Rogers Communications Reports Fourth Quarter 2025 Results; Announces 2026 Financial Guidance

Core Insights - Rogers Communications Inc. reported strong Q4 financial results with total service revenue increasing by 16% to CAD 5.3 billion and adjusted EBITDA rising by 6% to CAD 2.7 billion [1][3][7] - The company anticipates continued growth in service revenue and free cash flow for 2026, driven by disciplined execution and capital efficiency [4][27] Financial Performance - Q4 service revenue was CAD 2.1 billion, consistent with 2024, while adjusted EBITDA was CAD 1.4 billion, up 1% [6][9] - The company added 39,000 mobile phone subscribers in Q4, including 37,000 postpaid subscribers, with a postpaid churn rate of 1.43%, down 10 basis points [6][54] - Full-year mobile phone subscriber net additions totaled 245,000, including 145,000 postpaid subscribers [6] - Total revenue for the year increased by 13% to CAD 6.2 billion, with total service revenue up 16% to CAD 5.3 billion [7][9] Segment Performance Wireless - Wireless service revenue was CAD 2.1 billion, consistent with the previous year, while adjusted EBITDA increased by 1% to CAD 1.4 billion, resulting in a margin of 67% [6][11] - The wireless segment saw a slight decrease in equipment revenue by 1% due to fewer new subscribers purchasing devices [9][58] Cable - Cable service revenue remained stable at CAD 2.0 billion, with adjusted EBITDA also up by 1% to CAD 1.2 billion, leading to a margin of 59% [6][63] - Retail Internet net additions were 22,000 in Q4, contributing to a total of 100,000 net new retail Internet subscribers for the full year [6][64] Media - Media revenue surged by 126% to CAD 1.2 billion, driven by the acquisition of MLSE and the postseason success of the Toronto Blue Jays [10][72] - Adjusted EBITDA for the media segment increased significantly to CAD 221 million, reflecting a strong performance in sports-related revenue [12][73] Cash Flow and Capital Management - Free cash flow for Q4 was CAD 1.0 billion, up 16% from the previous year, with cash provided by operating activities increasing to CAD 1.7 billion [14][51] - The company achieved a debt leverage ratio of 3.9x at year-end, a 0.6x improvement from the previous year [16][29] 2026 Outlook - For 2026, Rogers expects total service revenue growth of 3% to 5% and adjusted EBITDA growth of 1% to 3%, with capital expenditures projected between CAD 3.3 billion and CAD 3.5 billion [27][30]