Rogers Communications Reports Second Quarter 2025 Results

Executive Summary

• Rogers Communications reported Q2 2025 financial results, showing a 2% year-over-year increase in total service revenue and adjusted EBITDA, driven by growth in Wireless, Cable, and Media segments.
• The company completed two major strategic transactions: the acquisition of the remaining 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for $4.7 billion, becoming a 75% majority owner, and the closing of a $6.7 billion subsidiary equity investment with Blackstone to accelerate deleveraging.
• Rogers updated its full-year 2025 guidance, raising the total service revenue growth outlook to 3%-5% (from 0%-3%) and maintaining adjusted EBITDA growth at 0%-3%, while lowering capital expenditure expectations to approximately $3.8 billion.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Total Revenue: $5,216 million (+2%)
  • Total Service Revenue: $4,668 million (+2%)
  • Adjusted EBITDA: $2,362 million (+2%)
  • Net Income: $148 million (-62%)
  • Adjusted Net Income: $632 million (+1%)
  • Free Cash Flow: $925 million (+39%)
  • Diluted Adjusted EPS: $1.14 (-2%)
• Segment Results:
  • Wireless: Service revenue +1%; Adjusted EBITDA +1%; Added 61,000 total mobile net subscribers (35,000 postpaid); Postpaid churn 1.00%; Mobile phone ARPU $55.45.
  • Cable: Service revenue +1%; Adjusted EBITDA +3%; Added 26,000 retail Internet net subscribers; Video subscribers decreased by 25,000.
  • Media: Revenue +10% (driven by NHL playoffs and Warner Bros. Discovery channels); Adjusted EBITDA $5 million.
• Strategic Transactions:
  • MLSE Acquisition: Acquired Bell’s 37.5% stake for $4.7 billion in cash, effective July 1, 2025. Rogers now holds 75% of MLSE. Pro forma 2025 Media revenue including MLSE estimated at ~$3.9 billion; adjusted EBITDA ~$250 million.
  • Subsidiary Equity Investment: Closed $6.7 billion ($4.85 billion USD) equity investment with Blackstone in Backhaul Network Services Inc. (BNSI). Blackstone holds 49.9% equity interest. Proceeds used primarily to repay debt; ~$700 million used this quarter for term loan repayment, with ~$1.1 billion CAD and $1.4 billion USD intended for senior note tender offers.
• Balance Sheet & Liquidity:
  • Debt leverage ratio improved to 3.6x as of June 30, 2025 (down from 4.5x at year-end 2024).
  • Available liquidity: $11.8 billion (Cash: $7.0 billion; Credit facilities: $4.8 billion).
• 2025 Guidance Update:
  • Total Service Revenue: 3% to 5% growth.
  • Adjusted EBITDA: 0% to 3% growth.
  • Capital Expenditures: Approximately $3.8 billion.
  • Free Cash Flow: $3.0 billion to $3.2 billion.
• Dividends: Declared $0.50 per share dividend on July 22, 2025.

Notable Quotes

• "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."