Oct 23, 2026 earnings call — MLSE acquisition and sports monetization
Rogers bought the remaining 25% of MLSE on October 1st and plans to sell a minority stake by the first half of 2027.
Revenue $3.8B (est $3.8B) · EPS $0.92 (est $0.84)
Key quotes
"We are now actively engaged on the next phase of this file, pursuing the sale of a minority interest in our consolidated sports media and entertainment assets to third party investors, targeting completion in the first half of 2027."
"As mentioned earlier, capital expenditures decreased substantially in the quarter, down 46% to CAD 524 million, and capital intensity down 840 basis points to 9.6%."
"Mobile phone ARPU declined 2.6% to CAD 55.22 as a result of the immediate in-quarter impact from the CRTC decision, together with the lagging impact of the competitive intensity from prior quarters, most notably Q4 and Q1."
Analyst Q&A 9
CRTC fees and wireless penetration
Q (Drew McReynolds · RBC): Asked whether the CRTC fee impact on wireless ARPU is fully in the run rate now and when a CRTC response might come. Also asked for an update on market penetration and subscriber mix trends.
A: Management said the full run rate impact of the CRTC decision was felt in the quarter. They are finding alternatives to cover those costs and have some initiatives identified, with more work to do. On penetration, net adds were down about 30% in H1 and down about 30%-40% in Q3, penetration has softened to about 1.5%-2%, population growth is essentially flat, and Rogers focused promotions on value rather than pure price, with OEM-funded hardware promos and an +8% incoming ARPU year-on-year.
"I'd say the full run rate for the decision was felt in the quarter." — Glenn Brandt (CFO)
Starlink impact on broadband and mobile
Q (Batya Levi · UBS): Asked how Starlink could change broadband and mobile competition in Canada and for an update on the partnership to cover white spaces.
A: Management said Starlink participates mostly in rural home-internet markets and has a very small market share on home internet. They partner with Starlink for small business connectivity and provide business application services. On satellite-to-mobile, Rogers has a strong, long-standing partnership with SpaceX, is deepening collaboration, and intends to lead Canada working with Starlink Mobile; they see the product as complementary given Canada's different spectrum, population, and regulatory landscape.
"We're proactively deepening our collaboration with Starlink on sat to mobile connectivity, and Rogers intends to lead Canada as we work with Starlink Mobile to bring expanded coverage and capability to Canadians." — Tony Staffieri (CEO)
Securitization and sports asset sale
Q (Aravinda Galappatthige · Canaccord Genuity): Asked for an update on possible securitization of receivables and its cash/financial impact. Also asked whether the plan to sell part of Rogers Sports while keeping control is still the strategy.
A: Glenn said the securitization is close, with a proposed facility arranged and under OSFI review, expecting a timely response and anticipating funding in the fourth quarter to return working capital. Tony said they are consolidating sports and entertainment, see strong valuations, are pursuing a minority sale, expect to conclude that process in the first half of next year, and plan to use proceeds to pay down debt.
"I anticipate being able to fund that in the fourth quarter." — Glenn Brandt (CFO)
Churn vs promotional discipline and free cash flow
Q (Maher Yaghi · Scotiabank): Asked when promotional discipline would show up in churn (as they let low-value customers go) and how sustainable the strong free cash flow is into 2027 excluding asset disposals.
A: Glenn said the +8% year-over-year ARPU in incoming is an early sign the discipline is working, and that churn rose to 1.03% (up four ticks) after meaningful price action but was acceptable given the circumstances. On free cash flow, he said asset sales remove past invested capital and future spend, improving current and future free cash flow, and the new 2026 CapEx run rate should be used as an indicator for near-term expectations.
"the +8% growth year-over-year in the ARPU in, which is one of the most promising signs we've seen in a very long time on the traction and the impact of that discipline." — Glenn Brandt (CFO)
Agentic shopping and CapEx shift
Q (Jérome Dubreuil · Desjardins): Asked whether Rogers will block or embrace agentic AI shopping, and what part of this year's CapEx reduction comes from shifting network build to other parties.
A: Tony said they have no concrete internal policy yet on agentic AI shopping and are watching how customers use it; the tool still has a ways to go. Glenn said the largest part of the reduced capital spend comes from deprioritizing some projects and from taking longer to execute some initiatives; he declined to break out exact shares.
"The largest part of our reduced capital spend, I'll say, is with deprioritizing some projects." — Glenn Brandt (CFO)
Equipment margin and overall ARPU trends
Q (Vince Valentini · TD Cowen): Asked if higher equipment margin is sustainable and whether it reflects reclassifying fees from service to equipment. Also asked when total reported ARPU (excluding CRTC impact) should turn positive across the base.
A: Glenn said no, equipment revenue is not being used to recover service revenue; higher equipment margin mainly reflects OEM subsidies and promotions and will vary with promotional activity, likely higher in lower-activity quarters. On ARPU, he said the CRTC removal of setup fees hit late in June so they had limited time to respond; some initiatives started in Q3 partly offset the impact, more work remains, and the focus is on driving earnings and margins rather than just revenue.
"I suspect it'll be a higher margin in lower activity quarters, which is what you're seeing, Vince." — Glenn Brandt (CFO)
CapEx cuts, asset sales, and long-term risk
Q (Sebastiano Petti · JPMorgan): Asked how much of the CapEx reduction is due to asset sales netted against CapEx and whether pulling back on investments risks long-term growth given industry pressures.
A: Tony said wireline and cable performance remain industry-leading with ongoing investments in fiber and cable improvements, modest housing-driven growth, a focus on rural expansion via wireless and the SpaceX partnership, and they are being surgical to keep capital efficient and focused on projects that yield returns. Glenn said the guide is CAD 2.5 billion-CAD 2.7 billion, annualizing Q3 CapEx gives about CAD 2.1 billion, they expect more asset exits in Q4, and the plan is to invest in ongoing priorities rather than rely on selling assets to hit targets.
"I'm indicating a guide of CAD 2.5 billion-CAD 2.7 billion." — Glenn Brandt (CFO)
Prepaid vs postpaid mix and cable margin drivers
Q (Stephanie Price · CIBC): Asked why nets skewed toward prepaid this quarter despite a premium-plan focus, and what is driving rising cable margins and how AI could improve efficiency.
A: Tony said the back-to-school promotion had limited price discounts and entry points for postpaid were $45 and above, so some customers went prepaid; many prepaid accounts now behave like postpaid and they continue to migrate prepaid to postpaid. Glenn said cable margin increases come from sustained cost discipline, scale from coast-to-coast and Shaw integration, vendor negotiation, and offshore call center resourcing; on AI he said they are at an early stage exploring uses for network management, cost reduction, and better customer service.
"The increase in our cable margin over the last five years reflects, first off, just the consistent intensity with which we go after the costs in our business." — Glenn Brandt (CFO)
Broadband revenue, ARPU definition, and churn follow-through
Q (Matthew Griffiths · BofA): Asked to separate broadband revenue trends from video declines, to confirm ARPU is measured consistently, and whether Q3 price-action churn effects will carry into Q4.
A: Glenn said ARPU in is up 8% year-over-year and is calculated on a consistent basis, but the elimination of setup fees means some incoming subscribers paid less than they would have a year ago. He said service charges and subscriber growth are the main revenue drivers, they will not parse broadband versus other services on this call, and churn from the Q3 price action may have some short follow-through into October or Q4 but they are not particularly concerned.
"The change that I think you're referring to where we've identified the ARPU in is up 8% year over year." — Glenn Brandt (CFO)