Rogers Communications (RCI) 2025 Conference Transcript

Summary of Rogers Communications Conference Call Company Overview - Company: Rogers Communications (RCI) - Date: September 03, 2025 - Speakers: CEO Tony Staffieri, CFO Glenn Brandt Key Points Wireless Business - Pricing Environment: The pricing environment in Canada has seen a significant step down over the past 18-24 months, with little change despite fluctuations [3][4] - Revenue Outlook: Continued growth in service revenue is expected, with a focus on balancing market share and Average Revenue Per User (ARPU) [4][5] - New Price Plans: Implementation of new price plans has been successful, with a shift from data bucket sizes to other differentiating factors [5][6] - Add-a-Line Strategy: There is an opportunity to increase penetration in terms of lines per account, following the U.S. model [6][7] - Roaming Value Proposition: New constructs for roaming have been well received in the marketplace [7][8] - Back to School Promotions: Promotions during the back-to-school season were more price disciplined compared to previous years, indicating a stable pricing environment [8][9] Bundling Strategy - Bundling Benefits: The bundling of wireless and cable services is seen as a way to solidify customer relationships and reduce churn [17][19] - Convergence Focus: Future bundling strategies will focus on seamless integration of 5G and in-home WiFi [19][20] - Market Expansion: The acquisition of Shaw has allowed Rogers to expand its footprint and offer bundled services in new territories [20][21] Fixed Wireless Access - Market Opportunity: Fixed wireless access is aimed at covering the 40% of homes not served by cable, with a focus on rural areas [21][22] - Sustainable Business Model: The fixed wireless access model is viewed as sustainable, with network slicing technology ensuring no impact on mobile users [29][32] - Growth Metrics: The fixed wireless access is becoming increasingly material to net adds in the Internet segment [26][24] Satellite Mobile Service - Launch of Service: A satellite mobile service was launched in partnership with Starlink, with good initial demand [34][35] - Market Coverage: The service aims to cover areas with no existing cellular coverage, significantly increasing Rogers' market reach [36][39] - Revenue Model: The economic construct with Starlink is not a revenue share model but is expected to provide incremental margins [37][39] Cable Business - Revenue Growth Strategy: Post-acquisition of Shaw, the cable business is focused on organic growth, particularly in Internet services [44][50] - Margin Improvement: Margins have improved from 50% to 58-59% due to operational efficiencies and direct content purchasing [51][52] - Business Segment Growth: Strong growth is observed in the business segment, leveraging the expanded national footprint [48][50] Sports and Entertainment Assets - MLSE Acquisition: Rogers is consolidating its ownership of the MLSE assets, with a focus on maximizing value for shareholders [62][66] - Valuation of Assets: The estimated value of Rogers' sports and entertainment holdings is around CAD 15 billion, with significant cash flow potential [68][69] - Leverage Management: Progress in integrating Shaw has helped reduce leverage, allowing for strategic investments in sports assets [64][70] Future Outlook - Capital Investment: A gradual decline in capital intensity is expected, driven by revenue growth and reduced investment needs [55][57] - Synergy Opportunities: There are substantial opportunities for revenue and cost synergies from the integration of sports and entertainment assets [82][83] Additional Insights - Market Position: Rogers holds a competitive position in the Canadian market, leveraging its diverse service offerings to enhance customer relationships [42][44] - Technological Advancements: The company is focused on utilizing advanced technologies, such as AI, to enhance customer engagement and service delivery [80][81]