Q1 2026 Cogeco Communications Inc Earnings Call Transcript
Key Points
- Cogeco Communications Inc (CGEAF) reported consolidated results in line with their plan and are on track to deliver full-year guidance for all KPIs.
- The US operations have shown significant improvement in subscriber trends for the second consecutive quarter, marking the best customer metrics in the past 15 quarters.
- In Canada, the company continues to see solid and resilient performance with positive year-on-year EBITDA trends and consistent customer base growth.
- Cogeco Communications Inc (CGEAF) was ranked as the best telecommunications company in Canada for customer complaint reduction, achieving a 15% reduction in customer complaints.
- The company's balance sheet and cash flow profiles remain strong, positioning them well to increase shareholder value over time.
- In the US, Breezeline's revenue declined by 9.9% in constant currency due to a cumulative decline in the subscriber base and a competitive pricing environment.
- Consolidated revenue in constant currency declined by 4.9%, and adjusted EBITDA declined by 3.7%, driven by declines in the US.
- Diluted earnings per share declined by 12.2%, mainly due to a one-time gain recorded in the prior year and lower adjusted EBITDA.
- Capital intensity increased to 22.2% from 20.4% last year, although the company is on track to hit CapEx guidance for the year.
- Free cash flow in constant currency declined by 15.9% in the quarter, primarily due to proceeds from last year's sale and leaseback transaction.
Good day, and welcome to Cogeco Inc. and Cogeco Communications Inc. Q1 2026 earnings conference call. Today's conference is being recorded.
At this time, I would like to turn the conference over to Mr. Patrice Ouimet, Chief Financial Officer of Cogeco Inc. and Cogeco Communications Inc. Please go ahead, Mr. Ouimet.
So good morning, and welcome to our first-quarter results conference call. So as usual, before we begin the call, I'd like to remind listeners that today's discussion will include estimates and other forward-looking information. We ask that you review the cautionary language in the press release and MD&A issued yesterday as well as in our annual reports regarding the various risks, assumptions and uncertainties that could cause our actual results to differ.
With that, I will pass the line to Fred Perron for opening remarks.
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