* 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
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, revenue decreased by 4.9%, mainly explained as follows:
* 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.
* 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.
* 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 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.
* 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, 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.
Financial highlights
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 http://www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications’ non-IFRS Accounting Standards ratios.
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
Canadian telecommunications segment
American telecommunications segment
Adjusted profit attributable to owners of the Corporation
Free cash flow and free cash flow, excluding network expansion projects reconciliations
Adjusted EBITDA reconciliation
Net capital expenditures and net capital expenditures, excluding network expansion projects reconciliations
Free cash flow, excluding network expansion projects reconciliations
Additional information
Additional information relating to the Corporation is available on SEDAR+ at http://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
Media
Isabelle Famery
Manager, External Communications
Cogeco Communications Inc.
Tel.: 514 764-4600
