2Q26 Results: Population Backdrop Weighs on Loading, MLSE Close Pending League Approval

Research evidence excerpt

2Q26 Results: Population Backdrop Weighs on Loading, MLSE Close Pending League Approval

Idea

July 23, 2026 12:08 AM GMT

Morgan Stanley & Co. LLCMRogers Communications, Inc. | North America Sean Diffley, CFA

Equity Analyst

2Q26 Results: Population Sean.DIFFLEY@morganstanley.comPatrick A Ho +1 212 761-5868

Patrick.Ho@morganstanley.com +1 212 761-2764

Backdrop Weighs on Loading, Blake Netter, CPA

Blake.Netter@morganstanley.com +1 212 761-4679

MLSE Close Pending League

Rogers Communications, Inc. (RCIb.TO, RCI/B CT)

Telecom & Cable Services | CanadaApproval

Stock Rating Underweight

Industry View In-Line

Price target C$42.00

AlphaSignals Earnings Reaction Shr price, close (Jul 22, 2026) C$46.36

Mkt cap, curr (mm) C$25,103

Unchanged In-line Largely unchanged 52-Week Range C$56.27-44.21

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

2Q results were in-line with MSe across the board, with

management calling out continued volume headwinds with no

growth population backdrop, despite easing wireless

competition in 2Q. Purchase of Kilmer's MLSE stake expected to

close in 4Q, with minority stake(s) sales expected 1H27.

Key Takeaways

Print for 2Q largely in-line across revs / adj. EBITDA / EPS with guidance

reiterated for the full year. Our '27e/'28e estimates remain broadly unchanged.

Wireless pricing wars somewhat eased in 2Q vs 1Q, although the CRTC's decision

to remove activation fees in mid-June presents new go forward ARPU headwind.

Loading backdrop remains challenging as postpaid wireless net adds down ~37%

y/y and mgmt calling out "flat to declining overall population" growth in Canada.

Acq. of 25% MLSE stake from Kilmer set to close in 4Q (~Oct 1) pending league

approval.