RCI · Rogers Communications Inc.

Rogers Communications delivered strong Q1 2026 results with total revenue up 10% to $5.5 billion and total service revenue up 10% to $4.9 billion, primarily propelled by an 82% surge in Media revenue to $988 million following the July 1, 2025 MLSE transaction acquiring Bell's 37.5% interest. Wireless revenue grew 2% with equipment sales up 8% from higher upgrades, while service revenue held steady; adjusted EBITDA rose 1% to $1.3 billion with margins expanding 40 basis points to 65% due to improved equipment margins. Cable saw 1% service revenue growth (2% organically excluding 2025 data center sale) from retail Internet adds and pricing discipline, with adjusted EBITDA up 1% (2% organically) and margins up 30 basis points to 58%.

Consolidated adjusted EBITDA increased 5% to $2.4 billion despite a 220 basis point margin contraction to 43.1%, reflecting Media's scaling. Net income jumped 72% to $482 million, driven by lower finance costs ($443 million vs $579 million) and higher EBITDA, though offset by elevated taxes; adjusted net income edged up 1% to $550 million. Cash from operations rose 15% to $1.5 billion, and free cash flow surged 32% to $776 million on lower capex of $808 million (down from $978 million), supporting debt reduction with leverage at 3.8x (improved from 4.0x).

Management upgraded 2026 guidance significantly, cutting capex to $2.5-$2.7 billion (from $3.3-$3.5 billion) and boosting free cash flow to $4.1-$4.3 billion (up from $3.3-$3.5 billion) amid competitive and regulatory pressures, while reaffirming 3-5% growth in service revenue and 1-3% in adjusted EBITDA over 2025's $19.1 billion and $9.8 billion bases. Strategic highlights include 5G upgrades for Fido, satellite IoT launch, Amazon Luna integration, and sports viewership records. The company anticipates buying out MLSE's remaining 25% minority stake in 2026 to unlock sports asset value, with $6.0 billion liquidity and $270 million dividends underscoring shareholder returns amid deleveraging focus.