MVNO talks still ongoing for Cogeco’s Jetté

Talks between Cogeco Communications Inc. and incumbents for access to MVNO services are still ongoing, according to CEO Philippe Jetté. During a conference call on Friday, the senior executive discussed the company’s third quarter earnings and expectations for the coming months. “Securing satisfactory wholesale rates for access to incumbent wireless networks will be critical to the viability and long-term success of our mobile entry,” said Jetté, adding that he is hopeful agreements will be finalized by the Aug. 7 deadline. The company is even more poised to break into the MVNO market following its acquisition of spectrum licences in the 2500 MHz and 3500 MHz bands in Québec earlier this quarter, bringing its spectrum coverage to 95 per cent of its Canadian operating footprint. Cogeco’s profit dipped by 3.7 per cent to $101.5 million, down from last year’s $105.4 million. Cogeco’s Q3 revenue increased by 1.9 per cent to $741.8 million, up from $728.1 million last year. Although the company saw revenue growth of 3.2 per cent in Canada, revenue from Cogeco’s U.S. operations only grew by half a percentage point, dragging its consolidated numbers down. Jetté was joined by CFO Patrice Ouimet, who said this slow increase in U.S. revenue is largely due to a drop in subscriptions, particularly among internet customers in Ohio, resulting from a growing competition in U.S. markets. In the U.S., Cogeco saw a continued decline of internet customers, losing 6,734 this quarter for a total of 680,785. In Canada however, subscribers increased by 11,144 for a total of 840,662. Which Ouimet attributed to the company’s growing fibre-to-the-home (FTTH) network, and acquisition of Oxio in March. Consolidated Canadian and American internet subscribers by the end of Q3 amounted to 1,521,447, up from the 1,486,856 internet subscribers in Q3 2022. Cogeco saw a continued shrink in television and phone subscribers over Q3, which the executives blamed on inflation and growing cord-cutting trends. By May 31, 2023, the company had 936,872 consolidated television subscribers, a drop from last year’s 993,584 subscribers. Consolidated phone subscribers added up to 529,929, shrinking from last year’s 562,986. According to Ouimet, those losses were “partly offset” by network expansions and cost reductions. “In terms of outlook, we are maintaining our fiscal ‘23 financial guidelines, as issued in January, for both corporations, and no real change in our full-year expectations, from what we outlined ” said Ouimet. – Reporting by Phalen Tynes-MacDonald at pcreed@thewirereport.ca and editing by Jenna Cocullo at jcocullo@thewirereport.ca.

MVNO talks still ongoing for Cogeco’s Jetté

News | July 14, 2023

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MVNO talks still ongoing for Cogeco’s Jetté

News | July 14, 2023

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