Rogers Communications posts quarterly revenue above estimates (updated)

Telus

22/04/2026 12:10

Recasts paragraph 1 with capex details, adds analysts comments in paragraph 4, shares in paragraph 5

By Kritika Lamba

April 22 (Reuters) - Rogers Communications RCIb.TO on Wednesday forecast 2026 capital expenditure about 30% below 2025 levels, as it reins in spending amid a tough pricing environment.

     Canada's telecom sector is grappling with an aggressive price war as major players BCE and Telus continue to roll out aggressive pricing and offer discounts to defend their share.

Rogers lowered it 2026 capital expenditure forecast to C$2.5 billion to C$2.7 billion, citing dim growth prospects.

"Rogers has made the right decision to materially cut capex against a backdrop of lower industry revenue growth, but more importantly as a result of a continued adverse regulatory environment," said Scotiabank analysts.

U.S.-listed shares of the company were up about 8%.

Canada's telecom operators are navigating an increasingly uncertain regulatory environment, with rules governing mandated network access set to expire in 2030, clouding long-term investment decisions.

Given the tough market, Rogers has increasingly leaned on its media and sports assets to diversify its revenue base and support cash generation.

It has invested heavily in premium live sports content, which continues to draw robust audiences and advertising demand even as traditional media consumption declines.

It owns Major League Baseball's Toronto Blue Jays and holds a majority stake in Maple Leaf Sports & Entertainment (MLSE), which controls some of Canada's most valuable sports franchises, including the Toronto Maple Leafs of the NHL and the Toronto Raptors of the NBA.

Rogers expects to complete the purchase of the remaining 25% minority interest in MLSE in the second half of this year.

Following the transaction, it plans to combine its sports, media and entertainment assets into a single entity valued at more than $25 billion, and bring in external investors through the sale of a minority stake.

Rogers added 28,000 monthly postpaid bill-paying wireless phone subscribers in the first quarter.

It reported revenue of C$5.48 billion ($4.01 billion), slightly above analysts' average estimate of C$5.45 billion, according to data compiled by LSEG.

($1 = 1.3652 Canadian dollars)

 (Reporting by Kritika Lamba in Bengaluru; Editing by Shinjini Ganguli)

 ((Kritika.Lamba@thomsonreuters.com;))