


156,963


(1,106)


155,857



150,645



4.2



3.5


Net capital expenditures in connection with network expansion projects


18,754


(74)


18,680



21,799



(14.0)



(14.3)


Net capital expenditures, excluding network expansion projects


138,209


(1,032)


137,177



128,846



7.3



6.5












Free cash flow, excluding network expansion projects reconciliations













Three months ended November 30


2025



2024




Change


(In thousands of Canadian dollars, except percentages)


Actual



Foreign
exchange
impact



In


constant
currency



Actual



Actual


In


constant
currency


$



$



$



$



%


%


Free cash flow


125,537



(383)



125,154



148,858



(15.7)


(15.9)


Net capital expenditures in connection with network expansion projects  


18,754



(74)



18,680



21,799



(14.0)


(14.3)


Free cash flow, excluding network expansion projects


144,291



(457)



143,834



170,657



(15.4)


(15.7)













Additional information


Additional information relating to the Corporation is available on SEDAR+ at www.sedarplus.ca and on the Corporation's website at corpo.cogeco.com.


About Cogeco Communications Inc.


Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).


For information:

Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
[email protected] 


Media
Isabelle Famery
Manager, External Communications
Cogeco Communications Inc.
Tel.: 514 764-4600
[email protected] 


Conference Call:        


Thursday, January 15, 2026 at 8:00 a.m. (Eastern Standard Time)





A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of Cogeco Communications' website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications' website for a three-month period.





Please use the following dial-in number to access the conference call 5 to 10 minutes before the start of the conference:





Local - Toronto: 1 289 514-5100
Toll Free - North America: 1 800 717-1738






To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.





The conference call will be followed, at 11:30 a.m., by the annual meeting of shareholders of each company, which will be held in hybrid mode.




 



SOURCE Cogeco Communications Inc.


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