Rogers Communications Reports Third Quarter 2025 Results

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]