$RCI · ROGERS COMMUNICATIONS INC

Rogers filed Q3 FY2026 results via Form 6-K showing revenue of C$5.443B (+2% YoY) and adjusted EPS of C$1.29 (down 6% from C$1.37). GAAP EPS was C$0.88 versus C$10.54 in Q3 2025, which included a C$5B non-cash gain from revaluing the existing 37.5% MLSE stake. On October 1, 2026, Rogers completed the acquisition of Kilmer Sports' remaining 25% interest in MLSE for C$4.35B in cash, funded via short-term credit facilities, bringing ownership to 100%. The company now intends to sell a minority interest in its consolidated sports, media, and entertainment assets (Rogers Sports) to third-party investors by H1 2027, with proceeds earmarked for debt repayment.

Extended-hours last trade $32.40, down 2.29% vs regular close but up 2.05% vs price-at-filing. The C$4.35B MLSE acquisition is material relative to the $17.91B market cap (24%), and the planned minority-interest sale by H1 2027 offers a near-term deleveraging catalyst that may support the stock.

Rogers completed a C$4.35B sports-asset acquisition (24% of market cap) and immediately announced a minority-sale process by H1 2027, a high-stakes capital-allocation pivot with material deleveraging implications.

Rogers' 9.6% capital intensity is among the lowest in Canadian telecom, reflecting maturation of 5G rollout. The MLSE consolidation and planned minority sale mirrors broader sector moves to monetize sports assets (e.g., BCE's prior MLSE stake sale). Wireless service revenue declined 1% due to competitive intensity and CRTC fee restrictions, consistent with industrywide pricing pressure.

C$4.35B acquisition funded via short-term credit increases near-term leverage; success of minority-interest sale by H1 2027 is uncertain and valuation may disappoint. Wireless service revenue under pressure from competition and regulatory fee caps. Adjusted net income down 3% YoY despite EBITDA growth, driven by higher finance costs.