Rogers Shares Surge on Rising Profits in Media and Sports Sectors

Rogers Communications Inc. recently released its fourth-quarter earnings, highlighting a significant increase in both revenue and net income. The Toronto-based telecom company aims to capitalize on its assets during 2026.

Financial Highlights of Rogers Communications

In the quarter ending December 31, Rogers reported:

• Service Revenue: $5.2 billion, a 16% increase from the previous year.
• Total Revenue: $6.1 billion, surpassing analyst expectations of $6 billion.
• Media Revenue: Up 126%, thanks to the acquisition of Bell’s stake in Maple Leaf Sports & Entertainment and heightened advertising revenues.
• Net Income: $710 million, reflecting a 27% rise.
• Free Cash Flow: $1 billion, exceeding the anticipated $943 million.

2026 Guidance and Challenges

Rogers has forecasted a service revenue growth of 3% to 5% for 2026. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to grow by 1% to 3%. Analysts reacted mildly to this guidance.

While revenue showed growth, the company reported a decline in new wireless mobile customers, adding only 39,000 compared to 95,000 in 2025. Additionally, net internet adds decreased to 22,000 from 26,000 last year, showcasing the challenges within the telecom sector.

Market Conditions and Future Strategies

The mobile services industry is encountering fluctuating pricing trends. After several years of price declines, cellphone plan prices are beginning to rise again. Despite this, many customers remain tied to two-year contracts, limiting the immediate impact on financial performance.

Amidst these challenges, Rogers plans to monetize its sports assets through the anticipated acquisition of a 25% stake in MLSE from Kilmer Group. This transaction is expected to bolster the value of its sports assets to approximately $20 billion and could assist in reducing the company’s $35.8 billion long-term debt.

Current Market Standing

As of the latest market session, Rogers shares were trading at $49.50 on the Toronto Stock Exchange. This marks a 5.6% decrease since the start of the year but represents a more than 12% increase compared to the same period last year. The company’s performance reflects the ongoing transformations in the media and sports sectors and its strategic responses to industry challenges.