Rogers Communications (TSX: RCI.B) reported its Q3 2025 financials, with revenue at $5.35 billion, up 4% year over year from $5.13 billion.
On a segmented basis, wireless revenue increased 2% to $2.66 billion due to equipment revenue jumping 9%. Cable revenue increased 1% to $1.98 billion while media revenue climbed 26% to $753 million with the addition of MLSE and a strong Blue Jays season. Rogers recently closed the purchase of Bell’s 37.5% stake in MLSE for $4.7 billion.
Operating costs came in at $2.83 billion, up 10% from $2.58 billion. Notably, other income swung to a $5.04 billion gain versus a $2 million expense last year, primarily the non-cash gain tied to the MLSE consolidation, which lifted income before tax to $6.02 billion from $727 million.
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This pushed net income to $5.81 billion from $526 million, while adjusted net income fell 5% to $726 million from $762 million last year, while adjusted diluted EPS declined 4% to $1.37 from $1.42.
Adjusted EBITDA declined 1% to $2.52 billion and adjusted EBITDA margin contracted by 260 basis points to 47.0% from 49.6%. Management attributes the adjusted EBITDA softness to the seasonal profile of MLSE in the off-season for the Maple Leafs and Raptors.
Cash provided by operating activities was $1.52 billion, down 20% from $1.89 billion a year ago. Capital expenditures were $964 million, down 1% from $977 million, with capital intensity at 18.0% versus 19.0% last year. Free cash flow was $829 million, down 9% from $915 million.
The balance sheet expanded with the MLSE acquisition. Total assets rose to $89.62 billion from $71.41 billion at year-end 2024. Cash and cash equivalents were $1.51 billion versus $898 million at year-end.
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Rogers added 111,000 total mobile phone net additions, including 62,000 postpaid and 49,000 prepaid, versus 101,000 and 93,000 a year ago. Monthly mobile phone ARPU declined to $56.70 from $58.57. In Cable, retail Internet net additions were 29,000 versus 33,000, taking total Internet subscribers to 4.475 million, up 228,000 year over year, but ARPA fell to $136.05 from $140.36.
Management reiterated its outlook for 2025 service revenue growth of 3% to 5% and adjusted EBITDA growth of 0% to 3%. Capital expenditures guidance was reduced to approximately $3.7 billion from $3.8 billion and free cash flow guidance was raised to $3.2 billion to $3.3 billion from $3.0 billion to $3.2 billion.
Rogers declared a quarterly dividend of $0.50 per share on October 22 and returned $270 million in Q3 dividends to shareholders.
Rogers Communications Class B shares last traded at $52.24 on the TSX.
Information for this story was found via Sedar, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
