Rogers Communications Reports Third Quarter 2025 Results

Executive Summary

• Rogers Communications reported Q3 2025 unaudited financial results, driven by a $5 billion non-cash gain from the revaluation of its existing interest in Maple Leaf Sports & Entertainment (MLSE) following the acquisition of Bell’s 37.5% stake.
• Consolidated total revenue increased 4% to $5.35 billion, with Media revenue surging 26% to $753 million due to MLSE consolidation and strong Blue Jays performance.
• Wireless service revenue remained flat year-over-year, while Cable service revenue grew 1%; the company reaffirmed its 2025 service revenue growth guidance of 3% to 5%.

Key Details

• Consolidated Financials (Q3 2025 vs Q3 2024):
  • Total Revenue: $5,348 million (up 4%).
  • Total Service Revenue: $4,739 million (up 4%).
  • Adjusted EBITDA: $2,515 million (down 1%).
  • Net Income: $5,808 million (vs $526 million prior year, primarily due to $5 billion non-cash gain).
  • Adjusted Net Income: $726 million (down 5%).
  • Diluted EPS: $10.62 (vs $0.98 prior year).
  • Adjusted Diluted EPS: $1.37 (down 4%).
  • Free Cash Flow: $829 million (down 9%).
  • Cash Provided by Operating Activities: $1,515 million (down 20%).
• Segment Performance:
  • Wireless: Service revenue $2,059 million (flat). Adjusted EBITDA $1,374 million (up 1%, margin 66.7%). Added 111,000 total mobile phone net additions (62,000 postpaid, 49,000 prepaid). Postpaid churn was 0.99% (lowest in over two years).
  • Cable: Revenue $1,981 million (up 1%). Adjusted EBITDA $1,153 million (up 2%, margin 58.2%). Retail Internet net additions of 29,000 (78,000 YTD). Video subscribers declined by 36,000.
  • Media: Revenue $753 million (up 26%). Adjusted EBITDA $75 million (down 45%, margin 10.0%). Pro forma 2025 Media revenue and adjusted EBITDA including MLSE for the full year are estimated at approximately $4 billion and $0.25 billion, respectively.
• Strategic Transactions:
  • MLSE Acquisition: Acquired Bell’s 37.5% stake in MLSE for $4.7 billion in cash effective July 1, 2025. Rogers now holds a 75% controlling interest. MLSE results are consolidated in the Media segment.
  • Blackstone Network Transaction: Closed on June 20, 2025. Received US$4.85 billion ($6.7 billion CAD) from Blackstone for a 49.9% non-controlling interest in Backhaul Network Services Inc. (BNSI). Proceeds used to repay debt, including $700 million term loan, $1.8 billion revolving credit, and senior notes.
• Balance Sheet & Liquidity:
  • Debt Leverage Ratio: 3.9x (as at Sept 30, 2025).
  • Available Liquidity: $6.4 billion (comprising $1.5 billion cash and $4.9 billion in credit facilities).
• Guidance Updates (Full Year 2025):
  • Total Service Revenue Growth: 3% to 5% (unchanged).
  • Adjusted EBITDA Growth: 0% to 3% (unchanged).
  • Capital Expenditures: Updated to approximately $3.7 billion (down from ~$3.8 billion).
  • Free Cash Flow: Updated to $3.2 billion to $3.3 billion (up from $3.0 billion to $3.2 billion).
• Dividends:
  • Declared a quarterly dividend of $0.50 per share, payable on November 26, 2025, to shareholders of record on November 13, 2025.

Notable Quotes

• "In the third quarter, we delivered industry-leading combined Wireless and Internet subscriber growth, underpinned by our lowest churn in over two years and healthy margins in Wireless and Cable," said Tony Staffieri, President and CEO. "Our media and sports business also drove strong double-digit revenue growth, highlighting our world-class assets and the opportunity to unlock value for shareholders."