Cogeco Faces a Very Competitive Environment in the US and Canada That Should Pressure Sales

Cogeco has had success building fixed-line networks in underserved markets with relatively low competition. However, we expect continued encroachment on its territory as its most significant competitors look to expand their fiber networks in the US and Canada. Along with consumers continuing to cut TV and landline phone services, Cogeco faces a challenging path of minimal revenue growth. However, the loss of low-margin TV subscriptions should help drive firmwide profitability as internet services become a larger mix of its business.