Telecommunications High Yield Weekly: Weekly Update

Research evidence excerpt

Telecommunications High Yield Weekly: Weekly Update

News Summary

Telecommunications sector performance for the week ended May 8, 2026

• The ICE BofA High Yield Telecommunications Index returned 0.1% over the week

(Friday to Friday) and currently offers a YTW of 7.6%; this compares to a weekly

return of 0.1% and a YTW of 7.0% for the ICE BofA High Yield Master index.

Cogent Communications – 1Q26 results summary

• Cogent Communications reported 1Q26 results with revenue of $229 million,

which declined 1% sequentially and 3% year over year, and company-defined adj.

EBITDA, which includes the $25 million quarterly subsidy (aka IP transit service

payment) from T-Mobile which is not reflected in revenue, of $70 million, which

declined 9% sequentially or $7 million, due to both lower revenue and higher costs,

but increased 2% year over year largely due to lower costs, especially reduced

network operating expense.

• The company attributed the sequential decline in revenue to “several large

enterprise customers churning a portion of their off-net revenues;” we note that on-

net revenue increased $2 million sequentially – and $1 million excluding IPv4. On

performance by end market, all of the sequential and year-over-year revenue

growth was in the net-centric segment. Specifically, 1) corporate revenue of $101

million declined 2% sequentially and 9% year over year; 2) net-centric revenue of

$106 million increased 2%, or $3 million, sequentially and 14%, or $13 million, year

over year – which appears to be mostly driven by wavelength and IPv4 leasing

revenue (wavelength revenue of $14 million increased $2 million sequentially and

$7 million year over year, while reported IPv4 revenue, approximately 85% of which