RCI

A month has gone by since the last earnings report for Rogers Communication (RCI). Shares have added about 11.3% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Rogers Communication due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Rogers Communications reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter. Wireless Details Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion. Cable Details Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.Cable segment operating costs increased 0.6% year over year to C$826 million. Media Details Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind. Consolidated Results Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%. As of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026. For 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets. In the past month, investors have witnessed a flat trend in fresh estimates. The consensus estimate has shifted 9.56% due to these changes. Currently, Rogers Communication has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Rogers Communication has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rogers Communication, Inc. (RCI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Rogers Communications stock has delivered a 6.9% return over the past year, yet current checks suggest the shares may still trade below an intrinsic value estimate based on a Dividend Discount Model (DDM) and on earnings multiples. For investors, that combination of moderate recent gains and a hint of undervaluation is drawing attention to what is already priced in after the latest business updates. Rogers Communications has returned 6.9% over the last 12 months, which points to steady rather than explosive share price progress. New moves such as the Rogers Satellite pilot in British Columbia and expanded sports media agreements can support expectations for future cash flows, while ongoing execution risk around large media and sports assets may affect how reliable those cash flows look to the market. On Simply Wall St's broader checks, Rogers Communications is assessed as undervalued in 4 of 6 areas. This gives a mixed overall valuation picture instead of an obvious bargain or an obviously expensive stock, as shown by its 4 out of 6 value score. The issue now is whether the current share price around C$50.45 still leaves enough upside relative to the intrinsic value estimates to interest new investors. Rogers Communications delivered 6.9% returns over the last year. See how this stacks up to the rest of the Wireless Telecom industry. The Dividend Discount Model (DDM) looks at what investors are paying today for Rogers Communications relative to its projected stream of dividends. In this case the model assumes an annual dividend of CA$2 per share, a return on equity of 13.53% and a payout ratio close to 49%. That combination suggests the company is retaining just over half of its earnings to reinvest, while still returning a material amount of cash to shareholders. The DDM growth rate is capped at 3.08%, which keeps the forecast in line with a mature telecom rather than an aggressive growth story. Using these inputs, the model points to an estimated intrinsic value of about CA$59.52 per share compared with the current price near CA$50.45. The recent Rogers Satellite pilot for B.C. customers during wildfires provides one example of how the company is seeking to deepen its network and customer ties, while the share price remains below the dividend-based valuation suggested by the model. On this DDM view, Rogers Communications stock currently appears undervalued relative to its projected dividend stream. Our Dividend Discount Model (DDM) analysis suggests Rogers Communications is undervalued by 15.2%. Track this in your watchlist or portfolio, or discover 13 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Rogers Communications. The P/E ratio is a useful way to cross-check what you are paying for each dollar of Rogers Communications earnings. It ties directly to the company’s profitability, which is central for a telecom that invests heavily but also generates consistent earnings. Rogers Communications trades on a P/E of about 4.4x. This is well below the Wireless Telecom industry average of 15.2x and the broader peer average of 13.2x. On Simply Wall St’s model, a fair P/E multiple for the stock is estimated at about 7.1x, taking into account the company’s growth profile, margins, size and risk. The gap between the current 4.4x and this 7.1x fair ratio suggests the market is pricing Rogers Communications at a discount to what these fundamentals might support. On the P/E multiple alone, Rogers Communications stock appears undervalued compared with both its industry and its own modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Rogers Communications valuation puzzle leaves off and spell out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth significantly more or less than today’s price. Each Narrative treats fair value as a thesis about Rogers Communications' business that you can watch over time, rather than a single static number. They are available on the company’s Community page. Community views on Rogers Communications sit far apart, with one side focusing on sports and network upside and the other on regulation and debt. Bull case: 16% undervalued Read the full Bull Case to see why Rogers Communications could be undervalued Bear case: 10% overvalued Read the full Bear Case to see why Rogers Communications could be overvalued Do you think there's more to the story for Rogers Communications? Head over to our Community to see what others are saying! Rogers Communications screens as undervalued on both its Dividend Discount Model (DDM) intrinsic value estimate and its earnings multiple, which point in the same direction rather than sending mixed messages. The key question is whether the current discount reflects temporary caution or a lasting concern around execution, regulation and balance sheet risk tied to its telecom and sports assets. For you as an investor, the crux is whether Rogers Communications can deliver dependable cash flows that support its dividend and justify a higher P/E over time or whether the current valuation simply matches the ongoing risks the market sees. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RCI-B.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

BCE Inc. BCE reported second-quarter 2026 adjusted earnings of C$0.65 per share (47 cents), up 3.2% year over year. The figure beat the Zacks Consensus Estimate by 2.2%. Total operating revenues rose 1.5% to C$6.18 billion ($4.461 billion), topping the consensus estimate of $4.401 billion. The improvement was primarily driven by 4.3% growth in service revenue, contribution from Ziply Fiber following its acquisition, strong Bell Media performance and growth in AI-powered enterprise services. However, product revenue declined 16.3%, mainly because last year's results included revenue from the completion of Bell's first AI Fabric data center and lower wireless device sales as more customers opted for bring-your-own-device (BYOD) plans. Adjusted EBITDA rose 1% to C$2.70 billion. The adjusted EBITDA margin was 43.8% compared with 43.9% a year earlier, as higher operating revenues were partly offset by Ziply Fiber expenses and increased content costs at Bell Media. BCE, Inc. price-consensus-eps-surprise-chart | BCE, Inc. Quote Bell CTS Canada operating revenues declined 4% to C$5.12 billion. The fall reflected lower service and product revenues, including the non-recurrence of G7 Summit and federal election-related revenues, ongoing legacy service erosion, a CRTC wholesale-rate adjustment and lower wireless connection fees. Adjusted EBITDA for the Canadian segment fell 3.1% to C$2.36 billion. However, margin improved 40 basis points to 46.1% as operating costs declined 4.7%, helped by lower device costs, the absence of prior-year data-center and G7-related costs, and cost-reduction initiatives. Postpaid mobile phone net activations were 41,594, down 6.6% year over year as gross activations declined in a less active market with lower promotional intensity. Blended ARPU fell 2.3% to C$56.30, though management said ARPU was relatively stable excluding the prior-year G7 impact. Bell CTS Canada recorded 45,271 residential FTTH Internet net additions versus 47,920 a year earlier. Ziply Fiber contributed 9,612 FTTH net additions, its highest quarterly residential result since BCE acquired the business. Canadian video net additions improved to 8,741 from a loss of 15,851. Bell Media revenues advanced 8.9% to C$918 million, driven by the FIFA World Cup, Crave growth, the Formula 1 Canadian Grand Prix and higher program sales. Advertising revenues increased 5.3%, subscriber revenues rose 6.7% and digital revenues grew 5.8%. Crave subscriptions increased 23% to 5.07 million, with direct-to-consumer streaming subscribers up 49%. Bell Media adjusted EBITDA rose 3.8% to C$244 million, while margin declined to 26.6% from 27.9% as operating costs increased 10.9% on sports, content and event-related spending. Cash flows from operating activities increased 11% to C$2.16 billion. Capital expenditures rose 41.5% to C$1.08 billion on Bell AI Fabric and Ziply Fiber investment, pushing free cash flow down 9.5% to C$1.04 billion. Bell AI Fabric had about 335 MW of contracted capacity, including the 300 MW Saskatchewan facility. The first Saskatchewan phase remains scheduled for the first half of 2027, while most of roughly C$1.3 billion of expected 2026 project capex is slated for the second half. BCE ended the quarter with C$4.6 billion of available liquidity and a 3.71 net debt leverage ratio. BCE reaffirmed 2026 guidance for revenue growth of 1% to 5% and adjusted EBITDA growth of 0% to 4%. Management continues to expect capital intensity of about 20%, supported by investment in the Saskatchewan AI data center. Adjusted EPS is still projected to decline 5% to 11% while free cash flow is expected at C$2.10 billion to C$2.30 billion. BCE maintained its C$1.75 annualized common dividend and remains on track for a 3.5 net debt leverage ratio by the end of 2027. BCE currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. TELUS Corporation TU reported second-quarter 2026 adjusted earnings per share of C$0.16, down 27% from C$0.22 a year ago. Adjusted net income fell 26% to C$254 million, while operating revenues and other income declined 3% to C$4,929 million, pressured by weaker TELUS Digital results, lower mobile equipment revenues and reduced other income. Lumen Technologies, Inc. LUMN reported a second-quarter 2026 adjusted loss (excluding special items) of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 15 cents. The company reported adjusted loss per share of 3 cents in the prior-year quarter. Quarterly total revenues were $2.805 billion, down 9.3% year over year, but topped the Zacks Consensus Estimate by 2%. Rogers Communications Inc RCI reported second-quarter 2026 adjusted earnings of 83 cents per share, topping the Zacks Consensus Estimate and up 1.2% year over year. Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year. In domestic currency (Canadian dollar), RCI’s total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter. Shares for RCI are up 2.5% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BCE, Inc. (BCE) : Free Stock Analysis Report TELUS Corporation (TU) : Free Stock Analysis Report Rogers Communication, Inc. (RCI) : Free Stock Analysis Report Lumen Technologies, Inc. (LUMN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Space Exploration Technologies Corp. is doubling down on its satellite connectivity goals as the Elon Musk-led company is preparing to launch its second-generation Direct-to-Device (D2D) service in the third quarter of 2027, according to filings with the Canadian government on Monday. The company had earlier partnered with Canadian Telecom company Rogers Communications Inc. in 2025 to launch Starlink’s first-gen system in the country, which is currently delivering supplemental messaging via five MHz spectrum, the company said in the filing. Don’t Miss: A single bad hire can set a startup back years. Here are the 5 hires founders most often misjudge — and why Still Learning the Market? These 50 Must-Know Terms Can Help You Catch Up Fast SpaceX also said that its acquisition of EchoStar’s 2 GHz spectrum rights will fuel the Gen2 V2 satellites, promising speeds over 20 times faster and a 100x capacity increase, which will help enable full 5G cellular connectivity. SpaceX plans to launch initial data services by Q3 2027, followed by voice months later. The company also said that it expects natively supported devices from Apple Inc., Samsung Electronics Co. Ltd. and Alphabet Inc. in late 2027, with full global polar coverage targeted by late 2028. SpaceX confirmed it will offer non-exclusive service access across all interested mobile carriers. The news comes as SpaceX is gearing up to host its first-ever earnings call on Tuesday, since going public in June this year. However, the company’s stock has since dropped to below its IPO price of $135/share. Wealth manager Charlie Bilello, commenting on SPCX’s decline, said that the company’s stock got a “reality check” most IPOs suffer from. Investor Ross Gerber, the co-founder of Gerber Kawasaki, said that the upcoming SpaceX earnings call can be exciting for Tesla Inc. investors too, as they get to hear from Musk twice every quarter. Image via Shutterstock Read Next: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time Skip the Regrets: The Essential Retirement Tips Experts Wish Everyone Knew Earlier. Think you’re saving enough for your kids? You might be dangerously off — see why Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry. Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly. Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests. Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches. Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing. Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth. Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream. For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process. © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Space Exploration Technologies Corp. (NASDAQ:SPCX) is doubling down on its satellite connectivity goals as the Elon Musk-led company is preparing to launch its second-generation Direct-to-Device (D2D) service in the third quarter of 2027, according to filings with the Canadian government on Monday. The company had earlier partnered with Canadian Telecom company Rogers Communications Inc. (NYSE:RCI) in 2025 to launch Starlink’s first-gen system in the country, which is currently delivering supplemental messaging via five MHz spectrum, the company said in the filing. Read Also: Trump Administration Exempts SpaceX’s Starlink From Sweeping FCC Ban on Foreign-Made Routers Through February 2028 SpaceX also said that its acquisition of EchoStar’s 2 GHz spectrum rights will fuel the Gen2 V2 satellites, promising speeds over 20 times faster and a 100x capacity increase, which will help enable full 5G cellular connectivity. SpaceX plans to launch initial data services by Q3 2027, followed by voice months later. The company also said that it expects natively supported devices from Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co. Ltd. (OTC:SSNLF) and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) in late 2027, with full global polar coverage targeted by late 2028. SpaceX confirmed it will offer non-exclusive service access across all interested mobile carriers. The news comes as SpaceX is gearing up to host its first-ever earnings call on Tuesday, since going public in June this year. However, the company’s stock has since dropped to below its IPO price of $135/share. Wealth manager Charlie Bilello, commenting on SPCX’s decline, said that the company’s stock got a “reality check” most IPOs suffer from. Investor Ross Gerber, the co-founder of Gerber Kawasaki, said that the upcoming SpaceX earnings call can be exciting for Tesla Inc. (NASDAQ:TSLA) investors too, as they get to hear from Musk twice every quarter. View more earnings on SPCX Price Action: SpaceX shares surged 1.19% to $115.90 during pre-market trading on Tuesday. At market close, SPCX was trading at $114.53 per share. Read Also: Amazon Seeks FCC Approval to Launch Over 5,000 Starlink Rival Satellites for Direct-to-Device Service Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor. Check out more of Benzinga’s Future Of Mobility coverage by following this link. Image via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: SPACEX (SPCX): Free Stock Analysis Report This article Will Elon Musk's Bullish Starlink Bet Help SPCX Recover? Billionaire Charts Ambitious Connectivity Plan Ahead of SpaceX Earnings originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Rogers Communications RCI reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter. Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote Wireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion. Cable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.Cable segment operating costs increased 0.6% year over year to C$826 million. Media revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind. Consolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%. As of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026. For 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets. Currently, RCI carries a Zacks Rank #4 (Sell).Some better-ranked stocks that investors can consider in the broader Zacks Utilities sector are Ameren Corporation AEE, Ballard Power Systems BLDP and Edison International EIX, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Ameren shares have returned 12.2% in the year-to-date period. AEE is set to report its second-quarter 2026 results on July 30.Ballard Power Systems shares have gained 22.1% in the year-to-date period. BLDP is set to report its second-quarter 2026 results on July 31.Edison International shares have risen 33.9% in the year-to-date period. EIX is set to report its second-quarter 2026 results on July 30. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rogers Communication, Inc. (RCI) : Free Stock Analysis Report Ameren Corporation (AEE) : Free Stock Analysis Report Edison International (EIX) : Free Stock Analysis Report Ballard Power Systems, Inc. (BLDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, July 22, 2026 at 8:00 a.m. ET Vice President of Investor Relations - Paul Carpino President and Chief Executive Officer - Tony Staffieri Chief Financial Officer - Glenn Brandt Operator: Thank you for standing by. This is the conference operator. Welcome to the Rogers Communications Inc. second quarter 2026 results conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. Following the presentation, we will conduct a question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star then zero. I would now like to turn the conference over to Paul Carpino, Vice President of Investor Relations with Rogers Communications. Please go ahead, Mr. Carpino. Paul Carpino: Thank you, Gaylene. Good morning, everyone, and thank you for joining us. Today I am here with our President and Chief Executive Officer, Tony Staffieri, and our Chief Financial Officer, Glenn Brandt. Today's discussion will include estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's earnings report and in our 2025 annual report regarding the various factors, assumptions, and risks that could cause actual results to differ. With that, let me turn it over to Tony. Tony Staffieri: Thank you, Paul. Good morning, everyone. In releasing our second quarter results this morning, I am pleased to report that Rogers continued to deliver solid performance across our three lines of business. We remain focused on driving growth and delivering on our commitments. Consolidated service revenue and adjusted EBITDA were up 8% and 3% respectively, despite an overall low growth telecom market. In April, we updated our full-year 2026 guidance to reflect stronger free cash flow growth alongside a meaningful reduction in our capital spend. In Q2, we generated free cash flow of CAD 1 billion, which was up 6% year-on-year. CapEx was down 16%. This reflects our commitment to adjust our spending given market realities and the current regulatory environment. In the quarter, capital intensity improved a notable 350 basis points to 12.4%. This is the lowest capital intensity ratio Rogers has achieved since the first quarter of 2008. We expect free cash flow growth to further accelerate in the second half of the year, particularly as CapEx declines and capital intensity shows additional improvements. We are managing our capital prudently while investing to provide Canadians with the best network experience. Our network leadership was reaffirmed once again recently by umlaut, ranking Rogers as Canada's best 5G+ network and the country's most reliable wireless network. Turning to our telecom results, we continue to perform in a low growth environment. Both wireless and cable delivered adjusted EBITDA growth underpinned by balanced and disciplined subscriber additions. In wireless, total net additions were 40,000 customers. This was driven by our strong base management combined with the popularity of our Rogers plans. We have increasingly looked to meaningful, sustainable value propositions for our customers and moved away from short-term promotional price discounting. We saw a similar trend overall in the marketplace in Q2 in terms of much reduced promotional pricing activity. We remain focused on subscriber acquisition and retention that supports solid financial results. You will have seen that yesterday we launched our back-to-school offers consistent with this approach where we are leading with perks and partnerships that deliver more value for our customers. As we continue to focus our base management strategy, we were pleased to see postpaid mobile phone churn drop to 0.94% in the quarter, a solid improvement of 6 basis points from one year ago. In cable, we continue to grow and deliver on our commitments. Service revenue grew 1%. This is the fifth straight quarter of growth. Strong execution also drove disciplined loading. In Q2, we added 17,000 retail internet net additions. Finally, our sports and media business delivered robust results. Revenue topped CAD 1.2 billion, a 53% increase. More impressively, organic sports and media revenue, which excludes the impact of MLSE, grew an impressive 13%. Profitability was also strong, with adjusted EBITDA improving CAD 61 million year-over- year. As you saw earlier this month, we signed an agreement to acquire the remaining 25% ownership stake in Maple Leaf Sports & Entertainment. When the acquisition closes, Rogers will be 100% owners of MLSE's iconic teams and assets. We are experienced sports and media operators with a successful track record spanning decades. The combined set of assets have scale and they are profitable. They have incredible national appeal and represent one of the top sports and media portfolios in the world. Our full ownership of MLSE will bring together Canada's premier communications company with one of the world's premier sports and entertainment organizations. MLSE will add to our already deep sports, media, and entertainment portfolio. This includes the Toronto Blue Jays, the Rogers Centre, and Sportsnet, the number one sports media brand in Canada. We are fans, owners, and broadcasters operating in one of the best cities and countries in the world. Of course, winning is everything for fans, and it's also good for business. We plan to continue to invest in building championship caliber teams. The strategic value of sports is not just about winning. The value is even greater when combined with our core connectivity business. This gives us a unique value proposition in a competitive telco marketplace. We will create more opportunities for fans to connect with the teams and artists they love. We will invest to deliver unique rewards for our customers. We remain committed to our plan to sell a minority stake in our consolidated sports, media and entertainment assets after we become 100% owners of MLSE. We plan to surface value by monetizing our world-class sports and media portfolio. Importantly, as we complete this process, we remain committed to retaining our investment-grade balance sheet. Overall, we're executing on our telecom priorities and sports monetization plan with discipline. We are doing what we said we would do, and we're doing it ahead of schedule. We're doing this while maintaining a strong balance sheet during this period of investment. I want to thank our team for their strong execution, their commitment to Rogers and to our customers. I'll now turn the call over to Glenn for a few more highlights. Glenn Brandt: Thank you, Tony. Good morning, everyone. Thank you for joining us this morning. I'm pleased to report that our second quarter results reflect continued strong execution and leading operating performance with substantial progress on several key initiatives. Most notably, 8% growth in consolidated service revenue and 3% growth in consolidated adjusted EBITDA. 57,000 combined net new mobile phone and retail internet customers added in the quarter, with adjusted wireless and cable margins of 66% and 58% respectively, each up year-over-year. 53% growth in media revenue, including 13% standalone organic growth in Rogers Sports & Media, with an approximately 8.5x increase in adjusted EBITDA to CAD 69 million. Consolidated capital intensity ratio of 12%, our lowest level since first quarter of 2008, with consolidated free cash flow just shy of CAD 1 billion for the quarter, which is up 6% year-over-year as a result. Finally, with our successful negotiations to purchase the final 25% of MLSE, we are now set to combine Rogers Sports & Media with MLSE and pursue the sale of a minority interest in our world-class sports, media and entertainment assets. Importantly, each of our three businesses contributed positively to these results. In wireless, service revenue was stable year-over-year, and adjusted EBITDA was up 1%. We added 40,000 subscribers in quarter, 22,000 of which were postpaid customers. Mobile phone nets are down 34% from the prior year, reflecting continued flat to declining overall population. While the wireless market remains extremely competitive, we are seeing competition moving toward relative value and away from the aggressive discounting of premium services seen in the seasonally low first quarter. Mobile phone ARPU was CAD 54.25 for the quarter, down 2% from one year ago. Postpaid mobile phone churn performance was 0.94%, which is down 6 basis points versus prior year and reflects our focus on disciplined subscriber loading, careful base management, and our emphasis on value for premium services. Moving to cable now. Once again, we delivered strong, disciplined financial and operating performance, growing each of service revenue and adjusted EBITDA by 1% and adding 17,000 internet subscribers. Our industry-leading 58% cable margin is up 10 basis points over prior year, reflecting continued cost efficiencies and our ongoing emphasis on value for premium services. Notably, cable's organic growth is roughly double our reported 1%. When adjusted to exclude the impact of our December 2025 sale of our hosted data center business, our cable service revenue and adjusted EBITDA were each up by 2% year-over-year. Turning to Rogers Sports & Media, our operating and financial performance here is particularly noteworthy. Consolidation and control of MLSE has added a substantial growth opportunity, but we have also achieved significant organic growth of 13% on a standalone basis for Rogers Sports & Media revenue. Overall, media revenue of CAD 1.2 billion for the quarter is up by CAD 0.4 billion, or 53% year-over-year, with approximately CAD 0.3 billion of that increase coming from the consolidation of MLSE. The 13% standalone organic growth, roughly CAD 100 million, was largely driven by higher Toronto Blue Jays related revenue, with over 95% near-sellout attendance for our home games at Rogers Centre and by higher subscriber revenue from the 2025 launch of the Warner Bros. Discovery suite of channels. Similarly, Media's adjusted EBITDA was CAD 69 million, up roughly 8.5x from the CAD 8 million reported one year ago. Rogers Sports & Media, combined with MLSE, creates a truly unique collection of sports teams, live sports and entertainment venues, and media properties, one of the best and most complete collections globally, and all in one of North America's largest metropolitan areas. Add to that the unique standing for Toronto Blue Jays and Toronto Raptors as the only national Canadian MLB and NBA franchises, and Toronto Maple Leafs, widely regarded as the NHL's most valuable franchise and one of the original six teams. These are tremendous world-class sports and media assets generating strong operating and financial results. We remain firmly committed to realize on the very substantial unrecognized value of these assets and using the proceeds to strengthen our balance sheet. We expect to close on our purchase of the remaining 25% of MLSE in the fourth quarter, with timing subject to league approvals. As a result, we have recorded in other expense a CAD 1 billion non-cash loss related to the negotiated purchase price and resulting settlement and termination of the MLSE put liability. This reflects the change in the fair value of the MLSE put liability from CAD 3.3 billion established in July 2025 to the CAD 4.35 billion negotiated transaction at June 30, 2026. Turning to our consolidated results and balance sheet. Total service revenue was up 8% to CAD 5.1 billion, and adjusted EBITDA was up 3% to CAD 2.4 billion. Capital expenditures declined to CAD 0.7 billion, or down 16%, as we execute on our new capital efficiency program announced in April. Our capital intensity improved a substantial 350 basis points to 12.4%, our lowest capital intensity ratio in more than 18 years. We anticipate further capital spend reductions in the third and fourth quarters, affirming our earlier 2026 guidance of CAD 2.5 billion-CAD 2.7 billion. As a result, free cash flow in the quarter increased by 6% to CAD 1 billion. Our liquidity remains strong at over CAD 6 billion, and we continue to strengthen our balance sheet with leverage at June 30th of 3.8x, down from 4x at December 31, 2025, with more to come as we complete our sports and media transactions and use our free cash flow to pay down debt. Our quarter-end liquidity included CAD 1.7 billion in cash and cash equivalents and CAD 4.4 billion available under our bank and other credit facilities. As noted in our press release, we are reaffirming our 2026 outlook ranges associated with total service revenue growth, adjusted EBITDA growth, capital expenditures and free cash flow. To summarize, we delivered strong and disciplined results across all three businesses, advanced our sports monetization strategy, strengthened our balance sheet and reiterated our 2026 outlook. These are all excellent outcomes. We are completing an important and transformative period at Rogers, and once again, our team has delivered excellent results. I would like to thank the team for their disciplined approach and strong execution in the current environment. I will now ask Gaylene to open the call for questions. Thank you very much. Operator: Thank you. We'll now begin the question-and-answer session. To join the question queue, you may press star then one on your telephone keypad. You'll hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. The first question is from Drew McReynolds with RBC. Please go ahead. Drew McReynolds: Thanks very much, and good morning. Two questions from my end. First, on the outlook for network revenue growth. Obviously, the last four quarters we've bumped in and around flattish. I think it's pretty widely known. There's still wireless market expansion of about 2%, wireless ARPU down 2%, which kind of gets you to flattish. Just wondering, with all the puts and takes that go through network revenues, can you, Tony or Glenn, just point to what we should expect in the back half of 2026 and maybe some of the bigger deltas that you're looking to manage? And then second, on the cable revenue, EBITDA growth. Glenn, thanks for stripping out the data center impact. Just wondering, satellite TV presumably is under ongoing pressure and that's not something that you report, but certainly in your numbers relative to peers. Can you perhaps isolate that impact as well for us? Thank you. Tony Staffieri: For the questions, Drew. I'll start with the first part in terms of revenue growth. I take it your comments are really geared towards the wireless side of the business. On the cable side, we continue to be pleased with the growth that we're seeing there. As you heard in Glenn's opening comments, organic growth there of 2% on top-line as well as on EBITDA. That business continues on a very solid trajectory. On the wireless side, as you point out, we looked at the volumes for the second quarter, we continue to see growth in the range of 2% as you highlight. We had previously said 2%-2.5%. Our sense is it's at the lower end of that range. That's what we're seeing in the marketplace. To answer your question, it really is about ARPU and ARPU growth, frankly, for us and the industry. We were extremely pleased to see our strategy of focusing on other value propositions in our value plans resonating in the marketplace. Just given the low growth of the industry, our view was, and you heard that coming out of Q1, intensive promotional price discounting wasn't a sustainable long-term economic way forward. We pivoted to a few other factors. We focused on our base, first and foremost, and you saw that with not only solid churn reduction performance, but also as we look to our base and how we think about ARPU upselling within our base. We like what we're seeing there. Importantly, for new customers, focusing on a value proposition that gives them value that is much more sustainable and creates a better long-term customer economic value for us. That includes on certain plans, including Satellite, certain plans, higher-tier plans, including roaming, a number of initiatives that include savings on streaming applications. We focused on add-a-line pricing, and providing value where more lines that come in, then there's more value savings for the customers. Discounting has pivoted to hardware discounting. You saw that in the second quarter, and as I mentioned, in launching our back-to-school promotions yesterday. The hardware discounting is tied to the tiers that you see coming in. There's some additional ones for back-to-school, and those offers are largely funded by the OEMs. All of that points to, in our view, a strategy that we're following of focusing on initiatives that will drive ARPU growth. We were pleased to see in the second quarter that the market was much more muted in terms of promotional discounting. We think that's a good sign. We'll see how the market continues to evolve in the back-to-school period and certainly into the fall. Those are going to be key determinants for how ARPU behaves for us in the industry and ultimately leads to ARPU growth. It's a difficult one to predict because it is going to depend in large part on market conditions. We think we've got the right strategy. It seems to be resonating, and you see that with what we think is fairly solid subscriber loading in the second quarter, notwithstanding that focus on price discipline. Hope that helps, Drew. Glenn Brandt: Drew, just adding in on your question on Satellite. I won't give you the detail on Satellite, but I would say that it hasn't really changed from the last few years. What you've seen embedded in our results or reflected in our results, that is part of what we are offsetting and getting to the 2% organic growth. It continues to be a fairly flat, steady rate. Drew McReynolds: Okay. Thank you both. Glenn Brandt: Thank you. Paul Carpino: Next question, Gaylene. Operator: The next question is from Batya Levi with UBS. Please go ahead. Batya Levi: Great. Thank you. As part of the driver of lower churn, are you also seeing a pickup in demand from converged offers? If you could maybe update us on what that stands for you in terms of what percent of your maybe cable households also have Rogers Wireless. Just to follow up on the ARPU commentary. I believe the lower or no activation fees kicked in mid-June. How do you anticipate to navigate that pressure in the second half? Thank you. Tony Staffieri: Thanks, Batya, for the question. I'll start with the first one. In terms of the churn tactics, if I understood your question and what we're seeing in that, certainly the lower promotional pricing activity drove less froth in the marketplace in the second quarter. Part of the reduction in churn is certainly from that. Importantly, some of the other tactics that we're looking at and using with customers that is encouraging them to stay with us at better rates, we're pleased with the performance that we're seeing there. I can tell you that those tactics have moved well beyond additional promotional and extended discounting, instead providing other value services that the customers see value in. That's trending well. Batya, if you could remind me the second part of your question relating to ARPU. Batya Levi: The impact from activation fees. Tony Staffieri: Yeah. On the fee, actually, I'll let Glenn answer that one. Glenn Brandt: I think we're seeing a fairly minor effect in the second quarter. Obviously, it came in late in the quarter. We're looking at a number of options for some value-added fees for service with our customers, as I think you've probably seen. We're working on that together with price initiatives and again, leaning in on our value for premium service emphasis rather than the discounting we saw in the first quarter to help sustain ARPU. We'll be leaning in on all of those different levers to offset not only the potential discounting through the holiday period and what have you, finding other value-added features to retain customers, but also pricing initiatives to help offset the fee impact. Batya Levi: Got it. Thank you. Paul Carpino: Thanks, Batya. Next question, Gaylene. Operator: The next question is from Aravinda Galappatthige with Canaccord Genuity. Please go ahead. Aravinda Galappatthige: Good morning. Thanks for taking my question. Maybe just start with a follow-up to the last question with regard to the activation and cancellation fees. Glenn, based on your answer, is it fair to assume that we should expect maybe a sort of a, in terms of the shape for ARPU and service revenues, that we should expect that there could be a bit of a dip in Q3 and then perhaps a recovery later on as some of your mitigating strategies sort of play out? I'm just wondering if you can sort of comment a bit further on that. Secondly, on the OpEx side, I know that last quarter you announced material reductions to CapEx. Perhaps, talk to your ability to make sort of material cuts on the OpEx side. I know that's been sort of an ongoing effort, but the prospect of perhaps a step change there. Any update would be helpful. Thank you. Glenn Brandt: Thank you, Aravinda. On the activation and cancellation fees, I'm not going to start guiding specifically for quarter-by-quarter. We are focused on again, emphasizing our premium services and looking to provide value for a fee service on whether it's phone setup or what have you, and delivery charges and the like, which you've seen. We will continue to focus on price initiatives and providing fair value for service. We'll continue to manage that file. You've seen the ARPU trajectory over the last several quarters, and I don't anticipate a substantial change in that in the coming quarters. It's block and tackle on several different initiatives to address the impact of the government decision. On the OpEx side, we continue to focus on driving improved efficiencies, some coming from synergy opportunities with the combination of RSM, MLSE, that's still to be realized and in the early stages. You've seen the impact of that with the Shaw and Rogers transaction from a few years ago. We continue to see the benefits of that with continued strengthening on our margins. Again, it's a number of detailed initiatives rather than an overarching single lever that we're pulling on. We're looking at vendors, we're looking at either insourcing or outsourcing costs and changes to address the underlying operating costs of delivering our services, all while trying to drive improved value for our customers and improved premium features for our customers. You saw that with adding mobile to satellite backup coverage for our wireless customers. We are adding features along the while of looking to try and reduce our operating costs and improve our margins. It's all a balance. Aravinda Galappatthige: Thank you. Paul Carpino: Thanks, Aravinda. Next question, Gaylene. Operator: The next question is from Stephanie Price with CIBC. Please go ahead. Stephanie Price: Good morning. I wanted to focus on MLSE. In terms of the Kilmer-MLSE acquisition, can you talk a little bit about the timeline to monetization of a stake in the combined Rogers MLSE business and what the key milestones investors should be expecting as we think about potentially a minority monetization there? Related just on leverage post the Kilmer transaction. Is the sale of a minority stake the major catalyst to reduce leverage, or are there other options you're looking at? Thanks. Glenn Brandt: Thank you, Stephanie. In terms of timing on first closing the acquisition, it's subject to league approvals. We don't anticipate that to be an arduous exercise, but it will be subject to scheduling for the leagues. We are targeting fourth quarter, and you saw in the release targeting October 1st, but we are expecting to close in the fourth quarter, the acquisition of that 25% interest. We'll follow, I would say as a fast follow, bringing to market first the combination of Rogers Sports & Media and MLSE from an administrative standpoint, bringing those business units together. Bringing that combined entity to market to sell down a minority stake or minority stakes to investors. I expect that to take several months to complete. We're targeting first half of 2027. We will be looking to close that as early as possible. That also will be subject to league approvals in terms of qualifying the terms of the minority interest stakes as well as the prospective investors. We'll complete that as quickly as we can. The proceeds from that will be used to pay down debt and to delever. The original closing of the acquisition of Kilmer will come from arranged bank credit facilities, bilateral facilities that we have added to our existing lines so that we have ample liquidity to run our operations while we bridge the minority interest sale. Stephanie Price: Thanks for the color. Glenn Brandt: Thank you. Paul Carpino: Next question, Gaylene. Operator: The next question is from Maher Yaghi with Scotiabank. Please go ahead. Maher Yaghi: Great. Good morning. Thank you for taking my question. Just following up on MLSE. Glenn, I just wanted to ask you, how should we think about the minority stake sale that you're planning to do in terms of should we think about the Kilmer price paid as a floor? Or are there meaningful differences between what you intend to sell in terms of minority stake versus the 25% that you just acquired in terms of how these ownerships are calculated or valued? The second question, are you looking for a strategic investor to come in or multiple potential minority shareholders? I have a follow-up after on CapEx. Glenn Brandt: Sure. Thank you, Maher. On the valuation and the price of the transaction, I won't help our efforts at all if I try negotiating that here on the earnings call. We'll see when we approach investors and negotiate that valuation. I would say that these are premium assets. There is a tremendous amount of interest expressed from investors, private individuals, as well as institutions. We've talked to several. We have several more to talk to. As we go through the exercise, I'm confident that we will be able to present that these are a very premium collection of assets and there are limited opportunities for buying in. You can tell from my comment, I do not expect discounts. We will work hard to drive as strong a valuation as we can drive in the transaction. The market will determine what that is. I don't mean to sound cagey, we'll work that through in the process. In your question on whether or not we're looking for a strategic investor, we are well experienced in operating these businesses, both our media side of things as well as the sports franchise side of things in each of these leagues, operating the venues, and finding the opportunities for working with vendors as well as providing additional value for our customers and our other telecom businesses. We're not looking for a strategic investor to assist with that. If one comes along with other opportunities, whether it's as a vendor or as a potential investor, of course, we'll look at that. The exercise here is to sell a non-voting minority interest in common equity of the combined entities and to participate in the growth opportunity for that investment. That is the objective here rather than trying to find some other slot that fits. Does that help? Maher Yaghi: Yes, very much. Thank you for the detailed answer. Glenn Brandt: You mentioned a follow-up. Maher Yaghi: Yes. The follow-up is on CapEx. There are a few puts and takes, as you know, in the CapEx reduction, small asset sales, but still very strong reduction in CapEx. Q2 already seen in the results, boosting free cash flow. If we look at these levels of spending, do you believe these are sustainable CapEx run-rates beyond 2026? Given the ongoing regulatory environment, does it reinforce your view that lower capital intensity is the appropriate response in this environment? Tony Staffieri: Thanks for the question on CapEx, Maher. We think about capital in two buckets, if I could be helpful. One is in sustaining our existing network infrastructure and our existing business. We're always looking at how do we do that more efficiently. That's one of the big drivers that you see here. The second piece relates to what I would describe as network expansion, particularly on the wireline side. In those areas, we continue to reevaluate whether or not the payback economic models make sense. As we've said previously, in this regulatory environment, it's made it much more difficult to boldly make some expansion capital investments. We'll continue to work with the government and regulatory authorities to help shape policies that's going to be more conducive to a framework that incents capital investment, which the country needs in terms of digital infrastructure. We'll continue to work on that front. You ought to see those as separate in terms of capital that will bring forth future revenue streams. At the time we start to increase those types of investments, and it's difficult to predict when, then we'll parse those out. As we look to our run-rate on capital intensity, we think we're at a position and continue to find the right formula on looking for focus and efficiencies that allow us to continue to have the best networks from a competitive standpoint, as well as other infrastructure that we need to continue to run the business profitably and at a competitive advantage. We think we've got something that is sustainable on that front. Maher Yaghi: Great. Thanks, Tony. Paul Carpino: Thanks, Maher. Next question, Gaylene. Operator: The next question is from Tim Casey with BMO. Please go ahead. Tim Casey: Thanks. Tony, one of the questions we seem to get with increasing frequency is the potential impact of Starlink and incursions into a traditional wireless business. It's obviously much more of a front-burner issue in the U.S., given spectrum ownership and whatnot. Can you frame for us your current thinking on that as a potential threat to the domestic wireless business or another layer of competition down the road? How are you thinking about Starlink, given you are doing business with them now, but they've got some ambitious plans? Tony Staffieri: That's a good question, Tim, timely, certainly as you look to many of the headlines, as you said, largely south of the border. Our view on this, we've spent years in the making on this and working with a few different satellite operators, and right now we're focused on SpaceX/Starlink as our partner. That's the service that we're focused on deploying here in Canada. Tim, I'll come at it this way. I don't want to turn this call into a technical dissertation on it, I think there's a lot of good information out there. In terms of the ability of satellite services to replace wireless, I think the general consensus amongst experts is it's a long way coming, if and when it comes. There are certain things related to physics, in particular, just the amount of distance spectrum has to travel from Earth to satellites that create a number of issues. I'm not talking about latency, but with respect to the power of the cell phone, the antenna capacity of the cell phone. That is just going to, for a very long time, keep terrestrial cell service as the dominant technology. I'll add to that just the implications that terrestrial has vis-à-vis satellite for in-building and lateral movement of spectrum. We continue to see a world much like when, I hate to take us back 40-50 years, but when wireless came along and what it meant for wireline business, and what we see is an evolution that's much more complementary. The demands of the network continue to evolve, and they each play a complementary type of position. We see that playing out with satellite as well. As that technology continues to evolve, we see it as a good complement to the wireless and wireline. That will evolve. As I said, and we're doing that from our experience in working with SpaceX, and the technology roadmap that we're working with them on that. Tim Casey: Thank you. Paul Carpino: Great. Thanks, Tim. Next question, Gaylene. Operator: The next question is from Vince Valentini with TD Cowen. Please go ahead. Vince Valentini: Hey, thanks very much. Just clarify a couple of things that you've said already. CapEx for the back half of the year, to get to the midpoint of your guidance, you'd have to drop from CAD 695 million that you just spent in Q2 to an average of CAD 549 million per quarter. Just want to make sure I'm understanding your commentary, that is what you're talking about, because obviously it's another meaningful step down. The second one to clarify, the timeframe. I'll be frank, I'm disappointed, but I want to make sure I understand what you're saying on the timeframe on sports. You can't start negotiating with new investors until after the Kilmer deal closes? I thought you had always talked about a parallel process, and it's a pretty simple- Glenn Brandt: Oh, Vince, don't read into that. We can walk and chew gum at the same time. We're not going to come to market before we have completed the negotiation with Kilmer and have the value that we're going to be bringing to market to work off of and drive the combined assets and premium off of. We've done that. We are now working in earnest on a number of different files around this initiative: approaching the leagues for approval for the Kilmer deal, approaching investors, working with a few choice advisors to approach investors and bring to market. All of that will happen in turn. We can't go to the leagues with the prospective investors approvals and the deal terms until we have a deal negotiated, that's a second step after seeking the approval for the initial purchase from Kilmer. That is a two-step exercise. No, we don't have to sit on our hands now until the leagues approve, until we close and then do the other. If I left that impression, I did not mean to. Vince Valentini: You kind of did. I appreciate the clarification. Sounded like you said you can't really even start negotiating- Glenn Brandt: No Vince Valentini: until after Kilmer's done. Appreciate that. Just the CapEx. Glenn Brandt: Yeah. On the CapEx, the thing to keep in mind is we announced that initiative in, I think it was the third week of April. It takes time to pivot and adjust. It takes time to down tool on some exercises, deferring and extending schedules. Some of that is also what you see reflected in, as Maher pointed out in his question as well, some of the offset. That's exiting some projects that we had underway and transferring them over to somebody else that we just view as no longer being a priority for us in terms of the economic realities of the marketplace and regulation. There will be a little bit more of that as we exit some of those more marginal priorities. The emphasis will be getting our capital spend program down to that CAD 2.5 billion-CAD 2.7 billion guidance in year in 2026. As Tony has said earlier, that will be sustained for the coming years as well. That is our level of capital spend now that we are looking to operate within. We'll get down to that, as you say, roughly CAD 550 million level or so to be inside our guidance. That's what we would need to get to the midpoint of the range, and we'll sustain that level, I expect, for the periods to come. Does that help? Vince Valentini: Very much. Thank you. Glenn Brandt: Good. Thanks, Vince. Paul Carpino: Next question, Gaylene. Operator: The next question is from Jerome Giroux with Desjardins. Please go ahead. Jerome Giroux: Yes, thanks for taking my question. Good morning. A few quarters ago, you were highlighting network slicing as being an opportunity for you guys. Now we have investors who are concerned that premium plans aren't sold at premium prices anymore. I'm wondering if maybe network slicing could be a solution to this. Maybe you could be selling priority network access. Essentially, investors are looking for ways that the companies can avoid commoditization. Tony Staffieri: Thanks for the question, Jerome. It's a good question. Really relates to the construct of our value propositions. If you look to each of our tiers across our Rogers and Fido brands, what you see is as you move towards the higher tiers, as you move up the tiers, then you have access to higher speeds for longer periods of time in terms of data usage without any throttling. There are other value add propositions that I won't get into now, but as you described, network slicing does give us the opportunity to give customers priority access, whether it's video streaming or whether it's an experience in stadium during a concert where there's a lot of heavy traffic. Those are things that we have utilized and I would say prototyped, tested our ability to have a differentiated network experience. You'll continue to see that, not unlike the U.S. market, us evolving our value proposition that's based on priority access and level of experience, based on the tier that the customer is on. It certainly continues to be an opportunity and in play. Jerome Giroux: That's great. Second question for me, just maybe a clarification, Glenn. Not sure if you mentioned that what we're going to see in terms of CapEx in the second half is what we should be using as a base level for next year, or are we comparing more the full of 2026, that it's being the sustainable level? Glenn Brandt: Think of it as the full-year guidance as being our expected run-rate. If we can find more opportunity to bring that down, we will continue to look for efficiencies, and look for opportunities to lower the intensity. I don't want to start guiding beyond 2026, other than to say anticipate that to continue on for several periods at that level. If there's more opportunity, we'll clarify that as we move through and find it. Jerome Giroux: Perfect. Thank you. Glenn Brandt: Thank you, Jerome. Paul Carpino: Gaylene, we have time for two more questions, please. Operator: Thank you. The next question is from Matthew Griffiths with Bank of America. Please go ahead. Matthew Griffiths: Hi. Good morning. Thanks for taking the question. Just two questions, if I could. The first one on MLSE, maybe I'm splicing words too closely here, Glenn, you mentioned stakes when you were talking about selling a minority interest. It made me think, are you referring to not just multiple kind of minority partners buying a stake in the combined RSM, or are you referring instead to potentially investors buying a stake in the Blue Jays or the Leafs or the Raptors or something more specific? Tony Staffieri: The former. We're looking to sell non-voting equity stakes in the holding company in the combined entity, it'd be a single category of capital, non-voting common shares in the holding company that we're looking to bring to market. That allows the investors to participate across the breadth of the sports and media operations, and makes it just more straightforward in terms of operating. Matthew Griffiths: No, that's good clarification. Thank you. Secondly, just on CapEx, really, I just wanted to ask about the asset sales that they served to marginally lower CapEx this quarter. Are there more of those that we should be expecting in the remainder of the year? The only reason I ask is with a mind to what the jump-off point would be for next year. If there are additional opportunities and the guidance incorporates these opportunities, then perhaps next year's CapEx on a run-rate basis, ex those, would be slightly higher but still a step down from what it previously was. Maybe you could help orient me there. Glenn Brandt: I'm not going to pre-announce anything. There are a couple of initiatives we're looking at. As we look to reprioritize our capital initiatives and our build schedule for the year, there were some projects that were undertaken that are no longer as much a priority. I'll put it that way. That doesn't mean it doesn't proceed, it doesn't go ahead. In some cases, it means transferring those projects to another party, potentially to complete. That's what you saw in the asset sales that you're referring to in the second quarter. There are some other projects that have some potential, which as I said, I'm not in a position to announce anything at this point. There's some opportunities there to pass those along to somebody else that might have a different threshold, a different fact set than we have. Again, in terms of our level of spend, those are a portion of the initiatives we had undertaken in our initial guidance range that we released back in January. We've reset that range of priorities and that CAD 2.5 billion-CAD 2.7 billion guidance I said back in April, and I'm reiterating here, that is our expected run-rate for several quarters to come, not just in 2026, but out into subsequent years as well. We're not looking at this as being a temporary reduction in our capital intensity. All along, we have been intending to drive a lower intensity level in our investing. Keep in mind, those projects that we're passing along would have come with spend initiatives that probably would have extended beyond 2026 into 2027. We're saving those 2027 expenditures by passing the projects along. No, this would be the run-rate that I would expect going forward. Matthew Griffiths: Okay. Very helpful. Glenn Brandt: That help? Matthew Griffiths: Thank you so much. Yeah, it does. Thank you so much. Glenn Brandt: Thank you, Matt. Paul Carpino: Yeah. Our last question, Gaylene. Operator: Last question is from David McFadgen with ATB Cormark. Please go ahead. David McFadgen: Great. Yeah, two questions. First of all, just on Rogers Satellite, are there really any substantial number of subscribers that are paying that extra CAD 10 or CAD 15 a month? Then secondly, just on the combination of the MLSE and your existing sports assets. In the past, you indicated that you think you could get a valuation of CAD 25 billion or potentially more. I was just wondering if you still believe that. Tony Staffieri: Actually, good question, David. I'll start with the first one on Satellite. We aren't disclosing subscriber numbers on that. The one thing you should keep in mind is, there is the option to pay on a monthly basis, incrementally, and that's open to all Canadians. Some of our upper-tier plans, as well as during, as a promotional item, we include satellite service in some of the plans. More and more, what we're finding is it's not only the utility value of using it where there is no cell coverage on major highways and other areas, but it's also peace of mind in having a backup in addition to the conventional wireless network. It's both of those sentiments that continue to drive consumers and businesses, importantly, to see the value in having Satellite, again, as a primary when needed, or as a backup, in the event it's required. Glenn Brandt: David, on your question on the value of our combined sports and media assets, we continue to be very optimistic around the strength of that collection of assets and the value for them. You've seen in all of the other comparable transactions and with sports franchises, the asset values appreciate substantially year-over-year. It's a reflection of where the revenues have moved over the last several years and continue to grow. We saw that with the growth we've seen in our revenue and EBITDA within Rogers Sports & Media over the last year and a half, not just for the Toronto Blue Jays, but certainly predominantly for the Toronto Blue Jays. We're confident with what we're bringing to market, the value they drive. You've heard us refer to an anticipation of assets that are worth CAD 25 billion or more in the past. I'm not going to start an early round of negotiation on this call with where we're going to sell the minority stake. I anticipate that we are going to find strong support for the value of the assets, and we will drive a strong transaction as hard as we can. More to come on what that value is. Through this exercise, there is nothing that we have seen that causes us to be modest about the strength of the assets we own and the strength of the proposal we're bringing to market. The market will determine what that valuation is. I'm optimistic. David McFadgen: Okay. All right. Thanks, guys. Glenn Brandt: Thank you, David. Paul Carpino: Thanks everyone for joining the call, and if there's any follow-ups, please reach out to the IR team. Thank you. Tony Staffieri: Thank you all. Glenn Brandt: Thank you. Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day. Before you buy stock in Rogers Communications, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Rogers Communications wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy. Rogers (RCI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Rogers Communications (TSX:RCI.B) affirmed a quarterly dividend of CA$0.50 per share and reaffirmed its 2026 service revenue guidance, shortly after reporting mixed second quarter results that included higher sales but a net loss. See our latest analysis for Rogers Communications. Rogers Communications' share price has come under pressure, with the stock down 4.63% on the day and posting an 11.03% decline year to date. However, the 1 year total shareholder return is 2.52%, suggesting short term sentiment has weakened while longer term returns remain modest. If this mix of dividend income and media growth has your attention, it could be a good moment to broaden your search with 3 top founder-led companies Bulls point to steady service revenue, media growth and the dividend, while bears focus on recent losses and the share price slide. Which side does Rogers Communications' current valuation actually support? The most followed narrative on Rogers Communications pegs fair value at CA$60.38, compared with the last close at CA$46.36, and frames that gap around long term cash flow resilience. Read the complete narrative. Curious what earnings mix and margin profile sit behind that fair value for Rogers Communications? The narrative is based on modest revenue growth, slimmer margins, and a richer future earnings multiple to bridge the gap to CA$60.38. Result: Fair Value of CA$60.38 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Rogers Communications narrative could be knocked off course if regulatory changes squeeze pricing power, or if high post acquisition debt leaves less room to invest. Find out about the key risks to this Rogers Communications narrative. With both risks and rewards in play for Rogers Communications, you can either rely on others' opinions or test the thesis yourself quickly and clearly using the 5 key rewards and 3 important warning signs Do not stop with Rogers Communications, broaden your watchlist now and give yourself more options before the next round of earnings reshapes the opportunity set. Target potential mispricings by scanning companies that combine quality and value using the 5 high quality undervalued stocks. Prioritize income by focusing on companies with higher yields and resilient payouts through the 6 dividend fortresses. Lower portfolio stress by zeroing in on steadier companies with the 9 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RCI-B.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Rogers Communication, Inc.? Here are five stocks we like better. Rogers posted stronger Q2 results, with consolidated service revenue up 8%, adjusted EBITDA up 3%, and free cash flow rising to CAD 1 billion. Capital expenditures fell 16%, pushing capital intensity to its lowest level since 2008. Wireless added customers despite a tougher market, including 40,000 net additions and improved churn, though ARPU slipped 2%. Management said it is pulling back from heavy discounting and focusing on longer-term value offers as promotional activity cools across the market. Sports and media are becoming a bigger growth driver, highlighted by a 53% jump in media revenue and a major MLSE acquisition plan. Rogers expects to fully own MLSE after closing the remaining 25% stake purchase, then later sell a minority stake in the combined sports/media business to help reduce debt. 3 Low P/E Stocks: Separating Multibaggers From a Value Trap Rogers Communication (NYSE:RCI) reported higher second-quarter service revenue and adjusted earnings, with management emphasizing stronger free cash flow, reduced capital spending and progress on its plan to monetize sports and media assets. On the company’s earnings call, President and CEO Tony Staffieri said Rogers “continued to deliver solid performance” across wireless, cable and sports and media despite what he described as “an overall low growth telecom market.” Consolidated service revenue rose 8%, while adjusted EBITDA increased 3%. → Buyback Boom: These 3 Companies Are Betting Billions on Their Own Stocks Rogers Communication Stock Should Be Launching Higher Free cash flow for the quarter was CAD 1 billion, up 6% from a year earlier. Capital expenditures declined 16%, and capital intensity improved 350 basis points to 12.4%, which Staffieri said was Rogers’ lowest capital intensity ratio since the first quarter of 2008. Chief Financial Officer Glenn Brandt said Rogers reaffirmed its 2026 outlook ranges for total service revenue growth, adjusted EBITDA growth, capital expenditures and free cash flow. The company continues to expect 2026 capital expenditures of CAD 2.5 billion to CAD 2.7 billion. → 3 Photonics Companies Making Quantum Tech Possible In wireless, Rogers added 40,000 subscribers during the quarter, including 22,000 postpaid customers. Wireless service revenue was stable year over year, while adjusted EBITDA rose 1%. Brandt said mobile phone net additions were down 34% from the prior year, reflecting “continued flat to declining overall population.” Mobile phone ARPU was CAD 54.25, down 2% from a year earlier. Postpaid mobile phone churn improved to 0.94%, down 6 basis points year over year. → AI Data Centers Need Power, and These 2 Industrials Are Cashing In Staffieri said Rogers has shifted away from short-term promotional price discounting and toward “meaningful, sustainable value propositions” for customers. He said the broader market also showed “much reduced promotional pricing activity” in the second quarter. During the question-and-answer session, Staffieri said wireless market expansion appeared to be around 2%, at the lower end of the company’s prior 2% to 2.5% range. He said future wireless revenue performance will depend heavily on ARPU trends and market conditions during back-to-school and fall selling periods. Rogers said its back-to-school offers focus on perks, partnerships, hardware discounting and higher-tier plan features rather than broad service-price reductions. Staffieri also pointed to offerings such as satellite service, roaming and savings on streaming applications as part of the company’s value strategy. Rogers’ cable business posted 1% growth in both service revenue and adjusted EBITDA, and added 17,000 retail internet subscribers in the quarter. Brandt said the cable margin was 58%, up 10 basis points from a year earlier. Brandt said cable’s organic growth was roughly double the reported figure after excluding the impact of Rogers’ December 2025 sale of its hosted data center business. On that basis, cable service revenue and adjusted EBITDA each rose 2% year over year. Asked about ongoing pressure in satellite TV, Brandt declined to provide detailed figures but said the impact has been “fairly flat” and steady in recent years, and is already embedded in the company’s reported cable performance. Rogers Sports & Media delivered the company’s strongest growth in the quarter. Media revenue reached CAD 1.2 billion, up 53% from a year earlier. Brandt said approximately CAD 0.3 billion of the increase came from consolidation of Maple Leaf Sports & Entertainment, while standalone organic Rogers Sports & Media revenue grew 13%, or roughly CAD 100 million. Brandt attributed the organic growth largely to higher Toronto Blue Jays-related revenue, including more than 95% near-sellout attendance for home games at Rogers Centre, and higher subscriber revenue following the 2025 launch of the Warner Bros. Discovery suite of channels. Media adjusted EBITDA was CAD 69 million, compared with CAD 8 million a year earlier, an increase of about 8.5 times. Rogers recently agreed to acquire the remaining 25% ownership stake in Maple Leaf Sports & Entertainment. Staffieri said that, when the acquisition closes, Rogers will be 100% owner of MLSE’s teams and assets. Brandt said the company expects to close the purchase in the fourth quarter, subject to league approvals, and is targeting October 1. Rogers recorded a CAD 1 billion non-cash loss in other expense related to the negotiated purchase price and settlement and termination of the MLSE put liability. Brandt said that reflected the change in fair value of the put liability from CAD 3.3 billion in July 2025 to the CAD 4.35 billion negotiated transaction at June 30, 2026. After completing the acquisition, Rogers plans to combine Rogers Sports & Media with MLSE and sell a minority stake, or stakes, in the combined sports, media and entertainment business. Brandt said the company is targeting the first half of 2027 for that transaction and expects proceeds to be used to reduce debt. In response to analyst questions, Rogers said it plans to sell non-voting common equity in the holding company for the combined assets, rather than stakes in individual teams such as the Blue Jays, Maple Leafs or Raptors. Brandt said Rogers is not specifically seeking a strategic investor, though it would evaluate opportunities if they arise. Rogers ended the quarter with leverage of 3.8 times, down from 4 times at Dec. 31, 2025. Liquidity was more than CAD 6 billion, including CAD 1.7 billion in cash and cash equivalents and CAD 4.4 billion available under bank and other credit facilities. Management said the lower capital spending level is expected to be sustained beyond 2026. Staffieri said Rogers views capital in two categories: spending to sustain its existing network and business, and spending for network expansion, particularly wireline expansion. He said the current regulatory environment has made it harder to justify some expansion investments. Asked about satellite-based competition such as Starlink, Staffieri said Rogers sees satellite service as complementary to terrestrial wireless and wireline networks rather than a near-term replacement. Rogers is working with SpaceX/Starlink on satellite service in Canada. Staffieri also said network slicing remains an opportunity to differentiate higher-tier wireless plans through priority access or enhanced experiences, such as in stadiums during concerts or other high-traffic events. “We’re executing on our telecom priorities and sports monetization plan with discipline,” Staffieri said. “We are doing what we said we would do, and we’re doing it ahead of schedule.” Rogers Communications Inc is a Canadian integrated communications and media company headquartered in Toronto, Ontario. The company provides a broad range of telecommunications services to residential and business customers across Canada, including wireless voice and data services, cable television, high-speed internet, and home phone services. In the enterprise market it offers managed IT, data center and cloud solutions, networking and connectivity services targeted to small businesses, large enterprises and public sector clients. In addition to connectivity services, Rogers operates a significant media portfolio that includes national and regional television and radio assets, sports broadcasting properties and other content businesses. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Rogers Communication Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Consolidated Service Revenue: Up 8% year over year to CAD5.1 billion. Adjusted EBITDA: Increased by 3% to CAD2.4 billion. Free Cash Flow: Grew 6% year over year to CAD1 billion. Capital Expenditures (CapEx): Decreased by 16% to CAD0.7 billion. Capital Intensity Ratio: Improved by 350 basis points to 12%. Wireless Net Additions: 40,000 customers, including 22,000 postpaid. Postpaid Mobile Phone Churn: Improved to 0.94%, down 6 basis points. Mobile Phone ARPU: CAD54.25, down 2% year over year. Cable Service Revenue: Grew 1%, with 17,000 internet subscriber additions. Cable Margin: 58%, up 10 basis points year over year. Media Revenue: Increased by 53% to CAD1.2 billion, with 13% organic growth. Media Adjusted EBITDA: Increased approximately 8.5 times to CAD69 million. Liquidity: Over CAD6 billion, including CAD1.7 billion in cash and CAD4.4 billion in credit facilities. Leverage Ratio: Reduced to 3.8 times from 4 times at the end of 2025. Warning! GuruFocus has detected 5 Warning Signs with RCI. Is RCI fairly valued? Test your thesis with our free DCF calculator. Release Date: July 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Rogers Communications Inc (NYSE:RCI) reported an 8% increase in consolidated service revenue and a 3% rise in adjusted EBITDA, showcasing strong performance despite a low growth telecom market. The company generated CAD1 billion in free cash flow for Q2, marking a 6% year-over-year increase, while capital expenditures decreased by 16%. Rogers Communications Inc (NYSE:RCI) achieved its lowest capital intensity ratio since 2008, improving by 350 basis points to 12.4%. The company's Sports and Media division saw a 53% increase in revenue, with organic growth of 13%, driven by higher Toronto Blue Jays-related revenue and new channel launches. Rogers Communications Inc (NYSE:RCI) is set to acquire the remaining 25% ownership stake in Maple Leaf Sports & Entertainment, aiming to fully own and monetize its sports and media assets. Wireless market growth remains low, with mobile phone ARPU down 2% year-over-year, reflecting challenges in achieving revenue growth. The company recorded a CAD1 billion non-cash loss related to the negotiated purchase price and settlement of the MLSE put liability. Rogers Communications Inc (NYSE:RCI) faces ongoing pressure from satellite TV, which continues to impact cable revenue growth. The regulatory environment poses challenges for capital investment, particularly in network expansion, affecting long-term growth strategies. The company anticipates further reductions in capital expenditures, which may impact future network and service enhancements. Q: Can you provide an outlook for network revenue growth, particularly in the wireless sector, and discuss the impact of ARPU trends? A: Anthony Staffieri, CEO, explained that the wireless market is experiencing low growth, with volumes around 2%. The focus is on ARPU growth through sustainable value propositions rather than aggressive discounting. The strategy includes offering value through higher-tier plans and hardware discounts funded by OEMs. The market's muted promotional activity in Q2 is a positive sign, and the company is optimistic about ARPU growth depending on market conditions. Q: How are you addressing the impact of lower or no activation fees on ARPU in the second half of 2026? A: Glenn Brandt, CFO, noted that the impact of lower activation fees was minor in Q2. The company is exploring value-added fees for services and focusing on premium service pricing to sustain ARPU. They are leveraging various levers to offset potential discounting and fee impacts, aiming to maintain ARPU levels. Q: What is the timeline for monetizing a stake in the combined Rogers MLSE business, and how will it affect leverage? A: Glenn Brandt, CFO, stated that the acquisition of the remaining 25% of MLSE is expected to close in Q4 2026, subject to league approvals. The sale of a minority stake in the combined entity is targeted for the first half of 2027. Proceeds from the sale will be used to pay down debt and reduce leverage, with the initial acquisition funded through bank credit facilities. Q: How do you view the potential impact of Starlink on the domestic wireless business? A: Anthony Staffieri, CEO, expressed that while satellite services like Starlink are evolving, they are not seen as a replacement for terrestrial wireless services due to technical limitations. The company views satellite as a complementary technology and is working with SpaceX/Starlink to enhance service offerings. Q: Can you clarify the expected CapEx levels for the remainder of 2026 and beyond? A: Glenn Brandt, CFO, confirmed that the company aims to reduce CapEx to CAD2.5 billion-CAD2.7 billion for 2026, with a sustainable run rate expected in subsequent years. This reduction is part of a strategic shift to prioritize capital efficiency and focus on projects with strong economic returns. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Rogers Communication (RCI) came out with quarterly earnings of $0.83 per share, beating the Zacks Consensus Estimate of $0.8 per share. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.75%. A quarter ago, it was expected that this communications and media company would post earnings of $0.73 per share when it actually produced earnings of $0.74, delivering a surprise of +1.37%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Rogers Communication, which belongs to the Zacks Diversified Communication Services industry, posted revenues of $4.06 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.45%. This compares to year-ago revenues of $3.77 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Rogers Communication shares have lost about 8.9% since the beginning of the year versus the S&P 500's gain of 9.7%. While Rogers Communication has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Rogers Communication was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.86 on $3.86 billion in revenues for the coming quarter and $3.36 on $16.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Diversified Communication Services is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Liberty Global Ltd (LBTYA), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 24. This company is expected to post quarterly loss of $0.31 per share in its upcoming report, which represents a year-over-year change of +96.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Liberty Global Ltd's revenues are expected to be $1.3 billion, up 2.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rogers Communication, Inc. (RCI) : Free Stock Analysis Report Liberty Global Ltd (LBTYA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research