Rogers Communications Poised To Benefit From Capex Reset, Sports Monetization
Scotiabank analyst Rogers target to $59; capex discipline lifts FCF despite weak subscriber growth and MLSE monetization.
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Rogers Communications (NYSE:RCI) reported third-quarter financial results on Friday. The transcript from the company’s third-quarter earnings call has been provided below.This transcript is brought to you by Benzinga
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Scotiabank analyst Rogers target to $59; capex discipline lifts FCF despite weak subscriber growth and MLSE monetization.
Rogers Communications reported record free cash flow of over CAD 1.3 billion in Q3 2026, driven by a 46% reduction in capital spending. The company is prioritizing premium wireless services over discounting, maintaining pricing discipline. Rogers also acquired full ownership of Maple Leaf Sports & Entertainment (MLSE) and plans to monetize sports assets by selling a minority stake to institutional investors by mid-2027 to fund debt reduction.
Canada's 5G device market is projected to grow from USD 10.0 billion in 2026 to USD 15.2 billion by 2031 at a CAGR of 8.7%, driven by mid-band spectrum deployment, 5G-Advanced technology, fixed wireless access, and enterprise IoT adoption. Key growth drivers include spectrum rollout, regulatory competition measures, rural connectivity initiatives, and carrier innovation, though supply chain dependencies and delayed spectrum availability in some markets present challenges.