Rogers Communication (($TSE:RCI.B)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Rogers Communications’ recent earnings call showcased a mix of achievements and challenges, reflecting a generally positive sentiment. The company reported significant revenue growth and strategic investments, while also addressing competitive pressures and regulatory risks that have impacted certain areas of their business.
Positive Revenue and EBITDA Growth
Rogers Communications reported a 2% growth in revenue and adjusted EBITDA across its Wireless, Cable, and Media segments for Q2 2025. This growth highlights the company’s ability to maintain financial stability and expand its market presence despite external challenges.
Successful Deleveraging
The company achieved a debt leverage of 3.6x, returning to pre-Shaw deal levels nine months ahead of schedule. This successful deleveraging demonstrates Rogers’ commitment to financial discipline and its strategic focus on strengthening its balance sheet.
Major Strategic Moves
Rogers completed a $7 billion equity investment, becoming the majority owner of MLSE with a 75% controlling interest. Additionally, the company launched satellite-to-mobile texting in Canada, marking significant strategic advancements in its service offerings.
Significant Media Revenue Increase
Media revenue saw a 10% increase, driven by expanded media content, the NHL playoffs, and revenue from the Toronto Blue Jays. This growth underscores the strength of Rogers’ media segment and its ability to capitalize on popular sporting events and content expansion.
Launch of 5G Advanced Network and Wi-Fi 7
Rogers initiated the deployment of 5G advanced network technology and began rolling out Wi-Fi 7 nationally. These technological advancements position the company at the forefront of telecommunications innovation, enhancing customer experience and service quality.
Wireless Subscriber Growth Slowdown
The company experienced a slowdown in net new wireless subscribers, decreasing to 61,000 from 162,000 the previous year. This decline is attributed to a moderating market size due to reduced immigration, highlighting the challenges in sustaining subscriber growth.
Decline in ARPU
Rogers reported a 3% decrease in blended mobile phone ARPU from the prior year, influenced by competitive intensity and lower outbound roaming revenue. This decline reflects the ongoing competitive pressures within the telecommunications industry.
CRTC Decision Impact
Rogers expressed concerns over a CRTC decision that could lead to reduced capital programs and at-risk network investments. This decision may impact competition and network construction jobs, posing potential challenges for the company’s future growth.
Forward-Looking Guidance
Looking ahead, Rogers provided guidance for 2025, forecasting total service revenue growth between 3% and 5%, with adjusted EBITDA growth remaining at 0% to 3%. Capital expenditures are expected to be at the low end of the $3.8 billion to $4 billion range, and free cash flow is projected between $3 billion and $3.2 billion. These forecasts reflect the inclusion of MLSE’s financial results and the company’s strategic focus on cost efficiencies and financial stability.
In summary, Rogers Communications’ earnings call highlighted a positive trajectory in revenue and strategic investments, despite facing challenges such as slowed wireless subscriber growth and regulatory risks. The company’s forward-looking guidance suggests a cautious yet optimistic outlook, with a focus on maintaining financial health and capitalizing on strategic opportunities.