Rogers Communications Inc.

Rogers reported Q2 consolidated service revenue of CAD 5.1 billion, up 8% year over year, and adjusted EBITDA of CAD 2.4 billion, up 3%. Free cash flow was CAD 1 billion, up 6% year over year, while CapEx declined 16% to CAD 0.7 billion and capital intensity improved 350 basis points to 12.4%. In wireless, service revenue was stable year over year, adjusted EBITDA was up 1%, total net additions were 40,000, and postpaid mobile phone churn was 0.94%; mobile phone ARPU was CAD 54.25, down 2%. Cable service revenue and adjusted EBITDA each grew 1% on a reported basis, with 17,000 retail internet net additions and a 58% cable margin, up 10 bps. Sports & Media revenue was CAD 1.2 billion, up 53%, with organic revenue growth of 13% and adjusted EBITDA of CAD 69 million, about 8.5x the prior year. Management reaffirmed its 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, CapEx and free cash flow, and said it still expects full-year CapEx of CAD 2.5 billion-CAD 2.7 billion.

Tony Staffieri said Rogers is executing across all three businesses despite a low-growth telecom market, with a focus on disciplined subscriber additions, lower capital spending, and stronger free cash flow. He emphasized a shift away from short-term discounting toward more sustainable value propositions, and said the new back-to-school offers follow that strategy. On sports, he described the full ownership of MLSE as strategically important, tied to a broader plan to monetize the portfolio while keeping the balance sheet investment grade.

Glenn Brandt highlighted the quarter’s operating leverage: 8% service revenue growth, 3% EBITDA growth, 57,000 combined mobile phone and retail internet additions, and a consolidated capital intensity ratio of 12.4%, the lowest since Q1 2008. He noted wireless margins of 66% and cable margins of 58%, both higher year over year, plus media revenue of CAD 1.2 billion and sports/media EBITDA of CAD 69 million. He also said liquidity was over CAD 6 billion, including CAD 1.7 billion in cash and equivalents and CAD 4.4 billion available under credit facilities, with leverage at 3.8x at June 30 versus 4.0x at December 31, 2025.

Analysts focused heavily on wireless ARPU pressure, activation/cancellation fees, and whether lower promotional activity can support revenue growth in the second half. Management said wireless industry growth remains around 2%, ARPU is the key variable, and Rogers is leaning on premium value plans, base management, and hardware discounts rather than broad promotional discounting. On MLSE, management said the 25% Kilmer purchase is targeted for Q4 pending league approvals, and the minority stake sale in the combined sports/media entity is targeted for the first half of 2027; they also said the stake would be non-voting common equity in the holding company. On CapEx, management said the lower run-rate is intended to be sustainable beyond 2026, with additional reductions possible as projects are reprioritized or transferred.