Cogeco Inc. says it is set to launch wireless services in Canada in the coming quarters after rolling out cellphone coverage to U.S. customers last year.
The Montreal-based telecommunications company says "all the building blocks" are now in place to offer wireless coverage across its broadband footprint in Ontario and Quebec.
Cogeco began offering wireless coverage under its Breezeline Mobile brand last year to customers in 13 U.S. states where it already offered broadband internet services.
It said at the time it also planned to expand those services to Canada as part of a bundle with wireline products in the hopes of increasing customer retention.
"We've now rolled out Breezeline mobile, and our Canadian wireless effort is well on track to go to market over the coming quarters," president and CEO Frédéric Perron told analysts on the company’s first-quarter earnings call Tuesday.
"We're also seeing interesting customer momentum on both sides of the border. In Canada, we achieve strong internet subscriber growth again this quarter and are not seeing any signs of slowing down."
In August, Cogeco inked deals with a national wireless network operator and Nova Scotia-based Eastlink as part of its plan to develop wireless service in Canada.
It said it plans to deliver coverage through Canada's mobile virtual network operator framework, which allow telecoms to offer cellphone service through rival carriers’ networks.
Canada’s MVNO framework was put in place by the CRTC. The rules set by the regulator are meant to increase cellphone competition by giving regional carriers a presence in regions they did not previously serve, with requirements to build their own networks in those areas within seven years.
The latest update on its wireless launch plans came as the company reported its first-quarter profit attributable to shareholders was $29.8 million, down 13.7 per cent from $34.5 million a year earlier.
Revenues were $765 million in the quarter ended Nov. 30, down from $776.2 million during the same quarter last year.
Cogeco's cable and internet subsidiary, Cogeco Communications Inc., said its profit attributable to shareholders was $100.6 million, up 12.4 per cent from $89.5 million during the same quarter last year. Revenues for Cogeco Communications were $738.7 million, down from $747.7 million a year earlier.
Desjardins analyst Jerome Dubreuil said the subsidiary's financial results were slightly above expectations, noting Canadian internet additions were strong but U.S. revenue declined three per cent.
"While the top line was challenged, the company was able to reap the benefits of solid cost control to deliver a good quarter," Dubreuil said in a note.
This report by The Canadian Press was first published Jan. 14, 2025.
Companies in this story: (TSX:CGO, TSX:CCA)
Sammy Hudes, The Canadian Press
