Cogeco Inc. has increased its financial officer Patrice Ouimet stated that the company expects heightened market competition to continue throughout 2027.
The firm provided financial guidance for the 2027 fiscal year, projecting a revenue decline in the low-to-mid single-digit percentage range compared to this year.
Scotiabank analyst Maher Yaghi described the outlook as “weaker than expected,” noting that the “deterioration in the U.S. business” overshadowed the company’s quarterly gains.
“Overall, the results indicate that the U.S. turnaround remains a work in progress with estimate risk skewed to the downside,” he said in a note.
The company reported more positive results for its Canadian operations, where telecom revenue grew by 0.6 per cent during the quarter.
Perron said Cogeco’s internet brand Oxio shows “no sign of slowing down” as he highlighted subscriber growth across the company’s footprint of Quebec and Ontario.
“In fact, we keep beating our internal records pretty much every quarter,” he said.
“And what’s very helpful is a lot of our sales come from referrals because customer satisfaction is so high, so the marketing cost is pretty low as well.”
Ouimet said Cogeco anticipates that Canadian revenue will remain stable in the coming year.
“We did perform well last year. As part of that, there’s different elements. There’s pricing, there is the customer additions, which we’re planning to continue to grow … and then mobility is picking up as well,” he said.
“So you take all this together, stability would be the way I would look at it for Canada.”
