Rogers shares rise after Q4 profit gains, but wireless growth slows
Rogers posted higher revenue and profit in Q4, driven by media and sports. Core telecom metrics, including mobile adds and ARPU, cooled heading into 2026.
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By Torontoer Staff
Rogers Communications reported higher revenue and net income for the quarter ended Dec. 31, with a sharp gain in media and sports helping lift results. The company issued moderately positive 2026 guidance, but core telecom metrics showed weakness, leaving investors with mixed signals.
Service revenue rose to $5.2 billion, up 16 per cent from a year earlier, while total revenue reached $6.1 billion, slightly above analyst expectations. Net income was $710 million, a 27 per cent increase, and free cash flow improved to $1 billion, up 16 per cent.
Media and sports drove the quarter
Media revenue jumped 126 per cent, reflecting Rogers’ July acquisition of Bell’s former stake in Maple Leaf Sports & Entertainment and the Toronto Blue Jays’ World Series run last autumn. Advertising revenue also climbed as content distribution ramped under the company’s deal with Warner Bros. Discovery.
Rogers said it plans to monetise its sports assets further after exercising a right to buy the remaining 25 per cent of MLSE in July. Management values the combined sports portfolio at roughly $20 billion and has discussed selling a minority stake to help pay down long-term debt of $35.8 billion.
Telecom performance cooled
Telecom revenue was essentially flat year over year. Net new wireless mobile adds slowed sharply, with just 39,000 postpaid and prepaid additions in the quarter, down from 95,000 a year earlier and short of analyst expectations of about 50,000. Net internet adds dipped to 22,000, compared with 26,000 in the prior year.
Average revenue per user, or ARPU, fell 2.8 per cent, consistent with analyst forecasts that ARPU would be a drag this year. Churn among postpaid wireless customers improved modestly, offering a small offset to softer subscription growth.
Pricing, promotions and competition
The industry has begun to see cellphone plan pricing rise after years of declines, but the benefits to earnings will take time. Many subscribers remain on multi-year contracts and overall customer growth has been constrained by slower immigration and fewer net new consumers.
Rogers executives criticised recent rival promotions as aggressive. Glenn Brandt, chief financial officer, said competitors were offering what he called "unsustainable discounting" through January.
There are certain price points that we see as being uneconomical. We don’t see building out wireless business on the back of price plans coming in at, say, $20, which is what you see in the marketplace today. We don’t get the logic on that.
Tony Staffieri, chief executive officer
Staffieri said Rogers is focusing on margin growth by shifting away from competing solely on price and by offering tiered plans tied to additional services, including direct-to-cell satellite options.
Guidance and analyst reaction
For 2026 Rogers guided to service revenue growth of between 3 and 5 per cent and adjusted EBITDA growth of between 1 and 3 per cent compared with 2025. The company expects capital expenditure to be lower than 2025 levels and free cash flow to improve.
Analysts offered a muted response. Drew McReynolds of Royal Bank of Canada described the results and 2026 guidance as "largely neutral to a modest positive for the shares at current levels."
Market position and what to watch
- Subscriber trends: whether net adds recover from the Q4 slowdown
- ARPU: signs that price increases are translating into sustained revenue per user
- Sports monetisation: timing and structure of any deal to sell a minority stake in MLSE
- Debt reduction: progress in using asset sales and free cash flow to lower the $35.8 billion long-term debt load
Rogers shares were trading at $49.50 on the Toronto Stock Exchange before markets opened, down about 5.6 per cent year to date but up more than 12 per cent from this time last year. Investors will be watching subscriber momentum and the company’s plan to monetise sports assets as the story shifts from near-term promotions to longer-term margin improvement.
The outlook balances a stronger content and sports business against persistent challenges in core telecom metrics. How quickly ARPU rebounds and how management executes on sports monetisation will determine whether the recent results translate into sustained earnings growth.
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