Rogers posted its third quarter results on Friday, with record free cash flow even as wireless sign-ups slowed sharply and the average monthly phone bill kept sliding.
Total revenue rose 2 per cent to $5.44 billion, while adjusted EBITDA grew 1 per cent to $2.54 billion. Free cash flow jumped 65 per cent to $1.37 billion, helped by the spending cuts announced in April, with capital spending down 46 per cent to $524 million.
On the wireless side, Rogers added just 6,000 postpaid phone customers, compared to 62,000 a year ago, plus 11,000 prepaid. Postpaid churn, the share of customers leaving each month, edged up to 1.03 per cent from 0.99 per cent, while prepaid churn climbed to 4.77 per cent from 2.86 per cent.
Average revenue per user (ARPU) fell 2.6 per cent to $55.22. The company blamed competition along with lost fee revenue after the CRTC fee ban took effect in June, which pushed wireless service revenue down 1 per cent to $2.03 billion.
During the earnings call, CFO Glenn Brandt said the fees were designed to cover real costs, adding, “The charge disappeared (due to) the CRTC decision. The costs don’t.” He said Rogers is “finding alternatives for covering those costs, shipping costs, for example,” with more work still to do. Brandt didn’t list other charges, but customers have already seen Rogers bring its shipping fee back to $25 this month after a $9 promo ended, along with a new credit card fee coming to Rogers and Fido bills. Brandt also said ARPU for customers added in the third quarter and into October is up 8 per cent year over year.
CEO Tony Staffieri credited “strong financial discipline” despite “lower market activity,” and estimated that industry-wide wireless net additions fell 30 to 40 per cent year over year in the quarter.
Cable revenue was flat at $1.99 billion. Rogers added 10,000 retail internet customers, down from 29,000 last year, and lost 35,000 TV subscribers.
Media revenue climbed 9 per cent to $821 million, helped by more than 3.3 million fans at Blue Jays games this season, the team’s best attendance since 2016. On October 1, Rogers closed its $4.35 billion MLSE deal, taking full ownership of the Maple Leafs and Raptors. It now plans to sell a minority stake in Rogers Sports by the first half of 2027 to pay down debt.
Net income fell 91 per cent to $495 million, though last year included a $5 billion non-cash gain on its MLSE stake. Adjusted net income slipped 3 per cent to $701 million. Restructuring costs came in at $104 million, largely severance following buyout offers to nearly half its staff earlier this year. Rogers reaffirmed its full-year outlook.
Have you noticed new charges on your Rogers bill since the fee ban? Let us know in the comments.
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