Cogeco Communications (CCA) TD Cowen 28th Annual Telecom & Media Conference summary

Business performance and value drivers

• Canadian operations contribute over half of revenue and EBITDA, with strong market share and cash flow growth, especially in rural and semi-rural areas.

• U.S. business is split: traditional cable faces challenges, but low-penetration areas offer growth potential; less than a quarter of the business is in the less attractive segment.

• Dividend, cash flow, and deleveraging are all growing, supported by a healthy balance sheet.

• Spectrum holdings are valued significantly higher than the challenged U.S. cable segment, with monetization options available over time.

• New digital brands (oxio in Canada, welo in the U.S.) are expanding, with oxio showing strong NPS and welo tracking to internal plans.

Competitive environment and growth strategies

• Canadian market is constructive, with reduced promotional activity and ARPU improvement; recent competitive spikes were short-lived.

• Wireless business in Canada is scaling up, trending ahead of plan, and expected to become a material P&L contributor.

• U.S. market remains tough, but efforts to reduce EBITDA decline are ongoing, with slow and steady improvement targeted.

• AI initiatives are being deployed to automate troubleshooting, improve retention efficiency, and reduce operating costs.

• Fiber builds in Canada are insulated from mandated resale, protecting investment and supporting rural coverage.

Spectrum and capital allocation

• Spectrum acquired at a discount is now valued at CAD 1–2 billion, with half not currently needed for operations; restrictions on transfer will ease over time.

• No spectrum included in MVNO deals; flexibility remains for future monetization or network build-out.

• No foreign ownership restrictions on spectrum identified, opening potential for broader monetization options.

• Free cash flow is growing, with a hypothetical CAD 600 million representing about 20% of market cap; options include deleveraging and buybacks.

• Capital allocation decisions for fiscal 2027 will be discussed internally from July to October, with announcements possible throughout the year.