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Rogers Communications ARPU Fell 2.4% And Regulatory Headwinds Persist But FCF Is Rising!

Rogers Communications Inc. reported solid first-quarter 2026 results marked by growth in service revenue and adjusted EBITDA alongside improved capital efficiency and deleveraging efforts. The company achieved a 10% increase in total service revenue to $4.9 billion and a 5% rise in adjusted EBITDA to $2.4 billion year-over-year. Capital expenditures (CapEx) declined significantly by 17% to $0.8 billion, resulting in an improved capital intensity ratio of 14.7%, down 500 basis points. This decline reflects a strategic reprioritization amid a low-growth telecommunications environment and regulatory challenges. In the wireless segment, Rogers retained stable service revenue year-over-year and saw a modest 1% increase in adjusted EBITDA, supported by a 40-basis-point margin improvement to 65%. Subscriber additions were positive, with 33,000 net mobile phone additions, including 28,000 postpaid net adds—a performance that exceeded initial expectations in a competitive, promotion-heavy quarter. However, average revenue per user (ARPU) declined by about 2.