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][21] - For the full year 2025, revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [19][21] - 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, maintaining a 67% margin [16][19] - 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][19] - The sports and 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 2025 were 245,000, with a combined total of 345,000 new mobile phone and retail internet subscribers [17][19] - The wireless market is projected to grow at a rate of 2%-2.5% in 2026, reflecting a slowdown in subscriber growth [36][62] - The competitive intensity in the wireless market has increased, particularly following Black Friday, leading to heightened discounting from competitors [34][61] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to subscriber growth without engaging in unsustainable discounting, focusing instead on delivering solid financials [7][16] - Rogers plans to complete the acquisition of the remaining 25% stake in MLSE, which is expected to enhance the value proposition and attract more customers [10][19] - The company is targeting a reduction in capital expenditures to CAD 3.3 billion - CAD 3.5 billion in 2026, down from CAD 3.7 billion in 2025 [12][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strong service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3% in 2026 [12][22] - The company noted that while the market is competitive, it remains focused on improving fundamentals and driving efficiencies across all business units [5][16] - Management acknowledged the unpredictability of playoff runs for sports teams as a factor influencing revenue, particularly for the media segment [25][28] Other Important Information - Debt leverage improved to 3.9 times, down 0.6 times from the previous year, indicating a stronger balance sheet [11][21] - Capital intensity dropped to 15%, the lowest level since Q2 2017, reflecting improved capital efficiency [11][20] - The company completed the sale of its data center business for CAD 0.2 billion, further strengthening its balance sheet [20][21] Q&A Session Summary Question: What factors could affect the EBITDA guidance for 2026? - Management indicated that the unpredictability of playoff runs and competitive discounting in the telecom sector could influence the EBITDA range [25][28] Question: How does the company view the wireless market growth and competitive intensity? - Management noted that the market growth is expected to be around 2%-2.5%, with increased promotional activity observed [34][36] Question: What is the outlook for wireless ARPU and roaming impacts? - Management stated that ARPU trends are positive but may slow due to promotional activities, and roaming revenue is expected to stabilize as new plans are adopted [44][47] Question: What are the drivers behind the expected improvement in capital intensity? - Management highlighted the completion of the Shaw-Rogers integration and a focus on ongoing maintenance as key factors for reduced capital expenditures [74][75] Question: How does the company plan to achieve further cost efficiencies? - Management emphasized the importance of adopting new technologies and synergies from combining RSM and MLSE to drive cost efficiencies [78][99]

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 [17][19] - For the full year 2025, total revenues reached CAD 21.7 billion, up 5%, while EBITDA increased by 2% to CAD 9.8 billion [17][19] - 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% [10][18] Business Line Data and Key Metrics Changes - In the wireless segment, Q4 service revenue was CAD 2.1 billion, stable compared to 2024, with Adjusted EBITDA growing 1% to CAD 1.4 billion, maintaining a 67% margin [14][15] - 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 [15][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 [8][9] Market Data and Key Metrics Changes - The 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 [15][19] - The wireless market growth is projected at 2%-2.5% for 2026, with a focus on maintaining service revenue growth despite competitive pressures [35][61] Company Strategy and Development Direction - The company aims to return leverage to pre-Shaw levels, achieving this nine months ahead of schedule, and plans to continue investing in core sports and media operations [4][10] - Rogers Satellite was launched to enhance connectivity in areas lacking traditional cellular coverage, included in select 5G Plus plans [6][36] - The company is focused on driving efficiencies and cost reductions in a low-growth environment while maintaining a strong balance sheet [4][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2026 guidance targets, projecting service revenue growth of 3%-5% and Adjusted EBITDA growth of 1%-3% [11][21] - The competitive landscape remains intense, particularly in wireless, with management opting for a balanced approach rather than following aggressive discounting strategies [14][33] - Management highlighted the importance of maintaining a strong value proposition beyond price to drive subscriber growth and retention [45][63] Other Important Information - Debt leverage improved to 3.9 times, down 0.6 times from the previous year, with CAD 5.9 billion in available liquidity [19] - Capital expenditures decreased by 7% in Q4, with capital intensity at its lowest level since 2017 at 15% [10][18] Q&A Session Summary Question: Factors influencing 2026 EBITDA guidance range - Management acknowledged the unpredictability of playoff runs and competitive discounting as key factors affecting the EBITDA guidance range of 1%-3% [24][25] Question: Wireless market expectations and ARPU - Management noted that the wireless market is expected to grow at 2%-2.5%, with a focus on maintaining a balanced approach to pricing and subscriber growth [32][35] Question: Impact of roaming on ARPU - Management indicated that roaming had weighed on ARPU in 2025, but new plans are expected to drive volume and mitigate revenue declines [46][47] Question: Free cash flow guidance and below-the-line items - Management clarified that free cash flow guidance reflects variability across CapEx, EBITDA, and other financial elements, with no specific drag identified [52][66] Question: Cable market dynamics and EBITDA growth - Management emphasized ongoing efforts to improve efficiency and customer experience in the cable segment, with a focus on adopting new technologies [96][97] Question: Retail distribution network and potential cost savings - Management acknowledged the strength of the retail distribution network but indicated that it could be a source of potential cost savings in the future [105]