Rogers Communications Inc.

Q2 2026 consolidated service revenue increased 8% to CAD 5.1 billion, and consolidated adjusted EBITDA increased 3% to CAD 2.4 billion. Consolidated free cash flow was just shy of CAD 1 billion, up 6% year over year. Capital expenditures declined 16% to CAD 0.7 billion, and capital intensity improved 350 basis points to 12.4%, the lowest since Q1 2008. In wireless, service revenue was stable year over year, adjusted EBITDA rose 1%, mobile phone ARPU was CAD 54.25, and postpaid churn was 0.94%. Cable service revenue and adjusted EBITDA each grew 1% reported, with 17,000 retail internet net additions and a 58% cable margin. Rogers Sports & Media revenue topped CAD 1.2 billion, up 53%, and adjusted EBITDA improved to CAD 69 million. Management reaffirmed 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, CapEx, and free cash flow, and reiterated CapEx guidance of CAD 2.5 billion to CAD 2.7 billion.

Tony Staffieri framed the quarter as evidence that Rogers is executing well across telecom and media while adapting its spending to a tougher regulatory backdrop. He emphasized a shift toward sustainable value propositions, less reliance on short-term promotional discounting, and more focus on customer base management, churn reduction, and ARPU support. He was also upbeat about the strategic importance of sports, saying full ownership of MLSE strengthens Rogers’ unique combined connectivity-plus-entertainment proposition and supports future monetization.

Glenn Brandt highlighted the hard numbers: 8% service revenue growth, 3% EBITDA growth, nearly CAD 1 billion of free cash flow, 16% lower CapEx, and 12.4% capital intensity. He pointed to improved margins in wireless and cable, including 66% wireless margin and 58% cable margin, and said media EBITDA rose to CAD 69 million from CAD 8 million a year ago. On the balance sheet, he said liquidity was over CAD 6 billion, with CAD 1.7 billion in cash and CAD 4.4 billion available under credit facilities, and leverage improved to 3.8x from 4.0x at year-end. He also noted the CAD 1 billion non-cash loss tied to the MLSE transaction and said proceeds from the future minority stake sale would be used to pay down debt.

Analysts focused on wireless ARPU, the impact of lower activation/cancellation fees, the sustainability of the lower CapEx run-rate, and the timing/structure of the MLSE monetization. Management said wireless growth is still running around the low end of the prior 2% to 2.5% market growth range, and that ARPU depends heavily on market pricing behavior; they are offsetting fee pressure with value-added services and pricing actions. On CapEx, management said the lower spend is intentional and sustainable, and that the 2026 CAD 2.5 billion to CAD 2.7 billion range is now the expected run-rate for several quarters and beyond. On MLSE, they clarified they are targeting a fourth-quarter close for the remaining 25% purchase and then a first-half 2027 minority stake sale in non-voting common equity of the combined holding company.