Canadian Telecoms Still Handcuffed by Lower Immigration Influx

Dow Jones02:44

1444 ET - While Canadian population growth numbers appear to be better than originally feared, Vince Valentini of TD Cowen says that this won't likely translate to better carrier subscriptions. In the past, immigrants were a free source of growth for the carriers, but since Canada turned the spigots off, the trickle hasn't been enough to pump up Canadian telecom numbers. In a report, he says that revised data shows that Canadian population growth "has not been as negative as it appeared in earlier reports." However, 3Q points "to another down Y/Y quarter for sub adds in Q3/26." Any near-term growth in mobile users, he says, "will continue to be tied mostly to penetration gains (1.5% to 2% per year), with little help from immigration and population."

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