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Cogeco Communications announces its Q1 2026 financial results Français


News provided by

Cogeco Communications Inc.

Jan 14, 2026, 19:51 ET

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  • Sustained Canadian customer growth 
  • Marked improvement in U.S. subscriber trends 
  • Network upgrades continue, including the introduction of 2.5 Gigabit speeds in the U.S. 
  • Launching an oxio-like digital brand in the U.S. next month 
  • Fiscal 2026 financial guidelines re-confirmed 
  • Credit outlooks improved by both S&P and Moody's

MONTRÉAL, Jan. 14, 2026 /CNW/ - Today, Cogeco Communications Inc. (TSX: CCA) ("Cogeco Communications" or the "Corporation") announced its financial results for the first quarter ended November 30, 2025.

"Our consolidated financial results for the quarter were in line with our expectations," said Frédéric Perron, President and CEO. "In the U.S., we've materially improved our subscriber trends for a second consecutive quarter, just as we said we would. This has translated into our best U.S. subscriber metrics in the past 15 quarters and we are just getting started, as we continue to deploy new sales and marketing strategies and invest in even faster network speeds.

"Simply put, we are turning around our U.S. subscriber trends, leading to improved financials in the second half of the fiscal year," continued Mr. Perron.

"In Canada, we expect to keep growing our customer base over time, as wireless and Ontario rural network expansions reach larger scale.

"We were also pleased to see our capital allocation discipline being recognized by S&P and Moody's, who both recently improved their credit outlooks on our company."

Consolidated financial highlights

Three months ended November 30

2025


2024


Change

Change in

constant
currency

(1)

(In thousands of Canadian dollars, except % and per share data) (unaudited)  

$


$


%

%


Revenue

707,247


738,695


(4.3)

(4.9)


Adjusted EBITDA (1)

353,823


365,215


(3.1)

(3.7)


Adjusted EBITDA margin (1)

50.0 %


49.4 %





Profit for the period

93,095


107,160


(13.1)



Profit for the period attributable to owners of the Corporation

88,676


100,588


(11.8)



Adjusted profit attributable to owners of the Corporation (1)(2)

89,524


90,674


(1.3)











Cash flows from operating activities

176,323


218,865


(19.4)



Free cash flow (1)

125,537


148,858


(15.7)

(15.9)


Free cash flow, excluding network expansion projects (1)

144,291


170,657


(15.4)

(15.7)










Acquisition of property, plant and equipment

157,151


153,243


2.6



Net capital expenditures (1)(3)

156,963


150,645


4.2

3.5


Net capital expenditures, excluding network expansion projects (1)

138,209


128,846


7.3

6.5










Capital intensity (1)

22.2 %


20.4 %





Capital intensity, excluding network expansion projects (1)

19.5 %


17.4 %













Diluted earnings per share

2.09


2.38


(12.2)



Adjusted diluted earnings per share (1)(2)

2.11


2.14


(1.4)



















Operating results

For the first quarter of fiscal 2026 ended on November 30, 2025:

  • Revenue decreased by 4.3% to $707.2 million. On a constant currency basis(1), revenue decreased by 4.9%, mainly explained as follows:
    • American telecommunications' revenue decreased by 8.6%, or 9.9% in constant currency, mainly due to a lower subscriber base compared to the previous year, especially for entry-level services, and to a higher proportion of customers subscribing to Internet-only services, as well as a competitive pricing environment.
    • Canadian telecommunications' revenue remained stable, mainly due to a lower revenue per customer as a result of a decline in video and wireline phone service subscribers, as an increasing proportion of customers subscribe to Internet-only services, as well as a competitive pricing environment, offset by the cumulative effect of high-speed Internet service additions over the past year.
  • Adjusted EBITDA decreased by 3.1% to $353.8 million. On a constant currency basis, adjusted EBITDA decreased by 3.7%, mainly due to lower revenue in the American telecommunications segment, offset in part by growth in the Canadian telecommunications segment driven by cost reduction initiatives and operating efficiencies as a result of our ongoing three-year transformation program.
    • American telecommunications' adjusted EBITDA decreased by 7.8%, or 9.1% in constant currency.
    • Canadian telecommunications' adjusted EBITDA increased by 1.9%(4), or 2.0%(4) in constant currency.
  • Profit for the period amounted to $93.1 million, of which $88.7 million, or $2.09 per diluted share, was attributable to owners of the Corporation compared to $107.2 million, $100.6 million, and $2.38 per diluted share, respectively, in the comparable period of fiscal 2025. The decreases in profit for the period and profit attributable to owners of the Corporation resulted mainly from lower adjusted EBITDA and higher acquisition, integration, restructuring and other costs, mainly due to last year's pre-tax $13.8 million non-cash gain recognized in connection with a sale and leaseback transaction, partly offset by lower financial expense and depreciation and amortization expense.
    • Adjusted profit attributable to owners of the Corporation(2) was $89.5 million, or $2.11 per diluted share(2), compared to $90.7 million, or $2.14 per diluted share, last year.
  • Net capital expenditures were $157.0 million, an increase of 4.2% compared to $150.6 million in the same period of the prior year. In constant currency, net capital expenditures(1) were $155.9 million, an increase of 3.5% compared to last year, mainly due to higher capital spending related to customer premise equipment in the Canadian telecommunications segment, partly offset by the timing of certain initiatives in both the American and Canadian telecommunications segments.
    • Net capital expenditures in connection with network expansion projects were $18.8 million, or $18.7 million in constant currency(1), compared to $21.8 million in the same period of the prior year. Excluding network expansion projects, net capital expenditures were $138.2 million, an increase of 7.3% compared to $128.8 million in the same period of the prior year. In constant currency, net capital expenditures, excluding network expansion projects(1) were $137.2 million, an increase of 6.5% compared to last year.
    • Network expansion projects continued with additions over 4,000 homes passed during the first quarter of fiscal 2026.
    • Capital intensity was 22.2% compared to 20.4% last year. Excluding network expansion projects, capital intensity was 19.5% compared to 17.4% in the same period of the prior year.
  • Acquisition of property, plant and equipment increased by 2.6% to $157.2 million, mainly resulting from higher spending.
  • Free cash flow decreased by 15.7%, or 15.9% in constant currency, and amounted to $125.5 million, or $125.2 million in constant currency(1), mainly due to lower net proceeds from disposals of property, plant and equipment, primarily resulting from last year's $16.5 million net proceeds received in connection with a sale and leaseback transaction, lower adjusted EBITDA, and higher net capital expenditures, offset in part by lower financial expense and current income taxes. Free cash flow, excluding network expansion projects decreased by 15.4%, or 15.7% in constant currency, and amounted to $144.3 million, or $143.8 million in constant currency.
  • Cash flows from operating activities decreased by 19.4% to $176.3 million, mostly due to higher income taxes paid and to the timing of payments of trade and other payables, as well as to lower adjusted EBITDA, offset in part by lower interest paid.
  • At its January 14, 2026 meeting, the Board of Directors of Cogeco Communications declared a quarterly dividend of $0.987 per share, an increase of 7.0% compared to $0.922 per share in the comparable quarter of fiscal 2025.

(1)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Constant currency basis, adjusted profit attributable to owners of the Corporation, net capital expenditures, excluding network expansion projects, free cash flow and free cash flow, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS® Accounting Standards, as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.

(2)

Excludes the impact of acquisition, integration, restructuring and other costs (gains), net of tax and non-controlling interest.

(3)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

(4)

Following a full-scale launch of its Canadian wireless service offering across the majority of its operating footprint in Québec and Ontario during the first quarter of fiscal 2026, the Corporation changed the presentation of its reportable segments by including the Canadian wireless operations within its Canadian telecommunications segment. Cogeco Mobile's operations were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation.

Financial highlights






Change in

constant
currency


Three months ended November 30

2025

2024


Change

(1)
(2)

(In thousands of Canadian dollars, except % and per share data)

$

$


%

%


Operations







Revenue

707,247

738,695


(4.3)

(4.9)


Adjusted EBITDA (2)

353,823

365,215


(3.1)

(3.7)


Adjusted EBITDA margin (2)

50.0 %

49.4 %





Acquisition, integration, restructuring and other costs (gains) (3)

1,298

(9,958)


--



Profit for the period

93,095

107,160


(13.1)



Profit for the period attributable to owners of the Corporation

88,676

100,588


(11.8)



Adjusted profit attributable to owners of the Corporation (2)(4)

89,524

90,674


(1.3)



Cash flow







Cash flows from operating activities

176,323

218,865


(19.4)



Free cash flow (2)

125,537

148,858


(15.7)

(15.9)


Free cash flow, excluding network expansion projects (2)

144,291

170,657


(15.4)

(15.7)


Acquisition of property, plant and equipment

157,151

153,243


2.6



Net capital expenditures (2)(5)

156,963

150,645


4.2

3.5


Net capital expenditures, excluding network expansion projects (2)  

138,209

128,846


7.3

6.5


Capital intensity (2)

22.2 %

20.4 %





Capital intensity, excluding network expansion projects (2)

19.5 %

17.4 %





Per share data (6)







Earnings per share







Basic

2.11

2.39


(11.7)



Diluted

2.09

2.38


(12.2)



Adjusted diluted (2)(4)

2.11

2.14


(1.4)



Dividends per share

0.987

0.922


7.0










(1)

Key performance indicators presented on a constant currency basis are obtained by translating financial results from the current period denominated in US dollars at the foreign exchange rate of the comparable period of the prior year. For the three-month period ended November 30, 2024, the average foreign exchange rate used for translation was 1.3759 USD/CDN.

(2)

Adjusted EBITDA and net capital expenditures are total of segments measures. Adjusted EBITDA margin and capital intensity are supplementary financial measures. Adjusted profit attributable to owners of the Corporation, free cash flow, free cash flow, excluding network expansion projects and net capital expenditures, excluding network expansion projects are non-IFRS Accounting Standards measures. Change in constant currency, capital intensity, excluding network expansion projects and adjusted diluted earnings per share are non-IFRS Accounting Standards ratios. These indicated terms do not have standardized definitions prescribed by IFRS Accounting Standards and therefore, may not be comparable to similar measures presented by other companies. For more information on these financial measures, please consult the "Non-IFRS Accounting Standards and other financial measures" section of this press release.

(3)

For the three-month period ended November 30, 2025, acquisition, integration, restructuring and other costs were mainly related to costs associated with the configuration and customization related to cloud computing and other arrangements, as well as restructuring costs incurred. For the three-month period ended November 30, 2024, acquisition, integration, restructuring and other costs (gains) were mostly related to a $13.8 million non-cash gain recognized in connection with a sale and leaseback transaction.

(4)

Excludes the impact of acquisition, integration, restructuring and other costs (gains), net of tax and non-controlling interest.

(5)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

(6)

Per multiple and subordinate voting share.




As at

November 30, 2025

August 31, 2025

(In thousands of Canadian dollars)

$

$

Financial condition



Cash

65,129

75,152

Total assets

9,798,028

9,692,395

Long-term debt



Current

253,715

43,632

Non-current

4,383,980

4,510,769

Net indebtedness (1)

4,620,979

4,527,171

Equity attributable to owners of the Corporation  

3,226,145

3,160,522




(1)

Net indebtedness is a capital management measure. For more information on this financial measure, please consult the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three-month period ended November 30, 2025, available on SEDAR+ at www.sedarplus.ca.

Forward-looking statements

Certain statements contained in this press release constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Cogeco Communications Inc.'s ("Cogeco Communications" or the "Corporation") future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee"; "ensure" or other similar expressions concerning matters that are not historical facts. Particularly, statements relating to the Corporation's financial guidelines, future operating results and economic performance, objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, purchase price allocation, tax rates, weighted average cost of capital, performance and business prospects and opportunities, which Cogeco Communications believes are reasonable as of the current date. Refer in particular to the "Corporate objectives and strategy" and "Fiscal 2026 financial guidelines" sections of the Corporation's fiscal 2025 annual Management's Discussion and Analysis ("MD&A") for a discussion of certain key economic, market and operational assumptions we have made in preparing forward-looking statements. While management considers these assumptions to be reasonable based on information currently available to the Corporation, they may prove to be incorrect. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Cogeco Communications currently expects. These factors include risks such as general market conditions, competitive risks (including changing competitive and technology ecosystems and disruptive competitive strategies adopted by our competitors), business risks, regulatory risks (including changes in laws or government policies and the impact of regulatory decisions, such as those of the Canadian Radio-television and Telecommunications Commission ("CRTC") in Canada or of the Federal Communications Commission in the U.S.), tax risks, technology risks (including the evolution of technology and the threat of cybersecurity), financial risks (including variations in currency and interest rates), economic conditions (including inflation pressuring revenue, trade tariffs, reduced consumer spending and increasing costs), talent management risks (including the highly competitive market for a limited pool of digitally skilled employees), human-caused and natural threats to the Corporation's network (including increased frequency of extreme weather events with the potential to disrupt operations), infrastructure and systems, sustainability and sustainability reporting risks, ethical behavior risks, ownership risks, litigation risks and public health and safety, many of which are beyond the Corporation's control. For more exhaustive information on these risks and uncertainties, the reader should refer to the "Uncertainties and main risk factors" section of the Corporation's fiscal 2025 annual MD&A and of the fiscal 2026 first-quarter MD&A. These factors are not intended to represent a complete list of the factors that could affect Cogeco Communications and future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information contained in this press release and the forward-looking statements contained in this press release represent Cogeco Communications' expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. While management may elect to do so, the Corporation is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information at any particular time, whether as a result of new information, future events or otherwise, except as required by law.

All amounts are stated in Canadian dollars unless otherwise indicated. This press release should be read in conjunction with the Corporation's MD&A for the three-month period ended November 30, 2025, the Corporation's condensed interim consolidated financial statements and the notes thereto for the same period prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and the Corporation's fiscal 2025 Annual Report.

Non-IFRS Accounting Standards and other financial measures

This press release includes references to non-IFRS Accounting Standards and other financial measures used by Cogeco Communications. These financial measures are reviewed in assessing the performance of Cogeco Communications and used in the decision-making process with regard to its business units.

Reconciliations between non-IFRS Accounting Standards and other financial measures to the most directly comparable IFRS Accounting Standards measures are provided below. Certain additional disclosures for non-IFRS Accounting Standards and other financial measures used in this press release have been incorporated by reference and can be found in the "Non-IFRS Accounting Standards and other financial measures" section of the Corporation's MD&A for the three-month period ended November 30, 2025, available on SEDAR+ at www.sedarplus.ca. The following non-IFRS Accounting Standards measures are used as a component of Cogeco Communications' non-IFRS Accounting Standards ratios.



Specified non-IFRS Accounting Standards measures

Used in the component of the following non-IFRS Accounting Standards ratios

Adjusted profit attributable to owners of the Corporation

Adjusted diluted earnings per share

Constant currency basis

Change in constant currency

Net capital expenditures, excluding network expansion projects  

Capital intensity, excluding network expansion projects



Financial measures presented on a constant currency basis for the three-month period ended November 30, 2025 are translated at the average foreign exchange rate of the comparable period of the prior year, which was 1.3759 USD/CDN.

Constant currency basis and foreign exchange impact reconciliation

Consolidated













Three months ended November 30

2025


2024



Change


(In thousands of Canadian dollars, except percentages)  

Actual


Foreign
exchange
impact


In

constant
currency


Actual


Actual

In

constant
currency


$


$


$


$


%

%


Revenue

707,247


(4,784)


702,463


738,695


(4.3)

(4.9)


Operating expenses

347,410


(2,602)


344,808


368,558


(5.7)

(6.4)


Management fees – Cogeco Inc.

6,014


--


6,014


4,922


22.2

22.2


Adjusted EBITDA

353,823


(2,182)


351,641


365,215


(3.1)

(3.7)


Free cash flow

125,537


(383)


125,154


148,858


(15.7)

(15.9)


Net capital expenditures

156,963


(1,106)


155,857


150,645


4.2

3.5














Canadian telecommunications segment














Three months ended November 30

2025


2024




Change


(In thousands of Canadian dollars, except percentages)  

Actual


Foreign
exchange
impact


In

constant
currency


Actual

(1)

Actual


In

constant
currency


$


$


$


$


%


%


Revenue

376,912


--


376,912


377,266


(0.1)


(0.1)


Operating expenses

176,591


(198)


176,393


180,706


(2.3)


(2.4)


Adjusted EBITDA

200,321


198


200,519


196,560


1.9


2.0


Net capital expenditures

105,691


(357)


105,334


76,918


37.4


36.9















(1)

Effective as of the first quarter of fiscal 2026, the Canadian telecommunications segment includes the Canadian wireless operations, which were previously included within "Corporate and eliminations" during the start-up phase. Comparative figures were restated to conform to the current presentation, including $2.9 million of operating expenses which were reclassified from "Corporate and eliminations" to the Canadian telecommunications segment.

American telecommunications segment














Three months ended November 30

2025


2024




Change


(In thousands of Canadian dollars, except percentages)  

Actual


Foreign
exchange
impact


In

constant
currency


Actual


Actual


In

constant
currency


$


$


$


$


%


%


Revenue

330,335


(4,784)


325,551


361,429


(8.6)


(9.9)


Operating expenses

165,502


(2,404)


163,098


182,617


(9.4)


(10.7)


Adjusted EBITDA

164,833


(2,380)


162,453


178,812


(7.8)


(9.1)


Net capital expenditures

51,272


(749)


50,523


73,727


(30.5)


(31.5)















Adjusted profit attributable to owners of the Corporation





Three months ended November 30


2025

2024

(In thousands of Canadian dollars)

$

$

Profit for the period attributable to owners of the Corporation  

88,676

100,588

Acquisition, integration, restructuring and other costs (gains)

1,298

(9,958)

Tax impact for the above items

(337)

281

Non-controlling interest impact for the above items

(113)

(237)

Adjusted profit attributable to owners of the Corporation

89,524

90,674




Free cash flow and free cash flow, excluding network expansion projects reconciliations





Three months ended November 30


2025

2024

(In thousands of Canadian dollars)

$

$

Cash flows from operating activities

176,323

218,865

Changes in other non-cash operating activities

92,442

74,174

Income taxes paid

28,544

6,639

Current income taxes

(10,978)

(14,628)

Interest paid

57,554

61,471

Financial expense

(61,643)

(65,489)

Amortization of deferred transaction costs and discounts on long-term debt (1)

2,620

1,464

Net capital expenditures (2)

(156,963)

(150,645)

Proceeds from disposals of property, plant and equipment, including sale and leaseback transactions  

1,212

19,613

Repayment of lease liabilities

(3,574)

(2,606)

Free cash flow

125,537

148,858

Net capital expenditures in connection with network expansion projects

18,754

21,799

Free cash flow, excluding network expansion projects

144,291

170,657




(1)

Included within financial expense. 

(2)

Net capital expenditures exclude non-cash acquisitions of right-of-use assets and the purchases, and related borrowing costs, of spectrum licences, and are presented net of government subsidies, including the utilization of those received in advance.

Adjusted EBITDA reconciliation





Three months ended November 30


2025

2024

(In thousands of Canadian dollars)

$

$

Profit for the period

93,095

107,160

Income taxes

25,708

26,625

Financial expense

61,643

65,489

Depreciation and amortization

172,079

175,899

Acquisition, integration, restructuring and other costs (gains)  

1,298

(9,958)

Adjusted EBITDA

353,823

365,215




Net capital expenditures and net capital expenditures, excluding network expansion projects reconciliations











Three months ended November 30

2025


2024




Change


Actual

Foreign
exchange
impact

In

constant
currency


Actual


Actual


In

constant
currency

(In thousands of Canadian dollars, except percentages)

$

$

$


$


%


%

Acquisition of property, plant and equipment

157,151




153,243


2.6



Subsidies received in advance recognized as a reduction of the cost of property,  
    plant and equipment during the period

(188)




(2,598)


(92.8)



Net capital expenditures

156,963

(1,106)

155,857


150,645


4.2


3.5

Net capital expenditures in connection with network expansion projects

18,754

(74)

18,680


21,799


(14.0)


(14.3)

Net capital expenditures, excluding network expansion projects

138,209

(1,032)

137,177


128,846


7.3


6.5











Free cash flow, excluding network expansion projects reconciliations












Three months ended November 30

2025


2024



Change

(In thousands of Canadian dollars, except percentages)

Actual


Foreign
exchange
impact


In

constant
currency


Actual


Actual

In

constant
currency

$


$


$


$


%

%

Free cash flow

125,537


(383)


125,154


148,858


(15.7)

(15.9)

Net capital expenditures in connection with network expansion projects  

18,754


(74)


18,680


21,799


(14.0)

(14.3)

Free cash flow, excluding network expansion projects

144,291


(457)


143,834


170,657


(15.4)

(15.7)












Additional information

Additional information relating to the Corporation is available on SEDAR+ at www.sedarplus.ca and on the Corporation's website at corpo.cogeco.com.

About Cogeco Communications Inc.

Cogeco Communications Inc. is a leading telecommunications provider committed to bringing people together through powerful communications and entertainment experiences. We provide world-class Internet, wireless, video and wireline phone services to 1.6 million residential and business subscribers in Canada and thirteen states in the United States. Our services are marketed under the Cogeco and oxio brands in Canada, and under the Breezeline brand in the U.S. We take pride in our strong presence in the communities we serve and in our commitment to a sustainable future. Cogeco Communications Inc.'s subordinate voting shares are listed on the Toronto Stock Exchange (TSX: CCA).

For information:

Investors
Troy Crandall
Head, Investor Relations
Cogeco Communications Inc.
Tel.: 514 764-4600
[email protected] 

Media
Isabelle Famery
Manager, External Communications
Cogeco Communications Inc.
Tel.: 514 764-4600
[email protected] 

Conference Call:        

Thursday, January 15, 2026 at 8:00 a.m. (Eastern Standard Time)




A live audio webcast of the analyst call will be available on both the Investor Relations and the Events and Presentations pages of Cogeco Communications' website. Financial analysts will be able to access the live conference call and ask questions. Media representatives may attend as listeners only. A recording of the conference call will be available on Cogeco Communications' website for a three-month period.




Please use the following dial-in number to access the conference call 5 to 10 minutes before the start of the conference:




Local - Toronto: 1 289 514-5100
Toll Free - North America: 1 800 717-1738





To join this conference call, participants are required to provide the operator with the name of the company hosting the call, that is, Cogeco Inc. or Cogeco Communications Inc.




The conference call will be followed, at 11:30 a.m., by the annual meeting of shareholders of each company, which will be held in hybrid mode.


  • via live webcast at: https://meetings.lumiconnect.com/400-904-717-597
  • in-person at: Lumi Experience Montreal, 1250 René-Lévesque West, Suite 3610 (36th floor) 

 

SOURCE Cogeco Communications Inc.

Modal title

Organization Profile

Cogeco Communications inc.

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