Overview

* Telecom provider Cogeco's ( CGECF ) fiscal Q4 revenue declines 4.9% to C$731.4 mln yr/yr, missing analysts' expectations

* Adjusted EBITDA for Q4 decreases 3.8% to C$357.1 mln, reflecting challenges in telecom segments

* Company increases quarterly dividend by 7%

Outlook

* Cogeco ( CGECF ) expects fiscal 2026 revenue to decrease by 1% to 3%

* Fiscal 2026 adjusted EBITDA expected to decrease by 0% to 2%

* Net capital expenditures anticipated between C$565 mln and C$605 mln

Result Drivers

* SUBSCRIBER LOSSES - Revenue decreased due to a decline in subscriber base in U.S., Canada telecommunications' segments

* TRANSFORMATION PROGRAM - Year one of the 3-year transformation program met cost reduction targets, focusing on revenue and cost efficiencies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q4 Miss C$731.4 C$747

Revenue mln mln (1

Analyst)

Q4 C$357.1

Adjusted mln

EBITDA

Q4 Capex C$155.9

mln

Q4 Free C$101.6

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "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 Inc ( CGECF ) is C$88.00, about 31.7% above its October 29 closing price of C$60.07

* The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

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(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.)