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Rogers Q3 2026 Earnings: Sports Assets Monetization
Rogers reports 65% higher free cash flow as it sells minority stake in sports assets.
In brief
Rogers reports 65% higher free cash flow as it sells minority stake in sports assets. Rogers Communications Inc. reported $5.44 billion Q3 revenue with 2% YoY growth, $1.37 billion free cash flow up 65% from prior year, and plans to sell a minority interest in its sports assets by early 2027. Originally reported by…
Q3 Revenue
Rogers reported $5.44 billion revenue, a 2% increase year over year driven by Media segment growth.
Total Service Revenue
Total service revenue reached $4.78 billion, up 1% as Media and Cable growth was partially offset by Wireless decline.
Adjusted EBITDA
Adjusted EBITDA grew to $2.54 billion, a 1% increase reflecting efficiency initiatives across all segments.
Free Cash Flow
Free cash flow reached $1.37 billion, a 65% increase year over year from significantly lower capital expenditures.
Capital Expenditures
Capital expenditures dropped to $524 million, declining 46% following deprioritization or sale of network projects.
Capital Intensity
Capital intensity ratio fell to 9.6%, an 840 basis point reduction year over year and the lowest in over two decades.
Net Income
Net income decreased $5.27 billion compared to prior year due to a one-time $5 billion non-cash gain from MLSE investment.
Adjusted Net Income
Adjusted net income fell $5.27 billion to $701 million, a 3% decline from higher finance costs.
Wireless Service Revenue
Wireless service revenue dropped $2.03 billion, a 1% decline from lower fee revenue after CRTC regulatory changes.
Wireless ARPU
Mobile phone ARPU fell to $55.22, a 2.6% decrease due to loss of service fees and competitive intensity.
Postpaid Mobile Churn
Postpaid mobile phone churn rose to 1.03%, increasing 4 basis points after price adjustments.
Cable Service Revenue
Cable service revenue held steady at $1.98 billion year over year as retail internet growth offset Home Phone and Video declines.
Cable Adjusted EBITDA
Cable adjusted EBITDA margin expanded to 59%, up 40 basis points from cost reduction efforts.
Retail Internet Net Additions
Retail internet net additions dropped to 10,000, down from 29,000 last year due to market activity.
Media Revenue
Media revenue grew to $821 million, a 9% increase from higher Toronto Blue Jays attendance and Warner Bros. Discovery channels.
MLSE Acquisition
Rogers completed acquisition of remaining 25% stake in MLSE for $4.35 billion on Oct. 1, 2026.
Debt Leverage Ratio
Debt leverage ratio improved to 3.7x from 4.0x at end of 2025 as balance sheet strengthened.
Available Liquidity
Available liquidity reached $8.3 billion, including $3.15 billion in cash as of Sept. 30, 2026.
2026 Financial Guidance
Management reaffirmed targets for total service revenue growth of 3% to 5%, adjusted EBITDA growth of 1% to 3%, and free cash flow of $4.1 billion to $4.3 billion.
Sports Monetization Plan
Rogers targets sale of minority interest in sports assets to third-party investors by first half of 2027 to improve balance sheet.
The key point
Rogers Communications Inc. reported $5.44 billion Q3 revenue with 2% YoY growth, $1.37 billion free cash flow up 65% from prior year, and plans to sell a minority interest in its sports assets by early 2027.
