ZACKS·2026-01-30 20:36Core Insights - Rogers Communications (RCI) reported fourth-quarter 2025 adjusted earnings of $1.08 per share, exceeding the Zacks Consensus Estimate by 10.2% and reflecting a year-over-year increase of 3.8% [1] - Total revenues reached $4.43 billion, surpassing the consensus mark by 1.31% and showing a 13% year-over-year growth [1] - In Canadian dollars, adjusted earnings rose 3.4% year over year to C$1.51 per share, while total revenues increased 13% to C$6.17 billion, primarily driven by growth in the Media segment [1] Segment Performance Wireless Segment - Wireless revenues, accounting for 48.1% of total revenues, decreased 0.4% year over year to C$2.97 billion, with service revenues rising 0.3% to C$2.06 billion and equipment revenues declining 1.2% to C$912 million [2] - Monthly mobile phone ARPU was C$56.4, down 2.8% year over year [2] Cable Segment - Cable revenues, representing 32.1% of total revenues, increased 0.1% year over year to C$1.98 billion, with service revenues growing 0.3% to C$1.97 billion, while equipment revenues fell 33.3% to C$10 million [5] - Retail Internet subscriber count reached nearly 4.497 million, reflecting a net increase of 224K subscribers year over year [5] Media Segment - Media revenues surged 126% year over year to C$1.24 billion, with segment operating expenses increasing 106.3% to C$1.02 billion, resulting in an adjusted EBITDA of C$221 million [9] Financial Metrics - Adjusted EBITDA increased 1% year over year to C$1.374 billion, with an adjusted EBITDA margin expanding by 40 basis points to 66.8% [4] - Operating costs rose 18.1% to C$3.48 billion, with operating costs as a percentage of revenues expanding 260 basis points to 56.4% [10] - Free cash flow was C$1.02 billion, up from C$829 million in the previous quarter, marking a year-over-year increase of 15.7% [13] Balance Sheet and Cash Flow - As of December 31, 2025, RCI had C$5.9 billion in available liquidity, down from C$6.4 billion as of September 30, 2025 [11] - The debt leverage ratio stood at 3.9 times, influenced by the MLSE transaction [12] - Cash flow from operating activities was C$1.65 billion, up 45.6% year over year [12] 2026 Guidance - For 2026, RCI expects total service revenues to grow between 3% and 5%, and adjusted EBITDA to rise between 1% and 3% [14] - Capital expenditure is projected to be C$3.3 billion to C$3.5 billion, slightly below prior guidance [14] - Free cash flow guidance has been raised to between C$3.3 billion and C$3.5 billion [14]