The Rogers building in Vancouver. The company reported higher than expected revenue in its second quarter.DARRYL DYCK/The Canadian Press
Rogers Communications Inc. RCI-B-T posted an 8-per-cent bump to revenue in its second quarter, boosted by its new sports holdings, but added fewer wireless subscribers than last year amid a continuing price battle with rivals.
Rogers reported $5.6-billion of service revenue during the three-month period ended June 30, up 8 per cent year-over-year, beating analyst expectations of $5.5-billion.
Media revenue was $1.5-billion, up 53 per cent over the same period in 2025, reflecting the contribution of the new stake in Maple Leaf Sports and Entertainment that Rogers bought from BCE Inc. last year, as well as “substantially higher” revenue from the Toronto Blue Jays.
Operating costs for the media division were also up 45 per cent, related to the consolidation of MLSE, higher Blue Jays player salary and programming costs, with higher capital expenditures linked to the continuing modernization of two stadiums.
Revenue from the company’s cable and wireless businesses was flat, with capital expenditures falling for both divisions compared with last year.
The company cut capital expenditures by 16 per cent in the quarter, in line with its plans to reduce spending by about one-third this year, in part by finding internal efficiencies and by cancelling or delaying infrastructure projects.
“We continue to re-evaluate whether or not the payback economic models make sense,” for network expansion, said Rogers chief executive officer Tony Staffieri in a Wednesday analyst call.
Rogers added 40,000 net new prepaid and postpaid wireless phone subscribers in the second quarter, below analysts’ expectations of 43,000 and down about a third from the same quarter last year.
The company added 17,000 net retail internet subscribers, but lost 22,000 net video subscribers and 26,000 home phone subscribers. Nonetheless, it posted a slight increase in cable revenue.
The telecom recorded a net loss of $665-million for the quarter, as a result of an accounting change related to the higher valuation of the sports assets it plans to acquire.
When Rogers purchased Bell’s stake in MLSE last year, it used the price it paid to assess the remaining 25-per-cent portion that it plans to buy, currently held by Kilmer Sports Inc., as being worth $3.1-billion.
On July 6, Rogers signed a deal with Kilmer to acquire those assets for $4.35-billion, more than $1-billion above what it had previously accounted for.
As a result, the company made an accounting adjustment in the quarter, which it said resulted in a non-cash loss that ultimately affected net income.
Adjusted net income excluding the impact of this change was $633-million, in line with the prior year.
The company reiterated its plan to acquire the outstanding MLSE assets through a mix of existing and new credit facilities, with the deal expected to close by the end of 2026. As of June 30, the company had $6.1-billion in available liquidity.
Speaking with analysts Wednesday morning, Rogers chief financial officer Glenn Brandt said the company is now working on “a number of different files” in advance of the acquisition, including approaching the leagues for their approval, engaging investors, and working with advisers to prepare to bring the asset to market.
Rogers and rivals BCE and Telus Corp. have seen their stock prices fall in recent years as mobile plan pricing has declined and as Canada’s population growth has stagnated.
Mr. Staffieri said that there was less promotional discounting of plans in the last few months. This could suggest the beginning of an upward tick in prices over time.
However, in a note to investors sent before earnings, Royal Bank of Canada analyst Drew McReynolds said he sees the potential for improvement starting next year as the telecoms deleverage their balance sheets and start to benefit from new revenue streams.