Rogers Communications Lifts Outlook After Toronto Sports Deal

Canada’s Rogers Communications, Inc. (NYSE:RCI) shares edged down Wednesday, even as the company delivered an earnings beat in its second-quarter report and raised its full-year service revenue guidance.

The company reported second-quarter adjusted earnings per share of 82 cents, beating the analyst consensus estimate of 80 cents. Quarterly sales of $3.77 billion missed the Street view of $3.78 billion.

In Canadian dollars, the company reported second-quarter adjusted earnings per share of 1.14 Canadian dollars.

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Total revenue and total service revenue each increased by 2% this quarter, driven by growth in Wireless and Media businesses.

Wireless service revenue increased by 1% this quarter, primarily as a result of continued growth in the subscriber base. Wireless equipment revenue increased by 13%, primarily as a result of higher device sales to existing customers.

Cable service revenue increased by 1% this quarter, primarily as a result of retail Internet subscriber growth and base management activity.

Media revenue increased by 10% this quarter, primarily as a result of higher sports-related revenue due to the success of the NHL playoffs and the launch of the Warner Bros. Discovery suite of television channels.

Consolidated adjusted EBITDA increased 2% this quarter, while adjusted EBITDA margin decreased by 40 basis points, primarily as a result of ongoing productivity and cost efficiencies.

The company said it added 61,000 mobile and 26,000 retail internet customers in the second quarter.

On April 4, the company announced it had entered into a definitive agreement with funds managed by Blackstone Inc. (NYSE:BX), backed by leading Canadian institutional investors, for $4.85 billion. On June 20, 2025, the network transaction closed, and the firm received $4.85 billion from Blackstone.

FY25 Outlook

Rogers Communications has revised its yearly service revenue projection upward. The company said total service revenue is expected to grow by 3% to 5% versus the prior outlook of 0% to 3%.

As per a Reuters report, this adjustment comes as the company anticipates a significant positive impact from its acquisition of a stake in Maple Leaf Sports & Entertainment (MLSE). MLSE is the parent company of prominent sports franchises, including the Toronto Raptors basketball team and the NHL’s Toronto Maple Leafs, underscoring Rogers’ strategic focus on live sports.

Rogers has significantly increased its investment in Canadian sports over recent years. This strategic move aims to leverage the substantial viewership and dedicated fanbase that sports command, particularly as traditional media experiences a general decline.

The company sees capex to be approximately $3.8 billion versus the prior range of $3.8 billion to $4.0 billion.

Price Action: RCI shares are trading lower by 0.53% to $33.96 at last check Wednesday.

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