Core 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]

Group 1 - Rogers Communications Inc. (NYSE:RCI) is recognized for being more than just a cable company, which contributes to its appeal among investors [1] - The company offers a range of services including wireless, internet, TV, media, smart home, and business solutions, as well as owning sports teams and media networks [1] - Barclays raised its price target for RCI from $33 to $36 while maintaining an Equal Weight rating, indicating confidence in the company's pricing improvements [1] Group 2 - There is a belief that certain AI stocks may present greater upside potential and lower downside risk compared to RCI [2]

Core Insights - The latest value percentile report indicates significant week-on-week improvements in value rankings for three notable Communication Services stocks [1][8]. Group 1: Value Ranking Improvements - Autohome Inc. (ATHM) saw its value percentile ranking increase from 75.25 to 82.46, a gain of 7.21 points week-over-week. The stock has appreciated by 14.55% year-to-date and 9.41% over the past year [7]. - Trade Desk Inc. (TTD) experienced a rise in its value ranking from 19.62 to 26.11, marking a 6.49-point weekly increase. However, the stock is down 61.57% year-to-date and 56.71% over the year [7]. - Iridium Communications Inc. (IRDM) improved its value score from 51.93 to 55.55, a 3.62-point increase. The stock has declined 37.81% year-to-date and 29.92% over the year [7]. Group 2: Market Perception and Investment Opportunities - The ranking gains for Autohome, Trade Desk, and Iridium Communications highlight enhanced market perceptions of undervaluation, suggesting potential buying opportunities for investors focused on strong fundamentals and operational resilience [8].

Financial Performance - Rogers Communications reported first-quarter 2025 adjusted earnings of 69 cents per share, missing the Zacks Consensus Estimate by 2.82% and remaining flat year over year [1] - Revenues totaled $3.47 billion, missing the consensus mark by 1.19% and decreasing 4.6% year over year [1] - In Canadian dollars, adjusted earnings were C$0.99 per share, remaining flat year over year, while total revenues increased 1.5% year over year to C$4.98 billion [2] Wireless Segment - Wireless revenues, accounting for 51.1% of total revenues, increased 0.6% year over year to C$2.54 billion, with service revenues rising 1.5% to C$2.02 billion [3] - Monthly mobile phone ARPU was C$56.94, down 1.9% year over year, while the prepaid subscriber base grew by 111K to 1.13 million [4] - The postpaid wireless subscriber base reached 10.78 million, with net additions of 293K subscribers year over year [4] Cable Segment - Cable revenues, representing 38.9% of total revenues, decreased 1.2% year over year to C$1.93 billion due to competitive promotional activity [6] - Service revenues in the cable segment fell 1.2% year over year to C$1.92 billion, while equipment revenues decreased 8.3% to C$11 million [6] - The retail Internet subscriber count increased by 108K to nearly 4.296 million [6] Media Segment - Media revenues increased 24.4% year over year to C$596 million, driven by higher sports-related revenues and advertising revenues [9] - Segment operating expenses rose 13.9% year over year to C$663 million, resulting in a negative adjusted EBITDA of C$67 million [10] Consolidated Results - Operating costs increased 1.3% to C$2.72 billion, while adjusted EBITDA rose 1.8% year over year to C$2.25 billion [11] - Adjusted EBITDA margin expanded 10 basis points to 45.3% [11] Balance Sheet & Cash Flow - As of March 31, 2025, available liquidity was C$7.5 billion, including C$2.7 billion in cash and cash equivalents [12] - The debt leverage ratio was 4.3 times, with cash flow from operating activities at C$1.29 billion [13] - Free cash flow was C$586 million, down from C$878 million in the previous quarter [13] Dividends & Guidance - The company paid dividends worth C$269 million and declared a C$0.50 per share dividend [14] - For 2025, Rogers Communications expects total service revenues and adjusted EBITDA to grow in the range of 0-3% [15]