Rogers Communications Reports Fourth Quarter 2025 Results; Announces 2026 Financial Guidance
Executive Summary
- Rogers Communications reported Q4 2025 total revenue of C$6.172 billion (up 13% YoY) and adjusted EBITDA of C$2.689 billion (up 6% YoY).
- Net income rose 27% to C$710 million; diluted EPS increased 34% to $1.37.
- Strong performance driven by a 126% jump in Media revenue after the MLSE acquisition and continued subscriber growth across Wireless, Cable, and Retail Internet segments.
Key Details
- Revenue Highlights
- Total service revenue: C$5.250 billion (up 16% YoY).
- Wireless service revenue: C$2.970 billion (flat YoY); post‑paid churn improved to 1.43%.
- Cable service revenue: C$1.984 billion (flat YoY).
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Media revenue: C$1.236 billion (up 126% YoY) – driven by MLSE integration, Blue Jays postseason run, and new Warner Bros. Discovery channels.
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Profitability
- Adjusted EBITDA margin: 43.6% (down 2.6 pts YoY) due to higher Media costs offset by revenue growth.
- Wireless adjusted EBITDA margin: 66.8% (up 0.4 pts).
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Cable adjusted EBITDA margin: 59.3% (up 0.3 pts).
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Subscriber & Usage Metrics
- Q4 net additions: 39,000 mobile phones (37,000 post‑paid), 22,000 retail Internet subscribers.
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Full‑year 2025 net additions: 245,000 mobile phones (145,000 post‑paid) and 100,000 retail Internet subscribers.
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Cash Flow & Liquidity
- Free cash flow Q4: C$1.016 billion (up 16% YoY).
- Operating cash provided: C$1.652 billion (up 46%).
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Available liquidity at year‑end: C$5.9 billion, including C$1.3 billion cash and C$4.5 billion credit facilities.
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Capital Expenditures
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Q4 capex: C$934 million (down 7% YoY), reflecting a focus on network efficiency; total 2025 capex C$3.707 billion (below guidance).
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Debt & Leverage
- Debt leverage ratio improved to 3.9× at year‑end (down 0.6× YoY).
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Pro forma debt leverage (including MLSE) also 3.9×.
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Dividends
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Paid C$270 million in Q4 dividends; declared $0.50 per share dividend on Jan 28 2026.
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Strategic Highlights
- Launched Rogers Satellite service and Wi‑Fi 7, first Canadian home Internet backup solution.
- Renewed NHL national media rights through 2037‑38 season; achieved record viewership for World Series Game 7.
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Completed $6.7 billion subsidiary equity investment (network transaction) and secured 75% controlling interest in MLSE.
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Guidance & Outlook
- 2026 outlook: total service revenue growth of 3‑5%; adjusted EBITDA growth of 1‑3%; capex target C$3.3‑3.5 billion; free cash flow target C$3.3‑3.5 billion.
Notable Quotes
- “In the fourth quarter, we delivered strong service revenue and adjusted EBITDA growth led by exceptional growth from our sports and media operations and solid performance in our telecom business,” – Tony Staffieri, President & CEO.