Capex:
What direction does 5i see for Capex spending at Rogers over the next say three years? In addition to paying for the remaining 25% of MLSE, will upgrading their cable segment (or some other business need) require large investment and limit debt reduction?
Monetizing their sports assets:
It all sounds great but .... what risks does 5i see to individual Rogers investors, and how serious does 5i feel those risks are, from the controlling Rogers family negotiating a monetization that benefits only them?
Thank you
Edward
Rogers provides annual capital expenditure (capex) guidance, updated quarterly based on performance and efficiencies. For full-year 2025, the latest update from Q3 results reaffirms service revenue growth of 3-5% and adjusted EBITDA growth of 0-3%, with capex now at approximately $3.7 billion (down from prior $3.8 billion) and free cash flow of $3.2-3.3 billion. RCI.B stressed capital efficiency in 2026 but has not released capex budgets for the future at all. We would expect a lower figure going forward as debt is certainly a priority. Debt has declined $3B in the past year. But there has been no direction given by the company. The latter question is difficult. Conflicts can certainly exist with a family-run business. Risks exist, but we will need to examine any deals as they are made. The sector is competitive and could become more so, and we think RCI.B needs to maintain its financial flexibility more than anything right now. If the balance sheet can be de-risked we would accept some degree of non-perfection in deals in order to meet the leverage-reduction goals.