Cogeco Communications Conference Summary Company Overview - **Company**: Cogeco Communications (OTCPK:CGEA.F) - **Date**: November 24, 2025 - **Speaker**: Patrice Ouimet, CFO Key Points Industry and Strategic Positioning - **Wireless Deployment**: Cogeco has launched a wireless service in Canada as an MVNO, offering 4G and 5G services bundled with internet subscriptions, which is a significant strategic shift for the company [2][4][5] - **Bundling Strategy**: The company aims to achieve a bundling rate of 15%-20% over several years, similar to large US players, with initial projections indicating a slow start [4][5] - **Churn Reduction**: The bundling of services is expected to reduce customer churn, although the benefits are still being evaluated [5] Fiber Competition - **Market Stabilization**: Recent observations indicate that fiber competition in Canada is stabilizing, with less aggressive promotions from major competitors like Bell and TELUS [6][7] Brand Strategy - **Cogeco Brand Expansion**: The company has launched its Cogeco branded internet service in Montreal and acquired Axio to target a younger demographic with a digital-only brand [8][9] U.S. Market Dynamics - **Subscriber Trends**: There are signs of improvement in subscriber trends in the U.S., particularly in Ohio, where the company has invested in network capacity and stability [11][12] - **Competitive Strategies**: Different strategies are employed based on regional competition, with a focus on high-speed internet offerings [13][14] Network Evolution - **Selective Fiber Conversion**: Cogeco is converting coax lines to fiber selectively, targeting areas with higher market penetration to optimize costs [16][17][18] Operational Efficiency - **Streamlining Plan**: The company is in the second year of a three-year transformation plan aimed at improving operational efficiencies and decision-making [19][20] - **Cost Reduction Initiatives**: Implementation of AI and chatbots has improved customer service efficiency and satisfaction [21][22] Capital Expenditure and Growth - **Reduced CapEx Expectations**: The company anticipates a return to lower capital intensity, which may impact future growth slightly, but ongoing builds in new neighborhoods will continue to drive growth [23][24][25] - **Free Cash Flow Guidance**: The company is on track to achieve CAD 600 million in free cash flow by fiscal 2027, aided by reduced CapEx and lower interest costs [27][28] Spectrum Assets - **Spectrum Utilization**: Cogeco owns valuable C-band spectrum and plans to use it for MVNO access and potential monetization strategies, although current regulations limit certain actions [29][32][33] Capital Allocation Strategy - **Leverage and Buyback Plans**: The company aims to maintain a long-term leverage target of three times EBITDA and is considering reactivating buyback programs once leverage is reduced [34][35] Additional Insights - **Customer Satisfaction**: The focus on preventative maintenance and customer service improvements has led to increased customer satisfaction metrics [22] - **Future Discussions**: Internal discussions regarding long-term capital allocation strategies and leverage targets are ongoing, influenced by economic conditions [35]