Cogeco is set to record a $1.7 billion non-cash charge related to its U.S. telecommunications division, according to reports from Canadian outlets. The charge is expected to be reflected as a writedown and does not involve cash outflows. The companies’ communications, as described in the coverage, link the decision to the competitive conditions facing the U.S. business. Rivals are expanding their networks, and fixed wireless access continues to grow, adding pressure to Cogeco’s U.S. operations. The reports characterize the move as a response to that environment and indicate the size of the impairment/writedown is $1.7 billion. While the articles differ only in wording, they are consistent that Cogeco’s U.S. segment is experiencing heightened competitive pressure and that the company will take the charge as part of its financial reporting. The charge is presented as an accounting adjustment rather than new spending or a restructuring announcement.
Cogeco to record $1.7B non-cash charge tied to U.S. telecom business
Cogeco is set to record a $1.7 billion non-cash charge related to its U.S. telecommunications division, according to reports from Canadian outlets. The charge is expected to be reflected as a writedow...
- Cogeco expects to record a $1.7 billion non-cash charge tied to its U.S. telecom division.
- The charge is described as a writedown/impairment affecting the U.S. business.
- The decision is linked to competitive pressure in the United States.
- Reports cite network expansion by rivals as part of the competitive environment.
- Fixed wireless access growth is identified as an additional factor affecting the U.S. telecom market.
Montreal-based company’s U.S. business has faced competitive pressure as rivals expand fire networks, fixed wireless access grows
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