Rogers Communications Inc. has unveiled promising guidance for 2026, revealing a notable increase in both revenue and net income during its fourth quarter, driven largely by robust media earnings. As the Toronto-based telecom giant prepares to leverage its sports assets in the upcoming year, it faces a challenging landscape with a marked decline in net new mobile phone subscribers.
Financial Highlights and Revenue Surge
In its quarterly update, Rogers reported service revenue of CAD 5.2 billion for the period ending December 31, reflecting a substantial 16 per cent increase from the previous year. Total revenue reached CAD 6.1 billion, surpassing analyst expectations of CAD 6 billion. A remarkable 126 per cent rise in media revenue was attributed to the completion of Rogers’ acquisition of Bell’s stake in Maple Leaf Sports & Entertainment, alongside the Toronto Blue Jays’ playoff performance last autumn and increased advertising revenue stemming from a partnership with Warner Bros. Discovery Inc.
The company also recorded a net income of CAD 710 million, which is a 27 per cent rise year-on-year, while its free cash flow improved to CAD 1 billion, exceeding analyst projections of CAD 943 million.
Subscriber Growth Declines
Despite these positive financial indicators, Rogers faced setbacks in its subscriber growth. The company only added 39,000 postpaid and prepaid mobile customers in the quarter, a steep drop from the 95,000 new subscribers gained in 2025. Additionally, net internet additions decreased to 22,000, down from 26,000 in the same period last year.
The average revenue per user (ARPU), a critical metric for the telecom industry, fell by 2.8 per cent, aligning with analyst expectations and indicating ongoing pressures in subscriber value. However, churn rates among postpaid wireless customers showed slight improvement, suggesting some stabilisation in customer retention.
Looking Ahead: Debt Management and Strategic Moves
Analysts believe that the telecom sector is gradually benefiting from debt repayment strategies, but improvements in financial performance are expected to be slow. With many consumers locked into two-year contracts and new customer acquisition hindered by sluggish immigration rates, Rogers must navigate a challenging market environment.
Looking forward, Rogers plans to further monetise its sports assets, particularly following the anticipated acquisition of the remaining 25 per cent stake in MLSE from Larry Tanenbaum’s Kilmer Group in July. This move is expected to enhance the company’s valuation, which CFO Glenn Brandt estimates to be around CAD 20 billion for its combined sports and media portfolio. The potential sale of a minority stake in these assets could significantly assist in reducing Rogers’ long-term debt, which stands at CAD 35.8 billion.
Royal Bank of Canada analyst Drew McReynolds has expressed optimism regarding Rogers’ future share price, citing the prospects of improved cash flow and effective debt management as key drivers.
Market Performance
As of Thursday morning, Rogers shares were trading at CAD 49.50 on the Toronto Stock Exchange, reflecting a 5.6 per cent decline since the start of the year but a 12 per cent increase compared to this time last year. The company’s ability to navigate its current challenges while capitalising on its media and sports assets will be crucial for sustaining investor confidence.
Why it Matters
Rogers Communications’ recent financial performance underscores the complexities facing the telecom sector, marked by a dual narrative of growth and challenges. While the impressive revenue figures and strategic plans for asset monetisation signal a proactive approach to financial health, the declining subscriber growth and reduced ARPU highlight the ongoing pressures within the industry. As Rogers continues to adapt in a competitive landscape, its strategic decisions will likely have significant implications for its future trajectory and for the broader telecom market in Canada.
