Cogeco Reports 3.8% Revenue Decline in Q1, Significant U.S. Subscriber Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 19h ago
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Source: Yahoo Finance
- U.S. Subscriber Growth: Cogeco has materially improved its U.S. subscriber trends for the second consecutive quarter, achieving its best metrics in 15 quarters, indicating that investments in sales and marketing strategies are beginning to pay off, which is expected to enhance financial performance in the second half of the fiscal year.
- Financial Performance Review: For Q1 2025, Cogeco reported total revenue of CAD 735.6 million, a 3.8% year-over-year decline, primarily due to an 8.6% drop in American telecommunications revenue, reflecting a competitive environment and changes in the subscriber base.
- Increased Capital Expenditures: Net capital expenditures for the first quarter reached CAD 157.2 million, a 4.2% increase year-over-year, mainly driven by spending on customer premise equipment in the Canadian telecommunications segment, demonstrating the company's ongoing investment in network expansion.
- Dividend Growth: The Cogeco Board declared a quarterly dividend of CAD 0.987 per share, representing a 7.0% increase compared to the same quarter last year, reflecting the company's disciplined capital allocation and commitment to shareholder returns.
Analyst Views on CGO
Wall Street analysts forecast CGO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CGO is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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About CGO
Calamos Global Total Return Fund (the Fund) is a diversified, closed-end management investment company. The Fund seeks total return through a combination of capital appreciation and current income by investing in a globally diversified portfolio of equities, convertible securities, and high-yield corporate bonds. The Fund invests in the securities of global issuers, favoring companies that source diversified revenue streams and business strategies. Under normal circumstances, the Fund will invest at least 50% of its managed assets in equity securities (including securities that are convertible into equity securities). The Fund may invest up to 100% of its managed assets in securities of foreign issuers, including debt and equity securities of corporate issuers and debt securities of government issuers, in developed and emerging markets. The Fund will invest at least 40% of its managed assets in securities of foreign issuers. Calamos Advisors LLC is the investment advisor of the Fund.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
