Rogers Q2 Earnings Beat Expectations as MLSE Deal Progresses

Rogers Communications (NYSE:RCI) topped Q2 earnings expectations, reporting C$5.62 billion revenue ahead of estimates of C$5.55 billion. Adjusted EPS came in at C$1.15 vs. C$1.13 estimates. Total service revenue rose 8% to C$5.1 billion, while adjusted EBITDA increased 3% to C$2.4 billion. Free cash flow grew 6% to C$1 billion, supported by capital intensity dropping to 12.4%. Wireless segment added 40,000 net users, including 22,000 postpaid additions. Cable business saw 1% growth in revenue and EBITDA, with retail internet additions totaling 17,000. Sports and media segment revenue surged 53% to C$1.2 billion, with organic growth of 13%. MLSE minority stake acquisition is expected to close in Q4. Rogers reaffirmed 2026 guidance for 3-5% revenue growth and 1-3% EBITDA growth. Shares closed down 1.3% at C$48.

The MLSE deal represents a strategic merger between Canada's top telecom firm and a global sports and entertainment powerhouse. This move could unlock long-term value for shareholders by integrating Rogers' infrastructure with MLSE's assets.