Company Reports

We transfer coverage of the Canadian telecom providers: Rogers, BCE, Telus, Quebecor, and Cogeco. These firms account for nearly all of the wireless and wireline services provided in Canada, with all but Cogeco operating national wireless networks, and Rogers and BCE the largest wireline networks.

Despite ongoing regulatory challenges and intensifying competition, we believe Rogers has one of the more enviable positions in Canada’s telecom market. The firm holds a 30% market share in wireless and continues to invest in network improvements. However, we do not see any major practical difference in the wireless networks of the Big 3. With little separating the wireless networks, and as Quebecor continues to build out a national wireless competitor, we expect competition to put downward pressure on prices. While we don’t believe this will threaten Rogers’ market position, it will likely put a damper on wireless services growth until 2033, when pricing restrictions no longer bind Quebecor.

Rogers Communications' second-quarter results were consistent with trends over the past several quarters—pricing pressure and few new customer additions led to virtually no top-line growth, while margins expanded modestly. Adjusting investments for this environment led to a jump in free cash flow.

Amid ongoing gloom for the Big Three Canadian telecom carriers spurred by government policy, Rogers slashed its already-reduced 2026 capital spending budget by CAD 1 billion, to about CAD 2.6 billion. Consistent with recent trends, first-quarter sales growth was weak, and margins expanded modestly.

Rogers Communications is the leader in Canada’s wireless market, with over 30% share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on spectrum since 2019, cementing its position as a network leader. However, we don't see any practical difference in the wireless networks of the major competitors. With Quebecor entering the market as a national wireless competitor and four participants offering excellent networks, we expect competition to weigh on prices throughout the industry, which should temper wireless services revenue growth even as Rogers maintains its leading share.

Rogers' fourth-quarter revenue was roughly flat year over year in both wireless and cable, leaving adjusted EBITDA up just under 1% in each unit, all matching full-year results. Rogers' 2026 outlook calls for more of the same, though a wise reduction in capital spending will boost free cash flow.

Rogers Communications is the leader in Canada’s wireless market, with over 30% share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on spectrum since 2019, cementing its position as a network leader. However, we don't see any practical difference in the wireless networks of the major competitors. With Quebecor entering the market as a national wireless competitor and four participants offering excellent networks, we expect competition to weigh on prices throughout the industry, which should temper wireless services revenue growth even as Rogers maintains its leading share.

Despite revenue weakness in the third quarter, Rogers Communications' wireless business showed some improvement in a challenging environment, and the cable business is plodding along. Margins improved again, and we think the firm is poised to unlock shareholder value with its sports franchises.

Rogers Communications is the leader in Canada’s wireless market, with over 30% share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on spectrum since 2019, cementing its position as a network leader. However, we don't see any practical difference in the wireless networks of the major competitors. With Quebecor entering the market as a national wireless competitor and four participants offering excellent networks, we expect competition to weigh on prices throughout the industry, which should temper wireless services revenue growth even as Rogers maintains its leading share.

Rogers is the leader in Canada’s wireless market, with over 30% market share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on spectrum since 2019, cementing its position as a network leader. However, we don't see any practical difference in the wireless networks of the major competitors. With Quebecor entering the market as a national wireless competitor, and four participants offering excellent networks, we expect competition to weigh on prices throughout the industry, which should temper wireless services revenue growth even as Rogers maintains its leading share.

Rogers is the leader in Canada’s wireless market, with over 30% market share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on the spectrum since 2019, cementing its position as a network leader. Even as competitor Quebecor extends its push to become a national carrier, increasing competition and weighing on pricing power throughout the industry, we don’t expect Rogers to lose ground as Canada’s premier wireless provider.

Rogers' second-quarter revenue and adjusted EBITDA grew 2% year over year. Management also completed purchase of an additional 37.5% interest in Maple Leaf Sports & Entertainment for CAD 4.7 billion, as well as a partial sale of its wireless backhaul infrastructure to Blackstone for CAD 7 billion.

Rogers' flat service revenue across its wireless and wireline businesses compared with last year highlighted Canada's challenging environment, but the firm still increased adjusted EBITDA by 2% on expanding margins in both wireless and wireline.

Rogers is the leader in Canada’s wireless market, with over 30% market share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on the spectrum since 2019, cementing its position as a network leader. Even as competitor Quebecor extends its push to become a national carrier, increasing competition and weighing on pricing power throughout the industry, we don’t expect Rogers to lose ground as Canada’s premier wireless provider.

Rogers is the leader in Canada’s wireless market, with over 30% market share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on the spectrum since 2019, cementing its position as a network leader. Even as competitor Quebecor extends its push to become a national carrier, increasing competition and weighing on pricing power throughout the industry, we don’t expect Rogers to lose ground as Canada’s premier wireless provider.

Rogers' fourth-quarter earnings highlighted a competitive wireless and wireline service market in Canada. However, Canada’s stricter immigration policy weighed on Rogers’ wireless results in the fourth quarter, and we expect this to continue in the coming years. We’ve reduced our fair value estimate to CAD 66 from CAD 75. Our narrow moat rating is unchanged.

After accounting for extended competition in the wireless industry, we’ve reduced our fair value estimate to CAD 75 ($54) from CAD 78 ($57). We continue to think Rogers is worthy of a narrow moat rating and that its shares are significantly undervalued, trading in 5-star territory.

Rogers is the leader in Canada’s wireless market, with over 30% market share, and has continued to invest heavily in improving its network. The firm has spent more than any peer on the spectrum since 2019, cementing its position as a network leader. Even as competitor Quebecor extends its push to become a national carrier, increasing competition and weighing on pricing power throughout the industry, we don’t expect Rogers to lose ground as Canada’s premier wireless provider.

Rogers’ third-quarter earnings results were solid, with continued improvements in firmwide profitability amid a competitive Canadian wireless market. Additionally, the firm continues to pursue new capital opportunities, both raises and investments, in an effort to bolster its media business and improve its balance sheet. After reviewing the quarterly results, we maintain our CAD 78 fair value estimate and continue to view the stock as significantly undervalued, as it currently trades in 5-star territory.

We’re maintaining our CAD 78 fair value estimate following Rogers’ second-quarter earnings. Management continues to see strength in wireless while making progress in cable, though cable revenue continues to struggle. Overall, it was a solid quarter of continuing growth that doesn’t line up with the recent stock bearishness, in our opinion. We believe Rogers remains significantly undervalued.