Rogers Communication (NYSE:RCI) reported third-quarter 2026 service revenue and adjusted EBITDA growth of 1% each as the Canadian telecom company emphasized cost discipline, lower capital spending and the value of its sports and media assets amid slower wireless market activity.
President and Chief Executive Officer Tony Staffieri said the company generated more than CAD 1.3 billion in free cash flow during the quarter, while capital expenditures fell 46%. Rogers’ debt leverage ratio improved to 3.7 times, down from 3.8 times in the preceding quarter.
“Against the backdrop of lower market activity, we continued to deliver on our commitments and our long-term strategy,” Staffieri said. He added that Rogers posted wireless and cable adjusted EBITDA margins of 68% and 59%, respectively.
Wireless results reflect regulatory and market pressures
Wireless service revenue declined 1% from a year earlier, primarily due to a Canadian Radio-television and Telecommunications Commission decision that prohibited certain fees beginning in mid-June, according to Chief Financial Officer Glenn Brandt. Mobile phone average revenue per user, or ARPU, fell 2.6% to CAD 55.22.
Brandt said that excluding the CRTC decision, Rogers would have reported modest positive wireless service revenue growth and a sequential improvement in its ARPU decline. He said the company is seeking other ways to offset or reduce costs that had previously been covered by the affected fees.
Rogers added 17,000 total mobile phone customers during the quarter, including 6,000 postpaid additions. Staffieri said the company chose to focus on premium plans and customer value propositions rather than pursue volume through deeper price discounts during the back-to-school season.
Postpaid mobile phone churn rose four basis points year over year to 1.03%. Brandt attributed the increase largely to pricing actions taken early in the quarter and said the company viewed the impact as temporary. He also noted that incoming ARPU for customers added during the third quarter and into October was up 8% from a year earlier.
Management estimated that industry mobile net additions were down roughly 30% to 40% year over year in the third quarter. Staffieri said penetration growth appeared to have softened to roughly 1.5% to 2%, compared with a more traditional range of 2% to 2.5%, while population growth was essentially flat.
Cable growth continues as capital spending declines
Rogers’ cable service revenue grew for the sixth consecutive quarter, though reported growth was modest due in part to the December 2025 sale of customer-facing data centers. Excluding that sale, cable service revenue increased 1% organically, while cable adjusted EBITDA also rose 1%.
The cable adjusted EBITDA margin expanded 40 basis points to 59%. Brandt said the improvement reflected operational scale, continued cost-efficiency efforts, integration of practices from the Shaw operations and greater use of offshore resources for some call-center work.
Retail internet net additions totaled 10,000, reflecting lower market activity and Rogers’ focus on premium service rather than price-led customer acquisition. During the question-and-answer session, Brandt declined to break out revenue contributions between broadband and video, satellite and home-phone products, saying the company views its different categories of residential customers as important to overall performance.
Capital expenditures fell to CAD 524 million, producing a capital intensity ratio of 9.6% in the quarter. Brandt said lower spending partly reflected the sale of projects that were no longer priorities, which also removes future capital requirements. He said Rogers’ CAD 2.5 billion to CAD 2.7 billion capital-expenditure outlook for 2026 should indicate expectations for the near term, though the company did not formally provide 2027 guidance.
Staffieri said the lower capital envelope would not impair network performance or growth prospects. He cited ongoing network investments, rural connectivity opportunities and potential enterprise and Internet-of-Things applications from the company’s satellite partnership with SpaceX.
Sports and media strategy advances
Rogers completed its acquisition of the remaining 25% stake in Maple Leaf Sports & Entertainment on Oct. 1. Staffieri said the transaction gives Rogers full ownership of a collection of sports, entertainment and media assets that includes professional teams, Sportsnet and live-event venues.
The company plans to consolidate its sports, media and entertainment assets and sell a minority interest to third-party investors, targeting a closing in the first half of 2027. Brandt said proceeds from such a sale would be used to reduce debt.
Management pointed to rising sports franchise values, as well as the company’s media and live-entertainment operations, as evidence of the portfolio’s potential value. Staffieri said Rogers’ partnership with Live Nation to bring the Backstreet Boys to Canada for a 12-show residency next year at Rogers Centre illustrates how the company can combine venues, entertainment and customer offerings.
Rogers Sports & Media revenue rose 9% in the quarter, while adjusted EBITDA increased 12% to CAD 84 million. The Toronto Blue Jays helped support the results, with more than 3.3 million fans attending games during the regular season and average attendance reaching 97% of capacity, according to Staffieri.
Cash flow outlook reaffirmed
Free cash flow totaled approximately CAD 1.4 billion in the quarter, up 65% from a year earlier, aided by lower capital expenditures and lower cash taxes. Through the first nine months of 2026, free cash flow exceeded CAD 3.1 billion, up 34% year over year.
Rogers ended the quarter with CAD 8.3 billion in available liquidity, including CAD 3 billion of cash and cash equivalents and CAD 5 billion available under bank and other credit facilities. The figure did not include an additional CAD 5 billion of bilateral bank credit facilities arranged for the MLSE purchase.
Net income declined by about CAD 5.3 billion from the prior-year quarter, which included a CAD 5 billion non-cash gain related to Rogers’ original MLSE interest following its July 2025 purchase of BCE’s interest in the sports organization.
The company reaffirmed its 2026 outlook for 3% to 5% total service revenue growth, 1% to 3% adjusted EBITDA growth, capital expenditures of CAD 2.5 billion to CAD 2.7 billion, and free cash flow of CAD 4.1 billion to CAD 4.3 billion.
About Rogers Communication (NYSE:RCI)
Rogers Communications Inc is a Canadian communications and media company serving consumers, businesses and public-sector organizations across Canada. Its telecommunications operations provide wireless voice and data services, broadband internet, television, home phone and related connectivity products. The company also offers enterprise networking, cybersecurity, cloud and other information technology services.
Rogers operates a portfolio of media and sports properties, including Sportsnet, Citytv and OMNI Television, along with radio stations, digital platforms and publishing operations.
