Rogers Communications Inc. exceeded analyst earnings expectations in the third quarter, driven by gains from its sports assets, while its core wireless business showed signs of slowing. The company reported adjusted earnings of C$1.29 per share, surpassing the C$1.23 consensus estimate. Media revenue increased 9% to C$821 million, supported by the company's expanded ownership of Maple Leaf Sports & Entertainment, where Rogers now holds 100% stake as of October 1. Rogers also owns the Toronto Blue Jays and plans to sell a minority stake in a consolidated sports, media and entertainment company by the first half of 2027.
Despite the positive earnings surprise, Rogers' wireless segment, its largest business, grew only 1% to C$2.69 billion. The company added just 6,000 net postpaid mobile subscribers, significantly below the estimated 33,000. This slowdown follows a much stronger addition of 62,000 subscribers a year prior. Analysts attribute the subscriber stagnation to Canadian immigration restrictions limiting new user pools and aggressive industry discounting.
Adjusted Ebitda rose 1% year-over-year in both cable and wireless divisions. CEO Tony Staffieri emphasized the importance of unlocking shareholder value from sports and media assets. The mixed results highlight a divergence between Rogers' high-growth media investments and the challenges facing its core telecommunications operations.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing