Cogeco Communications starts several cost reduction initiatives

Cogeco Communications starts several cost reduction initiatives

Cogeco Communications Inc. (CCA) has announced several cost reduction initiatives aimed at bolstering its financial performance. The Montreal-based company, which operates in the telecommunications sector, expects these measures to positively impact its revenue and profitability.

According to a recent earnings preview, Cogeco Communications is expected to report a 2.0% decrease in quarterly revenue for the period ending May 31, 2025 [1]. The company's guidance on April 10, 2025, had projected revenue between C$728.07 million and C$743.08 million, but analysts now estimate revenue to be around C$735.762 million [1]. The company's earnings are expected to be C$1.91 per share, unchanged from the previous estimate [1].

The company's President and CEO, Frédéric Perron, highlighted the strong Canadian Internet subscriber growth and the launch of its Canadian wireless service. The wireless service is being rolled out to 12 Canadian markets over the coming weeks, with a first cohort of users already on the service [2]. This initiative is part of the company's broader strategy to retain and grow its North American wireline customer base.

Cogeco Communications' third-quarter results for fiscal 2025 showed a decrease in revenue by 2.7% to C$730.7 million, with adjusted EBITDA decreasing by 0.9% to C$362.4 million [2]. The company's profit for the period was C$73.3 million, a decrease of 4.0% compared to the same period last year. However, the company's free cash flow increased by 63.2%, mainly due to lower net capital expenditures and acquisition costs [2].

The company's cost reduction initiatives are expected to lead to operational efficiencies, lower spending in both the American and Canadian telecommunications segments, and reduced capital intensity. These measures are part of the company's ongoing three-year transformation program aimed at improving its financial performance and positioning it for long-term growth.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3T81IG:0-cogeco-communications-inc-expected-to-post-earnings-of-c-1-91-a-share-earnings-preview/
[2] https://www.newswire.ca/news-releases/cogeco-communications-announces-q3-2025-financial-results-and-canadian-wireless-launch-865693844.html