Highlights

• Cogeco Communications lifted its quarterly Dividend to C$1.007 per share from C$0.987, payable on 25 November.

• Free Cash Flow rose to C$554.1 million in fiscal 2026 even as Revenue fell 4.0 percent.

• Impairments of C$2,229.0 million produced a statutory net loss despite higher adjusted profit for the year.

• Guidance for fiscal 2027 calls for lower revenue and adjusted EBITDA but free cash flow near current levels.

Cogeco Communications Inc. (TSX:CCA) wrote down more than C$2.2 billion of Assets in fiscal 2026 and still handed shareholders a bigger quarterly cheque. The cable and internet operator raised its dividend to C$1.007 per multiple and subordinate voting share from C$0.987, extending its run of annual dividend growth to 23 years, on the back of free cash flow that grew 7.1% to C$554.1 million.

The strain shows up south of the border. Revenue in the United States fell 4.6% in the fourth quarter as the subscriber base shrank and competition intensified, while the Canadian operations recorded a re-acceleration in internet customer additions.

Reading the Yield correctly

The shares closed at C$53.50 on 10 November, the ex-dividend date, with payment due on 25 November. Four quarterly payments at the new rate total C$4.028, giving an indicated yield of 7.53% on that closing price.

The trailing window from 11 November 2025 to 10 November 2026 happens to contain five ex-dates, four at C$0.987 plus the first C$1.007 payment. Their C$4.955 sum would suggest 9.26%, which overstates a typical year. The latest four payments come to C$3.968, or 7.42% of the closing price.

Impairments against cash generation

Revenue for the year to 31 August reached C$2,793.0 million, 4.0% lower, and adjusted EBITDA slipped 3.8% to C$1,387.9 million. Impairment of assets totalling C$2,229.0 million drove a net loss of C$1,473.9 million, of which C$1,104.7 million was attributable to owners.

Stripping out such items, adjusted profit attributable to owners grew 6.5% to C$359.0 million, or C$8.51 per diluted share. Net indebtedness declined to C$4,301.6 million from C$4,527.2 million. The release did not state a Payout Ratio for the dividend.

Two footprints, two trajectories

Canadian telecom revenue edged up 0.6% in the fourth quarter, helped by high-speed internet additions, and sales of wireless plans and the oxio Brand were described as particularly strong. Video and wireline phone subscribers continued to decline.

In the American business, a smaller customer base, a growing share of internet-only households and competitive pressure weighed on results. Management is countering with a new TV streaming product, the welo digital brand, wireless and additional sales channels, as its transformation programme enters a third year built around AI and digital tools.

What fiscal 2027 guidance implies

At constant currency, revenue is expected to decline by a low to mid single-digit percentage and adjusted EBITDA by a mid to high single-digit percentage. Net Capital Expenditure is guided to C$425 million to C$475 million, down from C$561 million, with free cash flow of C$500 million to C$550 million against C$554 million in fiscal 2026. The outlook assumes a USD/CAD rate of 1.3865.

Parent company Cogeco Inc. declared its own matching C$1.007 dividend separately. S&P/TSX Composite index membership is based on fund holdings data dated 25 September 2026.