Cogeco Communications (CCA) BMO 2026 TMT Conference summary

U.S. market environment and strategy

• Competitive intensity in the U.S. has increased, driven by cable and fiber overbuilds, and DSL upgrades, though some easing is possible as capital becomes more expensive for competitors.

• Operational improvements include network upgrades, wireless business growth, digital second brand launch, new sales channels, AI adoption, and a new streaming TV product.

• Market share is split: about half the footprint is in 'harvest' mode with 40% share under pressure, while the other half is in 'growth' mode with 20% share and room to expand.

• Strategic flexibility is emphasized, with no acquisitions in the U.S. for five years and a focus on maximizing cash flow and lowering debt.

• No specific timing for strategic changes, but value creation for shareholders remains a priority.

Product innovation and digital brands

• Launched welo, a digital-only wireline brand with fixed pricing, lower cost to serve, and strong early customer feedback.

• Wireless offering in the U.S. is growing moderately in a competitive market, with notable churn reduction when bundled with wireline.

• oxio in Canada is highly regarded, driving subscriber growth with margins similar to the main brand on-net, and organic growth off-net.

Canadian market and operational progress

• Canadian business is upbeat, with a stabilized market, network upgrades, and strong digital brand performance.

• AI is used in service operations and marketing, improving diagnostics, customer experience, and campaign effectiveness.

• Wireless in Canada is in early stages, with positive margin contributions and lower churn for bundled customers.

• Ontario and Quebec markets are performing similarly for wireline; wireless targets lower-gig users at lower prices.