Rogers Communications Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Rogers Communications RCI reported third-quarter 2025 adjusted earnings of 99 cents per share, which beat the Zacks Consensus Estimate by 7.61% but decreased 3.5% year over year.Revenues of $3.88 billion beat the consensus mark by 1.16% and increased 4.3% year over year.In domestic currency (Canadian dollar), adjusted earnings declined 3.5% year over year to C$1.37 per share.Total revenues increased 4.3% year over year to C$5.35 billion, primarily driven by growth in the Media businesses.Rogers Communication, Inc. Price, Consensus and EPS Surprise Rogers Communication, Inc. price-consensus-eps-surprise-chart | Rogers Communication, Inc. QuoteQ3 Segmental Details of RCIWireless DetailsWireless revenues (49.8% of total revenues) increased 1.6% year over year to C$2.66 billion. Service revenues fell 0.3% to C$2.06 billion. Equipment revenues increased 8.7% to $602 million.Monthly mobile phone ARPU was C$56.7, down 3.2% year over year.As of Sept. 30, 2025, the prepaid mobile phone subscriber base totaled 1.21 million, representing an increase of 44K subscribers year over year. The monthly churn rate was 2.86% compared with 2.8% reported in the year-ago quarter.As of Sept. 30, 2025, the postpaid wireless subscriber base totaled 10.96 million, representing net additions of 262K subscribers year over year. The monthly churn rate was 0.99% compared with 1.12% in the year-ago quarter.Segment operating expenses rose 2.5% year over year to C$1.29 billion.Adjusted EBITDA increased 0.7% year over year to C$1.37 billion. Adjusted EBITDA margin contracted 50 basis points (bps) on a year-over-year basis to 51.6%.Cable DetailsCable revenues (37% of total revenues) increased 0.6% year over year to C$1.98 billion.Service revenues grew 0.6% year over year to C$1.97 billion. Equipment revenues decreased 12.5% on a year-over-year basis to C$7 million.As of Sept. 30, 2025, the retail Internet subscriber count was nearly 4.475 million, representing a net increase of 228K subscribers year over year.As of Sept. 30, 2025, total Smart Home Monitoring subscribers reached 148K, indicating an increase of 28K subscribers. The total Home Phone subscriber count was nearly 1.42 million, reflecting a loss of 113K customers in the reported quarter.ARPA was C$136.05, lower than the C$140.36 reported in the year-ago quarter.Segment operating expenses declined 1.1% year over year to C$828 million.Adjusted EBITDA increased 1.8% year over year to C$1.15 billion.Media DetailsMedia revenues (14.1% of total revenues) increased 26.1% year over year to C$753 million.Segment operating expenses increased 47.1% year over year to C$678 million. The segment reported an adjusted EBITDA of $75 million.Consolidated ResultsOperating costs increased 3.1% to C$2.83 billion. As a percentage of revenues, operating costs expanded 260 bps to 53%.Adjusted EBITDA decreased 1.2% year over year to C$2.52 billion. Adjusted EBITDA margin contracted 260 bps to 47%.Balance Sheet & Cash Flow DetailsAs of Sept. 30, 2025, Rogers Communications had C$6.4 billion of available liquidity, including C$1.5 billion in cash and cash equivalents and C$4.9 billion available under bank and other credit facilities. In comparison, the company had C$11.8 billion of available liquidity as of June 30, 2025, including $7 billion in cash and cash equivalents and C$4.8 billion available under the bank credit facility.Rogers Communications’ debt leverage ratio was 3.9 times as of Sept. 30, 2025, reflecting the impact of the MLSE transaction that closed during the quarter.Cash flow from operating activities was C$1.52 billion, down 20% year over year from C$1.89 billion, due to higher net investment in net operating assets and liabilities and higher income taxes paid.Free cash flow was C$829 million compared with C$925 million generated in the previous quarter. On a year-over-year basis, it declined 9.4%, primarily due to higher cash income tax payments.Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on Oct. 22, 2025.RCI’s 2025 GuidanceFor 2025, RCI expects total service revenues to grow between 3% and 5%, and adjusted EBITDA to rise between 0% and 3%, with both ranges remaining unchanged from the prior guidance.Capital expenditures are now projected at approximately C$3.7 billion, slightly below the prior guidance of C$3.8 billion. Free cash flow guidance has been raised to between C$3.2 billion and C$3.3 billion, up from the earlier range of C$3.0 billion to C$3.2 billion.Rogers Communications’ Zacks Rank & Stocks to ConsiderCurrently, RCI carries a Zacks Rank #4 (Sell).Some better-ranked stocks that investors can consider in the broader Zacks Utilities sector are Atmos Energy ATO, Dominion Energy, Inc. D and California Water CWT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Atmos Energy shares have jumped 26.2% year to date. ATO is set to report its fourth-quarter fiscal 2025 results on Nov. 5.Dominion Energy shares have gained 12.7% year to date. D is set to report its third-quarter 2025 results on Oct. 31.California Water shares have returned 10% year to date. CWT is set to report its third-quarter 2025 results on Oct. 30.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rogers Communication, Inc. (RCI): Free Stock Analysis Report Dominion Energy Inc. (D): Free Stock Analysis Report Atmos Energy Corporation (ATO): Free Stock Analysis Report California Water Service Group (CWT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks