Rogers Communications (RCI) TD’s 27th Annual Telecom & Media Conference summary

Sports and entertainment asset strategy

• Consolidation of sports assets is underway, with a key step being the purchase of Bell's stake in MLSE and a potential buyout of the remaining 25% next year.

• Synergies between MLSE and other holdings are being realized, generating material cash flow and growth.

• Equity investment in sports and entertainment is expected in the near to midterm to support balance sheet goals, possibly in stages.

• Options under consideration include private equity, IPO, or spinout, with a full process likely spanning 12-24 months due to tax and structural considerations.

• Maintaining a controlling stake (at least 51%) in these assets is a priority for long-term value creation.

Wireless market trends and performance

• Wireless market growth is expected at about 3% for the year, mainly from penetration gains rather than population growth.

• Promotional activity in Q1 was higher than usual but is subsiding in Q2; market size remains stable with slight traffic increases.

• Focus remains on migrating customers to the main brand and reducing churn, with most net adds coming from the Rogers brand.

• New rate plans emphasize multi-line discounts and simplified pricing, with potential for more device subsidies similar to U.S. trends.

• ARPU growth is a key focus, with government policy and roaming headwinds impacting short-term results.

Cable and broadband developments

• Cable revenue has stabilized, with strong ARPU and penetration gains in broadband and business segments.

• Migration of satellite TV customers to fixed wireless access (FWA) is underway, improving margins and reducing reliance on satellite infrastructure.

• Video remains a headwind, but bundling with OTT and new product offerings are supporting margin per household.

• Regional market dynamics differ, with the west more focused on promotional discounting, while new value-added services help maintain pricing discipline.