Financial Data and Key Metrics Changes - Rogers Communications reported a consolidated service revenue increase of 16% to CAD 5.3 billion in Q4 2025, with adjusted EBITDA rising 6% to CAD 2.7 billion [19][20] - For the full year 2025, revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [19][20] - Free cash flow for Q4 was CAD 1 billion, a 16% increase year-over-year, and for the full year, free cash flow exceeded CAD 3.3 billion, up 10% [20][21] Business Line Data and Key Metrics Changes - In the wireless segment, Q4 service revenue was CAD 2.1 billion, unchanged from 2024, with adjusted EBITDA growing 1% to CAD 1.4 billion, yielding a margin of 67% [16][17] - The cable business achieved a Q4 margin of 59%, up 30 basis points from the previous year, with retail internet net additions of 22,000 [17][18] - The media segment saw Q4 revenue of CAD 1.2 billion, more than double from the previous year, driven by the Blue Jays postseason and the consolidation of MLSE results [9][10] Market Data and Key Metrics Changes - Total mobile phone net additions for Q4 were 39,000, with a full year total of 245,000, reflecting a disciplined approach amidst a competitive environment [16][17] - The overall wireless market growth is projected to be in the 2%-2.5% range for 2026, with a focus on maintaining service revenue growth [36][61] - The company noted a decline in ARPU by 2.8% to CAD 56.43 for Q4, influenced by competitive pricing pressures [16][46] Company Strategy and Development Direction - Rogers aims to maintain a disciplined approach to subscriber growth, focusing on financial performance rather than chasing market share through unsustainable discounting [7][16] - The company plans to further invest in its sports and media business, including the acquisition of the remaining 25% stake in MLSE, which is expected to enhance its value proposition [10][19] - A strategic focus on capital efficiency is evident, with a target to reduce capital expenditures to CAD 3.3 billion - CAD 3.5 billion in 2026 [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong service revenue growth in 2026, projecting a range of 3%-5% for total service revenue and 1%-3% for adjusted EBITDA [12][22] - The competitive landscape remains intense, particularly in wireless, with ongoing promotional discounting impacting market dynamics [16][36] - Management highlighted the importance of maintaining a strong balance sheet, with debt leverage reduced to 3.9 times, down 0.6 times from the previous year [21] Other Important Information - The company completed the sale of its data center business for CAD 0.2 billion, further strengthening its balance sheet [20] - Capital intensity dropped to 15%, the lowest level since Q2 2017, reflecting improved capital efficiency [11][20] Q&A Session Summary Question: What factors could lead to being at the low end versus the high end of EBITDA guidance for 2026? - Management acknowledged the unpredictability of playoff runs for sports teams and the impact of promotional discounting in the telecom sector as potential swing factors [25][28] Question: How does the company view the wireless market growth and competitive intensity? - Management noted that the postpaid net add market is down about 50%, with intense competition observed, particularly after Black Friday [34][36] Question: What is the outlook for wireless ARPU this year? - Management indicated that ARPU trends are influenced by promotional activities and that roaming revenue has been a headwind, but they expect improvements as new plans are adopted [44][46] Question: Can you elaborate on the expected improvement in capital intensity? - Management explained that reduced capital spending is due to the completion of the Shaw-Rogers integration and ongoing maintenance of business systems [74][76] Question: What are the dynamics affecting EBITDA growth in the cable business? - Management emphasized ongoing efforts to improve efficiency through new technologies and customer experience enhancements, while cautioning about the strong margin position [99]