Cogeco Communications (CCA.TO) expects a non-cash impairment charge of about $1.7 billion (US$1.2 billion) for the third quarter of fiscal 2026, the company said Monday.
The amount, net of deferred income taxes, is related to the goodwill and intangible assets of the American telecommunications segment, it added.
Cogeco said the charge reflects the "competitive environment" in which it operates in the United States. It added the preliminary charge amount will be finalized and recognized in the corporations' consolidated financial statements for the third quarter of fiscal 2026.
This impairment charge is non-cash in nature and does not affect the corporations' cash flows or day-to-day operations, it said. "Cogeco is progressing with the implementation of measures to strengthen its performance in the United States, including the growth of its wireless service and the recent launch of a new fully digital second brand (welo)," it added.
Cogeco shares closed up $0.90, to $67.22 on Friday on the Toronto Stock Exchange.