(Montreal) It is not impossible that Cogeco Communications will make its grand entrance into the wireless market in the United States before Canada, even if the cable distributor has been talking about its Canadian project for much longer.
The big boss of the Montreal cable company, Philippe Jetté, did not want to give a timetable for the two expansion projects, but he stressed that it was much easier to negotiate with partners in the United States.
He claims that the large telecommunications companies (Rogers, Telus and Bell) are going “slow” in their negotiations to lease access to their network, as required of them by the new regulatory framework adopted by the Radio-television and Telecommunications Commission (CRTC).
“It is easier to enter mobile telephony in the United States because operators are willing to negotiate commercial agreements with virtual operators,” he explained during a press conference on Thursday on the sidelines. of the company’s shareholders’ meeting.
The American market is very different, he points out. “There are over a hundred virtual operators operating in the United States, so the market exists. […] The big players are not only willing, but welcome commercial agreements as additional sources of revenue. »
The results
Cogeco Communications revealed results above expectations the day before after the markets closed. These expectations had already been tempered by management’s warnings when unveiling previous quarterly results.
The company reported lower revenue and profit for the first quarter ended November 30. The quarter was marked by an increase in the number of internet subscribers in Canada, but the company continues to face headwinds in the United States.
Its net profit fell by 19.7% to 89.5 million. Adjusted diluted net income per share was $2.01. Revenues, for their part, fell by 1.9% to 747.7 million.
Before the results were released, analysts expected diluted earnings per share of $1.87 and revenue of $751.44 million, according to financial data firm Refinitiv.
Analyst Vince Valentini of TD Securities, however, qualifies the interpretation of this favorable gap. “We must admit that expectations were low for this quarter due to management’s guidance and the unfavorable trend in recent quarters. No one will argue that these are solid results on an absolute basis. »
Companies in this news report: (TSX: CCA)