Rogers Communications reported record quarterly free cash flow of $1.37 billion on Friday, days after its plan to impose a 1.6% processing charge on customers paying by credit card became public. The new charge puts a customer-facing cost increase alongside a 65% jump in the telecom company’s cash generation.
Free cash flow climbed from $829 million a year earlier in the third quarter ended September 30. Capital expenditures fell 46% to $524 million, while cash from operating activities rose 9% to $1.66 billion. Rogers attributed the improvement largely to lower capital spending, higher adjusted EBITDA, and reduced cash income taxes.
The company posted $5.44 billion in revenue, up 2%, and $2.54 billion in adjusted EBITDA, up 1%. Its free cash flow measure is company-defined and is not standardized under international accounting rules, according to its Q3 2026 financial results.
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Starting January 17, 2027, Rogers customers who pay bills through credit cards will be charged 1.6% of the payment amount. The charge applies to one-time transactions and automatic payments. A $100 bill paid by credit card would therefore incur another $1.60 before any applicable taxes.
Rogers told iPhone in Canada that its annual credit card processing costs have increased nearly 40% since 2020 to approximately $150 million. The company described the new fee as a way to recover those expenses. The outlet reported that the charge also applies to Fido customers.
The Rogers notice exempts Quebec customers, certain Connected for Success customers, and eligible former Shaw Mobile customers on migrated plans. Payments through online banking, direct bank-account debit, and debit cards are not subject to the fee.
The financial release also disclosed pressure on existing fee income. Rogers said wireless service revenue fell 1% during the quarter partly because of lower fee revenue following a Canadian Radio-television and Telecommunications Commission decision, alongside competitive pressure.
That CRTC decision restricts charges associated with activating or changing telecom service plans. The regulator separately opened proceedings over certain fees charged by Rogers, Bell, and Telus.
Rogers ended September with a debt leverage ratio of 3.7 times. It subsequently completed a $4.35 billion acquisition of the remaining minority interest in Maple Leaf Sports & Entertainment, funded through short-term credit facilities.
The company has said stronger cash flow should help accelerate debt repayment, even as it prepares to recover credit card processing expenses directly from eligible customers.
