Rogers Communications Inc. (NYSE:RCI) reported stronger-than-expected second-quarter results on Wednesday, with both earnings and revenue surpassing analyst forecasts and prompting an upward revision to the company’s full-year outlook.
The Canadian telecom leader posted adjusted earnings of C$1.14 per share, significantly ahead of the C$0.81 expected by analysts. Total revenue for the quarter came in at C$5.22 billion, well above the consensus estimate of C$3.79 billion, fueled by growth across its Wireless, Cable, and Media businesses.
Service revenue rose 2% compared to the prior year, with Wireless and Cable service revenues each increasing 1%. Media revenue surged 10% year-over-year, helped by expanded content offerings and strong viewership of the NHL playoffs on Sportsnet.
“In the second quarter, Rogers reported strong financial performance delivering growth in Wireless, Cable, and Media,” said Tony Staffieri, President and CEO. “Combined with our team’s strong execution, we took meaningful steps to unlock value for shareholders by accelerating the deleveraging of our balance sheet and making our transformational investment in our world-class sports assets.”
Free cash flow reached C$925 million, up 39% from the same quarter a year earlier. Rogers shares rose 1.5% following the report.
The company added a total of 61,000 net new mobile phone subscribers, including 35,000 postpaid additions. Postpaid churn improved to 1.00%, a 7-basis-point decline. On the broadband side, Rogers gained 26,000 new retail Internet customers.
Rogers also updated its 2025 guidance following the July 1 closing of its majority acquisition of Maple Leaf Sports & Entertainment (MLSE). The company now expects total service revenue to grow between 3% and 5% this year, up from its previous range of 0% to 3%.
Capital expenditures for the year are forecast to be around C$3.8 billion, which lands at the low end of the prior guidance range.
Rogers now estimates the value of its combined sports and media assets at over C$15 billion. It projects that on a pro forma basis, its 2025 Media segment revenue and adjusted EBITDA—including MLSE—will reach approximately C$3.9 billion and C$250 million, respectively.
Rogers Communications stock price
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