Rogers Communications Reports Stellar Q4 Media Revenue Growth
Rogers Communications Inc. has announced a remarkable 126% increase in its sports and media revenue for the fourth quarter, reaching $1.24 billion compared to $547 million in the same period last year. This substantial growth is primarily attributed to the Toronto Blue Jays' extended postseason performance and the company's recent acquisition of Maple Leaf Sports & Entertainment (MLSE).
Key Drivers Behind the Revenue Surge
The company's financial results, released for the quarter ending December 31, reveal that total revenue climbed by 13% to $6.17 billion, while total service revenue increased by 16% to $5.25 billion. These figures exceeded market expectations, largely due to the media segment's exceptional performance.
Rogers CEO Tony Staffieri emphasized during the earnings call that the Blue Jays' deep playoff run, culminating in Game 7 of the World Series, became the most-watched Rogers broadcast ever and the most-watched broadcast in Canadian history outside of the 2010 Winter Olympics. Additionally, the consolidation of MLSE results in the second half of the year significantly contributed to the revenue boost.
Media Outperforms Wireless and Cable Segments
While media revenue experienced explosive growth, the wireless and cable segments remained relatively stable. Wireless revenue in the quarter was $2.97 billion, showing a slight decline of 0.7% from the previous year, and cable revenue was $1.984 billion, down 0.05%.
The sports and media assets generated an adjusted EBITDA of $221 million in the quarter, representing a more than four-fold increase from last year's $55 million. Media revenue substantially surpassed consensus estimates of $1.14 billion, while media EBITDA also exceeded expectations of $170 million.
Future Outlook and Strategic Considerations
Staffieri highlighted that these strong financial results position Rogers favorably as the company pursues future sports monetization opportunities, including plans to acquire the remaining 25% stake in MLSE later this year. He noted that the robust growth in core sports and media operations underscores the quality of these assets.
However, Desjardins analyst Jerome Dubreuil cautioned that replicating the Blue Jays' positive impact might prove challenging in future periods. He estimated that Rogers' adjusted EBITDA growth guidance for 2026, ranging from $9.92 billion to $10.12 billion, suggests organic growth of approximately 2%, which is likely lower than the 2025 performance.
Additional Financial Metrics and Performance
For the wireless business, adjusted EBITDA in the fourth quarter increased by 1%, while wireless equipment revenue decreased by 1%, primarily due to fewer new subscribers purchasing devices. Rogers added 39,000 total mobile phone net additions in Q4, including 37,000 postpaid subscribers, with postpaid churn improving by 10 basis points to 1.43%.
Cable adjusted EBITDA also rose by 1%, attributed to ongoing cost efficiencies. The company's net income increased by 27% on a reported basis and 3% on an adjusted basis, driven primarily by higher adjusted EBITDA, partially offset by increased income taxes, depreciation, and amortization. Net income was further impacted by a $69 million gain from the sale of Rogers' customer-facing data centre business.
The fourth quarter consolidated EBITDA grew by 6%, while the adjusted EBITDA margin decreased by 260 basis points, mainly due to the substantial media revenue and adjusted EBITDA growth.
