Canada's Rogers Communications Q2 revenue beats on media growth, cable subscriber gains

Overview

• Canada telecom and media firm's Q2 revenue rose 8%, beating analyst expectations

• Adjusted EPS for Q2 beat consensus

• Company agreed to buy remaining 25% stake in Maple Leaf Sports & Entertainment

Outlook

• Rogers reaffirms 2026 outlook: service revenue growth of 3%-5%, adj EBITDA growth of 1%-3%

• Company expects remaining MLSE minority stake purchase to close in Q4

• Rogers plans to pursue sale of minority interest in consolidated sports assets over next year

Result Drivers

• MEDIA GROWTH - Media revenue rose 53%, mainly due to the consolidation of MLSE and higher Toronto Blue Jays revenue

• CABLE SUBSCRIBER GAINS - Cable service revenue grew 1% due to retail Internet subscriber growth and base management activities

• WIRELESS MIXED PERFORMANCE - Wireless service revenue was stable as customer additions were offset by lower mobile phone ARPU from competitive intensity

Company press release: ID:nGNX7g47GV

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the wireless telecommunications services peer group is "buy"

• Wall Street's median 12-month price target for Rogers Communications Inc is C$60.00, about 23.4% above its July 21 closing price of C$48.61

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)