Rogers Communications (RCI) investor relations material

Operational priorities and market environment

• Focus on disciplined revenue growth through customer lifecycle management and bundling, avoiding aggressive discounting to minimize churn and protect ARPU, especially after Q1's heightened churn due to sector-wide discounting.

• Regulatory pressures on system access and setup fees are prompting efforts to offset revenue impacts while maintaining cost discipline and margin improvement.

• National scale in wireless and wireline, combined with a broad retail and dealer network, enables effective customer base management and supports margin and EBITDA growth despite low population growth.

• Voluntary Departure Program and return-to-office policies have modestly reduced headcount, driving cost efficiencies across business units.

Wireless and penetration growth

• Wireless market growth is expected at 2–2.5% for 2026, driven by lagging penetration compared to global peers, increased device adoption for business and personal use, and wearables for children.

• Penetration gains are supported by trends such as dual-device usage for cybersecurity and communication, and wearables circumventing school device restrictions.

• Revenue growth is being pursued through price plan management and customer lifecycle strategies in the absence of population growth.

Margin and cost structure

• Wireless EBITDA margins are strong at 66%, with further incremental gains possible through ongoing cost structure improvements and capital intensity reduction.

• Integration of MLSE, RSM, and Blue Jays is expected to drive revenue and cost synergies, boosting consolidated margins and reducing head office costs.

• Recent VDP and BRP programs have delivered additional cost efficiencies, though changes to the employee base were limited.