Cogeco Connexion posts 1.6% quarterly revenue drop

17 Jul 2020

In its fiscal third quarter ended 31 May 2020, Canadian cableco Cogeco Connexion posted a 1.6% year-on-year revenue drop to CAD320.5 million (USD236.8 million), mainly driven by ongoing cable TV subscriber losses. Quarterly EBITDA also dropped moderately, by 1.1% y-o-y to CAD176.7 million.

Cogeco’s cable internet customers in Ontario and Quebec increased by 5,252 during the three-month period to 803,073 reflecting ongoing interest in high speed broadband, especially as more customers are working from home. The company shed 11,406 pay-TV customers in the quarter, however, leaving it with 627,608 at end-May, which it attributed to highly competitive offers from rivals and a changing video consumption environment. Fixed telephony subscribers also declined, by 5,582 in three months to 371,950, as various ‘unlimited’ offers from mobile operators caused some customers to cancel their fixed lines in favour of wireless-only voice services.

Cogeco Connexion also noted that on 1 May 2020 it completed the acquisition of iTeract (Internexe), which provides fixed-wireless and fibre-based telecoms services in rural southern Quebec, for CAD16 million.

Canada, Cogeco Connexion