$RCI-B.TO

CRTC Directed to Review Canadian Content Decision

The Federal government is calling on the Canadian Radio-Television and Telecommunications Commission (CRTC) to review its recent decision to hike streamers' financial contributions to Canadian content.Last month, the CRTC announced new requirements for large foreign streaming services and Canadian broadcasters to spend part of their Canadian revenue on acquiring or producing Canadian programming."The CRTC's new requirements would impose new costs on the companies providing these services, which could ultimately fall on Canadian consumers through higher prices," a statement said.Instead, the government will develop new policy directions to adjust the implementation of the Online Streaming Act, it said.Ottawa has set aside $600 million to support the audio and audiovisual sectors. Details will be announced after consultation with the sector. Once the new CRTC rules are finalized, the level of government investment will be adjusted as appropriate, it said.Price: $34.20, Change: $+0.13, Percent Change: +0.37%

National Bank on CRTC New Canadian Content Requirement For Streamers, Traditional Broadcasters

The Canadian Radio-television and Telecommunications Commission (CRTC) this week announced changes in spending requirements for traditional broadcasters and streaming operators, notes National Bank analyst Adam Shine.Private Canadian broadcasters will be required to contribute 25% of their annual Canadian broadcasting revenues to Canadian programming expenditures (CPE) versus current levels of 30%-45%.The CPE requirement for online streaming services is being tripled to 15%. "We'll see how this plays out given that the prior 5% rate for online streamers with revenues above $25M in Canada was announced on June 4, 2024 and was to become effective for the f2024-f2025 broadcast year," Shine writes.No date has been set for implementation of the new rules.Lawsuits were filed in late 2024 by several U.S. streamers with the Federal Court of Appeal and the court paused the payment obligation which was due Aug. 31, 2025. A decision is still pending. The streamers could try to appeal a verdict against them to the Supreme Court, Shine adds.Price: $33.92, Change: $+0.32, Percent Change: +0.95%

CIBC in its Q1 Canadian Telecom Earnings Recap Says Quebecor Remains its "Top Pick" Post Quarter

CIBC Capital Markets provided its first-quarter Canadian Telecom Earnings Recap in a note dated May 15 and said its "top pick" following first-quarter remains Quebecor (QBR-A.TO, QBR-B.TO).Among the Canadian telecoms, Q1 revenue and adj. EBITDA came "roughly in line" with consensus, said CIBC. Core telecom margins were up an average of 30 basis points in Q1 and CIBC continues to expect a focus on efficiency in a lower-growth telecom environment.In wireless, average revenue per user (ARPU) declines continue to moderate with wireless service revenue growth of 22 bps at the Big 3, but up 9% at Quebecor, driven by subscriber and APRU growth, stated CIBC.In internet, CIBC noted Telus (T.TO) and BCE (BCE.TO) took the "highest share of net adds", with all companies in its coverage continuing to focus on out-of-footprint expansion via TPIA and/or FW.Competitive pricing escalated through Q1, with flanker brands reducing low-tier prices to ~$25 late in the quarter, said CIBC and added that average Q1 ARPU was down 92 bps Y/Y, an improvement from a 121 bps decline in Q4.Quebecor recorded its second consecutive quarter of ARPU growth (+1.4%), the only Canadian telecom to see ARPU growth after multiyear industry declines, noted CIBC.It further noted that immigration remains a headwind, with industry mobile net additions down 26% Y/Y in the quarter."Q1 equipment revenue dropped 3% across the Big 3, which we view as a healthy barometer of a moderating device subsidy environment, consistent with lower subsidy rates observed in our channel checks," said CIBC. "We observe pricing stabilizing post-Q1, with flagship and flanker pricing up 5% and 3% Y/Y, respectively. Rogers (42%) took the highest share of industry wireless net additions in Q1, followed by Quebecor (37%), TELUS (15%) and BCE (6%)."Telus (44%) and BCE (29%) took the highest share of internet net additions this quarter, noted CIBC, driven by a combination of increased penetration in footprint as well as out-of-footprint expansion in the east (Telus) and in the west (BCE).Quebecor reported its third consecutive quarter of internet revenue growth (+3.2%), added CIBC."All companies within our coverage are exploring out-of-footprint expansion to some degree," said CIBC. "We expect out-of-footprint expansion via TPIA to be a growth opportunity, but to come at a lower margin vs. the owner economics in footprint."Deleveraging remains a focus for the sector, noted CIBC, with average leverage of 3.4x at the end of Q1."BCE and TELUS reiterated their deleveraging targets (3.5x and 3.0x by the end of 2027, respectively), said CIBC. "Rogers reduced its F2026 capex guidance by ~24% at the midpoint, with the savings flowing to FCF."CIBC expects Rogers to use the additional FCF to accelerate deleveraging. Quebecor continues to have the lowest leverage among the telecoms at 2.86x, added CIBC.Price: $49.23, Change: $+0.65, Percent Change: +1.34%

Rogers Communications Completes C$22 Million 5G+ Network Enhancement for FIFA World Cup

Rogers Communications (RCI-B.TO) has completed a C$22 million 5G+ network build at the BMO Field and surrounding areas to enhance connectivity for fans during the FIFA World Cup in Toronto, the company said Thursday.Improvements include enhancing the in-stadium wireless system, deploying additional 5G+ spectrum to deliver faster speeds and more capacity for fans, and installing additional network infrastructure outside the stadium.The company is also deploying Cells on Wheels and Cells on Light Facilities to support high-traffic areas in downtown Toronto. These temporary cell sites deliver faster speeds, lower latency and greater reliability for customers during the tournament, Rogers said.Rogers is also investing $5 million in Vancouver to enhance network coverage in key areas across the city, including at BC Place, to boost connectivity for soccer's biggest event."These enhancements ensure our network is ready for global events like FIFA, while delivering long-term benefits for the local Toronto community," Chief Technology Officer Mark Kennedy said.

Rogers Target Edged Up To C$63 From $62, Keeps Outperform at National Bk After Analyzing "Sum of Parts of Sports & Media Business, Premium & Discounting, and Coming Steps Over Year"

Update: Market Chatter: Rogers Communications Offering Buyouts to Half Its 25,000 Workforce, Globe and Mail reports

(Adds commentary from Adam Shine at National Bank of Canada)Canadian telecom operator Rogers Communications (RCI-B.TO) is offering voluntary departure packages to half of its 25,000 employees, the Globe and Mail is reporting on Monday.It's the telecom sector's largest round of buyouts in recent years amid slowing growth, the paper said.Here are some details cited in a Reuters report, as published on the website of BNN Bloomberg:- Rogers on Monday said employees across numerous business divisions will be offered packages, but did not say whether it had a reduction target, according to the report.- "We are taking steps to adjust our cost structure to reflect the business realities of the current environment. As part of this, some teams have chosen to offer voluntary departure and retirement programs to give some employees the choice to decide whether they'd like to stay with the company or begin a new chapter," Rogers spokesperson Zac Carreiro told the Globe and Mail.- Some teams across the company including on-air talent, Sportsnet employees at Rogers Sports and Media and union employees are not eligible, the report said.- Rogers did not immediately respond to a Reuters request for comment.- Earlier this month, Rogers forecast 2026 capital expenditure about 30% below 2025 levels, as it reins in spending amid a tough pricing environment.National Bank of Canada analyst Adam Shine noted it was reported by The Globe and Mail that Rogers "is offering voluntary departure packages to 50% of its employees, excluding Maple Leaf Sports & Entertainment". MLSE represents around 3,000 of the total headcount of approximately 25,000 at Rogers. The immediate extrapolation from the headline is that this could involve up to 11,000 employees, Shine said, before adding: "Unlikely."Shine noted Shaw Communications back in 2018 offered buyouts to roughly 6,500 of its approximately 14,000 employees. It thought about 10% would take up the offer, but closer to 3,300 did. This represented around 51% of those eligible and just over 23.5% of the cableco's total employees.Rogers, Shine also noted, has done voluntary programs in the past, with the scale/uptake of these always well below what's otherwise being implied by and extrapolated from the article.Shine said: "The current program from the company is restricted and it will determine the number of employees who will ultimately get their voluntary buyouts. The Shaw program didn't necessarily follow the same approach.""As we await a return to sustained discipline in wireless in Canada post-1Q26, Rogers has a releveraging dynamic to address as it prepares to acquire the other 25% of MLSE in 2H26 before working through a deleveraging phase through the monetization of its sports/media assets. Its profile for organic annual deleveraging didn't look great ahead of 1Q reporting and appeared to offer little wiggle room for the timing and size of anticipated sports/media monetization expected in 1H27. The material capex reduction announced with 1Q doubled the annual organic deleveraging capability and an acceleration of employee attrition will also help to right-size costs amid competitive dynamics, aggressive promotions and punitive regulations which management called out as the reasons for adjusting its capex outlook," Shine wrote."We note that Rogers committed with its purchase of Shaw to create 3,000 jobs in Western Canada within five years and to maintain at least the extra 3,000 by the acquisition's 10th anniversary. In its second annual compliance report related to the Western Commitment, which included a Western Canada headquarters in Calgary, the company noted that it was on track and had added 1,828 employees."National Bank has an Outperform rating and C$62.00 price target on Rogers.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Rogers Communications Offering Buyouts to Half Its 25,000 Workforce, Globe and Mail reports

Canadian telecom operator Rogers Communications (RCI-B.TO) is offering voluntary departure packages to half of its 25,000 employees, the Globe and Mail is reporting on Monday.It's the telecom sector's largest round of buyouts in recent years amid slowing growth, the paper said.Here are some details cited in a Reuters report, as published on the website of BNN Bloomberg:- Rogers on Monday said employees across numerous business divisions will be offered packages, but did not say whether it had a reduction target, according to the report.- "We are taking steps to adjust our cost structure to reflect the business realities of the current environment. As part of this, some teams have chosen to offer voluntary departure and retirement programs to give some employees the choice to decide whether they'd like to stay with the company or begin a new chapter," Rogers spokesperson Zac Carreiro told the Globe and Mail.- Some teams across the company including on-air talent, Sportsnet employees at Rogers Sports and Media and union employees are not eligible, the report said.- Rogers did not immediately respond to a Reuters request for comment.- Earlier this month, Rogers forecast 2026 capital expenditure about 30% below 2025 levels, as it reins in spending amid a tough pricing environment.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Market Chatter: Rogers Communications Offering Buyouts to Half Its 25k Workforce, Globe and Mail reports

Canadian telecom operator Rogers Communications (RCI-B.TO) is offering voluntary departure packages to half of its 25,000 employees, the Globe and Mail is reporting on Monday.It's the telecom sector's largest round of buyouts in recent years amid slowing growth, the paper says.(Market Chatter news is derived from conversations with market professionals globally, and/or from other media sources. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Rogers Communications Price Target Raised By C$2 at RBC

RBC Capital Markets raised its price target on Rogers Communications Inc. (RCI-B.TO, RCI) to $63 from $61.Analyst Drew McReynolds maintained an Outperform rating on shares of the Canadian media and telecom company following its quarterly results on Wednesday.The stock rose $6.11, or 13.5%, to $51.21 on the Toronto Stock Exchange."Q1/26 results were in line to slightly ahead of expectations while 2026 FCF guidance was upwardly revised driven by lower capex," McReynolds said in a note to clients."We continue to see an equity reflation story for Rogers driven by FCF generation, outright debt repayment given the relatively low dividend payout ratio (under 30% of FCF), and further progress on balance sheet de-levering that now includes the completed $7 Billion structured equity investment and a clear path for crystallizing a minority interest in the sports and media assets," the analyst said."We continue to view the recent pullback as a buying opportunity and we continue to see value in the stock, particularly should: the operational environment show further improvement; any meaningful minority interest transaction in the sports and media assets be supportive of management's estimated more than $20 Billion valuation; and visibility on enhanced capital returns increase as leverage approaches near 3x."(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

TSX up Near 100 Points at Midday With Healthcare, Miners, The Best Performers

The Toronto Stock Exchange is up near 100 points at midday in choppy trade, with most sectors higher after the United States announced that it was extending the ceasefire with Iran.Healthcare and miners are the leaders, up 5.6% and 3.0% respectively, followed by telecoms, up 2.4%.Domestically, CUSMA negotiations are in focus, amid media reports that the United States is demanding an "entry fee" from Canada before formal talks are launched. Former Quebec premier Jean Charest, who is on the committee for Canada-U.S. economic relations, confirmed the U.S. demand, CBC news reported.StatsCan today released the latest figures for the New Housing Price Index, which edged down 0.2% in March as a dip in land prices offset steady house prices.In stocks, Rogers Communications (RCI-B.TO) jumped 11% to $50.08 after it reported its first-quarter results this morning that were inline with estimates.

Rogers Communications Up in Pre-Market Trade as Q1 Adjusted Earnings and Revs Advance; Flags Lower Costs, But More Free Cash Flow This Year

Rogers Communications (RCI-B.TO) was up 3% in U.S. pre-market trade Wednesday as first-quarter adjusted earnings and revenue both advanced, while it expects to cut spending but lift its free cash flow over the remainder of fiscal 2026.The telecoms company said adjusted earnings attributable to shareholders edged up 1% to $550 million, or $1.01 per adjusted diluted share, from $543 million, or $0.99 per adjusted diluted share, in the prior year period. The result met the consensus analyst expectations of $1.01 per share, according to FactSet.Total revenue increased 10% to $5.48 billion, beating the $5.44 billion expected. Rogers said the media segment booked an 82% revenue jump to $988 million. It expects to acquire the remaining 25% minority interest in MLSE this year, and says it is "committed to unlocking the significant and unrecognized value of its premier sports assets."Rogers updated its fiscal 2026 outlook now expects 2026 and future annual capital expenditures to range between $2.5 billion to $2.7 billion, down 30% over 2025's capex spend.Free cash flow is forecast to increase $0.8 billion over 2025, to $4.1 billion to $4.3 billion, the company said.Rogers will pay a regular quarterly dividend of $0.50 on July 6, to shareholders of record on June 9.Rogers' shares were last seen up US$1.01, to US$34.00 in New York trading.

Rogers Q1 Adjusted EBITDA Up 5% to $2.4B; Total Service Revenue up 10% to $4.9B

Rogers Upgraded Guidance For Capital Expenditures and Free Cash Flow

Rogers Total Service Revenue up 10% to $4.9B

Rogers Declares $0.50 Per Share Quarterly Dividend

Rogers Expands U.S. Satellite-to-Mobile Coverage With T-Mobile Partnership

Rogers Communications (RCI-B.TO) on Thursday said it is expanding its satellite-to-mobile coverage in the United States through a partnership with American provider T-Mobile.The move will allow customers to make app-based voice calls, send text messages or use certain applications while roaming in the U.S. out of range of a cellular network.The deal combines Rogers Satellite and T-Mobile's T-Satellite, which covers 1.3 million square kilometres in the U.S.In areas without cellular service, satellite-to-mobile technology supports text messaging, including text-to-911 and public safety alerts and also supports popular apps, including WhatsApp, Messenger, and X.For Rogers customers, satellite-to-mobile roaming in the U.S. is included with Popular or Ultimate plans with U.S. coverage, Roam Like Home, and select Travel Passes at no extra cost."Canadians want to stay connected wherever they are, even when they're travelling," said Mark Kennedy, chief technology officer at Rogers. "By expanding satellite-to-mobile technology, our customers can get more coverage and roam effortlessly throughout the U.S."Rogers shares closed down $0.09 to $45.73 on Wednesday on the Toronto Stock Exchange.

Rogers Expanding Satellite-to-Mobile Coverage to the U.S.