Rogers Communications CEO Tony Staffieri outlined a disciplined roadmap for the telecom giant’s future Wednesday, telling the company’s AGM that it will reduce capital expenditures by 30% in the coming year, while doubling down on its multi-billion-dollar sports empire.
Held at Sportsnet Studios, Staffieri told shareholders that the spending cuts are a necessary reaction to “hostile” regulatory environments and a cooling Canadian economy. Despite these headwinds, the company reported solid Q1 2026 results, bolstered by a burgeoning media segment and shrinking debt load.
‘Modern-day railroad’ under pressure
Staffieri did not mince words regarding the current regulatory climate in Canada, suggesting that government policies are actively discouraging the infrastructure the country needs to thrive.
“Networks are the backbone of our economy. They are Canada’s modern-day railroad,” Staffieri told shareholders. “Yet, at every turn, we face changing regulatory decisions that undermine investment—decisions that increase costs, reduce revenue, and create market uncertainty.”
As a result of these “hurdles,” Rogers is shifting its financial strategy. The company is slashing its 2026 capital expenditure guidance to between $2.5 billion and $2.7 billion—a 30% drop from 2025 levels. Staffieri noted that while the company has built “Canada’s best networks,” certain future projects have become “simply uneconomical” and will be abandoned.
The $25 billion sports vision
While the telecom side faces belt-tightening, Rogers’ sports portfolio is being elevated, with Staffieri revealing that following the planned acquisition of the remaining 25% of Maple Leaf Sports & Entertainment (MLSE) later this year, the company’s total sports and media assets will be valued in excess of $25 billion.
He outlined a strategy to transform Rogers from a traditional utility provider into an “iconic communications, sports, and entertainment company.” That monetization strategy includes bringing in capital from outside investors to bolster its balance sheet while maintaining control of its premier assets. It’s also expanding its Rogers Beyond the Seat loyalty program leveraging the company’s ownership of the Toronto Blue Jays, Maple Leafs, and Raptors to offer customers exclusive perks like priority ticket access.
“We aren’t just assembling a collection of assets,” Staffieri said. “We are maximizing our mix of assets to compete and differentiate in a very crowded, competitive market – to give Canadians more reasons to choose Rogers.”
Despite a “shrinking population” and “lower immigration” impacting the broader market, Rogers reported a total service revenue increase of 10% to $4.9 billion, while adjusted EBITDA rose 5% to $2.4 billion. Media delivered strong revenue growth of $988 million, up 82%, primarily as a result of revenue from MLSE following closing of the MLSE transaction last July.
