Canada's Rogers Communications Q4 revenue up 13%, beats estimates

Overview

• Canada telecom giant's Q4 revenue rose 13%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company's media revenue surged 126% due to sports-related gains

Outlook

• Rogers expects 2026 service revenue growth of 3% to 5%

• Company forecasts 2026 adjusted EBITDA growth of 1% to 3%

• Rogers projects 2026 capital expenditures of C$3.3 bln to C$3.5 bln

• Company anticipates 2026 free cash flow of C$3.3 bln to C$3.5 bln

Result Drivers

• WIRELESS GROWTH - Rogers added 39,000 total mobile phone net additions in Q4, including 37,000 postpaid subscribers, contributing to stable wireless service revenue

• MEDIA REVENUE SURGE - Media revenue increased by 126% due to the Toronto Blue Jays' postseason success and inclusion of MLSE results

• COST EFFICIENCIES - Cable adjusted EBITDA increased by 1% due to ongoing cost efficiencies, leading to an adjusted EBITDA margin of 59%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for Rogers Communications Inc is C$59.50, about 20.9% above its January 28 closing price of C$49.20

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXgpwjK

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