Rogers earnings for the third quarter of 2026 showed free cash flow rising 65% to C$1.37 billion as capital spending fell, while service revenue and adjusted EBITDA each grew 1%. The Canadian telecommunications and media company reaffirmed its annual outlook on October 23 and said it was pursuing a minority stake sale in its sports portfolio after completing its acquisition of full ownership of Maple Leaf Sports & Entertainment.
Key Takeaways
- Lower capital spending helped lift quarterly free cash flow well ahead of operating earnings growth.
- Wireless and Cable margins improved, but adjusted diluted earnings per share fell 6%.
- Rogers plans to sell a minority interest in its consolidated sports assets by the first half of 2027 to repay debt.
Table of Contents
- Rogers earnings show stronger cash generation
- Profit comparison reflects last year’s MLSE gain
- Telecom margins rise while Media leads revenue growth
- Sports ownership expands before planned debt repayment
- Conclusion
Rogers earnings show stronger cash generation
Rogers’ third-quarter 2026 results announcement covers unaudited financial and operating performance for the three months ended September 30, 2026. Total revenue rose 2% to C$5.443 billion, with service revenue reaching C$4.780 billion and adjusted EBITDA increasing to C$2.535 billion.
Cash generation improved much faster than those operating measures. Capital expenditures were C$524 million, and capital intensity fell 840 basis points to 9.6%. Free cash flow rose from C$829 million a year earlier to C$1.370 billion, helped by lower investment spending, higher adjusted EBITDA and lower cash income taxes, partly offset by distributions to non-controlling interests.
Year-to-date free cash flow reached C$3.128 billion, up 34%. The distinction matters: the sharp cash-flow improvement did not reflect an equivalent acceleration in service revenue or operating earnings.
| Item | Details |
|---|---|
| Mobile phone net additions | 17,000 in Q3 2026. |
| Mobile phone average revenue per user | C$55.22 in Q3 2026. |
| Postpaid mobile phone churn | 1.03% in Q3 2026. |
| Retail Internet net additions | 10,000 in Q3 2026. |
| Shareholder dividend | C$0.50 per share declared on October 22, 2026. |
Profit comparison reflects last year’s MLSE gain
Net income fell 91% to C$495 million from C$5.768 billion. The comparison was heavily affected by a C$5 billion non-cash gain recorded a year earlier when Rogers remeasured its existing 37.5% MLSE interest at fair value. The prior-year quarter also included a C$151 million gain on redemption of long-term debt.
Adjusted net income declined 3% to C$701 million, primarily because higher finance costs outweighed the increase in adjusted EBITDA. Adjusted diluted earnings per share attributable to Rogers shareholders fell to C$1.29 from C$1.37.
Adjusted earnings, free cash flow and leverage measures are not standardized under IFRS and may not be comparable with similarly named measures at other companies.
Telecom margins rise while Media leads revenue growth
Wireless service revenue declined 1% to approximately C$2.0 billion. Rogers attributed the decrease mainly to lower average revenue per mobile phone customer amid competition and reduced fee revenue following a Canadian Radio-television and Telecommunications Commission decision prohibiting certain fees.
Wireless adjusted EBITDA nevertheless grew 1%, supported by higher equipment margins, and its adjusted EBITDA margin rose 130 basis points to 68%. Cable service revenue was broadly unchanged at approximately C$2.0 billion, while efficiency initiatives helped lift its adjusted EBITDA 1% and margin to 59%.
Media revenue increased 9% to C$821 million, supported by sports revenue and subscriber revenue from the Warner Bros. Discovery suite of channels, partly offset by weaker advertising. Media adjusted EBITDA rose 12% to C$84 million.
Sports ownership expands before planned debt repayment
On October 1, after the quarter ended, Rogers completed the C$4.35 billion cash purchase of Kilmer Sports’ remaining 25% stake in MLSE, funded through short-term credit facilities. The transaction gave Rogers 100% ownership of the business, whose assets include the Toronto Maple Leafs, Toronto Raptors and Scotiabank Arena.
Rogers is pursuing a sale of a minority interest in its consolidated sports, media and entertainment portfolio, known as Rogers Sports, by the first half of 2027. It expects to use the proceeds to repay debt; the sale has not been completed.
The company’s debt leverage ratio was 3.7 times at September 30, down 0.1 times sequentially. That quarter-end measure preceded the borrowing used to complete the October acquisition.
Management reaffirmed its 2026 outlook for total service revenue, adjusted EBITDA, capital expenditures and free cash flow.
Conclusion
Rogers’ next stated milestone is the targeted minority sale of Rogers Sports by the first half of 2027. Its completion and proceeds will determine how much debt Rogers can repay following the October MLSE acquisition.
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