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RCI posted 82 cents per share in Q2 earnings, topping estimates but declining 3.5% y/y.
RCI's revenues rose 1.3% to $3.77B, with growth from Wireless, Cable and Media service lines.
RCI's free cash flow rallied 38.9% to C$925M on EBITDA growth and reduced capital intensity.
Rogers Communications (RCI - Free Report) reported second-quarter 2025 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 2.5% but decreased 3.5% year over year.
Revenues of $3.77 billion missed the consensus mark by 0.39% and increased 1.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings declined 1.7% year over year to C$1.14 per share.
Total revenues increased 2.4% year over year, reaching C$5.22 billion, driven by service revenue growth in Wireless, Cable and Media businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Wireless revenues (48.7% of total revenues) increased 3% year over year to C$2.54 billion. Service revenues rose 0.6% to C$2 billion. Equipment revenues increased 13.2% to C$541 million.
Monthly mobile phone ARPU was C$55.45, down 3.1% year over year.
As of June 30, 2025, the prepaid mobile phone subscriber base totaled 1.16 million, representing an increase of 92K subscribers year over year. The monthly churn rate was 3.23% compared with 3.2% reported in the year-ago quarter.
As of June 30, 2025, the postpaid wireless subscriber base totaled 10.91 million, representing net additions of 312K subscribers year over year. The monthly churn rate was 1.0% compared with 1.07% in the year-ago quarter.
Segment operating expenses rose 5.6% year over year to C$1.24 billion.
Adjusted EBITDA increased 0.7% year over year to C$1.31 billion. Adjusted EBITDA margin contracted 120 basis points (bps) on a year-over-year basis to 51.4%.
Q2 Cable Details
Cable revenues (37.7% of total revenues) increased 0.2% year over year to C$1.97 billion.
Service revenues grew 0.7% year over year to C$1.96 billion. Equipment revenues decreased 56.3% on a year-over-year basis to C$7 million.
As of June 30, 2025, the retail Internet subscriber count was nearly 4.446 million, representing a net increase of 232K subscribers year over year.
As of June 30, 2025, total Smart Home Monitoring subscribers reached 141K, indicating an increase of 40K subscribers. The total Home Phone subscriber count was nearly 1.45 million, reflecting a loss of 111K customers in the reported quarter.
ARPA was C$135.74, lower than the C$139.62 reported in the year-ago quarter.
Segment operating expenses declined 3.2% year over year to C$821 million.
Adjusted EBITDA increased 2.8% year over year to C$1.15 billion.
Q2 Media Details
Media revenues (15.5% of total revenues) increased 9.8% year over year to C$808 million.
Segment operating expenses increased 9.1% year over year to C$803 million. The segment reported an adjusted EBITDA of C$5 million.
Consolidated Results
Operating costs increased 3.1% to C$2.85 billion. As a percentage of revenues, operating costs expanded 40 bps to 54.7%.
Adjusted EBITDA rose 1.6% year over year to C$2.36 billion. Adjusted EBITDA margin contracted 40 bps to 45.3%.
RCI’s Balance Sheet & Cash Flow Details
As of June 30, 2025, Rogers Communications had C$11.8 billion of available liquidity, including C$7 billion in cash and cash equivalents and C$4.8 billion available under bank and other credit facilities. In comparison, the company had C$7.5 billion of available liquidity as of March 31, 2025, including C$2.7 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
Rogers Communications’ debt leverage ratio was 3.6 times as of June 30, 2025, nearly returning to pre-Shaw acquisition levels. This milestone, achieved nine months ahead of the company's original timeline, underscores its accelerated deleveraging progress.
Cash flow from operating activities was C$1.60 billion compared with C$1.47 billion generated in the previous quarter and 8.4% higher year over year.
Free cash flow was C$925 million compared with C$586 million generated in the previous quarter. On a year-over-year basis, it increased 38.9%, driven by increased adjusted EBITDA, lower capital intensity and lower interest paid.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend.
RCI’s 2025 Guidance
For 2025, RCI expects total service revenues to grow in the range of 3 to 5%. Adjusted EBITDA is expected to grow in the range of 0 to 3% and remain unchanged.
Capital expenditures are projected at approximately C$3.8 billion, while free cash flow guidance remains unchanged at C$3 and C$3.2 billion.
Rogers Communications’ Zacks Rank & Other Stocks to Consider
Image: Bigstock
Rogers Communications Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
Rogers Communications (RCI - Free Report) reported second-quarter 2025 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 2.5% but decreased 3.5% year over year.
Revenues of $3.77 billion missed the consensus mark by 0.39% and increased 1.3% year over year.
In domestic currency (Canadian dollar), adjusted earnings declined 1.7% year over year to C$1.14 per share.
Total revenues increased 2.4% year over year, reaching C$5.22 billion, driven by service revenue growth in Wireless, Cable and Media businesses.
Rogers Communication, Inc. Price, Consensus and EPS Surprise
Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. Quote
RCI’s Q2 Wireless Details
Wireless revenues (48.7% of total revenues) increased 3% year over year to C$2.54 billion. Service revenues rose 0.6% to C$2 billion. Equipment revenues increased 13.2% to C$541 million.
Monthly mobile phone ARPU was C$55.45, down 3.1% year over year.
As of June 30, 2025, the prepaid mobile phone subscriber base totaled 1.16 million, representing an increase of 92K subscribers year over year. The monthly churn rate was 3.23% compared with 3.2% reported in the year-ago quarter.
As of June 30, 2025, the postpaid wireless subscriber base totaled 10.91 million, representing net additions of 312K subscribers year over year. The monthly churn rate was 1.0% compared with 1.07% in the year-ago quarter.
Segment operating expenses rose 5.6% year over year to C$1.24 billion.
Adjusted EBITDA increased 0.7% year over year to C$1.31 billion. Adjusted EBITDA margin contracted 120 basis points (bps) on a year-over-year basis to 51.4%.
Q2 Cable Details
Cable revenues (37.7% of total revenues) increased 0.2% year over year to C$1.97 billion.
Service revenues grew 0.7% year over year to C$1.96 billion. Equipment revenues decreased 56.3% on a year-over-year basis to C$7 million.
As of June 30, 2025, the retail Internet subscriber count was nearly 4.446 million, representing a net increase of 232K subscribers year over year.
As of June 30, 2025, total Smart Home Monitoring subscribers reached 141K, indicating an increase of 40K subscribers. The total Home Phone subscriber count was nearly 1.45 million, reflecting a loss of 111K customers in the reported quarter.
ARPA was C$135.74, lower than the C$139.62 reported in the year-ago quarter.
Segment operating expenses declined 3.2% year over year to C$821 million.
Adjusted EBITDA increased 2.8% year over year to C$1.15 billion.
Q2 Media Details
Media revenues (15.5% of total revenues) increased 9.8% year over year to C$808 million.
Segment operating expenses increased 9.1% year over year to C$803 million. The segment reported an adjusted EBITDA of C$5 million.
Consolidated Results
Operating costs increased 3.1% to C$2.85 billion. As a percentage of revenues, operating costs expanded 40 bps to 54.7%.
Adjusted EBITDA rose 1.6% year over year to C$2.36 billion. Adjusted EBITDA margin contracted 40 bps to 45.3%.
RCI’s Balance Sheet & Cash Flow Details
As of June 30, 2025, Rogers Communications had C$11.8 billion of available liquidity, including C$7 billion in cash and cash equivalents and C$4.8 billion available under bank and other credit facilities. In comparison, the company had C$7.5 billion of available liquidity as of March 31, 2025, including C$2.7 billion in cash and cash equivalents and a combined C$4 billion available under the bank credit facility.
Rogers Communications’ debt leverage ratio was 3.6 times as of June 30, 2025, nearly returning to pre-Shaw acquisition levels. This milestone, achieved nine months ahead of the company's original timeline, underscores its accelerated deleveraging progress.
Cash flow from operating activities was C$1.60 billion compared with C$1.47 billion generated in the previous quarter and 8.4% higher year over year.
Free cash flow was C$925 million compared with C$586 million generated in the previous quarter. On a year-over-year basis, it increased 38.9%, driven by increased adjusted EBITDA, lower capital intensity and lower interest paid.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend.
RCI’s 2025 Guidance
For 2025, RCI expects total service revenues to grow in the range of 3 to 5%. Adjusted EBITDA is expected to grow in the range of 0 to 3% and remain unchanged.
Capital expenditures are projected at approximately C$3.8 billion, while free cash flow guidance remains unchanged at C$3 and C$3.2 billion.
Rogers Communications’ Zacks Rank & Other Stocks to Consider
Currently, RCI carries a Zacks Rank #2 (Buy).
UGI (UGI - Free Report) , Atmos Energy (ATO - Free Report) and Northwest Natural (NWN - Free Report) are some other stocks that investors can consider in the broader Zacks Utilities sector. UGI currently sports a Zacks Rank #1 (Strong Buy), and Atmos Energy and Northwest Natural carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
UGI shares have jumped 29.7% year to date. UGI is set to report its third-quarter fiscal 2025 results on Aug. 6.
Atmos Energy shares have gained 12.9% year to date. ATO is set to report its third-quarter fiscal 2025 results on Aug. 6.
Northwest Natural shares have returned 4.6% year to date. NWN is set to report its second-quarter 2025 results on Aug. 5.