Cogeco Communications reports drops in Canadian profit, revenue for Q2 2025

Cogeco Communications’ profit for the second quarter of 2025 dropped by 17.5 per cent to almost $79.64 million, the company reported this week, compared to $96.56 million the year prior. The company attributed the drop to higher depreciation and amortization expenses, acquisition, integration, restructuring, and income tax expense, offset in part by lower financial expense and appreciation of the U.S. dollar against the Canadian dollar. Overall revenue was nearly flat compared to the second quarter of 2024, rising to more than $732.42 million as of Feb. 28, 2025 from $730.5 million. Canadian revenue at Cogeco Communications during the most recent quarter was $370.21 million — down 0.9 per cent from $373.48 million, while operating expenses were nearly $177.72 million. In the U.S., revenues hit $362.21, up 1.5 per cent from $357 million the year prior. The company credited the slight drop in Canadian revenue to lower revenue per customer due to a drop in video and wireline service subscribers and a competitive market. It noted more people are subscribing to internet-only services, with its internet service subscriber base growing. By the end of the quarter, Cogeco Communications had 911,749 internet subscribers (net additions of 8,359) including its Oxio flanker brand in Canada, 590,269 video subscribers (net loss of 6,572), and 363,606 wireline phone subscribers (net loss of 4,799). The company noted 56 per cent of subscribers in the country subscribed to two- or three-service bundles. In the U.S., the company saw net subscriber losses in all three segments. It had 632,836 internet customers (net loss of 5,037), 245,672 video subscribers (net loss of 7,112), and 118,627 wireline phone customers (net loss of 3,206). READ MORE: - Cogeco CEO open to eventual expansion of business, heralds AI use - Cogeco maintains it will launch Canadian wireless service in coming months Cogeco Communications’ overall adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was up 2.7 per cent to almost $356.5 million from $347.11 million. The company recorded a total of nearly $157.9 million in capital expenditures, down approximately $170.77 million — a change of 7.5 per cent. It reported it saw lower spending on its telecom segment in Canada during the quarter, particularly noting lower spending on customer premise equipment. The opposite was true in the U.S., where the company recorded higher spending on customer equipment, though that was partially offset by slower construction of its high-speed internet network expansions in the states. The company did not specify a reason for the slowed pace. Excluding network expansion projects from its net capital expenses, Cogeco Communications would report net spending of $142.3 million. The company said its fibre-to-the-home (FTTH) network expansion work continued, mostly in Canada, with 7,000 more homes passed by its network in the second quarter. Net debt by the end of the quarter was $4.97 billion, up from $4.8 billion in August 2024. Free cash flow was $116.6 million at the close of the quarter, up 14.5 per cent from nearly $101.8 million. Free cash flow excluding network expansion projects was $132.17 million for the quarter. Parent company Cogeco Inc. — which owns both the business’ telecommunications and media arms — reported nearly flat revenue as well, totalling $753.24 million for the quarter, up from $751.9 million in the second quarter of 2024. Its profit for the period was down 18.4 per cent to $76.61 million, a drop from $93.93 million. Cogeco Inc.’s free cash flow was $112.8 million at the end of the quarter, up from $100.46 million. Its net debt was $5.13 billion, up from $4.96 billion at the end of August 2024. hdaley@thewirereport.ca

Cogeco Communications reports drops in Canadian profit, revenue for Q2 2025

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By Hannah Daley
| April 10, 2025

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Cogeco Communications reports drops in Canadian profit, revenue for Q2 2025

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