Rogers Communication Q2 Earnings Call Highlights
Key Points
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- Rogers posted stronger Q2 results, with consolidated service revenue up 8%, adjusted EBITDA up 3%, and free cash flow rising to CAD 1 billion. Capital expenditures fell 16%, pushing Capital intensity to its lowest level since 2008.
- Wireless added customers despite a tougher market, including 40,000 net additions and improved churn, though ARPU slipped 2%. Management said it is pulling back from heavy discounting and focusing on longer-term value offers as promotional activity cools across the market.
- Sports and media are becoming a bigger growth driver, highlighted by a 53% jump in media revenue and a major MLSE acquisition plan. Rogers expects to fully own MLSE after closing the remaining 25% stake purchase, then later sell a minority stake in the combined sports/media business to help reduce debt.
Rogers Communication (NYSE:RCI) reported higher second-quarter service revenue and adjusted earnings, with management emphasizing stronger free cash flow, reduced capital spending and progress on its plan to monetize sports and media assets.
On the company’s earnings call, President and CEO Tony Staffieri said Rogers “continued to deliver solid performance” across wireless, cable and sports and media despite what he described as “an overall low growth telecom market.” Consolidated service revenue rose 8%, while adjusted EBITDA increased 3%.
Free cash flow for the quarter was CAD 1 billion, up 6% from a year earlier. Capital expenditures declined 16%, and Capital intensity improved 350 basis points to 12.4%, which Staffieri said was Rogers’ lowest Capital intensity ratio since the first quarter of 2008.
Chief Financial Officer Glenn Brandt said Rogers reaffirmed its 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, capital expenditures and free cash flow. The company continues to expect 2026 capital expenditures of CAD 2.5 billion to CAD 2.7 billion.
Wireless Adds Customers as Promotions Moderate
In wireless, Rogers added 40,000 subscribers during the quarter, including 22,000 postpaid customers. Wireless service revenue was stable year over year, while adjusted EBITDA rose 1%.
Brandt said mobile phone net additions were down 34% from the prior year, reflecting “continued flat to declining overall population.” Mobile phone ARPU was CAD 54.25, down 2% from a year earlier. Postpaid mobile phone churn improved to 0.94%, down 6 basis points year over year.
Staffieri said Rogers has shifted away from short-term promotional price discounting and toward “meaningful, sustainable value propositions” for customers. He said the broader market also showed “much reduced promotional pricing activity” in the second quarter.
During the question-and-answer session, Staffieri said wireless market expansion appeared to be around 2%, at the lower end of the company’s prior 2% to 2.5% range. He said future wireless revenue performance will depend heavily on ARPU trends and market conditions during back-to-school and fall selling periods.
Rogers said its back-to-school offers focus on perks, partnerships, hardware discounting and higher-tier plan features rather than broad service-price reductions. Staffieri also pointed to offerings such as satellite service, roaming and savings on streaming applications as part of the company’s value strategy.
Cable Revenue and EBITDA Continue to Grow
Rogers’ cable business posted 1% growth in both service revenue and adjusted EBITDA, and added 17,000 retail internet subscribers in the quarter. Brandt said the cable margin was 58%, up 10 basis points from a year earlier.
Brandt said cable’s organic growth was roughly double the reported figure after excluding the impact of Rogers’ December 2025 sale of its hosted data center business. On that basis, cable service revenue and adjusted EBITDA each rose 2% year over year.
Asked about ongoing pressure in satellite TV, Brandt declined to provide detailed figures but said the impact has been “fairly flat” and steady in recent years, and is already embedded in the company’s reported cable performance.
Sports and Media Revenue Jumps
Rogers Sports Media delivered the company’s strongest growth in the quarter. Media revenue reached CAD 1.2 billion, up 53% from a year earlier. Brandt said approximately CAD 0.3 billion of the increase came from consolidation of Maple Leaf Sports Entertainment, while standalone organic Rogers Sports Media revenue grew 13%, or roughly CAD 100 million.
Brandt attributed the organic growth largely to higher Toronto Blue Jays-related revenue, including more than 95% near-sellout attendance for home games at Rogers Centre, and higher subscriber revenue following the 2025 launch of the Warner Bros. Discovery suite of channels.
Media adjusted EBITDA was CAD 69 million, compared with CAD 8 million a year earlier, an increase of about 8.5 times.
MLSE Deal and Minority Stake Sale Plans
Rogers recently agreed to acquire the remaining 25% ownership stake in Maple Leaf Sports Entertainment. Staffieri said that, when the acquisition closes, Rogers will be 100% owner of MLSE’s teams and assets.
Brandt said the company expects to close the purchase in the fourth quarter, subject to league approvals, and is targeting October 1. Rogers recorded a CAD 1 billion non-cash loss in other expense related to the negotiated purchase price and settlement and termination of the MLSE put liability. Brandt said that reflected the change in fair value of the put liability from CAD 3.3 billion in July 2025 to the CAD 4.35 billion negotiated transaction at June 30, 2026.
After completing the acquisition, Rogers plans to combine Rogers Sports Media with MLSE and sell a minority stake, or stakes, in the combined sports, media and entertainment business. Brandt said the company is targeting the first half of 2027 for that transaction and expects proceeds to be used to reduce debt.
In response to analyst questions, Rogers said it plans to sell non-voting common equity in the holding company for the combined assets, rather than stakes in individual teams such as the Blue Jays, Maple Leafs or Raptors. Brandt said Rogers is not specifically seeking a strategic investor, though it would evaluate opportunities if they arise.
Balance Sheet, CapEx and Network Strategy
Rogers ended the quarter with leverage of 3.8 times, down from 4 times at Dec. 31, 2025. Liquidity was more than CAD 6 billion, including CAD 1.7 billion in cash and cash equivalents and CAD 4.4 billion available under bank and other credit facilities.
Management said the lower capital spending level is expected to be sustained beyond 2026. Staffieri said Rogers views capital in two categories: spending to sustain its existing network and business, and spending for network expansion, particularly wireline expansion. He said the current regulatory environment has made it harder to justify some expansion investments.
Asked about satellite-based competition such as Starlink, Staffieri said Rogers sees satellite service as complementary to terrestrial wireless and wireline networks rather than a near-term replacement. Rogers is working with SpaceX/Starlink on satellite service in Canada.
Staffieri also said network slicing remains an opportunity to differentiate higher-tier wireless plans through priority access or enhanced experiences, such as in stadiums during concerts or other high-traffic events.
“We’re executing on our telecom priorities and sports monetization plan with discipline,” Staffieri said. “We are doing what we said we would do, and we’re doing it ahead of schedule.”
About Rogers Communication (NYSE:RCI)
Rogers Communications Inc is a Canadian integrated communications and media company headquartered in Toronto, Ontario. The company provides a broad range of telecommunications services to residential and business customers across Canada, including wireless voice and data services, cable television, high-speed internet, and home phone services. In the enterprise market it offers managed IT, data center and cloud solutions, networking and connectivity services targeted to small businesses, large enterprises and public sector clients.
In addition to connectivity services, Rogers operates a significant media portfolio that includes national and regional television and radio assets, sports broadcasting properties and other content businesses.
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