Rogers Communications Inc.

Rogers reported Q2 2026 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 just shy of CAD 1 billion, up 6%, while CapEx declined 16% to CAD 0.7 billion and capital intensity improved to 12.4%. Wireless service revenue was stable year over year with adjusted EBITDA up 1%; mobile phone ARPU was CAD 54.25, down 2%, and postpaid churn was 0.94%, down 6 bps. Cable service revenue and adjusted EBITDA each grew 1%, with a 58% cable margin and 17,000 retail internet net additions. Sports & Media revenue was CAD 1.2 billion, up 53%, with CAD 69 million of adjusted EBITDA, and organic revenue growth of 13% excluding MLSE. Management reaffirmed its 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, CapEx and free cash flow, and reiterated full-year CapEx guidance of CAD 2.5 billion to CAD 2.7 billion.

Tony Staffieri emphasized that Rogers is executing across wireless, cable and media in a low-growth telecom market, with a clear shift toward value-based offers rather than heavy promotional discounting. He highlighted improved churn, stronger free cash flow and the sharp reduction in capital intensity as evidence of disciplined capital allocation. On strategy, he framed MLSE ownership and Rogers’ sports portfolio as a differentiator that deepens customer value and supports monetization later through a minority stake sale, while keeping the balance sheet investment grade.

Glenn Brandt focused on the operating and financial details: 8% consolidated service revenue growth, 3% adjusted EBITDA growth, 57,000 combined mobile phone and retail internet additions, and a 12% consolidated capital intensity ratio. He said wireless adjusted EBITDA was up 1%, cable margin was 58%, and Sports & Media adjusted EBITDA improved to CAD 69 million from CAD 8 million a year ago, alongside a CAD 1 billion non-cash loss tied to the MLSE put liability remeasurement and transaction. He also pointed to liquidity of over CAD 6 billion, including CAD 1.7 billion in cash and cash equivalents and CAD 4.4 billion available under credit facilities, with leverage at 3.8x versus 4x at year-end 2025.

Analysts pressed on whether wireless revenue can grow meaningfully given roughly 2% market growth and ARPU pressure, and management said the key variable is ARPU, not volumes, because Rogers is shifting away from aggressive promotional discounting toward value-added plans, hardware discounts and other premium-service levers. There were also questions about activation and cancellation fees; management said the second-quarter impact was minor and that it does not expect a substantial change in ARPU trajectory, though it will manage the file with pricing and value-added features. On MLSE, management clarified that it plans to sell non-voting common equity in the combined holding company and expects the minority-stake process to take several months, targeting the first half of 2027, while using proceeds to pay down debt.