Core Insights - Rogers Communication (RCI) reported quarterly earnings of $0.99 per share, exceeding the Zacks Consensus Estimate of $0.92 per share, but down from $1.04 per share a year ago, indicating an earnings surprise of +7.61% [1] - The company generated revenues of $3.88 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 1.16% and showing an increase from $3.76 billion year-over-year [2] - The stock has appreciated approximately 21.5% year-to-date, outperforming the S&P 500's gain of 13.9% [3] Earnings Outlook - The future performance of Rogers Communication's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.91 on revenues of $4.22 billion, while for the current fiscal year, the estimate is $3.41 on revenues of $15.48 billion [7] Industry Context - The Zacks Industry Rank places Diversified Communication Services in the bottom 15% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - The consolidated service revenue increased by 4% to $4.7 billion, while adjusted EBITDA decreased by 1% to $2.5 billion [19][20][26] - Free cash flow was reported at $829 million, down 9% year-over-year due to increasing taxable income and tax installment timing [20][23] - The debt leverage ratio stood at 3.9 times, reflecting a slight increase due to the acquisition of the additional stake in MLSE [10][22] Business Line Data and Key Metrics Changes - Wireless service revenue was flat, with adjusted EBITDA up 1% year-over-year, maintaining industry-leading margins of 67%, up 60 basis points [15][19] - Cable service revenue grew by 1% year-over-year, with adjusted EBITDA increasing by 2%, resulting in cable margins reaching 58% [16][17] - Media revenue surged by 26% to $753 million, driven by the strong performance of the Toronto Blue Jays and the consolidation of MLSE [9][17] Market Data and Key Metrics Changes - The company added 111,000 mobile phone net additions in Q3, with a total of 206,000 year-to-date, primarily in postpaid plans [5][15] - Retail internet additions were 29,000 in the quarter, contributing to approximately 80,000 new internet subscribers year-to-date [8][17] - Blended mobile phone ARPU decreased by 3% to $56.70, impacted by competitive pressures and lower international roaming revenue [16] Company Strategy and Development Direction - The company aims to unlock significant unrecognized value from its sports and media assets, with a projected media revenue of $4 billion and adjusted EBITDA of $250 million for 2025 [9][10] - Continued focus on operational efficiency and capital discipline, with a revised CapEx target of $3.7 billion for the year [11][25] - The introduction of innovative services like satellite-to-mobile technology aims to enhance coverage in remote areas, reinforcing the company's commitment to industry leadership [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining strong subscriber growth and operational performance despite a competitive environment and slower economic growth [15][26] - The company anticipates a strong Q4, driven by the successful playoff run of the Toronto Blue Jays and ongoing promotional strategies [19][48] - Management remains committed to improving the balance sheet and investment-grade credit ratings while pursuing growth opportunities [22][24] Other Important Information - The company is focused on enhancing customer experience through AI technologies, aiming for improved efficiency and security [41][42] - The acquisition of the additional stake in MLSE for $4.7 billion is expected to enhance revenue and profitability in the long term [10][22] Q&A Session Summary Question: Discussion on wireless competitive environment and pricing sustainability - Management highlighted the effectiveness of streamlined pricing and promotional strategies, indicating confidence in sustaining current pricing constructs [29][31] Question: Insights on churn management - A holistic approach to base management has led to improved churn rates, with expectations for continued strong performance [32][33] Question: Impact of roaming and wholesale revenues on service revenue - Management confirmed that lower roaming volumes and wholesale revenue shifts contributed to the decline in service revenue [38] Question: Opportunities from AI technologies - Management identified customer experience, operational efficiency, and security as key areas for AI deployment, with significant potential for improvement [41][42] Question: Trends in network revenue and subscriber growth - Management expects positive service revenue growth for wireless, with a focus on base management and churn improvement [47][48] Question: Control of sports assets post-transaction - Management confirmed intentions to maintain control over sports assets while maximizing shareholder value [93] Question: Details on satellite-to-mobile service costs - Operating costs have seen a modest increase, attributed to marketing and service fees related to the satellite-to-mobile initiative [94] Question: Timeline for full data and voice capabilities in satellite-to-mobile service - Management indicated that data capabilities would be available soon, with voice expected in 2026 [100][102]

Financial Data and Key Metrics Changes - Consolidated service revenue increased by 4% to $4.7 billion, while adjusted EBITDA decreased by 1% to $2.5 billion [18][19] - Free cash flow was reported at $829 million, down 9% year-over-year due to increasing taxable income and tax installment payments [19][21] - The debt leverage ratio stood at 3.9 times, reflecting a slight increase due to the acquisition of an additional stake in MLSE [20][21] Business Line Data and Key Metrics Changes - Wireless service revenue remained flat, with adjusted EBITDA up 1% year-over-year, maintaining industry-leading margins of 67%, up 60 basis points [13][15] - Cable service revenue grew by 1% year-over-year, with adjusted EBITDA increasing by 2%, leading to cable margins of 58%, up 70 basis points [15][16] - Media revenue surged by 26% to $753 million, driven by the strong performance of the Toronto Blue Jays and the consolidation of MLSE [16][17] Market Data and Key Metrics Changes - The company added 111,000 mobile phone net additions in Q3, totaling 206,000 year-to-date, primarily on postpaid plans [4][13] - Retail internet additions were 29,000 in the quarter, with approximately 80,000 new internet subscribers year-to-date [6][15] - Blended mobile phone ARPU decreased by 3% to $56.70, reflecting competitive pressures and lower international roaming revenue [15][19] Company Strategy and Development Direction - The company aims to unlock significant unrecognized value from its sports and media assets, with an estimated value exceeding $15 billion [8][18] - Continued focus on financial discipline while pursuing growth in wireless, cable, and media segments [10][25] - Plans to acquire the remaining minority stake in MLSE to enhance revenue and profitability growth [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining service revenue growth despite competitive pressures and a slower growth economy [12][13] - The company anticipates strong execution in Q4, supported by the successful playoff run of the Toronto Blue Jays [17][44] - Management remains committed to improving capital efficiency and maintaining a strong investment-grade balance sheet [10][24] Other Important Information - Capital expenditures for the year are expected to be approximately $3.7 billion, down from previous estimates [10][24] - The company is focused on enhancing customer experience through AI technologies and improving operational efficiency [37][38] Q&A Session Summary Question: Discussion on wireless competitive environment and pricing sustainability - Management highlighted streamlined pricing offerings and successful customer engagement strategies, indicating confidence in sustaining current pricing structures [27][29] Question: Insights on churn management - Management noted a holistic approach to base management, resulting in improved churn rates and customer retention [30][31] Question: Clarification on service revenue trends and impacts - Management acknowledged lower roaming volumes and wholesale revenues as contributing factors to service revenue trends [34][35] Question: Operating leverage opportunities through AI - Management discussed three main areas for AI deployment: customer experience, operational efficiency, and security enhancements [36][38] Question: Expectations for wireless service revenue trajectory - Management confirmed expectations for positive service revenue growth moving forward, despite slight declines in Q3 [58][59] Question: Update on satellite-to-mobile service costs - Management clarified that increased costs were related to both marketing and service fees associated with the satellite-to-mobile initiative [81][83] Question: Future of wireless net additions amid low immigration - Management projected continued growth in the wireless sector, estimating a 3% growth rate even with low immigration levels [91][92]

Financial Data and Key Metrics Changes - Consolidated service revenue increased by 4% to $4.7 billion, while adjusted EBITDA decreased by 1% to $2.5 billion, reflecting modest growth in wireless, cable, and media combined with the consolidation of MLSE results [24][25][28] - Free cash flow was reported at $829 million, down 9% year-over-year due to increasing taxable income and the timing of tax installment payments [24][26] - The debt leverage ratio stood at 3.9 times, reflecting a slight increase due to the acquisition of the additional stake in MLSE [25][26] Business Line Data and Key Metrics Changes - Wireless service revenue was flat year-over-year, with adjusted EBITDA up 1%, driven by cost efficiencies that improved wireless margins to 67%, up 60 basis points [18][19] - Cable service revenue grew by 1% year-over-year, with adjusted EBITDA up 2%, leading to cable margins of 58%, an increase of 70 basis points [21] - Media revenue surged by 26% to $753 million, driven by strong performance from the Toronto Blue Jays and the consolidation of MLSE [22] Market Data and Key Metrics Changes - The wireless market saw a total of 111,000 mobile phone net additions in Q3, with a year-to-date total of 206,000, primarily on the Rogers Postpaid brand [7][19] - Retail internet additions were 29,000 in the quarter, contributing to approximately 80,000 new internet subscribers year-to-date [9][21] - Blended mobile phone ARPU decreased by 3% to $56.7, reflecting competitive pressures and lower international roaming revenue [20] Company Strategy and Development Direction - The company is focused on maintaining strong execution across its three core businesses: wireless, cable, and media, while also exploring opportunities to unlock value from its sports and media assets [12][29] - The launch of satellite to mobile technology aims to enhance coverage in remote areas, reinforcing the company's commitment to innovation [8][9] - The company plans to acquire the remaining minority stake in MLSE, which is expected to enhance revenue and profitability growth [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining service revenue growth despite competitive pressures and a slower growth economy [18][51] - The company anticipates strong execution in Q4, with expectations for positive service revenue growth for wireless [51] - Management highlighted the importance of customer experience and operational efficiency, particularly through the deployment of AI technologies [42][44] Other Important Information - Capital expenditures for the year are expected to be approximately $3.7 billion, a reduction from previous targets, reflecting a focus on capital efficiency [14][28] - The company maintains a strong liquidity position with available liquidity of $6.4 billion [26] Q&A Session Summary Question: Discussion on wireless competitive environment and pricing sustainability - Management indicated that streamlined pricing and promotional strategies have resonated well with customers, leading to positive subscriber performance [32][35] Question: Insights on churn management - A holistic approach to base management has been implemented, focusing on proactive customer engagement to reduce churn [36] Question: Clarification on service revenue trends and roaming impacts - Management confirmed that lower roaming volumes and wholesale revenues contributed to the decline in service revenue [40] Question: Opportunities from AI technologies - Management outlined three main areas for AI deployment: customer experience, operational efficiency, and security enhancements [44][45] Question: Expectations for wireless revenue trends and subscriber growth - Management expects positive service revenue growth for wireless, despite current immigration levels impacting subscriber additions [51][68] Question: Competitive advantages of converged offerings - The company is leveraging its converged footprint to enhance customer offerings, leading to increased demand for bundled services [78] Question: Financing plans for upcoming acquisitions - Management confirmed that credit agencies are aware of the company's plans and that no equity will be needed to bridge gaps for upcoming deals [91][92]

Core Points - Rogers is expanding its ticket giveaway initiative for the World Series to enhance fan engagement and support for the Toronto Blue Jays [1][2][4] - The campaign, titled "Bring it Home," aims to unite fans across Canada in their desire for the Blue Jays to win the championship [2] - The company is leveraging social media to encourage fan participation, offering chances to win tickets through user-generated content [2][3] Ticket Giveaways - Rogers will give away 500 tickets to Game 2 of the World Series to fans watching Game 1 in various locations across the Greater Toronto Area [3] - An additional 250 pairs of tickets to Game 1 will be awarded to fans who post supportive content on Instagram using the hashtag BringItHomeJays [2] - Rogers customers can enter a contest for hundreds of tickets to World Series home games, including a grand prize with airfare and accommodations [4] Marketing and Branding - The company will change its branding to Blue Jays blue across various platforms, including retail and digital advertising, to celebrate the team's fandom [5] - All tickets distributed through the campaign are non-transferable [5]

Core Viewpoint - RCI Hospitality Holdings, Inc. is facing a class action lawsuit due to allegations of tax fraud and bribery, which resulted in misleading statements about the company's business and legal risks [2][4]. Group 1: Allegations and Class Period - The class period for the lawsuit is from December 15, 2021, to September 16, 2025 [2]. - Allegations include that defendants engaged in tax fraud and bribery to cover up the fraud, leading to an understatement of legal risks and materially false statements regarding the company's operations and prospects [2]. Group 2: Shareholder Actions - Shareholders who purchased shares during the class period are encouraged to register for the class action and can seek lead plaintiff status by the deadline of November 20, 2025 [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [3]. Group 3: Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices, seeking recovery for losses incurred due to misleading statements or omissions [4].

Q3 2025 Results October 23, 2025 1 Cautionary note The following materials are for presentation purposes only. They accompany the discussions held during Rogers Communications Inc.'s (Rogers) investor conference call on October 23, 2025. Certain statements made in this presentation, including, but not limited to, statements relating to expected future events, financial and operating results, guidance, including our 2025 consolidated guidance on total service revenue, adjusted EBITDA, capital expenditures, a ...

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Core Insights - Rogers Communications reported strong financial performance in Q3 2025, with significant growth in wireless and media segments, alongside improved customer loyalty and reduced churn rates [1][4][5] Wireless Segment - Wireless service revenue reached CAD 2.1 billion, with adjusted EBITDA of CAD 1.4 billion, reflecting a 1% increase [5] - The company added 111,000 mobile phone subscribers, including 62,000 postpaid and 49,000 prepaid, with a year-to-date total of 206,000 additions [5] - Postpaid churn decreased to 0.99%, the lowest in over two years, contributing to a wireless margin of 67% [5][29] - Equipment revenue increased by 9% due to higher device upgrades [27] Cable Segment - Cable revenue grew by 1% to CAD 1.981 billion, driven by retail Internet subscriber growth [55] - The adjusted EBITDA margin for the cable segment improved to 58%, up 70 basis points [30] - Retail Internet net additions were 29,000, with a total of 78,000 new subscribers year-to-date [5] Media Segment - Media revenue surged by 26% to CAD 753 million, bolstered by the success of the Toronto Blue Jays and the consolidation of MLSE results [28][66] - Adjusted EBITDA for the media segment decreased by 45% to CAD 75 million, primarily due to seasonal impacts from MLSE [30][66] - The company anticipates pro forma media revenue for 2025 to be approximately CAD 4 billion, with adjusted EBITDA of CAD 0.25 billion [5][25] Financial Performance - Total revenue for the quarter increased by 4% to CAD 5.348 billion, with total service revenue also up by 4% [6][26] - Net income rose significantly to CAD 5.808 billion, largely due to a non-cash gain from the MLSE transaction [31] - Free cash flow for the quarter was CAD 829 million, down 9% from the previous year [32] Strategic Developments - The company completed the acquisition of a 37.5% stake in MLSE for CAD 4.7 billion, increasing its ownership to 75% [12][13] - Rogers launched satellite-to-mobile text messaging services, expanding its coverage significantly across Canada [5][10] - The company is exploring options to unlock additional value from its sports assets, including potential minority interest sales or public offerings [14]

Core Viewpoint - RCI Hospitality Holdings, Inc. is facing a class action lawsuit due to allegations of tax fraud and bribery, which resulted in misleading statements about the company's business and legal risks [3][4]. Summary by Relevant Sections Allegations - The complaint alleges that during the class period from December 15, 2021, to September 16, 2025, the defendants engaged in tax fraud and bribery to conceal this fraud [3]. - It is claimed that these actions led to an understatement of the legal risks facing the company, resulting in materially false and misleading statements regarding its business operations and prospects [3]. Class Action Details - Shareholders who purchased shares of RCI Hospitality Holdings during the specified class period are encouraged to register for the class action, with a deadline set for November 20, 2025 [4]. - Participants will be enrolled in a portfolio monitoring system to receive updates on the case's progress [4]. Law Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and fraud [5]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [5].